Canada joins Mexico's claim to the US on automotive sector rules in T-MEC

The government of Canada announced that it intends to join the complaint of Mexico against U.S for their interpretation of the rules of origin in the Automotive industry, a position that was immediately celebrated by the Mexican government.

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Mexico last week requested a dispute resolution panel under the terms of the free trade agreement between the three countries, T-MEC, after a period of consultations that he called Washington in August to resolve the discrepancies, which was sufficient.

“The interpretation adopted by the United States … is inconsistent with the T-MEC and the understanding shared by the parties and interested parties throughout the negotiations,” said Canadian Trade Minister Mary Ng in a statement announcing the decision. .

Mexico Y Canada are more flexible than U.S in the interpretation of the rules of origin of the agreement, which requires that 75% of the components of a vehicle be originated in the three nations in order not to pay taxes, compared to 62.5% of the previous treaty, NAFTA.

“I welcome Canada’s decision to join the Panel’s request,” Mexican Economy Secretary Tatiana Clouthier later said on her Twitter account.

“Together we will defend the competitiveness of this regional industry,” he added.

With information from Reuters

AAE

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