Trade Competitiveness

Motor vehicle suppliers and our nation’s competitiveness rely on rules-based free and fair-trade, benefiting both manufacturers and consumers. MEMA supports a strong North American system of trade that benefits our nation’s competitiveness. MEMA is a strong supporter of the U.S.-Mexico-Canada Agreement (USMCA), however, the implementation of key elements of the auto agreement must include compliance with the USMCA dispute resolution decision on “super-core rollup” on key components.

The competitiveness of the industry is contingent upon being able to actively participate in the world’s fastest-growing large market for new vehicles, therefore, U.S. vehicle suppliers must still be able to manufacture in China. Additionally, global trade and supply chains are evolving. The industry sources inputs and provides components manufactured in each region for vehicles produced in that region.

Section 301 tariffs on Chinese Imports and Section 232 tariffs on steel and aluminum are taxes on American businesses, workers, and consumers, which have cost American industry more than $188 billion and have placed a financial burden on U.S. parts and component manufacturers, undermining global competitiveness

MEMA urges policy makers to 1) reopen the exclusion process for Section 301 tariffs on Chinese imports, 2) eliminate Section 232 tariffs on steel and aluminum, 3) ensure compliance of USMCA dispute resolution, 4) narrowly define export controls on critical technologies shipped to competitor nations, and 5) finalize the Indo-Pacific Economic Framework (IPEF).

Contact Bill Frymoyer, Vice President, Public Policy for more information.

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