As part of her visit to Washington, D.C, the Mexican Secretary of the Economy, Tatiana Clouthier, met with the president and CEO of the Autos Drive America automotive association, Jennifer Safavian.
“(With her) he discussed Mexico‘s concern about the negative impact that the interpretation of the rules of origin of the automotive sector contained in the T-MEC may have, and the shared priority of ensuring resilient supply chains in the region,” he said the Ministry of Economy.
Among others, Autos Drive America members include: BMW of North America, Honda North America, Hyundai Motor America, Kia Motors America, Mazda North American Operations, Mercedes-Benz USA, Mitsubishi Motors, Nissan North America, Toyota Motor North America and Volkswagen Group of America.
According to the newspaper El Economista, Mexico and Canada state that if, for example, a door was exported from the United States to Mexico with a regional content of 80%, that percentage should be rounded to 100% (since it already complied with the rule of origin) and add to the regional content required for the automobile to which that auto part was incorporated in order to be exported to the region free of tariffs.
On the contrary, the United States maintains that only the value corresponding to that 80% of the door should be added (not 100%) in the amount that is required to comply with the total regional content of the exported car.
Autos Drive America
Fernando Ruiz Huarte, general director of the Mexican Council of Foreign Trade (Comce), stated that while Mexico considers that in these rules origin can be accumulated between the three countries to comply with the labor content, the United States interprets that it should not be accumulated in the proceedings the part that the latter country contributes with labor content in Mexican exports.
Autos Drive America represents the US operations of international motor vehicle manufacturers and supports the policies that keep the industry strong.
As the voice of international automakers in the United States, Autos Drive America educates stakeholders on the ways that open trade and investment support American jobs.