50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Mexico prepared to escalate auto content dispute with U.S, minister says

Published 11/25/2021, 02:59 PM
Updated 11/25/2021, 05:15 PM
© Reuters. FILE PHOTO: Mexican Economy Minister Tatiana Clouthier gestures during an interview with Reuters in Mexico City, Mexico, on January 11, 2021. REUTERS/Dave Graham

By Sharay Angulo

MEXICO CITY (Reuters) -Mexico's Economy Minister Tatiana Clouthier said on Thursday she was working with the auto sector and the Canadian government to determine when to call for an arbitration panel https://www.reuters.com/business/autos-transportation/exclusive-mexico-seek-expert-panel-fix-auto-dispute-with-us-sources-say-2021-10-26 to resolve a dispute with the United States over auto content rules.

Mexico in August requested that the U.S. government initiate formal consultations on the dispute over the rules, which were agreed to in the United States-Mexico-Canada Agreement (USMCA).

But Clouthier said Washington has not budged in its stance.

"The U.S. government has a wrong interpretation, in our view and Canada's view," Clouthier told lawmakers in Mexico's Congress.

"We are about to start the next stage ... We're working with the auto sector and Canada to determine the right moment to start the panel."

Using the panel would escalate the tussle over automotive content rules, which were at the heart of former U.S. President Donald Trump's drive to replace the North American Free Trade Agreement (NAFTA) with what became USMCA.

© Reuters. FILE PHOTO: A carrier trailer transports Toyota vehicles for delivery while queuing at the border for customs control to cross into the U.S., at the Otay border crossing in Tijuana, Mexico June 30, 2020. REUTERS/Jorge Duenes

Mexico favors a more flexible interpretation of the auto industry regulations than the United States, which sought an overhaul of NAFTA in order to protect U.S. manufacturing jobs.

U.S. trade unions argue that jobs have migrated to lower-cost Mexican plants since NAFTA first took effect in 1994.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.