USMCA rules may be unworkable for some suppliers, official says

Complying with the proposed US-Mexico-Canada Agreement (USMCA) that replaces NAFTA will be expensive for those in the automotive supply chain and could prove unworkable for some, said John Bozzella, president and CEO of the Association of Global Automakers in the U.S. at a public hearing on the USMCA, Automotive Logistics reported.

“The agreement’s automotive rules of origin are complex and contain a large number of layered requirements. It is clear that the USMCA auto origin rules will introduce unnecessary complexity, require costly changes to supply chains and potentially redundant investments,” Bozzella said.

“The new costs from complex and layered rules of origin in the revised agreement may prove unworkable for some,” the official added.

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