US to seek strict rules of origin in NAFTA talks, sources say

Chris Wattie | Reuters

U.S. Trade Representative Robert Lighthizer (R) addresses the media with Canada’s Foreign Minister Chrystia Freeland (C) and Mexico’s Economy Minister Ildefonso Guajardo at the close of the third round of NAFTA talks involving the United States, Mexico and Canada in Ottawa, Ontario, Canada, September 27, 2017.

The United States is set to request new North American Free Trade Agreement rules which would lay out stricter standards in order for manufactured goods to be treated as duty free.

Two people familiar with the plan said the U.S. wants an 85 percent content to come from the United States, Mexico and Canada. That figure is significantly higher than the current requirement of 62.5 percent.

They also said the request may include a demand for a 50 percent American content requirement, in order to be exempt from tariffs.

It was not immediately clear how broadly these proposed changes would be applied across industries.

The fourth round of NAFTA talks is set to open Wednesday in Washington D.C.

This story is developing. Please check back for further updates.