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As reported by Reuters, Mexico is staunchly refusing to cave to US pressure to conclude the stalled-out NAFTA renegotiations, but the country has made a fresh counter-offer to the US following the Trump administration’s investigation into whether it can cite national security as a justification for imposing hefty tariffs on automotive imports.

Key quotes

“Differences over how to reconfigure the auto industry have slowed progress on talks to rework the 23-year-old North American Free Trade Agreement that underpins Mexico’s economy, with Mexico showing some flexibility but refusing to completely meet U.S. demands.

One Trump official said the investigation was partly aimed at yielding NAFTA concessions from trade partners Mexico and Canada.

“Mexico is not going to negotiate on the basis of pressure, Mexico is very clear about what works and what doesn’t work for us,” said Pena Nieto’s spokesman, Eduardo Sanchez.

However, Mexico made a new offer on autos “showing some flexibility” on Thursday, following the U.S. announcement of the national security probe into car imports, a person familiar with the talks said. It was not immediately clear if the offer encompassed other areas under negotiation.

The United States wants 40 percent of auto content to come from areas paying at least $16 hour.

Mexico has also proposed that 70 percent of overall content of a vehicle made in North America come from the region, countering a U.S. proposal of 75 percent for high-value parts.”