NAFTA phased out Mexico’s restrictive auto decree. It
phased out all U.S. tariffs imports from Mexico and Mexican tariffs on U.S. and
Canadian products as long as they met the rules of origin requirements of 62.5%
North American content for autos, light trucks, engines and transmissions; and
60% for other vehicles and automotive parts. Some tariffs were eliminated
immediately, while others were phased out in periods of 5 to 10 years. Prior to
NAFTA, the United States assessed the following tariffs on imports from
Mexico: 2.5% on automobiles, 25% on light-duty trucks, and a trade-weighted
average of 3.1% for automotive parts. Mexican tariffs on U.S. and Canadian
automotive products were as follows: 20% on automobiles and light trucks, and
10-20% on auto parts