The United States Trade Representation (USTR) highlighted that the USMCA has had a «significantly positive economic impact» on the North American automotive industry.

Their conclusion is that automakers and parts suppliers have invested billions of dollars in new North American production.

Recently, the U.S. International Trade Commission (USITC) estimated that North American auto industry rules of origin have had a positive impact on U.S. employment, wages, capital expenditures, production and profits. 

However, USTR noted that the North American auto industry and the USMCA rules of origin are still evolving: the auto industry is pivoting toward electric and other clean energy vehicles and the USMCA rules of origin are not yet fully in place for all automakers on account of the Alternative Transition Regimes (ATR). 

North American Automotive Industry

While some automakers are taking steps now to prepare for full implementation of the rules of origin when ATRs expire beginning in July 2025, automakers have also expressed concern that the anticipated lack of qualified electric vehicle batteries in 2025 and beyond will make it difficult for electric vehicles to comply with the rules of origin. 

At the same time, other stakeholders have suggested modifications to the rules of origin to better reflect changing technologies in electric vehicles and commercial vehicles and to incentivize North American production of those new components and technologies. 

Transparency

According to USTR, stakeholders continue to express concerns about the lack of transparency and information on the implementation and enforcement of rules of origin. 

For example, workers remain concerned about the lack of transparency on the implementation of ATRs and compliance with Regional Content Value and Labor Content Value requirements, which makes it difficult to assess the overall effectiveness of the rules of origin. 

In addition, suppliers note their concern about the administrative burden of demonstrating compliance with the rules.