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MEMA and Congressional Members Urge a Delay in USMCA Rules of Origin Provisions

Date: April 21, 2020

On April 20, the USTR and CBP published documents that provide guidance and flexibility related to the United States-Mexico-Canada Agreement’ (USMCA) automotive Rules of Origin (ROO) provisions. One of the documents is an ROO customs guidance detailing how certain issues will be addressed, including regional value content, steel and aluminum, and labor value content. MEMA has been working with USTR and CBP to provide input on this document, and we are reviewing this version to fully understand it and provide further input.

The USTR also published a rule to the Federal Register today which provides instructions on how to submit petitions for alternative staging requirements. Alternative staging requirements allows extensions of some of the auto rule of origin requirements for auto manufacturers. MEMA members and staff are also reviewing this document for its impact on entry into force for motor vehicle parts manufacturers.

MEMA and members of Congress have urged the Trump administration to provide flexibility for the entry-into-force date of ROO provisions. On April 10, Reps. Haley Stevens (D-Mich.), Jackie Walorski (R-Ind.), Terri Sewell (D-Ala.) and Jim Baird (R-Ind.) sent a letter from 31 members of Congress to U.S. Trade Representative Robert Lighthizer. In it, they urged the USTR to delay the United States-Mexico-Canada Agreement’s (USMCA) entry into force date for its ROO provisions. Congresswoman Stevens sent out a press release a few days later announcing that the letter had been sent. The release includes a statement from MEMA President and CEO Bill Long, who illustrated the industry’s need for a delay in the enforcement of the new ROO provisions.

“MEMA applauds the leadership of Representatives Haley Stevens, Jackie Walorksi, Terri Sewell and Jim Baird in urging delay of the entry into force of the complex USMCA auto rule of origin provisions.  They understand that without delay or a compromise on implementation, the motor vehicle parts sector will face another severe economic challenge at a time when a global pandemic has shut down our industry in North America. On behalf of the industry, we also thank the other 27 Members who joined in this effort.”

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