Toyota alerts of the risks of increasing regional framework in NAFTA

If a regional framework superior to 62.5% is established in the automotive sector in the North American Free Trade Agreement ( NAFTA ), supply chain could be affected and make automobile imports to U.S. even more attractive with the WTO Rules , said Luis Lozano , Toyota Motor México General Counsel, and Government Affairs Director .

Lozano sustained that the 62.5% rule of origin is very high and even higher than that of other sectors in the agreement.

“We have to be careful with any decision that could interrupt the supply chain and, therefore, the virtuous dynamism of North America.”

Lozano assured that the company has plenty of confidence in Mexico's negotiating team for NAFTA, presented by Economy Minister , Ildefonso Guajardo , and in the trade market logic to maintain the agreement.

Regarding the decision of canceling the Corolla production, Lozano reaffirmed that Corolla is not a vehicle with more or less value than Tacoma , both are iconic and on sub compact vehicles, the sales are decreasing, while pick up sales are increasing, confirming that it was a good bussiness decision.

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