Notice2023-25765
Request for Comments and Notice of Public Hearing Concerning the Operation of the United States-Mexico-Canada Agreement With Respect To Trade in Automotive Goods
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Published
November 22, 2023
Issuing agencies
Trade Representative, Office of United States
Abstract
The U.S. Trade Representative must conduct a review of trade in automotive goods under the United States-Mexico-Canada Agreement (USMCA) and submit a report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives no later than July 1, 2024. USTR invites comments concerning the operation of the USMCA with respect to automotive goods, including the implementation and enforcement of the USMCA rules of origin for automotive goods, as well as whether the automotive provisions of the USMCA are effective in light of technological and production advances.
Full Text
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<title>Federal Register, Volume 88 Issue 224 (Wednesday, November 22, 2023)</title>
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[Federal Register Volume 88, Number 224 (Wednesday, November 22, 2023)]
[Notices]
[Pages 81527-81529]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25765]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Number USTR-2023-0013]
Request for Comments and Notice of Public Hearing Concerning the
Operation of the United States-Mexico-Canada Agreement With Respect To
Trade in Automotive Goods
AGENCY: Office of the United States Trade Representative (USTR).
ACTION: Request for comments and notice of public hearing.
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SUMMARY: The U.S. Trade Representative must conduct a review of trade
in automotive goods under the United States-Mexico-Canada Agreement
(USMCA) and submit a report to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of Representatives no
later than July 1, 2024. USTR invites comments concerning the operation
of the USMCA with respect to automotive goods, including the
implementation and enforcement of the USMCA rules of origin for
automotive goods, as well as whether the automotive provisions of the
USMCA are effective in light of technological and production advances.
DATES: January 17, 2024 at 11:59 p.m. EST: Deadline for submission of
written comments, request to testify, and written testimony.
February 7, 2024 at 10:00 a.m. EST: USTR and the Interagency
Committee on Trade in Automotive Goods will convene a public hearing to
receive oral testimony.
ADDRESSES: USTR strongly prefers electronic submissions made through
the Federal rulemaking Portal: <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>
(<a href="http://Regulations.gov">Regulations.gov</a>). Follow the instructions for submitting written
comments, testimony, and requests to testify in sections III through V
below, using docket number USTR-2023-0013. For alternatives to on-line
submissions, please contact Justin Hoffmann, Deputy Assistant U.S.
Trade Representative for Market Access and Industrial Competitiveness,
in advance of the deadline at (202) 395-2990 or <a href="/cdn-cgi/l/email-protection#307a454344595e1e741e785f56565d515e5e70454344421e555f401e575f46"><span class="__cf_email__" data-cfemail="cf85babcbba6a1e18be187a0a9a9a2aea1a18fbabcbbbde1aaa0bfe1a8a0b9">[email protected]</span></a>.
FOR FURTHER INFORMATION CONTACT: Justin Hoffmann, Deputy Assistant U.S.
Trade Representative for Market Access and Industrial Competitiveness
at (202) 395-2990 or <a href="/cdn-cgi/l/email-protection#0d47787e79646323492345626b6b606c63634d787e797f2368627d236a627b"><span class="__cf_email__" data-cfemail="064c7375726f682842284e6960606b67686846737572742863697628616970">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. USMCA Background
On January 29, 2020, the President signed into law the USMCA
Implementation Act (Pub. L. 116-113), which implements the USMCA
between the United States, the United Mexican States, and Canada
attached as an Annex to the Protocol Replacing the North American Free
Trade Agreement. The USMCA entered into force on July 1, 2020.
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. The
standard staging regime is specified under the Automotive Appendix to
Chapter 4 of the USMCA, with the exception of Article 8, which
specifies provisions relating to the alternative staging regime.
The USMCA Implementation Act and Executive Order 13908 established
the Interagency Committee on Trade in Automotive Goods (Committee) to
advise the President and the U.S. Trade Representative on the
implementation, enforcement and modification of the USMCA provisions
related to automotive goods. In addition, the Committee reviews the
operation of the USMCA with respect to trade in automotive goods,
including the economic effects of the USMCA automotive rules of origin
on the U.S. economy, workers and consumers, and the impact of new
technology on such rules.
II. Report to Congress
Section 202A(g) of the USMCA Implementation Act requires the U.S.
Trade Representative, in consultation with the Committee, to conduct a
biennial review of the operation of the USMCA with respect to trade in
automotive goods, including:
(a) To the extent practicable, a summary of actions taken by
producers to demonstrate compliance with the automotive rules of
origin, use of the alternative staging regime, enforcement of such
rules of origin, and other relevant matters.
(b) Whether the automotive rules of origin are effective and
relevant in light of new technology and changes in content, production
processes and character of automotive goods.
USTR submitted its first report to Congress on June 30, 2022. No
later than
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July 1, 2024, USTR will submit the results of the second biennial
review to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives and post a public
version of the report to its website at <a href="https://www.ustr.gov">https://www.ustr.gov</a>. The 2022
report is available on USTR's website at <a href="https://ustr.gov/sites/default/files/2022%20USMCA%20Autos%20Report%20to%20Congress.pdf">https://ustr.gov/sites/default/files/2022%20USMCA%20Autos%20Report%20to%20Congress.pdf</a>.
III. Request for Public Input
In accordance with the USMCA Implementation Act, USTR and the
Committee seek views from producers of automotive goods, labor
organizations and other interested parties regarding:
1. The overall operation of the USMCA with respect to automotive
goods.
2. Actions taken by automotive and parts producers to demonstrate
compliance with the USMCA automotive rules of origin, including:
a. The applicable RVC requirements for passenger vehicles, light
trucks, heavy trucks, other vehicles and parts thereof.
b. The North American steel and aluminum purchase requirements.
c. The LVC requirements.
3. The use of alternative staging regimes by vehicle producers to
meet the USMCA automotive rules of origin.
4. Enforcement of the USMCA automotive rules of origin, including
the alternative staging regimes and the automotive certification
process for steel and aluminum content, LVC and RVC.
5. Whether the current USMCA automotive rules of origin are
effective in light of new technology and changes in the content,
production processes and character of automotive goods. In particular,
whether the rules of origin remain effective for:
a. The large-scale transition towards electric and other clean-
energy vehicles;
b. The transition away from internal combustion and diesel
vehicles;
c. The automotive parts applicable to electric and clean-energy
vehicles and internal combustion or diesel vehicles; or
d. Any other vehicle and part subject to the USMCA automotive rules
of origin.
6. Whether the USMCA rules of origin are effective in supporting
the competitiveness of the North American automotive industry in light
of global challenges, such as excess capacity of electric vehicles.
7. An update on the supply chain challenges identified in the 2022
report (e.g., semiconductor shortage, war in Ukraine) and the impact
the USMCA had on overcoming those supply chain challenges.
8. The impact of the 2022 Inflation Reduction Act and similar
legislation, e.g., the CHIPS and Science Act of 2022, and the
Infrastructure Investment and Jobs Act, on the overall trade in
automotive goods under the USMCA and those goods' ability to meet the
USMCA rules of origin.
9. Specific issues faced by producers of heavy-duty trucks and
other automotive goods not specifically addressed above.
10. Any other topics relevant to the trade in automotive goods
under the USMCA.
IV. Hearing Participation
USTR will convene a public hearing on February 7, 2024 related to
the operation of the USMCA with respect to autos. Persons wishing to
observe the public hearing will find a link on USTR's web page for the
USMCA on the day of the hearing at <a href="https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement">https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement</a>. To ensure
participation, you must submit requests to present oral testimony at
the hearing and written testimony by 11:59 p.m. EST on January 17,
2024, via <a href="http://Regulations.gov">Regulations.gov</a>, using Docket Number USTR-2023-0013.
Instructions for submission are in section V below. Remarks at the
hearing will be limited to no more than five minutes to allow for
possible questions from the Committee. Because it is a public hearing,
testimony should not include any business confidential information
(BCI).
V. Procedures for Written Submissions
To be assured of consideration, submit your written comments,
requests to testify, and written testimony by the January 17, 2024,
11:59 p.m. EST deadline. All submissions must be in English. USTR
strongly encourages submissions via <a href="http://Regulations.gov">Regulations.gov</a>, using Docket
Number USTR-2023-0013.
To make a submission via <a href="http://Regulations.gov">Regulations.gov</a>, enter Docket Number USTR-
2023-0013 in the `search for' field on the home page and click
`search.' The site will provide a search results page listing all
documents associated with this docket. Find a reference to this notice
by selecting `notice' under `document type' in the `refine documents
results' section on the left side of the screen and click on the link
entitled `comment.' <a href="http://Regulations.gov">Regulations.gov</a> allows users to make submissions by
filling in a `type comment' field, or by attaching a document using the
`upload file' field. USTR prefers that you provide submissions in an
attached document and, in such cases, that you write `see attached' in
the `type comment' field. USTR prefers submissions in Microsoft Word
(.doc) or Adobe Acrobat (.pdf). If you use an application other than
those two, please indicate the name of the application in the `type
comment' field.
At the beginning of your submission or on the first page (if an
attachment), include the following text: (1) 2024 USMCA Autos Report;
(2) your organization's name; and (3) whether the submission is a
comment, request to testify, or written testimony. Please do not attach
separate cover letters, exhibits, annexes, or other attachments to
electronic submissions; rather, include any in the same file as the
submission itself, not as separate files. You will receive a tracking
number upon completion of the submission procedure at <a href="http://Regulations.gov">Regulations.gov</a>.
The tracking number is confirmation that <a href="http://Regulations.gov">Regulations.gov</a> received your
submission. Keep the confirmation for your records. USTR is not able to
provide technical assistance for <a href="http://Regulations.gov">Regulations.gov</a>.
For further information on using <a href="http://Regulations.gov">Regulations.gov</a>, please consult
the resources provided on the website by clicking on `How to Use
<a href="http://Regulations.gov">Regulations.gov</a>' on the bottom of the home page. USTR may not consider
submissions that you do not make in accordance with these instructions.
If you are unable to provide submissions as requested, please
contact Justin Hoffmann, Deputy Assistant U.S. Trade Representative for
Market Access and Industrial Competitiveness, in advance of the
deadline at <a href="/cdn-cgi/l/email-protection#b0fac5c3c4d9de9ef49ef8dfd6d6ddd1dedef0c5c3c4c29ed5dfc09ed7dfc6"><span class="__cf_email__" data-cfemail="09437c7a7d6067274d2741666f6f64686767497c7a7d7b276c6679276e667f">[email protected]</span></a> or (202) 395-2990, to
arrange for an alternative method of transmission. USTR will not accept
hand-delivered submissions. General information concerning USTR is
available at <a href="http://www.ustr.gov">www.ustr.gov</a>.
If you ask USTR to treat information you submit as BCI, you must
certify that the information is business confidential and you would not
customarily release it to the public. For any comments submitted
electronically containing BCI, the file name of the business
confidential version should begin with the characters `BCI.' You must
clearly mark any page containing BCI with `BUSINESS CONFIDENTIAL' at
the top of that page. Filers of submissions containing BCI also must
submit a public version of their submission that will be placed in the
docket for public inspection. The file name of the public version
should begin with the character `P.'
USTR will post written submissions in the docket for public
inspection,
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except properly designated BCI. You can view submissions at
<a href="http://Regulations.gov">Regulations.gov</a> by entering Docket Number USTR-2023-0013 in the search
field on the home page.
Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2023-25765 Filed 11-21-23; 8:45 am]
BILLING CODE 3390-F4-P
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