CANADA, MEXICO ACCUSE U.S. OF VIOLATING TRADE PACT CAR PARTS PROVISION

Jan 13, 2022

By Bob Komsic

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Ottawa is joining Mexico City’s official complaint to challenge how Washington is interpreting new rules governing duty-free cars and trucks.
Rules of origin in the U.S.-Mexico-Canada Agreement (USMCA) dictate how much of a product must originate in the region in order to qualify for tariff-free status.
The agreement requires passenger vehicles to contain 75% regional content, up from 62% under NAFTA – the North American Free Trade Agreement.
Canada says Washington’s violating the terms by adopting a stricter formula for how the thresholds are met.
International Trade Minister Mary Ng says in a statement ”Canada is optimistic that a dispute settlement panel will help ensure a timely resolution of this issue.”
Canada and Mexico have been working to resolve the dispute for over a year.
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