The Trump administration proposes changes to the U.S.-Mexico-Canada Agreement (USMCA) that would raise the amount of North American content required for passenger vehicles and pickups to qualify for preferential trade treatment. According to multiple outlets, U.S. negotiators present the proposal to automakers and discuss it in bilateral talks with Mexico aimed at revising USMCA. The proposed threshold would increase regional content in North America-built vehicles to 82%, with 50% of that value produced in the United States. Sources cited in coverage say the proposal does not include a mechanism to count component content from Canada. Canada is not represented in the Mexico City talks referenced by the reports, which are described as additional rounds following an initial U.S. position on the review. One account notes that the move would depart from existing USMCA requirements: the current agreement sets regional content levels for vehicles (75% overall for preferential treatment) and includes specific rules for “core parts,” with current high-wage jurisdiction percentages that apply to the U.S. and Canada. The reports do not indicate whether the proposal will be accepted.
U.S. proposes raising USMCA North American auto content to 82% with 50% U.S. production
The Trump administration proposes changes to the U.S.-Mexico-Canada Agreement (USMCA) that would raise the amount of North American content required for passenger vehicles and pickups to qualify for p...
- The U.S. proposes increasing USMCA regional auto content requirements for preferential treatment to 82%.
- The proposal would require that 50% of the counted value be produced in the United States.
- The U.S. demand, as described, does not allow Canada-based content to be counted toward the total regional content.
- U.S.-Mexico negotiations in Mexico City discuss the proposed thresholds as part of USMCA revisions.
- Coverage says current USMCA rules require 75% overall North American regional content and include “core parts” requirements tied to high-wage jurisdictions.
The proposed new thresholds were revealed to automakers during two days of bilateral talks to revise the U.S.-Mexico-Canada Agreement on trade that concluded on Friday.
2 months agoU.S. fires opening salvo in USMCA review, announces more rounds of bilateral talks without Canada
2 months agoWASHINGTON/MEXICO CITY — The Trump administration wants to increase the level of regional content in North American-built vehicles to 82 percent to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement on trade, with 50 percent of that value produced in the United States, four people familiar with the U.S. negotiating position said. The expansive demand, unveiled during this week's U.S.-Mexico negotiations over revisions to the six-year-old USMCA in Mexico City, has no provision for counting any parts content from Canada in the totals. Canada is not represented in the Mexico City talks, the sources said. The shift, if accepted, would be a major break from the current USMCA, which requires that 40 percent of the "core parts" value of North American passenger vehicles be produced in high-wage jurisdictions, effectively the U.S. or Canada. That threshold is now 45 percent for pickup trucks. Overall, vehicles built in North America currently must have 75 percent regional content to qualify for preferential treatment under USMCA. The U.S. demand and lack of accommodation
2 months agoThe proposal, unveiled during U.S.-Mexico talks this week, has no provision for content from Canada, sources say
2 months ago
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