U.S. trade negotiators want regional content to make up 82 per cent of North American-built vehicles to qualify for preferential tariff treatment through the United States-Mexico-Canada Agreement (USMCA),while demanding that at least half the value be produced in the U.S. (Reuters)

Talking point: The Trump administration kicked off the first bilateral negotiating round for the joint review of USMCA in Mexico City on Thursday. Canada, which has not yet begun formal talks with the U.S., was not invited to the meeting. Citing unnamed sources familiar with the U.S. negotiating position, Reuters reported the proposal did not mention a threshold for Canadian content. The current trade pact, also known as CUSMA, requires 75 per cent of the content of passenger vehicles be produced in North America, with 40 per cent of the production value coming from a country where workers earn at least US$16 per hour—effectively the U.S. or Canada.