Canada will join Mexico in challenge Biden Infrastructure bill in arbitration saying Biden is violation the agreement with new regulation about the trade of auto-parts.
Canada is joining Mexico’s official complaint today requesting a dispute settlement panel to resolve a claim that the U.S. is violating the new NAFTA by insisting on a stricter interpretation of a key provision on auto parts.
Motor vehicles are the most valuable product traded between the three countries. Canada argues that the way the U.S. views the Canada-U.S.-Mexico Agreement on trade (CUSMA) would make it harder for Canadian vehicles and essential auto parts — engines, transmissions and steering wheels — to qualify as duty-free.
Canada argues the Biden administration’s view of the rules is “inconsistent” with the trade deal the three countries agreed to in 2019 when Donald Trump was president.
“Canada, Mexico and the United States would all benefit from certainty that CUSMA is being implemented as negotiated, and Canada is optimistic that a dispute settlement panel will help ensure a timely resolution of this issue,” wrote International Trade and Export Promotion Minister Mary Ng in a statement issued Thursday