U.S. trade commission launches review of CUSMA automotive rules of origin [BNN Bloomberg (Canada)]
Stellantis N.V. Common Shares (STLA)
Company Research
Source: BNN Bloomberg
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 CUSMA 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 CUSMA region, fundamentally altering their supply chains. The rules require 75 per cent North American content for manufacturers to get duty-free access to the U.S. market, and require 40 per cent 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 threshold for pickup trucks is 45 per cent. The ITC plans to hold a public hearing later this year and will issue the report by July 2027. CUSMA is the modern, trilateral free-trade agreem
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