U.S. tables NAFTA's 'poison pill' with auto sector demands

The United States'sNAFTA negotiating team has formally presented its proposed changes to the auto sector, starting what's likely to be the most contentious rounds of renegotiations, CBC News has learned.

A sourcewith direct knowledge of the talks says the Americansunveiled Friday their protectionistrequeststhat wouldboost the overall North American content requirements from 62.5 per centto 85 per cent.

The changeswouldapply to automobiles, trucks and large automobileparts.

A source told CBC the changes would be phased in gradually.

But the Americans also wanta country-specific change that would increase U.S. content requirements to 50 per centin the first year of the new deal.

• Canada won't be provoked to walk out onNAFTAtalks by aggressive U.S. proposals
• Concerns mount thatNAFTAcould die before it's renegotiated

Sources close to the talks have told CBC News thatCanada views the proposal as a "non-starter."

The proposals have been presented, but not yet discussed.

Both demands would upend the current automotive sector, with the proposal being described by industry analysts as a "poisonpill" for the trade agreement.

TomDonohue, who heads the U.S. Chamber of Commerce, has pointed to a number of "unnecessary and unacceptable . poison-pill proposals" from the Trump administration.