Canada joins Mexico in trade spat with US over auto content
By Marcus Williams2022-01-18T09:12:00
Canada says that the US interpretiation of the section in the USMCA trade deal covering rules of origin for automotive parts does not tally with what it signed in 2020
On January 13, Canada’s minister of international trade, export promotion, small business and economic development, Mary Ng, issued a statement in which she said the US interpretation of the rules of origin governing regional value content were inconsistent with what Canada signed up to and “the understanding shared by the parties and stakeholders throughout the negotiations”. No further details were given of the disputed sections of chapter 31 of the agreement, which covers rules of origin for parts but the Canadian government believes the US interpretation of the rules could make it harder for Canadian vehicles and main components such as engines, transmissions and steering wheels to qualify as duty-free.