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Dispute Panel Rules for Looser Rules of Origin for Autos under the USMCA

President Biden went down Mexico way this week for a North American leaders summit with Mexican President Andrés Manuel López Obrador (AMLO) and Canadian President Justin Trudeau, where they pledged to work together to forge stronger regional supply chains. Then they all got out of there right before a dispute panel announced it was siding with Mexico and Canada and against the United States regarding the rules of origin (ROO) in automobiles under the USMCA trade agreement.

As a result, there will be less North American content in autos that can be sold duty-free in North America, and more content from countries that aren’t party to the agreement.

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