August is usually a sleepy month in Washington, DC. Not this year, especially for politicians and lawyers (and lawyers of politicians). Even for the negotiators, life is busier than ever. Discussions on the reorganization of the North American Free Trade Agreement (NAFTA) are in full swing. While The Economist was under pressure, the Mexican and US delegations were still fighting fiercely, mainly to pass new rules on the car trade. But progress seemed possible.
Under NAFTA, cars from Mexico and Canada can be imported duty-free from the United States if they meet the criteria set out in the Convention’s rules of origin. By optimizing these rules, traders can form supply chains.