The Globe and Mail reports in its Friday, Feb. 20, edition that the U.S. International Trade Commission has launched an investigation into rules-of-origin regulations for automobiles under the United States-Mexico-Canada Agreement on trade.
A Canadian Press dispatch to The Globe reports that the investigation will analyze the regulations' "impact on the U.S. economy, effect on U.S. competitiveness and relevancy considering recent technology changes."
This is the third rules investigation since the USMCA was adopted during President Donald Trump's first administration. The commission must conduct an investigation every two years until 2031.
The report on automobiles must be delivered to Mr. Trump and the U.S. Senate by July of next year.
Automobiles and parts played a key role in negotiations for the USMCA, which replaced the North American Free Trade Agreement. The new deal raised regional value content requirements for tariff-free vehicle trade.
Under USMCA, a vehicle must have 75 per cent North American content to cross the border tariff-free. This includes 40 per cent of a car being manufactured in Canada or the U.S., while trucks require 45 per cent.
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