Mexico urges panel to resolve conflict with US over automobile origin rules

Within the framework of the trade agreement between Mexico, the United States and Canada (T-MEC), within the framework of the trade agreement between Mexico, the United States and Canada (T-MEC), in the Dispute Settlement Panel on the Terms of Origin Mexico will be the loser, estimates the coordinator of the Laboratory for Analysis in Commerce. Ignacio Martínez, from UNAM, Economy and Trade (Lassen).

Mexico yesterday submitted a request for the establishment of a panel pursuant to paragraph 1 of Article 31.9 of the T-MEC to determine whether the interpretation and application of the provisions of Chapter 4, Rules of Origin and Similar Rules by the United States Referring to the treaty are wrong.

Said panel, which would have originally consisted of three phases: Requesting the Panel, Investigating and Decision, is the first to be requested in commercial matters in the era of T-MEC and today the United States faces Mexico, its main commercial partner.

That country’s Census Bureau reported yesterday that commercial exchanges between the two countries reached $604,182 million during the first 11 months of 2021, with the United States’ trade deficit reaching $96,747 million.

In an interview with La Rezon, Martínez assured that “if the panel strictly follows the rules and determines that what was agreed is to be implemented, the decision will be against Mexico. No way to explain.” There it is established that the established percentage should be met”, he insisted.

Canada will also request a panel for the same reason.

Martinez said that with the establishment of the panel, the Mexican government wants to pressure the United States not to continue with its determination to implement protectionist measures in the automotive sector.

He did not rule out that in the next few hours or days, the Canadian government would also request the establishment of a panel on the same dispute.

“In the same circumstance, Canada is up against the United States; that is, Canada also risks losing extensive production and investment in the automotive sector, as does Mexico,” said the UNAM expert.

On August 20, 2021, Mexico formally requested consultation with the United States to resolve differences in the interpretation and application of the Rules of Origin in the automotive sector in accordance with the provisions of Article 31.4 of the T-MEC, and Canada also participated. in that process.

However, the consultation phase did not reach the resolution of the dispute, so Mexico yesterday submitted a request for the establishment of a panel.

The Lassen coordinator recognized that the Mexican government lacked vision of the intentions of the United States in the sense of establishing a new order in the local and global automotive industry.

“The snowball has already been going on since last year, but the highlight of these protectionist actions was the infrastructure plan of Joe Biden’s government,” he explained.

Martinez indicated that since Biden was a candidate for President of the United States, he was very clear in his speeches about his protectionist tendencies, even saying that to Donald Trump himself. More so, his predecessors.

Leader as US Business Partner

It was announced yesterday that commercial exchanges between Mexico and the United States reached $604,182 million during the first 11 months of 2021, with the neighboring northern country’s trade deficit reaching $96,747 million .

This amount exceeds what the United States achieved with Canada, its third commercial partner, and was $44,045 million, with Mexico being the main commercial partner among its four main partners. Apart from Canada. , China, Japan and Germany.

However, last November, the main trading partner of the United States was China, representing 15.5 percent of the United States market and for the third consecutive month in which China ranked first, followed by Canada with 14.8 percent and Mexico with 14.1 percent. was with.

  • Data: The trade deficit of the United States with Mexico reached $96 thousand 747 million in the first 11 months of 2021.

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