There are automotive obstacles in the US to comply with the T-MEC: AMIA

Mexico faces administrative obstacles in the United States to comply with the rules of origin in the automotive industry within the framework of the Agreement between the United States, Mexico and Canada (T-MEC). The Mexican Association of the Automotive Industry (AMIA) indicated that these obstacles have to do with the Labor Content Value (VCL) in a letter that it presented as part of the dispute resolution panel that is carried out due to differences in the interpretation of the rules of origin.

The AMIA stated that it is clear that the provisions on the LCV established in the T-MEC must be complied with by the original equipment manufacturers (OEM), and that it is the obligation of the OEM to certify to the United States Customs and Border Protection Office that your production of a “covered vehicle” meets the requirements of the VCL, including the high wage provisions of those requirements.

“As we have faced varying degrees of reluctance from suppliers to provide OEMs with the information required to comply with the provisions of the VCL, we propose that if sourcing is from the US, then the average base wage rate $16 per hour is considered compliant, considering that most US suppliers to Mexican OEMs are unwilling to respond to our requests for LCV information,” he added.

roberto.morales@eleconomista.mx