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Autos Drive America, the lobbying group for foreign automakers in the United States, has publicly voiced its support of Mexico in its dispute with the United States regarding automotive rules of origin in North America.
The rules of origin describe how much of a product must originate from the region to qualify for tariff-free status as outlined by the USMCA (United States-Mexico-Canada Agreement).
The USMCA replaced the former North American Free Trade Agreement in 2020. This dispute is the first time Mexico has requested a panel to handle a disagreement with its largest trading partner under the USMCA.
In a public statement, President & CEO of Autos Drive America Jennifer Safavian said:
“We share the concerns outlined in Mexico’s dispute settlement challenge and urge an expeditious and fair resolution to the United States-Mexico-Canada Agreement (USMCA) rules of origin interpretation to enable the U.S. market – and the entire North American trading block – to reap the full benefits of the agreement.”
Mexico’s chief complaint is that the U.S. is interpreting the rules too strictly, with Mexico’s Economy Ministry stating: “The U.S. imposes on automakers requirements that are incompatible with the USMCA to calculate the regional value content of passenger vehicles, light trucks and their parts.”
Canada has also indicated its support of Mexico in this dispute and will contribute to building a panel of independent experts who can review the arguments and provide a ruling on the matter.
