Commission launches USMCA rules-of-origin investigation
The U.S. International Trade Commission has launched an investigation into rules-of-origin regulations for automobiles under the U.S.-Mexico-Canada agreement on trade.
A news release on the commission’s website said the investigation will analyze the regulations’ “impact on the U.S. economy, effect on U.S. competitiveness, and relevancy considering recent technology changes.”

It’s the third investigation of the rules since the trilateral trade pact was adopted during the first administration of U.S. President Donald Trump. The commission is required to conduct an investigation every two years until 2031.
The report on automobiles must be delivered to Trump and the Senate by July of next year.
The deeply integrated North American automobile market has been upended by Trump’s 25% tariffs on automobiles and separate duties on steel and aluminum.
Automobiles and parts were a critical factor in the negotiations that led to USMCA replacing the North American Free Trade Agreement. The trilateral trade deal increased the regional value content requirements for allowing vehicles to be traded tariff-free.
The trade deal generally requires that a vehicle have 75% North American content before it can cross the border without tariffs. Forty percent of a car has to be manufactured in either Canada or the United States for it to obtain tariff-free status; for trucks, that percentage increases to 45%.
The deal also increased North American content requirements for auto parts and raw materials and enhanced the rules on what employees must be paid.
USMCA is up for review this year but some experts have said Trump is undermining his own agreement through his massive tariff agenda. The president also has called into question whether the U.S. might pull out of the trade pact altogether.
– The Canadian Press contributed to this article.
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