Senior Vice President Antonio Ortiz-Mena spoke with Inside U.S. Trade about the upcoming ruling on the USMCA's automotive rule-of-origin dispute, and how the U.S. response may impact regional tensions over Mexican energy policies.

"According to Ortiz-Mena, handling the autos dispute ruling could prove thornier for the Biden administration than compliance with the solar panel decision, in part because of the import of the auto industry in the U.S.

In addition, Ortiz-Mena said, “the stakes are higher” in the autos case because of its timing. The U.S., he noted, could escalate ongoing consultations over Mexican energy policies to a USMCA panel -- a dispute that he and other analysts say Mexico could lose. If that were to happen, a failure by the U.S. to comply with the autos ruling could give Mexico “more political space” to reject an adverse ruling on energy, he contended."

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