Canada to join Mexican complaint about U.S. auto industry move
CTV
Canada will sign onto a complaint against the United States over its interpretation of how free trade should apply to the continental auto industry, another sign of souring ties between the two neighbours.
Trade Minister Mary Ng said on Thursday that Canada would join Mexico in asking for a dispute settlement panel under the terms of the U.S.-Mexico-Canada (USMCA) trade pact.
The two countries want to clear up disagreements over how to apply automotive sector content requirements under the treaty, which came into effect in July 2020, replacing the North American Free Trade Agreement (NAFTA).
Mexico and Canada are also unhappy about proposed U.S. tax breaks for American-based manufacturers of electric vehicles. This, they say, could undermine the highly integrated North American auto industry.
The USMCA says 75% of a vehicle's components must originate in the three nations to quality for tax-free status, up from 62.5% under NAFTA.
