MEXICO CITY — Mexico sought formal session with the US on Friday over the interpretation and software of harder content material guidelines for autos set out within the USMCA commerce pact.

In Might, Mexico voiced disagreement over the problem in a three-way on-line digital assembly when it cited variations with the US’ strategies. Canada and Mexico use extra versatile interpretations.

“Mexico has recognized a divergent place between our governments on the interpretation of … provisions on guidelines of origin for the automotive sector,” Economic system Minister Tatiana Clouthier stated in a letter.

In her letter on Friday to U.S. Commerce Consultant Katherine Tai, Clouthier stated Mexico wished to keep away from or resolve a doable dispute.

The USA-Mexico-Canada Settlement, the successor to the North American Free Commerce Settlement, requires 75 % North American content material for a automobile to be thought of as being from North America.

The identical proportion will apply for so-called important elements from July 1, 2023, up from 69 % now, and in contrast with 62.5 % underneath the earlier commerce pact.

However as soon as the extent of important elements hits 75 % it’s thought of 100% and ought to be counted as such in direction of the general worth of the car, Mexico says.

Its request for session is the primary non-contentious stage of a dispute decision mechanism supplied for in Chapter 31 of the pact, with an trade knowledgeable saying such talks should be held inside 30 days, on this case by Sept. 20.

The USA is reviewing the request, stated U.S. Commerce Consultant spokesman Adam Hodge.

“We’re reviewing Mexico’s request for consultations and stay dedicated to totally implementing the USMCA, together with the sturdy auto regional content material necessities to which all of us agreed,” he stated.