MEXICO CITY — Some Mexican automakers are asking for extra time to satisfy stringent content material guidelines set out in a brand new North American commerce settlement, and Mexico is making progress on adjustments in labor requirements beneath the deal, a high official stated.

America Mexico Canada Settlement, which took impact in July, changing the 1994 North American Free Commerce Settlement, consists of more durable content material guidelines for autos.

For automobiles, USMCA requires 75 % North American content material in contrast with a 62.5 % threshold beneath NAFTA, in addition to 40-45 % content material from so-called “excessive wage” areas.

USMCA features a provision to provide flexibility to carmakers so as to have the ability to adjust to the deal in keeping with their manufacturing and funding plans in North America, Mexican Deputy Financial system Minister Luz Maria de la Mora stated in an interview with Reuters on Monday night.

“Some firms within the automotive sector are requesting these various transition regimes as a way to have this flexibility,” de la Mora stated.

“We’re working with america and Canada to outline these flexibilities, and among the many three international locations we’ve determined that maybe some firms do require it as a way to adjust to the brand new guidelines of origin,” she added.

The implementation of latest labor requirements in Mexico beneath USMCA has been a thorny subject.

An unbiased labor panel on Dec. 15 submitted a report back to the U.S. Congress saying that whereas Mexico has made vital progress implementing a 2019 labor reform, “lots of the adjustments promised … when it comes to union democracy, freedom of affiliation and collective bargaining, stay to be carried out.”

De la Mora stated the coronavirus pandemic had made issues more durable, however that Mexico was placing into pressure its labor reform in addition to assembly the phrases of USMCA “in order that the implementation takes place in keeping with the schedule.”

Mexico has complied “with virtually all the things” it has wanted to when it comes to labor, she stated.