by david lawder and sharay angulo mexico city canada and mexico will not make counterproposals to us demands for tougher nafta automotive content rules but instead will offer rebuttals and pepper american negotiators with technical questions on monday people familiar with the talks said canada will make a presentation arguing us demands would cause serious damage to us as well as north american automotive manufacturing a canadian source with knowledge of the negotiations said the rebuttal is expected to come on monday as negotiators resume discussions on automotive rules of origin in the fifth round of talks to update the 23yearold north american free trade agreement between the united states canada and mexico the trump administration last month stunned its nafta partners by unveiling demands that half of the value content of all north americanbuilt autos be produced in the united states and that the regional vehicle content requirement be sharply increased to 85 percent from the current 625 percent the demands are aimed at meeting us president donald trumps nafta goals of stemming the flow of us carmaking jobs to lowwage mexico and reversing a 64 billion us trade deficit with its southern neighbor in terms of the automotive sector the united states proposal is insane said a mexican auto industry representative with knowledge of the talks you cannot counterpropose such madness also read us business groups ask trade agency to keep trucking rules in nafta the canadian negotiating teams presentation will provide information about how the us rules of origin proposal for autos would damage the continental industry in general and the united states in particular the canadian source said if you move the content requirement to 80 percent or even to a number lower than that it will hit the supply chains you would then have to deal with potentially illequipped suppliers that are maybe more expensive the source added a spokeswoman for the us trade representatives office on sunday declined to comment on the talks flavio volpe president of canadas automotive parts manufacturers association also said canada and mexico would try to convince us officials that the proposals would damage north american competitiveness and lead to fewer auto assembly and parts jobs on the continent volpe told reuters that his group has been briefing canadian negotiators on the effects of the us proposals its analysis found that even if some assembly operations are returned to the united states these job gains will be more than offset by parts production moving to asia and other lowcost production areas also read us house members oppose trump administration auto trade rules proposal many car manufacturers and parts makers will simply forego nafta freetrade benefits and pay the 25 percent us tariff on many components he added his us counterpart the motor and equipment manufacturers association last month unveiled a study showing that the united states would lose up to 24000 auto parts manufacturing jobs from higher nafta content requirements and up to 50000 if nafta is terminated the mexican