WASHINGTON — The Auto Care Association is urging the Trump administration to "consider fully … the long-term implications" of certain provisions in the U.S. Mexico Canada Agreement (USMCA) that could increase costs for the U.S. automotive aftermarket industry.
ACA President Bill Hanvey enumerated the association's concerns in testimony he gave Nov. 15 at a hearing before the U.S. International Trade Commission (USITC) on the likely economic impact of the USMCA.
Mr. Hanvey explained that although the USMCA will result in "increased investment and/or reshoring of production into North American supply chains," the ACA is concerned with a few provisions in the agreement, including increased rules of origin, new certification requirements, sunset provision and quotas capping imports exempt from the pending Section 232 autos and auto parts investigation.
"We urge the Commission to consider fully in its report the long-term implications of the USMCA on the automotive industry, and urge the ITC to closely consult with the industry during the agreement's implementation and evolution, Mr. Hanvey said.
"Our industry's ability to remain globally competitive supports U.S. auto exports, provides U.S. consumers with a wider selection of vehicles and parts, and keeps vehicle repair and maintenance costs affordable for working families."
In his testimony, Mr. Hanvey said the ACA is concerned the USMCA's increased rules of origin will require some auto parts maker to invest in production facilities and/or supply-chain management to keep pace.
In addition, new certification requirements, will create administrative record-keeping procedures that will be "especially burdensome" for small- and medium-sized producers.
Mr. Hanvey also addressed the ACA's concerns about sunset provisions and the effect of pending Section 232 import tariffs on the industry under USMCA rules.