Mexico welcomes U.S. decision not to impose tariffs on auto parts

teleSUR English

Mexico welcomed a U.S. decision to exempt Mexican auto parts from tariffs under the United States-Mexico-Canada Agreement (USMCA), calling it a major breakthrough for the country's manufacturing sector. teleSUR  These and many other stories now! 🌐Join teleSUR's community and be part of a space where your ideas matter.  https://chat.whatsapp.com/KLABTE41aSj3ioYabXQQ6K 🗣 Don't be left behind, join teleSUR's Channel https://whatsapp.com/channel/0029Va98Z437Noa2tjytCt1N Web💬 https://www.telesurenglish.net/ X🧶 https://twitter.com/telesurenglish Instagram 📸 https://www.instagram.com/telesurenglish/?hl=es Facebook 📱 https://www.facebook.com/teleSUREnglishOfficial Youtube ⏯ https://www.youtube.com/channel/UCmuTmpLY35O3csvhyA6vrkg Tiktok👌🏼 https://www.tiktok.com/@telesurenglish?_t=8hMLCY0a6z7&_r=1

Transcript

00:00The Mexican government welcomed Friday the United States' decision not to impose tariffs on auto parts produced in the country

00:07since they are considered within the Mexico-United States-Canada agreement.

00:11During her morning press conference, Mexican President Claudia Sheinbaum described as very good news

00:17the note published by the U.S. Customs Border Protection on May 1st, declaring zero tariff on auto parts produced in Mexico.

00:25On the other hand, Sheinbaum recalled that there remains only tariffs for Mexican steel and aluminium but that these are tariffs that have been imposed to the whole world.

00:37According to the Mexican President, the export of auto parts per century presented $70 billion for the country

00:44and informed that negotiations continue with the United States to review other issues such as not charging double tariffs on steel and aluminium.

00:55Then came another announcement that everything that is within the trade agreement, within the T-MEC, has a zero tariff.

01:07And what is outside the treaty, which is being exported without tariffs, would have a tariff.

01:13What does this mean?

01:14That when you are inside the treaty, you have what are called rules of origin, it means that most of what is produced, is produced in Canada, in the United States or in Mexico.

01:25If it does not have this rule of origin, then it was exporting through another mechanism of the World Trade Organization called Most Favoured Nation.

01:43So at this moment what is within the treaty has zero tariffs.

01:47And what are the exceptions?

01:48Steel and aluminium, which all the countries in the world have, and in vehicles and auto parts, preferential treatment has been given to everything that is produced within the treaty, particularly auto parts, because they continue to have zero tariffs.

02:12Yes, so that is the situation we are in now.

02:15We are still having zero aranceles.

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