Background

The Office of the U.S. Trade Representative is accepting through March 28 comments on the automotive provisions of the U.S.-Mexico-Canada Agreement. USTR must submit a report on these topics to the Senate Finance and House Ways and Means committees by July 1.

According to USTR, the USMCA includes new rules of origin to claim preferential treatment for automotive goods, including higher regional value content thresholds, mandatory requirements to produce core parts in the region, mandatory steel and aluminum purchasing requirements, and a labor value content requirement. Vehicle producers may request an alternative staging regime for these requirements that would permit a longer period of transition to help ensure that future production is able to meet the new rules.

As part of a required biennial review of the operation of the USMCA with respect to trade in automotive goods, USTR is seeking input from producers of automotive goods, labor organizations, and other interested parties on the following.

- the overall operation of the USMCA with respect to automotive goods

- actions taken by automotive and parts producers to demonstrate compliance with the USMCA automotive rules of origin

- the use of alternative staging regimes by vehicle producers to meet those rules

- enforcement of those rules, including the alternative staging regimes and the automotive certification process for steel and aluminum content, LVC, and RVC

- whether the current rules are effective and relevant in light of new technology and changes in the content, production processes, and character of automotive goods

- any other topics relevant to trade in automotive goods under the USMCA

For more information, please contact attorney Mark Tallo at (202) 730-4968 or via email.

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