USTR Aims To Improve System For USMCA Auto Rules

As readers may recall, in 2020, the United States, Mexico, Canada Agreement (USMCA) changed rules for the largest trading category among the three partners: automobiles. Specifically, the agreement set import rules on where materials and labor for autos and parts come from. The Government Accountability Office (GAO), a watchdog office within the U.S. federal government, recently reviewed the U.S. government’s implementation of these rules and found a handful of problems.

The U.S. Trade Representative chairs an interagency committee responsible for providing advice and input on implementing, enforcing, and modifying the rules. The GAO found that the committee had not developed written guidance to help ensure accountability. This guidance is necessary, the GAO said, because it would “improve communication, limit uncertainty for agencies and stakeholders, and aid in the monitoring of progress toward committee outcomes.”

The GAO also determined that U.S. Customs and Border Protection has not yet enforced some of the USMCA’s requirements because its final set of rules of origin regulations still have not been approved.

The GAO offered several ways to improve these processes. Those suggestions can be found here.

U.S. Trade Representative Katherine Tai committed to implementing the GAO’s recommendations. In a statement, she said, “USTR looks forward to implementing the GAO’s recommendation to further strengthen our interagency collaboration in order to better support our workers and manufacturers. We will continue to work with our interagency partners and with Canada and Mexico to support our workers and safeguard the competitiveness of the North American automotive industry.”