Mexico and the US have postponed the fourth round of their USMCA review talks, Mexico’s deputy trade secretary Luis Rosendo Gutiérrez said, because of Chinese President Xi Jinping’s state visit to Washington. “I think it will be more in October,” he said, per Bloomberg Línea.
Automakers and parts suppliers planning next year’s volumes from Mexico have no new tariff rate to plan against until the round meets. Vehicles that miss USMCA origin rules pay 25% in the meantime.
Vehicles and auto parts that miss USMCA origin rules pay 25%. Auto parts that meet the rules pay nothing.
Mexico wants the vehicle rate below 15%, with a deduction for US content. Japan, South Korea and the EU pay 15%.
Rules of origin, agriculture, labor and economic security are also under negotiation.
Mexico’s vehicle exports fell about 3% last year, with passenger car exports down 9.8%, per Proyecto Puente.
The talks are the first test of the review process the US chose this summer, when US Trade Representative Jamieson Greer said the US would not renew the pact in its current form and moved to annual reviews.
Toyota is already moving Tacoma output from Tijuana to a new $3.6 billion line in San Antonio.
Gutiérrez said the date will be set after G20 trade ministers meet in Milwaukee from Sept. 30 to Oct. 1. Technical teams from both countries still talk almost every day with the Office of the US Trade Representative and the Commerce Department, he said.
