Skip to main content
Sister Publication Links
  • Automotive News
  • Automotive News Europe
  • Automotive News China
  • Automobilwoche
Subscribe
  • Subscribe
  • login
  • HOME
  • News
    • News by Brand
    • Auto Shows
    • Canadians Abroad
    • Photo Galleries
    • Automakers
    • Suppliers
    • Retail
    • Dealer Best Practices
    • Government Relations
    • Trade and Tariffs
    • Technology
    • Labour
    • Aston Martin
    • BMW
      • Mini
      • Rolls Royce
    • Daimler
      • Mercedes Benz
      • Smart
    • Ferrari
    • Ford
      • Lincoln
    • General Motors
      • Buick
      • Cadillac
      • Chevrolet
      • GMC
    • Honda
      • Acura
    • Hyundai
      • Kia
    • Mazda
    • Mitsubishi
    • Nissan
      • Infiniti
    • Stellantis
      • Alfa Romeo
      • Chrysler
      • Dodge
      • Fiat Chrysler
      • Jeep
      • Fiat
      • Lancia
      • Maserati
      • Ram
    • Subaru
    • Tata
      • Jaguar
      • Land Rover
    • Tesla
    • Toyota
      • Lexus
    • Volkswagen
      • Audi
      • Bentley
      • Bugatti
      • Lamborghini
      • Porsche
    • Volvo
    • VinFast
    • Toronto Auto Show
  • Opinion
    • Blogs
  • Video
  • Podcasts
  • EVENTS & AWARDS
    • 2021 Auto News Canada All Stars
    • 2022 Canadians To Watch
    • Best Dealerships To Work For
    • Canada Congress
    • Retail Forum: Dealer Discussions
    • Leading Women Roundtables
    • Embracing Diversity Roundtable
  • Jobs & Classifieds
  • +MORE
    • IN THE DRIVER'S SEAT
    • NEWSLETTERS
    • SUBSCRIBE
    • CLASSIFIEDS
    • PEOPLE ON THE MOVE
    • COMPANIES ON THE MOVE
    • WEBINARS
    • ADVERTISE WITH US
    • CONTACT US
    • DIGITAL EDITION
    • PUBLISHING PARTNERS
MENU
Breadcrumb
  1. Home
  2. Manufacturing
August 28, 2021 08:50 AM

Canada to participate in Mexico-U.S. auto spat as third party

Mexico requested formal consultations with the U.S. to settle a disagreement over how to measure regional content for cars to trade duty-free

KAIT BOLONGARO and ERIC MARTIN
Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    6NAFTA-5.jpg

    Canada will be an interested third party in discussions between the United States and Mexico over rules governing cars traded in North America, avoiding direct confrontation with the Biden administration ahead of elections next month while still showing concern about the U.S. position.

    Mexico last week requested formal consultations with the United States to settle a disagreement over how to measure regional content for cars to trade duty-free. The United States insists on a stricter method than Mexico and Canada believe they agreed to for counting the origin of certain core parts including engines, transmissions and steering systems in the overall calculation, people familiar with the matter said last month.

    The U.S. position on the rules in the trade deal known as the United States-Mexico-Canada Agreement could push automakers to abandon the region due to cumbersome and costly content requirements, Luz Maria de la Mora, Mexico’s undersecretary of economy for foreign trade, said in an interview this week.

    “We know how important the auto industry is to Canada’s workers and the Canadian economy,” Michel Cimpaye, a spokesperson for the government’s global affairs department, said in an emailed response to questions Friday. “Canada has advised the U.S. and Mexico that it intends to join the consultations as a third party. We continue to work with the industry on these and other important issues.”

    Bloomberg reported last month that Mexico, Canada and automakers were all aligned against the Biden administration on the rules.
     

    Canada’s move “will and should be interpreted” as taking Mexico’s side, said Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association. “Canada understands that the continental automotive sector’s global competitiveness is at risk if the U.S. position carries, and they’re very wise to add their weight to this action,” he said.

    This is the first time that the Canadian government has publicly commented on the disagreement, with the country in the midst of an election campaign. Prime Minister Justin Trudeau’s administration officially entered caretaker mode this month after he called a snap election for Sept. 20.

    The Trudeau administration’s decision on how to participate in the automotive disagreement is also indicative of his broader approach to Canada’s relationship with the United States, the nation’s most important ally. Trudeau and his government prefer a cautious approach to disputes with the United States in an effort to maintain good relations with Canada’s southern neighbor and minimize any damage to the country’s economy.

    Despite overall smoother relations with President Joe Biden’s administration than under President Donald Trump, Trudeau has complained to his American counterpart about U.S. cancellation of a permit for a large pipeline project, as well as a strengthening of the “Buy America” procurement policy.

    RECOMMENDED FOR YOU
    The latest numbers on the microchip shortage: A much-needed reprieve
    Recommended for You
    The latest numbers on the microchip shortage: A much-needed reprieve
    The latest numbers on the microchip shortage: A much-needed reprieve
    U.S. EV tax credit restrictions could reshape supply chains, battery strategies
    U.S. EV tax credit restrictions could reshape supply chains, battery strategies
    Tesla Hood-MAIN.jpg
    Tesla discloses lobbying effort to set up factory in Canada
    Expert Insights: How Dealers Can Navigate Changing Consumer Behavior
    Sponsored Content: Expert Insights: How Dealers Can Navigate Changing Consumer Behavior
    Digital Edition
    Aug 2022 Issue Cover
    View latest issue
    See our archive
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up today for our Weekly Newsletter, Daily Newsletter and Breaking News Alerts. We'll deliver the news you need to know straight to your inbox.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Subscribe Now

    An Automotive News Canada subscription includes 12 monthly issues – delivered in print to your doorstep, and digitally to your inbox – plus unlimited, 24/7 access to our website.

    Subscribe Now
    Connect With Us
    • Facebook
    • Twitter
    • Instagram

    Our Mission

    The Automotive News Canada mission is to be the primary source of industry news, data and understanding for the industry's decision-makers interested in Canada.

    Contact Us

    1155 Gratiot Ave
    Detroit MI 48207

    1-877-812-1257

    Email Us

    ISSN 2475-5001 (print)
    ISSN 2475-501X (online)

    Resources
    • About us
    • Contact Us
    • Digital Edition Archive
    • Advertise with Us
    • Reprints
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Canada
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • HOME
    • News
      • News by Brand
        • Aston Martin
        • BMW
          • Mini
          • Rolls Royce
        • Daimler
          • Mercedes Benz
          • Smart
        • Ferrari
        • Ford
          • Lincoln
        • General Motors
          • Buick
          • Cadillac
          • Chevrolet
          • GMC
        • Honda
          • Acura
        • Hyundai
          • Kia
        • Mazda
        • Mitsubishi
        • Nissan
          • Infiniti
        • Stellantis
          • Alfa Romeo
          • Chrysler
          • Dodge
          • Fiat Chrysler
          • Jeep
          • Fiat
          • Lancia
          • Maserati
          • Ram
        • Subaru
        • Tata
          • Jaguar
          • Land Rover
        • Tesla
        • Toyota
          • Lexus
        • Volkswagen
          • Audi
          • Bentley
          • Bugatti
          • Lamborghini
          • Porsche
        • Volvo
        • VinFast
      • Auto Shows
        • Toronto Auto Show
      • Canadians Abroad
      • Photo Galleries
      • Automakers
      • Suppliers
      • Retail
      • Dealer Best Practices
      • Government Relations
      • Trade and Tariffs
      • Technology
      • Labour
    • Opinion
      • Blogs
    • Video
    • Podcasts
    • EVENTS & AWARDS
      • 2021 Auto News Canada All Stars
      • 2022 Canadians To Watch
      • Best Dealerships To Work For
      • Canada Congress
      • Retail Forum: Dealer Discussions
      • Leading Women Roundtables
      • Embracing Diversity Roundtable
    • Jobs & Classifieds
    • +MORE
      • IN THE DRIVER'S SEAT
      • NEWSLETTERS
      • SUBSCRIBE
      • CLASSIFIEDS
      • PEOPLE ON THE MOVE
      • COMPANIES ON THE MOVE
      • WEBINARS
      • ADVERTISE WITH US
      • CONTACT US
      • DIGITAL EDITION
      • PUBLISHING PARTNERS