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Mexico, Canada Win Trade Panel’s Nod Over US on Car-Content Rules

  • USMCA panel made ruling on origin of auto parts in November
  • Mexico first sought help through USMCA on dispute in January
Automobiles and parts are at the heart of the North American free trade agreement between the US, Mexico and Canada.

Automobiles and parts are at the heart of the North American free trade agreement between the US, Mexico and Canada.

Photographer: Cole Burston/Bloomberg
Updated on

Mexico and Canada won a trade dispute with the US over cars shipped across regional borders, potentially giving manufacturers more incentive to make auto parts in those nations.

The dispute-resolution panel set up under the 2020 US-Mexico-Canada Agreement made a preliminary ruling on Nov. 14, according to people familiar with the decision who declined to be identified because the report hasn’t yet been made public. The nations have an opportunity to give feedback on the report before a final version is issued within 30 days.