[Newsbot]

Title: In arguably biggest test of new NAFTA, Canada and Mexico defeat U.S. in auto rules dispute
Category: Business
Posted By: DrCaleb
Date: 2023-01-12 06:25:02
Canadian

[DrCaleb]

TLDR; If a part is made of 85% parts that were made in North America, it would be duty free under NAFTA. The US was pushing for a car made of 85% North American parts to be 85% duty free, but Canada and Mexico say the terms of the new deal mean it is 100% duty free. The ruling favoured the 100% interpretation.

[Scape]

The dispute resolution was always the weakest link in NAFTA. This looks nice and all but as the panel stated the US just has to wait this out 6 years and rewrite the rules again like they always do. Till then they will just hold this up in the courts and ignore the ruling.