Anticipate positive ruling for Mexico in panel for rules of origin

On November 11, the date on which the resolution of the panel of controversies in automotive matters on the rules of origin to produce a light vehicle is announced, Mexico and Canada will be winners of the dispute against the United States, affirmed organizations that represent to the Automotive Industry in Mexico, as well as one of the former T-MEC negotiators.

“We are sure that Mexico and Canada will win this dispute, since the facility (Roll up) granted by the T-MEC Rules of Origin is written in black and white in the texts of the treaty itself,” said Alberto Bustamante, director of the National Auto Parts Industry (INA).

Consulted separately, Kenneth Smith Ramos, former Mexican negotiator of the T-MEC, argued that the balance is tilted in favor of Mexico and Canada, since “the serious problem that the United States has is that it has no way of justifying an interpretation that does not It coincides with the text of the Treaty, with the chapter on rules of origin and the uniform regulations and if you go to the specific clauses, it indicates that you can accumulate origin for the essential parts”.

According to the former negotiator, the position of the Joe Biden administration has an accounting trap, which would cost the automakers at least 10 additional percentage points to be able to comply with it.

He explained: if I bring an engine that complies with 75% of the rules of origin, which is worth $10,000 and when incorporated into the car, with which it complies with the essential part of 75% -automatically- the T-MEC considers it to be original.

But the United States says no, “I don’t accrue it to you because you told me it was 75% original and I charged you $7,500. That is a trap multiplied by all the essential parts,” said Smith Ramos.

lilia.gonzalez@eleconomista.mx