Mexico challenges US application of USMCA auto rules, Auto News, ET Auto


Washington – Mexico disagrees with the United States on how it applies content rules for regional auto trade, Mexican Economy Minister Tatiana Clouthier said on Friday.

The dispute revolves around content requirements known as rules of origin that allow cars made in North America to receive duty-free treatment under the regional trade pact that came into effect there. is a little over a year old.

“We believe the rules of origin were not interpreted the way they were agreed upon at the time we signed the agreement,” Clouthier told reporters.

The United States-Mexico-Canada Agreement (USCMA) signed by former U.S. President Donald Trump raised the regional content requirement for vehicles to 75% from the 62.5% threshold under the Accord North American Free Trade Agreement (NAFTA), which it replaced.

Clouthier met with U.S. Trade Representative (USTR) Katherine Tai on Thursday to discuss the issue just after the agreement’s implementation anniversary, but said the parties had not resolved their disagreement.

“We need more dialogue,” she told a press conference.

It also issued a statement warning that “failure to follow USMCA rules can potentially disrupt the operations of the North American auto industry and cause unnecessary burdens” on manufacturers and “reduced competitiveness.”

The USTR did not respond to a request for comment, but in a statement after the meeting with Mexican officials said that “the United States remains committed to the full implementation of the USMCA, including strong rules of automotive origin “.

Trump and his sales representative Robert Lighthizer touted the new deal as a boon to the U.S. auto industry, which under NAFTA has become tightly integrated with suppliers and assembly plants in Mexico and Canada.

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