USTR Releases Biennial Report on the Operation of the USMCA with Respect to Trade in Automotive Goods

June 30, 2022

WASHINGTON – Ambassador Katherine Tai today released the first Report on the Operation of the United States-Canada Mexico Agreement (USMCA) with Respect to Trade in Automotive Goods. The publication of the Report is pursuant to Section 202A(g)(1) of the United States-Canada-Mexico Agreement (USMCA) Implementation Act (P.L. 116-113). 

“The autos provisions that the United States negotiated in the USMCA are supporting investments in new technologies and production, which will create good-paying jobs and benefit workers,” Ambassador Katherine Tai said. “We will continue to work with Canada and Mexico to ensure that the North American autos industry remains robust and competitive in the face of new global challenges.”

The 2022 Report on the Operation of the USMCA with Respect to Trade in Automotive Goods can be viewed here.

This biennial report, which was prepared in consultation with the Interagency Committee on Trade in Automotive Goods, examines the actions taken by auto producers to demonstrate compliance with the USMCA and whether the USMCA’s automotive rules of origin are effective and relevant in light of changing vehicle and production technologies. 

In the preparation of this report, USTR requested public input from automotive producers, labor organizations, associations, and other stakeholders.

As described in the report, in the two years since the USMCA’s entry into force, vehicle and parts producers have made significant investments in North American sourcing and production in order to meet the USMCA’s rules of origin, supporting American workers. Producers are also taking advantage of flexibilities afforded under the USMCA in order to prepare future production — including new electric vehicles — to comply with the USMCA rules. 
However, automotive producers are strained in particular by critical input shortages and supply chain challenges resulting from the COVID-19 pandemic and Russia’s unjustified aggression in Ukraine. 
Finally, it is important to acknowledge that the U.S. and North American automotive industry is undergoing an unprecedented transformation towards a zero-emissions and autonomous future. As a result, the United States Trade Representative, in consultation with the Interagency Autos Committee, will monitor the USMCA rules of origin to ensure they continue to align with, and support, North American production of these new technology vehicles.