ITC Investigates Auto Rules of Origin under USMCA

General Motors Powertrain Assembly Line (St. Catherines, ON) - Photo Courtesy of GM Authority

Trade Update • August 9, 2022

The U.S. International Trade Commission (ITC) has launched an investigation into the regulations that govern duties on cars and light trucks produced in North America under USMCA.

According to a Federal Register notice, and as required by the USMCA Implementation Act, the probe will examine how USMCA automotive Rules of Origin may have affected the U.S. economy and impacted U.S. competitiveness. It will also investigate whether these Rules of Origin are still relevant today — with technology constantly evolving.

In particular, the USMCA Implementation Act requires that ITC report on:

  1. The economic impact of USMCA automotive rules of origin on U.S. gross domestic product, trade, employment, and consumers, as well as economic impact on production, investment, capacity, revenues, wages, and employment in U.S. automotive industries;
  1. The operation of USMCA automotive rules of origin and their effects on the competitiveness of U.S. automotive production and trade;
  1. The relevancy of USMCA automotive rules of origin in light of recent technology changes in the United States; and
  1. Other matters ITC considers relevant to the economic impact of the USMCA automotive rules of origin.

Public Hearing

ITC will hold a public hearing on the matter on November 3, 2022. It will then deliver a report on its investigation to Congress and the Office of the U.S. Trade Representative (USTR) by June 30, 2023.

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