Foreign Automakers Trade Group Says USMCA Transition Plan Negotiating Is Lengthy Process
The trade group that represents 12 foreign companies that have auto manufacturing operations in the U.S. says that the dialogue with the U.S. trade representative on alternative staging regimes will be ongoing for “the next several months.” Jennifer Safavian, CEO of Autos Drive America, spoke with reporters Sept. 16. The Office of the U.S. Trade Representative must bless each manufacturer's plan to move toward USMCA rules of origin for that company to get a five-year transition to higher regional value content standards, and a slower transition to meeting new labor value content standards. She said all three countries will have to approve each alternative staging plan.
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Safavian also talked broadly about what kind of trade policy her member companies want -- and that's rules-based trade, and no Section 232 tariffs on metals or on autos. She said that if President Donald Trump wins reelection, she believes he will continue to threaten to put tariffs on imported cars from the European Union, and possibly from the United Kingdom or Japan. The organization was pleased tariffs on Canadian aluminum were reversed this week. “Bottom line on tariffs, we don't view tariffs as anything helpful,” she said.