Trudeau Weighs Auto-Content Rules as Next U.S. Trade Flashpoint



Stephen Wicary | Bloomberg

Justin Trudeau appears set to add another item to his government’s growing list of trade grievances with Joe Biden’s administration.

Canada is leaning toward forming a common front with Mexico in a fight with the U.S. over how to interpret rules governing the origin of vehicle parts. The rules, which are part of the North American free-trade agreement overhauled under Donald Trump, set content requirements for cars shipped across regional borders.

Both Mexico and Canada believe the trade deal stipulates that more regionally produced parts qualify for duty free shipping than the U.S. is allowing. Mexico requested formal talks on the issue in August that Canada joined as an interested third party. 

“Trilateral consultations regarding the application and interpretation of certain elements of the rules of origin that apply to motor vehicles under the Canada-United States-Mexico Agreement did not produce a resolution,” Alice Hansen, press secretary to Trade Minister Mary Ng, said late Friday.

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