Applying the USMCA Auto Rules of Origin in the Canadian Market

Tuesday, September 22, 2020

The Canada-United States-Mexico Agreement (USMCA, CUSMA, T-Mec or the New NAFTA) came into force on July 1, 2020. The most dramatic changes as compared with NAFTA concern the automotive sector. The new, multi-layered rules of origin for vehicles and auto parts have critical business and operational implications for companies at all levels of the automotive supply chain.

The Bennett Jones International Trade and Investment group hosted a special presentation focused on understanding and applying the new USMCA rules and discussing their effect on operational decisions and commercial strategies for the automotive parts supply chain.

Topics covered:

• recap of where we are now, staging timelines and Canadian government enforcement;
• product-specific Regional Value Content (RVC) rules under USMCA, and calculation rules including accumulation and averaging;
• treatment of "core"/"super core", "principal" and "complimentary" parts;
• the new steel and aluminum local content requirement and what it means for parts suppliers;
• new Labour Value Content (LVC) requirement and labour categories;
• operational and compliance considerations; and
• commercial strategies for parts suppliers in light of the new rules.

If you have any questions, please contact the events team at eventinfo@bennettjones.com.