US seeks lower trade deficit in NAFTA talks

The fifth round of talks to update the 23-year-old North American Free Trade Agreement (NAFTA) have begun in Mexico City.

The US proposal to alter NAFTA’s rules of origin in an effort to narrow the $74bn trade deficit it has with Mexico has sparked heated debate among trade negotiators, but Mexican auto industry leaders seem calm and confident.

But stalemate could lead to major economic fallout on both sides of the border.

Al Jazeera’s Manuel Rapalo reports from Mexico City.