USMCA Auto Parts Origin Criteria Strengthening Response Briefing Held

Strengthening Norms to Reinforce North American Manufacturing Base and Attract Jobs
Ministry of Industry: "Supporting Proactive Corporate Response"

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy announced that, together with the Korea International Trade Association, the Korea Automobile Manufacturers Association, and the Korea Automobile Industry Cooperative, it will hold a briefing session on the rules of origin for North American automobile and parts export companies at COEX in Seoul on the 22nd.

The United States-Mexico-Canada Agreement (USMCA) recently announced the automobile rules of origin (ROO) including ▲strengthening rules of origin (raising the regional value content ratio among the three countries to 75%) ▲encouraging the use of regional parts and materials (restricting 70% of steel and aluminum used for car production to North American products) ▲introducing new non-traditional rules of origin (labor value content requires that the hourly wage of workers producing car parts be at least $16 to qualify for tariff benefits).

The USMCA revised these regulations to attract manufacturing bases and jobs to North America, especially the United States.

The Ministry of Trade, Industry and Energy explained that the briefing session was held to provide information so that Korean companies can timely respond to new trade norms such as the new USMCA automobile and parts rules of origin.

According to the ministry, automobile and parts companies attending the meeting said that their understanding of the complex rules of origin would improve and requested the government to continuously provide a communication platform regarding new trade norms.

Lee Kyung-sik, Director of Free Trade Agreement Negotiations at the Ministry of Trade, Industry and Energy, stated, "We will continue to provide communication channels with the industry regarding other norms such as government procurement and intellectual property rights," and promised, "We will also continue to pursue the conclusion and revision of free trade agreements (FTAs) to support our companies in proactively responding to changes in the global trade environment."

This content was produced with the assistance of AI translation services.