The US-Mexico-Canada Agreement (USMCA) took effect on July 1, one month later than expected, and has finally replaced the 1992 North American Free Trade Agreement (NAFTA). Earlier this year, majorities in both chambers approved the new treaty, with a 385-41 vote in the House and an 89-10 vote in the Senate.
“The RV industry applauds this new agreement, as free and fair trade is critical to Americans nationwide and has been a boon for American manufacturing, including the RV industry,” said RV Industry Association President Craig Kirby. “As many in the industry remember, USMCA represented a major free trade victory for the RV industry and we were successful in exempting motorhome and travel trailers from increased domestic content requirements under USMCA’s rules of origin for motor vehicles.”
Under the new rules of origin, automobiles and light trucks--but not RVs--will have to have 75 percent North American content to be eligible for duty-free treatment, along with 40 percent of all parts needing to be made by workers making at least $16 per hour.
Motorhomes will remain at 62.5 percent domestic content for duty-free treatment, the same as under NAFTA. Travel trailers will need to be at 50 percent domestic content, again the same as treatment under NAFTA. The USMCA also includes language which ensures that Canada and Mexico will be exempted from any future U.S. tariffs on imported automobiles and parts, such as that being contemplated by the Administration under the Section 232 national security provisions.
The RV Industry Association has compiled a list of resources on the new agreement and its implementation.
US Trade Representative Robert Lighthizer hailed the new agreement, “The USMCA contains significant improvements and modernized approaches that will deliver more jobs, stronger worker protections, expanded market access, and greater opportunities to trade for companies large and small. We have worked closely with the governments of Mexico and Canada to ensure that the obligations and responsibilities of all three nations under the agreement have been met, and we will continue to do so to ensure the USMCA is enforced.”
“America is facing unprecedented challenges due to the coronavirus pandemic, but our nation is resilient and our economy is safely reopening. With USMCA entering into force today, we are now in an even better position to recover and rebuild,” said House RV Caucus Co-Chair Representative Jackie Walorski (R-IN-2). “President Trump’s deal to modernize North American trade will dismantle barriers for Hoosier manufacturers and farmers, level the playing field for our workers, and expand markets for made-in-America exports. This is a major victory for the American people.”
“This agreement is the result of goodwill and collaboration and has great promise for getting U.S. trade policy back on track,” said Representative Earl Blumenauer (D-OR-3), Chair of the House Trade Subcommittee. “This promise, however, will only be realized through vigorous enforcement. Enforcement is not only necessary for upholding the agreement between the U.S., Mexico, and Canada, but also for our joint commitment to make trade work for all Americans.”