Multiple Automakers Urge US to Extend USMCA

General Motors, Tesla, Toyota, Hyundai, Volkswagen, Ford, and other major global automakers submitted documents to the Office of the United States Trade Representative on the 4th, urging the US government to extend the "United States-Mexico-Canada Agreement" (USMCA).

The USMCA is a trilateral trade agreement signed in 2018 by the United States, Mexico, and Canada. It officially took effect in July 2020 and is scheduled for a review for renewal in 2026. According to a Reuters report, on the eve of this review, these automakers outlined the necessity of renewing the agreement and proposed modifications in their submitted documents.

Hyundai Motor stated in its filing that the uncertainty surrounding the future of the USMCA has already caused the company to delay investment decisions, noting that "each month of uncertainty slows the process of creating jobs, selecting factory sites, and conducting technology R&D."

Tesla called for US support to continue the implementation of the USMCA and recommended that the three countries adopt the industry-recognized North American Charging Standard as the single standard for electric light-duty vehicles, while also harmonizing vehicle safety standards.

Stellantis Group urged in its document that vehicles produced outside North America should also follow the parts tracing rules required by the USMCA; otherwise, tariffs on passenger vehicles from Mexico and Canada that comply with the agreement should be eliminated.

Toyota stated that it is important that, upon renewal, the USMCA continues to allow for duty-free cross-border trade of vehicles and automotive parts that comply with the agreement's content and labor rules.