MEMA Calls for Adjustment Period for Auto Industry Before USMCA Rules of Origin Regulations are Enforced

Date: March 17, 2020

MEMA is urging the Trump Administration to provide an adequate adjustment period for implementation of auto rule of origin (ROO) regulations for the automotive industry in the US-Mexico-Canada Agreement (USMCA). On March 13,  MEMA, along with the American Automotive Policy Council, AIADA, Here for America, and the National Automobile Dealers Association released a statement expressing concerns regarding the administration’s decision to set the USMCA entry into force date for June 1.

“We are in the midst of a global pandemic that is significantly disrupting our supply chains, and the industry is throwing all available resources into managing production through this crisis for our employees and for the broader US economy,” the statement reads. “Even if it were reasonable to divert our attention to USMCA compliance, the United States, Canada and Mexico have yet to issue, even in draft form, the uniform automotive rules of origin regulations. Without them, many questions remain unanswered regarding how to interpret the new rules.”

On Friday, the Canadian House of Commons and Senate passed the USMCA before taking a long break, due to the coronavirus pandemic.  Now all that is left is for Canada’s Governor General to provide Royal Assent to the measure.  MEMA worries that the fast implementation of the rules to govern the USMCA might lead to a chaotic entry into force for the auto and parts sector.

“While the industry is doing as much work in advance as they can,” the letter states, “once the uniform regulations are available, it will still take an additional period of time to solicit the necessary information throughout the supply-chain to certify that our cars and trucks qualify under USMCA.”

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