Steel Producers Push for NAFTA Rules of Origin in TPP
Rules of origin for autos and auto parts in the Trans-Pacific Partnership should reflect the same regional value content standards in NAFTA in order to safeguard domestic industry, said North American steel producers in a letter (here) to the top…
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trade officials in the three countries. A number of reports in August suggested the U.S. is set to negotiate a far lower regional value content for auto and auto parts. Those reports spurred an outcry among U.S. lawmakers, unions and the Mexican auto industry (see 1508250023 and 1508180018). “We urge our governments to negotiate a TPP agreement that maintains strong rules of origin and regional value content requirements to sustain the benefits currently accruing to NAFTA steel producers, their integrated supply chains and the NAFTA economy,” said the letter. “The TPP must not confer an advantage to producers whose primary supply chain is located outside the TPP region.” NAFTA requires a 62 percent regional value content for autos, lights trucks and some parts, as well as a 60 percent threshold for other parts (here).