Canada participated in a third party in disputes between the United States and Mexico over the rules governing cars traffic in North America, avoiding direct conflict with the Biden administration before the elections next month, while still showing concern about the state of the US.
Mexico last week requested formal consultations with the US to settle a disagreement on how to measure regional content for cars trade at duty free. The US insists on a stricter method than Mexico and Canada believe to have agreed to the origin of computing components of certain cores including devices, transmissions and steering systems in overall computation, people familiar with the matter said next month.
The US position on the rules of the trade deal, which is known as the US-Mexico-Canada Agreement, could prompt automakers to abandon the country because of heavy and expensive content requirements, Luz Maria de la Mora, Mexico’s undersecretary of foreign economy and trade, said in an interview this week.
“We know the importance of auto industry workers in Canada and the Canadian economy,” Michel Cimpaye, spokesman for global affairs management, said in an emailed response to questions Friday. “Canada has advised the US and Mexico to have third party consultations in mind. We are continuing to work on these and other major industry issues.
Bloomberg reported last month that Mexico, Canada and all automakers have been aligned against the Biden administration’s regulations.