GM squeaks by pre-pandemic levels, Mexico disputes RoO requirements

Cons. Discr. - Autos 1114 Mexico 839 U.S. 5197 USMCA 452

Mexico has launched a formal dispute under USMCA for proposed rule of origin (RoO) requirements that were stricter than originally thought. This may be a more fundamental dispute than the labor issue that was recently resolved through the process. The root of the concerns may be Mexican exports that have stayed well below pre-pandemic levels, down 10.1% and 14.5% against 2019 in the Q2 and July. Passenger cars are down the most, down 37.9% in July against 2019, and Mexico may be worried that stricter RoO will continue to depress exports already impacted by the chip shortage. Companies th...

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