MEMA Voices Suppliers' Concerns for USMCA

Date: January 8, 2019

MEMA recently submitted comments to the U.S. International Trade Commission addressing the potential impacts of the new United States-Mexico-Canada Agreement (USMCA) on the motor vehicle parts supplier industry . This follows on the Commissions public hearings held in November, at which MEMA also testified.

MEMA urged the Commission to “weigh the impacts of the following” issues as it conducts its economic and industry impact analysis:

  • USMCA is overshadowed by the Section 232 tariffs on imported steel and aluminum from Mexico and Canada, and their retaliatory measures;

  • Administrative burden of compliance with a new, more complex automotive ROO will impact the supply chain;

  • The North American supply chain is complex and interdependent and must be competitive with other global markets;

  • Suppliers add significant economic value to the U.S. economy and vehicle industry; and,

  • Suppliers make significant employment and investments in people, facilities and technology innovation, but continue to face substantive workforce gaps.

“The success of our industry and the continued employment of hundreds of thousands of American depends on a strong, functioning North American supply chain,” MEMA’s comments stressed.

The Commission is an independent agency that is required to submit a public report within 105 days of Nov. 30, which was when the agreement was signed.

For more information, please contact Ann Wilson or Leigh Merino.

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