US trade commission launches review of USMCA automotive rules of origin [Yahoo! Finance Canada]
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Source: Yahoo! Finance Canada
International Trade Commission has initiated an investigation into the automotive rules of origin under the United States-Mexico-Canada ?trade agreement, the commission said in a statement on Thursday. The probe will examine ?the "impact on the U.S. economy, effect on U.S. competitiveness, and relevancy considering recent technology changes," the statement said. The ?rules of origin under USMCA boosted the regional value content requirements in order for manufacturers building cars in any of the three countries to qualify for free-trade status. This required North American manufacturers to source more inputs from within the USMCA region, fundamentally altering their supply ?chains. The rules require 75% North American ?content for manufacturers to get duty-free access to the U.S. market, and require 40% of a passenger car's content to be manufactured in ?the U.S. or Canada, based on a list of "core parts" including engines, transmissions, body panels and chassis components. The
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