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Canada to participate in Mexico-US auto spat as third party

Author: Posttime:2021-09-07 08:05:44

CANADA is expected to avoid direct confrontation with the US Biden administration over content rules governing cars traded in North America while still backing Mexico plea for greater liberality - ahead of Canada's September 20 national election, Bloomberg reports.

But Canada's move "will and should be interpreted" as taking Mexico's side, said Flavio Volpe, president of Canada's Automotive Parts Manufacturers Association.
"Canada understands that the continental automotive sector's global competitiveness is at risk if the US position carries, and they¡¯re very wise to add their weight to this action," Mr Volpe said.
Mexico has requested formal consultations with the US to settle a disagreement over how to measure regional content for cars to trade duty free.
The US insists on a stricter method than Mexico and Canada believe they agreed to for counting the origin of certain core parts including engines, transmissions and steering systems in the overall calculation.
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