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ARTICLE · 26 JUNE 2020

CUSMA/USMCA Guidance For Automotive Sector

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The Canada-United States-Mexico Agreement (CUSMA or USMCA) will introduce new and complex requirements for the automotive industry.

CanadaInternational Law
Heather Innes
Heather Innes
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The Canada-United States-Mexico Agreement (CUSMA or USMCA) will introduce new and complex requirements for the automotive industry.Not only will vehicle producers face increased Regional Value Content requirements starting July 1, 2020, but they will be required to meet the following requirements:

1. minimum purchase requirements for North American steel and aluminum;

2. labour value content requirements requiring that a certain portion of each vehicle be produced using high-wage labour (US $16/C $20.88 average wage rate); and

3. certain parts (Super Core Parts) incorporated into a vehicle must be originating.

Both the CUSMA Uniform Regulationsposted on June 3, 2020 and the non-binding guidance issued by the U.S. Customs Authority (CBP)in the form of Interim Implementing Instructions, have started to provide some clarification regarding how the new requirements will work, at least from the U.S. perspective.However, the Uniform Regulations are not yet

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