Mexico hopes that the dispute settlement panel that requested the interpretation of the United States to the rules of origin of the automotive sector in the framework of the trade agreement for North America, the TMEC, be resolved in the third quarter of the year, said the Secretary of Economy on Friday.
The Mexican government last week requested the establishment of a panel to resolve its differences with the United States on the issue, to which Canada joined this week.
“The panel, we believe, should be resolved throughout this year. It is not an expedited process and we will be having results, hopefully by the third quarter,” said the secretary, Tatiana Clouthier.
Under the trade pact, 75% of a vehicle’s components must originate in North America to qualify as duty-free, versus 62.5% under the TLCAN, which was replaced by the TMEC in 2020.
The two partners of the United States are in favor of a more flexible interpretation of the regulations of the trade agreement and assure that Washington’s reading is inconsistent with the TMEC.
Reference-www.eleconomista.com.mx