EU is still “mounted” in its interpretation of the T-MEC rules: Clouthier

Tatiana Clouthier, Ministry of Economy, he assured that the United States “continued mounted on the interpretation you have ”on the rules of origin, planned in the Treaty between Mexico, the United States and Canada (T-MEC), which are harder for producers of vehicles. Given this, he said, the interests of the nation will be defended.

At the same time, the official said that Mexico is going through “a very complex circumstance” in terms of economical, as is the case worldwide, which he asked not to refer to as crisis.

Read here: Mexico and the US begin consultations on the interpretation of rules of origin of the automotive sector in the T-MEC

“The North American government has an interpretation, wrong from our position and that of Canada, with respect to rules of origin on the subject of the composition of vehicles“, Said this Thursday in his appearance before the United Commissions of Economy, Trade and Competitiveness and the Social Economy and Promotion of Cooperativism of the Chamber of Deputies.

He assured that in the visits that the agency has made to EU the subject was discussed with the Department in charge of the application of the T-MEC and their response was “that they did not have enough political space” to discuss the rules of origin.

“They never spoke to us about technical issues and T-MEC it is a technical issue, not political per se because it is written that way, “he said. Therefore, the strategy was to talk with the producers of vehicles in EU and Mexico, in addition to the government of Canada to make an approach in the framework of the negotiations of the treaty.

The secretary recalled that one of the processes foreseen in the T-MEC, the consultation, in which “the US continued to mount its interpretation of not accepting what was negotiated.” Now, he said, he will turn to holding a panel in which the agency under his charge seeks to “defend the interests of our nation.”

The first time that Mexico expressed his disagreement on the issue of rules of origin It was in a virtual meeting between trade ministers of North America in May, during which he stated that there were differences between the interpretation U.S and the “more flexible” methodologies of the other two partners.

You can read: Canada joins Mexico in requesting consultations on automotive rules from the T-MEC

In August, the Mexican government asked EU make formal inquiries about the interpretation and application of rules of origin. In a letter sent to the US trade representative, Katherine Tai, Clouthier He stated that the petition seeks to “avoid or resolve a possible controversy” about the way in which his country is imposing requirements “incompatible” with the text of the treaty on the assemblers.

So that a vehicle is considered originally from North America and do not pay tariffs, it must comply with a Regional Content Value (VCR) of 75%. The same percentage will apply to essential parts as of July 1, 2023, according to the commercial pact of just over a year.

With information from Reuters

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