Tai Says US Isn't Focused on Complying With Autos Panel; Canada Pushing for Compliance

Almost five months have passed since the U.S. learned it lost its case under USMCA, and that, in order to be faithful to what it negotiated, it must allow automotive producers to use roll-up methodologies to meet regional content thresholds for core parts. The U.S. was supposed to resolve the dispute within 45 days, but has not done so.

Canadian Trade Minister Mary Ng, speaking to International Trade Today on the sidelines of the Washington Conference on the Americas in Washington, D.C., said May 2 she would be raising the issue with U.S. Trade Representative Katherine Tai in a meeting later that afternoon.

"We need to encourage the United States to meet the findings of that report," she said.

Tai also spoke at the conference. When asked after her talk if the U.S. is working on coming into compliance with the panel ruling, she responded: "It’s a very concerning panel report that we have, with everything we’re going [through] in our supply chains on autos. There’s a lot of opportunities that we have right now, and so that’s what we’re focused on -- which is making sure that USMCA supports the auto industry changes that are happening right now. "

She declined to clarify whether she was saying that allowing roll-up undermines the auto industry as it works to navigate changes.

The CEO of the trade group for the foreign automakers who build cars in the U.S. said at the time the panel decision was announced that "the full implementation of the Panel’s final decision by all three USMCA Parties is of paramount importance to ensure the continued competitiveness of auto manufacturing in our region," and that companies building cars in North America "receive the full benefits of a rules-based trading system."

Mexican trade experts said earlier this year that they did not expect the U.S. to comply with the panel ruling in 2023 (see 2303210032).