Request for Comments Concerning the Operation of the United States-Mexico-Canada Agreement With Respect To Trade in Automotive Goods
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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, 2026. 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 90 Issue 232 (Friday, December 5, 2025)</title>
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[Federal Register Volume 90, Number 232 (Friday, December 5, 2025)]
[Notices]
[Pages 56247-56248]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22105]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
[Docket Number USTR-2025-0307]
Request for Comments 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.
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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, 2026. 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 7, 2026 at 11:59pm EST: Deadline for submission of
written comments.
ADDRESSES: USTR strongly prefers electronic submissions made through
the online USTR portal: <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a>. Follow the
instructions for submitting written comments in Parts III and IV below,
using docket number USTR-2025-0307.
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#763c0305021f185832583e1910101b17181836030502045813190658111900"><span class="__cf_email__" data-cfemail="1a506f696e7374345e3452757c7c777b74745a6f696e68347f756a347d756c">[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 and second reports to Congress on June 30,
2022 and July 1, 2024. No later than July 1, 2026, USTR will submit the
results of the third 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 and 2024 reports are available on
USTR's website at <a href="https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/biennial-reports-congress-operation-united-states-mexico-canada-agreement-usmca-respect-trade">https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/biennial-reports-congress-operation-united-states-mexico-canada-agreement-usmca-respect-trade</a>.
[[Page 56248]]
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 and relevant in light of new technology and changes in the
content, production processes, and character of automotive goods.
6. Any other topics relevant to the trade in automotive goods under
the USMCA.\1\
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\1\ With respect to any input recently provided to USTR in
response to the September 17, 2025, Request for Public Comments and
Notice of Public Hearing Relating to the Operation of the Agreement
Between the United States of America, the United Mexican States, and
Canada (90 FR 44869, September 17, 2025, Docket Number USTR-2025-
0004), that you wish USTR and the Committee to consider for purposes
of this report, please provide the relevant submission ID number
along with any cross-references to that input.
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V. Procedures for Written Submissions
To be assured of consideration, submit written comments using the
appropriate docket (USTR-2025-0307) on the portal at <a href="https://comments.ustr.gov/s/">https://comments.ustr.gov/s/</a> and as detailed in Part III. All submissions must
be in English. You do not need to establish an account to submit
comments. The first screen allows you to enter identification and
contact information. Third party organizations such as law firms, trade
associations, or customs brokers should identify the full legal name of
the organization they represent and identify the primary point of
contact for the submission. USTR may not consider a comment if
insufficient information is provided.
You may upload documents and indicate whether USTR should treat the
documents as business confidential or public information. Any page
containing business confidential information (BCI) must be clearly
marked ``BUSINESS CONFIDENTIAL'' on the top of that page and the
submission should clearly indicate, via brackets, highlighting, or
other means, the specific information that is BCI. If requesting
confidential treatment, you must certify in writing that the
information would not customarily be released to the public. Interested
persons uploading attachments containing BCI also must submit a public
version of their comments.
Sushan Demirjian,
Assistant U.S. Trade Representative for Small Business, Market Access,
and Industrial Competitiveness, Office of the United States Trade
Representative.
[FR Doc. 2025-22105 Filed 12-4-25; 8:45 am]
BILLING CODE 3390-F4-P
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