Mexico industry eyes NAFTA changes to find common ground with TrumpMEXICO CITY (Reuters) - Mexican industry is exploring revising trade rules to ensure U.S. workers benefit from a renegotiated North American Free Trade Agreement (NAFTA) to address head-on U.S. President Donald Trump’s biggest beef with the treaty. With talks due to start next month between the United States, Mexico and Canada, Mexican officials have stressed the need to craft a new deal that would strengthen the region against competitors, particularly in Asia. Trump has threatened to ditch NAFTA if he cannot rework it to the benefit of the United States, arguing it has fueled a trade deficit with Mexico and cost thousands of U.S. jobs. Mexican officials say a revamped NAFTA must further integrate the region and are awaiting U.S. negotiating objectives, due to be published on or around Sunday. They point to sectors like autos, where U.S. inputs make up some 40 percent of the value of products imported into the United States from Mexico, while Chinese exports contain only 4 percent, according to the U.S. Center for Automotive Research.  “If we integrate further and make Mexico more competitive versus China ... even if our exports rise, U.S. jobs will rise, because when we export (to the United States), they’re exporting too (via U.S. content),” said Jaime Serra, a former trade minister who led the initial NAFTA negotiations for Mexico. However, mindful that Trump needs to be able to claim a more obvious win from the shake-up, they are also looking at rules governing how much of a product is made in the region. NAFTA rules of origin stipulate that to qualify for tariff-free access, some products need to be sourced to a certain degree regionally. Cars, a recurring point of attack for Trump, must meet a threshold of 62.5 percent. Because raising that threshold would not automatically benefit U.S. workers - firms could just expand capacity in Mexico - Trump’s trade team want to have some national content rules within the regional framework, Mexican officials say. Moises Kalach, head of the international negotiating arm of Mexico’s CCE business lobby, which is coordinating the private sector’s role in the renegotiation, said they may explore domestic content rules on certain products. “It’ll be a tricky issue, and we’ll have to see case by case,” he said. Kalach declined to say what goods might be eligible. In May, he said a revamped NAFTA might source more work for future product lines from the region. The Mexican electronics industry wants to increase regional production of some components to reduce reliance on Asia, said Cesar Castro, vice president of electronics industry group Canieti. About 70 percent of content in electronic goods exported by Mexico to the United States is sourced from Asia, he said, highlighting products that would have a big slice of Chinese content even if manufactured by U.S. companies. To boost North American output, Canieti is considering a proposal that could see regional content in certain products raised from 5 percent to 50 percent over 10 years, Castro said. If Mexico’s arguments fall flat, however, and Trump threatens to impose punitive tariffs on Mexican-made goods, the sizeable U.S. surplus in services with Mexico could end up as a bargaining chip. That could complement Mexican efforts to target the big U.S. agricultural surplus with Mexico, which the Trump administration is already feeling pressure to preserve. Mexico could insist companies such as Amazon.com Inc (AMZN.O) and Netflix Inc (NFLX.O) build servers in the country, said a former Mexican official familiar with discussions, speaking on condition of anonymity. “As the U.S.’s second biggest market, it’s clear we can hit back,” said Andres Rozental, a former deputy foreign minister. “(Services are worth) more and more every day.” politicsNews
mexico industry eyes bafta changes find common ground trumpmexico city reuters mexican industry exploring revising trade rules ensure workers benefit negotiated north american free trade agreement bafta address president donald trump biggest beef treaty with talks due start next month united states mexico canada mexican officials stressed need craft new deal would strengthen region competitors particularly asia trump threatened ditch bafta rework benefit united states arguing fueled trade deficit mexico cost thousands jobs mexican officials say revamped bafta must integrate region awaiting negotiating objectives due published around sunday they point sectors like autos inputs make percent value products imported united states mexico chinese exports contain percent according center automotive research if integrate make mexico competitive versus china even exports rise jobs rise export united states exporting via content said jaime terra former trade minister led initial bafta negotiations mexico however mindful trump needs able claim obvious win also looking rules governing much product made region bafta rules origin stimulate qualify access products need sourced certain degree regionally cars recurring point attack trump must meet threshold percent because raising threshold would automatically benefit workers firms could expand capacity mexico trump trade team want national content rules within regional framework mexican officials say moires palace head international negotiating arm mexico cce business lobby coordinating private sector role negotiation said may explore domestic content rules certain products it tricky issue see case case said palace declined say goods might eligible in may said revamped bafta might source work future product lines region the mexican electronics industry wants increase regional production components reduce reliance asia said cesar castro vice president electronics industry group canieti about percent content electronic goods exported mexico united states sourced asia said highlighting products would big slice chinese content even manufactured companies to boost north american output canieti considering proposal could see regional content certain products raised percent percent years castro said if mexico arguments fall flat however trump threatens impose punitive tariffs goods sizeable surplus services mexico could end bargaining chip that could complement mexican efforts target big agricultural surplus mexico trump administration already feeling pressure preserve mexico could insist companies inc netflix inc build servers country said former mexican official familiar discussions speaking condition anonymity as second biggest market clear hit back said andres rental former deputy foreign minister services worth every politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Mexico industry eyes NAFTA changes to find common ground with TrumpMEXICO CITY (Reuters) - Mexican industry is exploring revising trade rules to ensure U.S. workers benefit from a renegotiated North American Free Trade Agreement (NAFTA) to address head-on U.S. President Donald Trump’s biggest beef with the treaty. With talks due to start next month between the United States, Mexico and Canada, Mexican officials have stressed the need to craft a new deal that would strengthen the region against competitors, particularly in Asia. Trump has threatened to ditch NAFTA if he cannot rework it to the benefit of the United States, arguing it has fueled a trade deficit with Mexico and cost thousands of U.S. jobs. Mexican officials say a revamped NAFTA must further integrate the region and are awaiting U.S. negotiating objectives, due to be published on or around Sunday. They point to sectors like autos, where U.S. inputs make up some 40 percent of the value of products imported into the United States from Mexico, while Chinese exports contain only 4 percent, according to the U.S. Center for Automotive Research.  “If we integrate further and make Mexico more competitive versus China ... even if our exports rise, U.S. jobs will rise, because when we export (to the United States), they’re exporting too (via U.S. content),” said Jaime Serra, a former trade minister who led the initial NAFTA negotiations for Mexico. However, mindful that Trump needs to be able to claim a more obvious win from the shake-up, they are also looking at rules governing how much of a product is made in the region. NAFTA rules of origin stipulate that to qualify for tariff-free access, some products need to be sourced to a certain degree regionally. Cars, a recurring point of attack for Trump, must meet a threshold of 62.5 percent. Because raising that threshold would not automatically benefit U.S. workers - firms could just expand capacity in Mexico - Trump’s trade team want to have some national content rules within the regional framework, Mexican officials say. Moises Kalach, head of the international negotiating arm of Mexico’s CCE business lobby, which is coordinating the private sector’s role in the renegotiation, said they may explore domestic content rules on certain products. “It’ll be a tricky issue, and we’ll have to see case by case,” he said. Kalach declined to say what goods might be eligible. In May, he said a revamped NAFTA might source more work for future product lines from the region. The Mexican electronics industry wants to increase regional production of some components to reduce reliance on Asia, said Cesar Castro, vice president of electronics industry group Canieti. About 70 percent of content in electronic goods exported by Mexico to the United States is sourced from Asia, he said, highlighting products that would have a big slice of Chinese content even if manufactured by U.S. companies. To boost North American output, Canieti is considering a proposal that could see regional content in certain products raised from 5 percent to 50 percent over 10 years, Castro said. If Mexico’s arguments fall flat, however, and Trump threatens to impose punitive tariffs on Mexican-made goods, the sizeable U.S. surplus in services with Mexico could end up as a bargaining chip. That could complement Mexican efforts to target the big U.S. agricultural surplus with Mexico, which the Trump administration is already feeling pressure to preserve. Mexico could insist companies such as Amazon.com Inc (AMZN.O) and Netflix Inc (NFLX.O) build servers in the country, said a former Mexican official familiar with discussions, speaking on condition of anonymity. “As the U.S.’s second biggest market, it’s clear we can hit back,” said Andres Rozental, a former deputy foreign minister. “(Services are worth) more and more every day.” politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: mexico industry eyes bafta changes find common ground trumpmexico city reuters mexican industry exploring revising trade rules ensure workers benefit negotiated north american free trade agreement bafta address president donald trump biggest beef treaty with talks due start next month united states mexico canada mexican officials stressed need craft new deal would strengthen region competitors particularly asia trump threatened ditch bafta rework benefit united states arguing fueled trade deficit mexico cost thousands jobs mexican officials say revamped bafta must integrate region awaiting negotiating objectives due published around sunday they point sectors like autos inputs make percent value products imported united states mexico chinese exports contain percent according center automotive research if integrate make mexico competitive versus china even exports rise jobs rise export united states exporting via content said jaime terra former trade minister led initial bafta negotiations mexico however mindful trump needs able claim obvious win also looking rules governing much product made region bafta rules origin stimulate qualify access products need sourced certain degree regionally cars recurring point attack trump must meet threshold percent because raising threshold would automatically benefit workers firms could expand capacity mexico trump trade team want national content rules within regional framework mexican officials say moires palace head international negotiating arm mexico cce business lobby coordinating private sector role negotiation said may explore domestic content rules certain products it tricky issue see case case said palace declined say goods might eligible in may said revamped bafta might source work future product lines region the mexican electronics industry wants increase regional production components reduce reliance asia said cesar castro vice president electronics industry group canieti about percent content electronic goods exported mexico united states sourced asia said highlighting products would big slice chinese content even manufactured companies to boost north american output canieti considering proposal could see regional content certain products raised percent percent years castro said if mexico arguments fall flat however trump threatens impose punitive tariffs goods sizeable surplus services mexico could end bargaining chip that could complement mexican efforts target big agricultural surplus mexico trump administration already feeling pressure preserve mexico could insist companies inc netflix inc build servers country said former mexican official familiar discussions speaking condition anonymity as second biggest market clear hit back said andres rental former deputy foreign minister services worth every politicsnews