Mexico demands discussion panel on the USMCA automotive industry controversy


MEXICO CITY — According to The Washington Post, the Mexican government on Thursday, January 6th, requested a dispute resolution panel under the U.S.-Mexico-Canada free trade agreement because it claims the United States is improperly interpreting stricter regional content rules under the pact.

The agreement, known as the USMCA, raised required regional content to 75% of a vehicle’s value or components. Under the old NAFTA agreement, that threshold was 62.5%.

But Mexico’s Economy Department said Thursday that U.S. officials were taking an unduly strict approach by not allowing “various methodologies” to calculate content, something Mexico claims is contained in the USMCA annex.

A number of Asian and European automakers have established plants in Mexico, and sometimes import components from outside North America.

In December, Mexico threatened legal action over proposed subsidies of up to $12,500 for purchases of union-made, American-made electric vehicles.

Click here to read the complete original article on The Washington Post

Source: The Washington Post

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