September 27, 2021

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Canada will participate in auto lawsuits between Mexico and the United States

(Photo: EFE)

Canada will be an interested third party in the discussions on the rules between the United States and Mexico Automobiles It is traded in North America, which will avoid a direct confrontation with the Biden administration before next month’s elections, while at the same time being concerned about the U.S. situation.

Last week, Mexico sought to begin consultations with US officials on resolving disagreements over how to measure regional content so that cars could be marketed for free. Duty. Those familiar with the matter said last month that the United States insists on a more rigorous system than Mexico and Canada, and has agreed to count the appearance of some key components, including engines, transmissions and steering systems, in the overall calculation.

Luc Maria de la Mora, Mexico’s deputy secretary of state, said the US position on the terms of the US-Mexico-Canada trade agreement, known as the T-MEC, could push automakers out of the region due to complex and costly content requirements. Foreign Trade Economy, in an interview this week.

“We know how important the auto industry is to Canadian workers and the Canadian economy,” Michael Simbe, the government’s spokesman for global affairs, said in an email Friday. “Canada has announced its intention to join the United States and Mexico as a third party in consultation. We will continue to work with the industry on this and other key issues.

(Photo: Reuters)
(Photo: Reuters)

Bloomberg Mexico, Canada and The Manufacturers All the auto dealers were marching against the Biden management on the rules.

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Flavio Wolf, president of the Canadian Automobile Manufacturers Association, said Canada’s move was “on the side of Mexico and should be explained.” “Canada understands that the global competitiveness of the Continental auto industry is in jeopardy if it maintains the position of the United States, and it would be wise to add its weight to the move,” he said.

This is the first time the Canadian government has publicly commented on a disagreement as the country is in the midst of an election campaign. Prime Minister’s Administration, Justin Trudeau, This month officially entered the interim system after calling for snap elections for September 20th.

The decision of the Trudeau administration on how to participate in the automotive disagreement indicates its broader focus on Canada’s relationship with the United States, the country’s most important ally. Trudeau and his administration want a cautious approach to maintaining good relations with Canada’s southern neighbors and minimizing damage to the country’s economy.

Despite generally having more fluid relations with President Joe Biden’s administration than President Donald Trump’s administration, Trudeau complained to his U.S. colleague about revoking U.S. approval for a major pipeline project. “Buy America” ​​procurement policy.

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