Mexico gives automakers more time to meet new North American trade agreement rules

MEXICO Town — Mexico’s government claimed Friday it has authorised a ask for by twelve automotive businesses for further time to fulfill new regional content material needs beneath the North American trade agreement that arrived into force in July.

The economic climate ministry claimed in a statement that beneath the United States-Mexico-Canada-Arrangement, businesses could ask for a so-identified as choice transition regime to comply with the better content material needs beneath the trade deal.

The ask for was granted for Tesla Inc., Volkswagen de Mexico, Volvo Car United states, FCA Mexico, Hyundai Motor America, Mazda Motor de Mexico, Toyota Motor de Mexico, Kia Motors Mexico, Kia Motors Production Ga, Nissan Mexicana, Ford Motor Co. and Cooperation Production Plant Aguascalientes, it claimed.

For tariff-cost-free trade in light vehicles, the agreement necessitates seventy five per cent North American content material in contrast with a 62.5 per cent threshold beneath its predecessor, the North American No cost Trade Arrangement.