Canada to Join Mexico in Complaint on U.S. Car-Origin Rules: Report

Ottawa: Canada is formally joining Mexico in calling for an arbitration panel to resolve a dispute with the U.S. over how to interpret rules governing the origin of vehicle parts.

Both the countries is planning to put a request in this regard in the first days of January before a tribunal of experts to rule on the matter as allowed under the U.S.-Mexico-Canada Agreement, known as USMCA, media reports revealed.

The conflict focuses on differences over how to calculate the percentage of a vehicle that comes collectively from the three countries. Both Mexico and Canada believe the trade deal stipulates that more regionally produced parts should count toward duty-free shipping than the U.S. wants to allow. Motor vehicles are the top manufactured product traded between the three countries.