MEXICO CITY — Mexican auto industry group AMIA said on Monday that 90 days is not enough time for automakers and parts suppliers to adapt supply chains to meet the rules of origin requirements in the United States-Mexico-Canada Agreement, which could take effect on July 1.
AMIA has urged authorities to postpone until January 2021 the start of the sectoral rules in the trade pact that will replace the North American Free Trade Agreement.
It argued that there is still a lack of clarity about the content rules and said the coronavirus has made it even more challenging to comply.
“By July we could already be seeing the implementation (of USMCA), which for us is a difficult situation,” said Fausto Cuevas, AMIA director, adding that the new rules in the treaty will require “very important” changes in the supply chain.
Canada and Mexico recently said they have completed their internal legal processes for the treaty to go into force, but the United States must still follow suit.