The U.S.-Mexico-Canada Agreement (USMCA) was signed by President Trump earlier this week. AIADA released a statement expressing relief that the period of uncertainty surrounding the renegotiation of the North American Free Trade Agreement (NAFTA) was coming to an end. AIADA will continue to work closely with automakers and the administration to ensure the new agreement is implemented in a way that fosters continued auto industry growth.
The new agreement will not enter into force until Canada finalizes its approval of the pact, and all three countries have met obligations laid out in the new deal. NAFTA will remain in place until USMCA takes effect.
USMCA contains stricter "rules of origin" (ROO) for cars, requiring 75 percent of a vehicle's components to be made in North America, up from 62.5 percent in the current NAFTA, and 40-45 percent vehicle content made by workers making at least $16 an hour. There are also more stringent requirements for the use of North American steel and aluminum. Automakers are being given between three to seven years, depending on the car, to fully meet the new requirements.
(Photo at right: AIADA President & CEO Cody Lusk and AIADA Chairman Howard Hakes attend the USMCA signing ceremony at the White House)
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Quotes of the Week
"As a dealer, I'm relieved to see this agreement signed. Trade is crucial to the international auto retail industry, which employs 578,000 Americans at 9,500 franchises and is vital to the American economy. Today's bill signing is good news for small businesses and the communities they support."
-Howard Hakes, AIADA Chairman, Hitchcock Automotive (www.aiada.org)
"[The use of tariffs] is a long slippery slope to protectionism. Once we start down that road it will never end. The consequences will be terrible."
-Rufus Yerxa, President, National Foreign Trade Council (Politico)
Must Listen
Check out the latest Beltway Talk podcast, "Ready for a Challenge: Honda's VP of Government Relations Looks Ahead."
Friday Funny
Man Cited for Using Fake Skeleton to Drive in HOV Lane
A 62-year-old man was cited in Arizona this week after trying to disguise a fake skeleton as a passenger just to use the HOV lane.
The Arizona Department of Public Safety says a trooper pulled over the man on Thursday after noticing he had placed a fake skeleton in the passenger's front seat.
The skeleton was sitting upright, wearing a hat and tied to the front seat.
Department spokesman Raul Garcia said troopers cite about 7,000 HOV lane violators every year. Last April, a man was pulled over after driving in the HOV lane with a mannequin wearing a sweatshirt, baseball cap and sunglasses.
(Associated Press)
