OTTAWA — Canada intends to signal onto Mexico’s grievance in opposition to the USA over that nation’s interpretation of guidelines of origin within the automotive business, Canadian Commerce Minister Mary Ng stated on Thursday.

Mexico requested final week for a dispute settlement panel below the phrases of the U.S.-Mexico-Canada commerce pact. It needs to clear up disagreements over the right way to apply automotive sector content material necessities below the treaty.

The USMCA, which changed the longtime NAFTA commerce pact in July 2020, says 75 per cent of a automobile’s parts should originate within the three nations to high quality for tax-free standing, up from 62.5 per cent below NAFTA.

Mexico and Canada favour a extra versatile interpretation of the laws than the U.S., which sought an overhaul of NAFTA with the intention to defend U.S. manufacturing jobs.

“The interpretation that the USA adopted … is inconsistent with USMCA and the understanding shared by the events and stakeholders all through the negotiations,” Ng stated in an announcement.

The panel ought to produce a report “in the summertime of 2022”, the assertion added.