Pursuant to Article 31.4.4 of the Agreement between Canada, the United States of America and the United Mexican States (Mexico) (CUSMA), the Government of Canada hereby gives notice of its intention to participate in the consultations initiated by Mexico on August 20, 2021 respecting the interpretation by the United States of certain rules of origin provisions for motor vehicles.

Canada has a substantial interest in the matters raised by Mexico in its consultations request. Like Mexico, Canada is concerned with the interpretation of the United States of the relationship between the core parts and vehicle regional value content calculations. There is considerable integration among the auto industries in the three CUSMA parties. Canada is a major manufacturer of motor vehicles and both imports and exports parts and motor vehicles from and to the United States and Mexico. The approach taken by the United States to determine the originating status of motor vehicles could have significant implications for parts and motor vehicle manufacturers throughout their supply chains, and may have a significant economic impact on Canadian manufacturers as well as consequences for trade flows into and out of Canada. Moreover, Canada also has an important systemic interest in ensuring the correct interpretation of the terms of the CUSMA.