Mexico gives automakers more time to meet new North American trade agreement rules

MEXICO Metropolis — Mexico’s federal government reported Friday it has authorised a request by 12 automotive firms for extra time to fulfill new regional content demands below the North American trade agreement that came into force in July.

The economy ministry reported in a assertion that below the United States-Mexico-Canada-Arrangement, firms could request a so-known as alternate changeover routine to comply with the increased content demands below the trade offer.

The request was granted for Tesla Inc., Volkswagen de Mexico, Volvo Auto Usa, FCA Mexico, Hyundai Motor The united states, Mazda Motor de Mexico, Toyota Motor de Mexico, Kia Motors Mexico, Kia Motors Manufacturing Georgia, Nissan Mexicana, Ford Motor Co. and Cooperation Manufacturing Plant Aguascalientes, it reported.

For tariff-free trade in light-weight automobiles, the agreement necessitates seventy five per cent North American content in contrast with a 62.5 per cent threshold below its predecessor, the North American Free Trade Arrangement.