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Mexico asks USMCA dispute resolution panel on auto content


MEXICO CITY (AP) — The Mexican government has requested a dispute resolution panel under the U.S.-Mexico-Canada free trade agreement, because it claims the United States is improperly interpreting stricter regional content rules under the pact. The agreement, known as the USMCA, raised requirements for regional content to 75% of a vehicle’s value or components. Under the old NAFTA agreement, the threshold was 62.5%. But Mexico’s Economy Department said Thursday that U.S. officials were taking an unduly strict approach by not allowing “various methodologies” to calculate content, something Mexico claims is contained in the USMCA. In December, Mexico objected to proposed U.S. subsidies for purchases of union-made, American-made electric vehicles.  

Associated Press

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