Canada is joining Mexico’s official complaint today requesting a dispute settlement panel over claims the U.S. is violating the Canada-U.S.-Mexico Agreement on trade, the new NAFTA, by insisting on a stricter way of interpreting a key provision around auto parts.
Motor vehicles are the top manufactured trade product between the three countries. Canada argues that the way the U.S. views the trade pact would make it harder for Canadian vehicles and core auto parts — engines, transmissions and steering wheels — to qualify as duty-free.
International trade and export promotion minister May Ng issued a statement this morning arguing the U.S. view of the rules is “inconsistent” with the trade agreement the three countries agreed to, which came into force in 2020.
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