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In
May, Mexico voiced disagreement over the issue in a three-way
online virtual meeting when it cited differences with the United
States methods. Canada and Mexico use more flexible
interpretations.
"Mexico has identified a divergent position between our
governments on the interpretation of ... provisions on rules of
origin for the automotive sector," Economy Minister Tatiana
Clouthier said in a letter.
In her letter on Friday to U.S. Trade Representative Katherine
Tai, Clouthier said Mexico wanted to avoid or resolve a possible
dispute.
The United States-Mexico-Canada Agreement (USMCA), the successor
to the North American Free Trade Agreement (NAFTA), requires 75%
North American content for a vehicle to be considered as being
from North America.
The same percentage will apply for so-called essential parts
from July 1, 2023, up from 69% now, and compared to 62.5% under
the previous trade pact.
But once the level of essential parts hits 75%, it is considered
100% and should be counted as such towards the overall value of
the automobile, Mexico says.
Its request for consultation is the first non-contentious stage
of a dispute resolution mechanism provided for in Chapter 31 of
the pact, with an industry expert saying such talks must be held
within 30 days, in this case by Sept. 20.
The United States is reviewing the request, said U.S. Trade
Representative spokesman Adam Hodge.
"We are reviewing Mexico's request for consultations and remain
committed to fully implementing the USMCA, including the strong
auto regional content requirements to which we all agreed," he
said.
(Reporting by Sharay Angulo; Additional reporting by Andrea
Shalal; Editing by Clarence Fernandez)
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