Mexico, Canada Seek Talks With US Over Auto Content Rules in USMCA
MEXICO CITY—Representatives from Mexico and Canada are seeking formal consultation with the United States over the interpretation of content rules for automobiles set out in the United States-Mexico-Canada Agreement (USMCA), which took effect July 1, 2020. Requesting consultation is the first non-contentious stage of a dispute resolution mechanism provided for in the North American trade pact.
In late August, Mexico requested formal consultation over the interpretation and application of tougher content rules for cars under the USMCA, after voicing disagreement in May over the issue in a virtual meeting when it cited differences with the United States' methods. On August 27, Canada announced it was joining Mexico in seeking the consultation, citing that both countries use more flexible interpretations of language in the agreement.