September 27, 2021

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Canada will participate in the US-Mexico auto case. As a third party | The world

Participate as interested third parties in discussions betweenAnd In the rules governing cars traded in North America, direct conflict with management was avoided Ahead of next month’s elections, when the U.S. is concerned about the situation.

Last week, Mexico formally requested that it begin consultations with U.S. officials to resolve differences over how to measure regional content. Those familiar with the matter said last month that the United States insists on a more rigorous method than Mexico and Canada, and has agreed to calculate the appearance of some key components, including engines, transmissions and steering system, in the overall calculation.

The United States’ position on the terms of the so-called US-Mexico-Canada Trade Agreement Luc Maria de la Mora, Mexico’s deputy secretary of foreign trade economy, said in an interview this week that it could expel automakers from the region due to complex and costly content requirements.

“We know how important the automotive industry is to Canadian workers and the Canadian economy,” Michael Simbe, a spokesman for the government’s global affairs department, 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.

Bloomberg announced last month that Mexico, Canada and automakers were all lining up against the Biden administration over the rules.

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.

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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. The administration of Prime Minister Justin Trudeau called for snap elections on September 20 this month and officially went to the interim system this month.

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 under President Donald Trump’s regime, Trudeau revoked US approval of a major pipeline project with his US counterpart and strengthened the “Buy America” ​​policy.