Mexico is warning that the U.S. interpretation of the revamped North American free trade deal that also includes Canada could push automakers to abandon the region due to cumbersome and costly content requirements.
Luz Maria de la Mora, Mexico’s undersecretary of economy for foreign trade, said that if the U.S. doesn’t come to an agreement with Mexico about the rules of origin of auto parts, companies could seek to move their business to countries with more favorable trade agreements. The U.S.-Mexico-Canada Agreement pact replacing NAFTA took effect last July with the new so-called rules of origin designed to be phased in over several years.
