Notice of intention to join as a complaining Party – rules of origin for motor vehicles

January 13, 2022

Pursuant to Article 31.6.5 of the Agreement between Canada, the United States of America and the United Mexican States (Mexico) (CUSMA), the Government of Canada hereby gives notice of its intention to join, as a complaining Party, the dispute initiated by Mexico in its request for the establishment of a panel on January 6, 2022 respecting the interpretation by the United States of certain rules of origin provisions for motor vehicles.

Canada has a substantial interest in the matters raised by Mexico in its request for the establishment of a panel. Like Mexico, Canada considers that the United States is incorrectly interpreting provisions in the CUSMA regarding the relationship between the core parts and vehicle regional value content calculations. Canada is a major manufacturer of motor vehicles and both imports and exports parts and motor vehicles from and to the United States and Mexico. The interpretation that the United States has adopted to determine the originating status of motor vehicles introduces restrictions not envisioned or agreed upon by the CUSMA Parties, and could significantly inhibit the ability of certain Canadian manufacturers to qualify their motor vehicles for duty-free trade in North America. Finally, Canada also has an important systemic interest in ensuring that the terms of the CUSMA are correctly interpreted.

Arun Alexander
Associate Assistant Deputy Minister, Trade Policy and Negotiations, Global Affairs Canada
Government of Canada

c.c.    Sean Clark, Secretary
CUSMA Secretariat, Canadian Section