Mazda CEO welcomes new US, Canada, Mexico trade pact

Tokyo

JAPANESE carmaker Mazda Motor Corp welcomed on Tuesday a new trade deal between the United States, Mexico and Canada, and said that it would work to meet new rules on components used in Mazda vehicles made in Mexico.

The United States and Canada reached an agreement on Sunday to update the trade pact, after Washington had forged a separate trade deal with Mexico in August.

"It's a big step forward," Mazda CEO Akira Marumoto told reporters at a briefing. "We will work to satisfy the agreement's requirements," he said, referring to a stipulation included in the pact for the regional value content requirement for cars to eventually increase to 75 per cent, from the current 62.5 per cent.

Most of Japan's major carmakers operate plants in the United States, Canada and Mexico, while many also continue to export vehicles from Japan. REUTERS