Canada, Mexico win auto rules Trade dispute with US
Business
Pleased to see dispute settlement in place as supporting our rights stipulated in USMCA, Canadian Minister
(Reuters) - A dispute panel found on Wednesday that Canada and Mexico had successfully refuted the United States interpretation of the new North American trade agreement s auto content criteria. This ruling is favourable to parts manufacturers both north and south of the U.S. border.
In regards to how to implement the USMCA (United States-Mexico-Canada) free trade agreement s automotive sector content standards, which took effect in 2020, Canada and Mexico filed a lawsuit against the US last year.
According to Flavio Volpe, president of the Canadian Automotive Parts Manufacturers Association, "the decision is beneficial for Canada and Mexico."
Canada s Trade Minister Mary said in a statement that her country was "pleased to see that the dispute settlement procedures in place are supporting our rights and obligations stipulated in USMCA."
Former Mexican economics secretary Tatiana Clouthier commented in a video on Twitter, "This is fantastic news." That has a significant positive impact on the whole North American automobile sector.
According to Mexico and Canada, the USMCA permits the larger criterion for the regional content of an entire automobile to be rounded up to 100% if a "core item," such as the engine or gearbox, contains 75 percent regional content.
