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.
I welcome Canada’s decision to join the Panel request that we presented on January 6 regarding the interpretation of rules of origin in the automotive sector that we have with the United States. Together we will defend the competitiveness of this regional industry.
– Tatiana Clouthier (@tatclouthier) January 13, 2022
“Together we will defend the competitiveness of this regional industry,” he added.
With information from Reuters