Fecha Publicación: 05-01-2023

A U.S.-Mexico-Canada Agreement dispute settlement panel in the coming weeks is expected to hand Washington an adverse ruling on its interpretation of the trade deal’s automotive rules of origin. How the Biden administration responds to that ruling, analysts say, could have impacts on the credibility of the recently reformed dispute settlement system -- and on how a major disagreement over Mexico’s energy policies plays out in 2023.

The U.S.’ response to the final ruling in the autos rules-of-origin dispute is critical both “in terms of ensuring clear and stable rules for investment in the automotive sector” and, “equally as importantly, for the precedent it will set about how countries are behaving under the USMCA,” Antonio Ortiz-Mena, senior vice president at Albright Stonebridge Group and former head of economic affairs at the Mexican Embassy in the U.S., said in a recent interview.

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