The North American and global automotive sector is watching
closely to see how the United States ultimately responds to the
decision of December 14, 2022, made public on January 10, 2023,
which upheld Canada's and Mexico's position on an important
issue for calculation of a vehicle's regional value content
(RVC) under the USMCA. In dispute was whether a Core Part or Super
Core Part that qualifies as originating under Articles 3.7 to 3.9
of the USMCA Auto Appendix can then have 100% of its value count as
originating content when calculating the RVC of the fully assembled
vehicle. The United States had argued that there was a separate
"origination requirement" for Core Parts and Super Core
Parts which, once satisfied, had no input into the vehicle RVC
calculation. Instead, the United States argued, the vehicle RVC
calculation would need to proceed from scratch, without the
"roll-up" represented by the 100% value of originating
Core Parts and Super Core Parts entering the
