Alternative Staging

The USMCA includes new rules of origin to claim preferential treatment for automotive goods, including higher regional value content (RVC) thresholds, mandatory requirements to produce core parts in the region, mandatory steel and aluminum purchasing requirements, and a labor value content (LVC) requirement. The USMCA allows vehicle producers to request an alternative staging regime for these requirements that would permit a longer period of transition to help ensure that future production is able to meet the new rules.

On April 21, 2020, USTR published a notice in the Federal Register inviting auto producers to submit requests for alternative staging.  Canada and Mexico published similar notices, and the three countries reviewed the requests.  The list of companies whose requests were approved is below.

Cooperation Manufacturing Plant Aguascalientes (COMPAS)
FCA North America Holdings LLC
Ford Motor Company
Honda North America, Inc.
Hyundai Motor America
Kia Motors Manufacturing Georgia
Kia Motors Mexico
Mazda North America
Nissan North America Inc.
Tesla Inc.
Toyota Motor North America Inc.
Volkswagen Group of America, Inc.
Volvo Car Corporation