The Motor & Equipment Manufacturers Association (MEMA) supports the creation of a group to advise on the USMCA rules of origin changes.
This is a USMCA Motor Vehicle and Engine Parts Innovation Advisory Group.
The idea is that this Advisory Group will assist the White House Trade Representation (USTR) in developing an Automotive Rules of Origin Policy for the possible renegotiation of the USMCA in 2026.
USMCA Rules of Origin Changes
Rules of origin are essential standards for international trade. They include laws, regulations and procedures that determine the “nationality” of imported products. They also play a key role in multiple respects.
For example, they help establish the eligibility of imported goods, assess tariff rates and mark the country of origin. They are also fundamental in applying tariff quotas, enforcing trade laws and defining eligibility for free trade agreements. They even allow more accurate trade statistics to be compiled.
On the other hand, the Advisory Group’s suggestion came from Matt Blunt, who chairs the U.S. Automotive Policy Council. This council stressed the importance of a forum to discuss key issues. In particular, he proposed reducing administrative burdens for both suppliers and original equipment motor vehicle manufacturers.
In addition, both manufacturers and parts suppliers should have representation on the USMCA Motor Vehicle and Parts Innovation Group. This group has the potential to educate officials on complex issues. For example, it addresses supply chains and specific concerns about supplier rules of origin. It is worth noting that this manufacturing sector generates more than 900,000 jobs.
Discussion Forum
Due to the complexity of the USMCA’s automatic rules of origin, MEMA supports the creation of a specialized forum. This space should focus primarily on the rules of origin and their implications. From their perspective, a secure venue is needed to discuss USMCA customer reporting requirements. Confidentiality and trust should be priorities in these discussions.