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“This is protectionism, cost-raising and uncertainty-raising,” he added. “Compared to the status quo, (consumers) are going to be worse off.”

The most striking example involves one of the biggest investments Canadians make — buying a vehicle.

The preliminary agreement between Mexico and the United States announced last Monday would, if enacted, require that 75 per cent of the parts in any vehicle sold in North America be produced in the U.S. or Mexico.

The current requirement is that about 62 per cent of parts be produced in the U.S., Mexico or Canada.

The deal also included stronger labour standards, requiring that 40 to 45 per cent of auto parts in cars sold in the U.S. be made by workers earning at least US$16 per hour.

If the goal of the NAFTA talks was to simplify rules of origin and allow for more integration and cost efficiencies in the North American auto sector, consumers might expect to reap a cost-saving benefit, said Patrick Leblond, an international relations professor at the University of Ottawa.

“Clearly that’s not what the Mexicans and the Americans agreed to,” said Leblond.

While final details of the agreement have yet to be laid out, what has been seen so far indicates that automakers could soon be dealing with more complex trading rules that will add costs to manufacturing and ultimately hurt consumers, he added.

“It doesn’t look like prices will come down, and it seems they are likely to increase as a result.”