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December 9, 2022
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Mexico and Canada win panel on car dispute with the United States

Mexico and Canada win panel on car dispute with the United States

Mexico’s Ministry of Economy and the US trade representative did not immediately respond to requests for comment. A spokesperson for Canada’s Trade Minister Mary Ng declined to comment until the ruling is published.

Mexico first requested the panel’s help in resolving the conflict in January.

The dispute centers on differing interpretations by nations of how to calculate the percentage of a vehicle that comes collectively from the three countries under USMCA, which replaced the North American Free Trade Agreement, also known as NAFTA.

Both Mexico and Canada believe that the USMCA stipulates that a higher percentage of regionally produced parts should be considered for duty-free shipping than the US wants to allow. Motor vehicles are the main manufactured product traded between the three countries.

Expansion reached out to the economy ministry, but they had no immediate comment.



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