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EXCLUSIVE Mexico to seek expert panel to fix auto dispute with U.S. -sources

Flags of Mexico, United States and Canada are pictured at a safety sales space at Zaragoza-Ysleta border crossing bridge, in Ciudad Juarez, Mexico January 16, 2020. REUTERS/Jose Luis Gonzalez

MEXICO CITY, Oct 26 (Reuters) – Mexico plans to hunt the arbitration of a panel of specialists to resolve a simmering dispute with the US over the interpretation of guidelines of origin within the automotive trade, three individuals accustomed to the matter stated on Tuesday.

Mexico needs the panel to clear up its variations with the US over tips on how to apply automotive sector content material necessities below the United States-Mexico-Canada Settlement (USMCA), which underpins commerce in North America.

Mexico’s Economic system Ministry, which has taken a with the US within the automotive dispute, didn’t instantly reply to a request for touch upon its plans.

Utilizing the panel would escalate the tussle over automotive content material guidelines, which lay on the coronary heart of former U.S. President Donald Trump’s drive to interchange the North American Free Commerce Settlement (NAFTA) with what grew to become USMCA.

Mexico favors a extra versatile interpretation of the auto trade rules than the US, which sought an overhaul of NAFTA as a way to shield U.S. manufacturing jobs.

U.S. commerce unions argue that jobs have migrated to lower-cost Mexican vegetation since NAFTA first took impact in 1994.

Mexico’s authorities that the US provoke formal consultations on the dispute.

Below USMCA guidelines, if no settlement is forthcoming inside 75 days of the request, the matter passes to the skilled panel.

A panel is mostly to consist of 5 members drawn from a roster of people beforehand established by signatories of the accord. If desired, a panel of three could be agreed.

Mexico’s authorities stated this month it had begun formal consultations with the US over the principles’ interpretation. Canada has additionally been at odds with the US over how the auto guidelines are utilized below USMCA.

Reporting by Sharay Angulo and Dave Graham; Modifying by Chizu Nomiyama, Paul Simao and David Gregorio

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