Mexico and Canada won a favorable resolution regarding the US interpretation of automotive rules of origin under the T-MEC, the dispute settlement panel published.
This favors parts manufacturers north and south of the US border.
Through a statement, the Ministry of Economy released the final report of the controversy after the panel analyzed the dispute due to differences in interpretation of rules of origin, and ruled in favor of Mexico and Canada.
The United States has 45 days to implement it.
It should be noted that the report was officially released today, although it was received by all three parties a month ago.
“Pursuant to its resolution, the Panel determined that the T-MEC allows automobile manufacturers to consider essential parts of a finished vehicle (engine, transmission, body, etc.) as originating, once, separately, such parts automobiles complied. with the minimum percentage of regional content (75%), using the alternative methodologies that the same treaty establishes”.
From now on, the three partner countries of T-MEC must determine the implementation, of which the agency indicated that “in the coming days, Mexico will begin a process of dialogue and cooperation with its commercial partners for the attention of the Final Report”.
On August 20, 2021, Mexico formally requested consultations with the United States “to resolve the difference in interpretation and application of rules of origin in the automotive sector”.
Without there having been a resolution, on January 6, 2022, he asked for the constitution of a panel to analyze the dispute, dispute which Canada joined a few days later.
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