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U.S. Clashes With Mexico, Canada on Car Rules in USMCA Risk

  • Mexico economy minister to visit Washington to discuss issue
  • Formal complaint could be filed over dispute on auto content
Photographer: Luke Sharrett/Bloomberg
Updated on

The U.S. is clashing with Mexico and Canada over rules for cars shipped across regional borders, with automakers and governments telling the Biden administration that it’s imperiling the success of their new trade pact.

The dispute focuses on how to calculate the percentage of a vehicle that comes collectively from the three countries under the U.S.-Mexico-Canada agreement, according to people familiar with the matter, who asked not to be named because conversations are private. The deal took effect last July, replacing the North American Free Trade Agreement, or Nafta, but the new so-called rules of origin are designed to be phased in over several years.