Canada joins Mexico for consultation with US over USMCA auto content rules

 Canada has joined Mexico in seeking formal consultation with the United States over the interpretation of content rules for automobiles set out in the North American trade pact, Mexico and Canada said on Friday. 

Mexico requested a formal consultation on the interpretation and application of tough material rules for cars under the United States-Mexico-Canada Agreement (USMCA) on August 20, after disagreeing on the issue in a virtual meeting in May when it The differences cited the United States methods.

Canada and Mexico use more flexible interpretations.

Global Affairs Canada spokeswoman Patricia Skinner said, "We know how important the auto industry is to Canadian workers and the Canadian economy. Canada has advised the US and Mexico to engage in consultation as a third party. wants."

Skinner said Canada continues to work with the auto industry on this and other important issues.

Mexico's Economy Minister Tatiana Clothier said, "We are pleased that Canada has decided to join the consultation request that we received on August 20 regarding the interpretation of the Rules of Origin by the United States at the USMCA for the automotive sector. requested." said on Twitter.

The USMCA, the successor to the North American Free Trade Agreement, requires 75 per cent of North American content for a vehicle to be from North America.

The same percentage will apply for essential parts from July 1, 2023, which is now 69 per cent, compared to 62.5 per cent under the previous trade agreement.

Mexico argues that once the required parts level reaches 75 per cent, it is considered 100 per cent and should be counted as the overall value of the automobile.