Renegotiation discussions surrounding the North American Free Trade Agreement continue, but according to a Reuters report published on Tuesday, U.S. trade officials met with leaders from General Motors and Ford.
The meeting could signal progress in discussions with Mexico and Canada to “modernize” the free-trade agreement. Renegotiating the trade agreement has been a key promise of the Trump administration. Canada and Mexico also support modernizing the agreement, especially as vehicle production becomes more complex in the modern era.
Last month, Mexican Economy Minister Ildefonso Guajardo said his country and Canada needed to listen more to consider President Trump’s proposals while coming up with creative ideas to ensure the trade agreement soldiers on. Some Canadian officials signaled fear that President Trump may pull out of the agreement altogether, which would have major impacts on GM, Ford and Fiat-Chrysler Automobiles. Each automaker operates facilities in all three countries.
GM also remains optimistic over the agreement’s future. Leading executives, including CEO Mary Barra, said there are no plans to move 2019 Chevrolet Silverado wholly to the U.S. last month. GM builds the half-ton crew cab pickup in Mexico. The automaker’s response came as FCA announced heavy-duty Ram production would move from Mexico to Michigan.