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Request for Comments and Notice of Public Hearing Concerning the Operation of the United States-Mexico-Canada Agreement With Respect To Trade in Automotive Goods

Publication: Federal Register
Agency: Office of the United States Trade Representative
Byline: Greta Peisch
Date: 22 November 2023
Subject: American Government 
[Federal Register Volume 88, Number 224 (Wednesday, November 22, 2023)]
[Notices]
[Pages 81527-81529]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25765]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

[Docket Number USTR-2023-0013]


Request for Comments and Notice of Public Hearing Concerning the 
Operation of the United States-Mexico-Canada Agreement With Respect To 
Trade in Automotive Goods

AGENCY: Office of the United States Trade Representative (USTR).

ACTION: Request for comments and notice of public hearing.

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SUMMARY: The U.S. Trade Representative must conduct a review of trade 
in automotive goods under the United States-Mexico-Canada Agreement 
(USMCA) and submit a report to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representatives no 
later than July 1, 2024. USTR invites comments concerning the operation 
of the USMCA with respect to automotive goods, including the 
implementation and enforcement of the USMCA rules of origin for 
automotive goods, as well as whether the automotive provisions of the 
USMCA are effective in light of technological and production advances.

DATES: January 17, 2024 at 11:59 p.m. EST: Deadline for submission of 
written comments, request to testify, and written testimony.
    February 7, 2024 at 10:00 a.m. EST: USTR and the Interagency 
Committee on Trade in Automotive Goods will convene a public hearing to 
receive oral testimony.

ADDRESSES: USTR strongly prefers electronic submissions made through 
the Federal rulemaking Portal: https://www.regulations.gov/ 
(Regulations.gov). Follow the instructions for submitting written 
comments, testimony, and requests to testify in sections III through V 
below, using docket number USTR-2023-0013. For alternatives to on-line 
submissions, please contact Justin Hoffmann, Deputy Assistant U.S. 
Trade Representative for Market Access and Industrial Competitiveness, 
in advance of the deadline at (202) 395-2990 or Justin.D.Hoffmann@ustr.eop.gov.

FOR FURTHER INFORMATION CONTACT: Justin Hoffmann, Deputy Assistant U.S. 
Trade Representative for Market Access and Industrial Competitiveness 
at (202) 395-2990 or Justin.D.Hoffmann@ustr.eop.gov.

SUPPLEMENTARY INFORMATION:

I. USMCA Background

    On January 29, 2020, the President signed into law the USMCA 
Implementation Act (Pub. L. 116-113), which implements the USMCA 
between the United States, the United Mexican States, and Canada 
attached as an Annex to the Protocol Replacing the North American Free 
Trade Agreement. The USMCA entered into force on July 1, 2020.
    The USMCA includes new rules of origin to claim preferential 
treatment for automotive goods, including higher Regional Value Content 
(RVC) thresholds, mandatory requirements to produce core parts in the 
region, mandatory steel and aluminum purchasing requirements, and a 
Labor Value Content (LVC) requirement. The USMCA allows vehicle 
producers to request an alternative staging regime for these 
requirements that would permit a longer period of transition to help 
ensure that future production is able to meet the new rules. The 
standard staging regime is specified under the Automotive Appendix to 
Chapter 4 of the USMCA, with the exception of Article 8, which 
specifies provisions relating to the alternative staging regime.
    The USMCA Implementation Act and Executive Order 13908 established 
the Interagency Committee on Trade in Automotive Goods (Committee) to 
advise the President and the U.S. Trade Representative on the 
implementation, enforcement and modification of the USMCA provisions 
related to automotive goods. In addition, the Committee reviews the 
operation of the USMCA with respect to trade in automotive goods, 
including the economic effects of the USMCA automotive rules of origin 
on the U.S. economy, workers and consumers, and the impact of new 
technology on such rules.

II. Report to Congress

    Section 202A(g) of the USMCA Implementation Act requires the U.S. 
Trade Representative, in consultation with the Committee, to conduct a 
biennial review of the operation of the USMCA with respect to trade in 
automotive goods, including:
    (a) To the extent practicable, a summary of actions taken by 
producers to demonstrate compliance with the automotive rules of 
origin, use of the alternative staging regime, enforcement of such 
rules of origin, and other relevant matters.
    (b) Whether the automotive rules of origin are effective and 
relevant in light of new technology and changes in content, production 
processes and character of automotive goods.
    USTR submitted its first report to Congress on June 30, 2022. No 
later than

[[Page 81528]]

July 1, 2024, USTR will submit the results of the second biennial 
review to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives and post a public 
version of the report to its website at https://www.ustr.gov. The 2022 
report is available on USTR's website at https://ustr.gov/sites/default/files/2022%20USMCA%20Autos%20Report%20to%20Congress.pdf.

III. Request for Public Input

    In accordance with the USMCA Implementation Act, USTR and the 
Committee seek views from producers of automotive goods, labor 
organizations and other interested parties regarding:
    1. The overall operation of the USMCA with respect to automotive 
goods.
    2. Actions taken by automotive and parts producers to demonstrate 
compliance with the USMCA automotive rules of origin, including:
    a. The applicable RVC requirements for passenger vehicles, light 
trucks, heavy trucks, other vehicles and parts thereof.
    b. The North American steel and aluminum purchase requirements.
    c. The LVC requirements.
    3. The use of alternative staging regimes by vehicle producers to 
meet the USMCA automotive rules of origin.
    4. Enforcement of the USMCA automotive rules of origin, including 
the alternative staging regimes and the automotive certification 
process for steel and aluminum content, LVC and RVC.
    5. Whether the current USMCA automotive rules of origin are 
effective in light of new technology and changes in the content, 
production processes and character of automotive goods. In particular, 
whether the rules of origin remain effective for:
    a. The large-scale transition towards electric and other clean-
energy vehicles;
    b. The transition away from internal combustion and diesel 
vehicles;
    c. The automotive parts applicable to electric and clean-energy 
vehicles and internal combustion or diesel vehicles; or
    d. Any other vehicle and part subject to the USMCA automotive rules 
of origin.
    6. Whether the USMCA rules of origin are effective in supporting 
the competitiveness of the North American automotive industry in light 
of global challenges, such as excess capacity of electric vehicles.
    7. An update on the supply chain challenges identified in the 2022 
report (e.g., semiconductor shortage, war in Ukraine) and the impact 
the USMCA had on overcoming those supply chain challenges.
    8. The impact of the 2022 Inflation Reduction Act and similar 
legislation, e.g., the CHIPS and Science Act of 2022, and the 
Infrastructure Investment and Jobs Act, on the overall trade in 
automotive goods under the USMCA and those goods' ability to meet the 
USMCA rules of origin.
    9. Specific issues faced by producers of heavy-duty trucks and 
other automotive goods not specifically addressed above.
    10. Any other topics relevant to the trade in automotive goods 
under the USMCA.

IV. Hearing Participation

    USTR will convene a public hearing on February 7, 2024 related to 
the operation of the USMCA with respect to autos. Persons wishing to 
observe the public hearing will find a link on USTR's web page for the 
USMCA on the day of the hearing at https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement. To ensure 
participation, you must submit requests to present oral testimony at 
the hearing and written testimony by 11:59 p.m. EST on January 17, 
2024, via Regulations.gov, using Docket Number USTR-2023-0013. 
Instructions for submission are in section V below. Remarks at the 
hearing will be limited to no more than five minutes to allow for 
possible questions from the Committee. Because it is a public hearing, 
testimony should not include any business confidential information 
(BCI).

V. Procedures for Written Submissions

    To be assured of consideration, submit your written comments, 
requests to testify, and written testimony by the January 17, 2024, 
11:59 p.m. EST deadline. All submissions must be in English. USTR 
strongly encourages submissions via Regulations.gov, using Docket 
Number USTR-2023-0013.
    To make a submission via Regulations.gov, enter Docket Number USTR-
2023-0013 in the `search for' field on the home page and click 
`search.' The site will provide a search results page listing all 
documents associated with this docket. Find a reference to this notice 
by selecting `notice' under `document type' in the `refine documents 
results' section on the left side of the screen and click on the link 
entitled `comment.' Regulations.gov allows users to make submissions by 
filling in a `type comment' field, or by attaching a document using the 
`upload file' field. USTR prefers that you provide submissions in an 
attached document and, in such cases, that you write `see attached' in 
the `type comment' field. USTR prefers submissions in Microsoft Word 
(.doc) or Adobe Acrobat (.pdf). If you use an application other than 
those two, please indicate the name of the application in the `type 
comment' field.
    At the beginning of your submission or on the first page (if an 
attachment), include the following text: (1) 2024 USMCA Autos Report; 
(2) your organization's name; and (3) whether the submission is a 
comment, request to testify, or written testimony. Please do not attach 
separate cover letters, exhibits, annexes, or other attachments to 
electronic submissions; rather, include any in the same file as the 
submission itself, not as separate files. You will receive a tracking 
number upon completion of the submission procedure at Regulations.gov. 
The tracking number is confirmation that Regulations.gov received your 
submission. Keep the confirmation for your records. USTR is not able to 
provide technical assistance for Regulations.gov.
    For further information on using Regulations.gov, please consult 
the resources provided on the website by clicking on `How to Use 
Regulations.gov' on the bottom of the home page. USTR may not consider 
submissions that you do not make in accordance with these instructions.
    If you are unable to provide submissions as requested, please 
contact Justin Hoffmann, Deputy Assistant U.S. Trade Representative for 
Market Access and Industrial Competitiveness, in advance of the 
deadline at Justin.D.Hoffmann@ustr.eop.gov or (202) 395-2990, to 
arrange for an alternative method of transmission. USTR will not accept 
hand-delivered submissions. General information concerning USTR is 
available at www.ustr.gov.
    If you ask USTR to treat information you submit as BCI, you must 
certify that the information is business confidential and you would not 
customarily release it to the public. For any comments submitted 
electronically containing BCI, the file name of the business 
confidential version should begin with the characters `BCI.' You must 
clearly mark any page containing BCI with `BUSINESS CONFIDENTIAL' at 
the top of that page. Filers of submissions containing BCI also must 
submit a public version of their submission that will be placed in the 
docket for public inspection. The file name of the public version 
should begin with the character `P.'
    USTR will post written submissions in the docket for public 
inspection,

[[Page 81529]]

except properly designated BCI. You can view submissions at 
Regulations.gov by entering Docket Number USTR-2023-0013 in the search 
field on the home page.

Greta Peisch,
General Counsel, Office of the United States Trade Representative.
[FR Doc. 2023-25765 Filed 11-21-23; 8:45 am]
BILLING CODE 3390-F4-P




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