Canada joins Mexico’s claim to the US on rules of origin in the automotive industry in the T-MEC

The government of Canada announced on Thursday that it intends to join the complaint of Mexico against U.S for his interpretation of the rules of origin in the Automotive industry, a position that was immediately celebrated by the executive of the Latin American country.

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 in which he called Washington in August to resolve the discrepancies and that was enough.

“The interpretation that the United States adopted… is inconsistent with the T-MEC and the understanding shared by the parties and interested parties throughout the negotiations,” said the Canadian Minister of Trade, Mary Ng, in a statement announcing the decision.

Mexico and Canada are more flexible than the United States in the interpretation of rules of origin of the agreement, which requires that 75% of the components of a vehicle originate in the three nations so as not to pay taxes, compared to 62.5% of the previous treaty, TLCAN.

“I welcome Canada’s decision to join the Panel’s request,” Secretary of the Economy said later, Tatiana Clouthier on his Twitter account. “Together we will defend the competitiveness of this regional industry,” he added.

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