Establishment of the Interagency Committee on Trade in Automotive Goods Under Section 202A of the United States Mexico Canada Agreement Implementation Act
Signed: February 28, 2020
Published: March 6, 2020
Document Number: 2020-04755
📋Summary
This executive order creates an Interagency Committee on Trade in Automotive Goods to advise the U.S. government on how to carry out, enforce, and potentially adjust the U.S.-Mexico-Canada Agreement (USMCA) rules that apply to cars and auto parts. It affects federal agencies involved in trade, labor, customs, and economic analysis, and it indirectly affects automakers, parts suppliers, and workers by shaping how USMCA auto rules are applied. The committee, chaired by the U.S. Trade Representative, is tasked with reviewing how the auto rules of origin and related timelines are working, including their economic effects on U.S. workers and consumers and how new technology may change what the rules should cover. It sets a process for the committee to make recommendations (aiming for consensus, but allowing majority votes if needed) and directs Treasury, Labor, and U.S. Customs and Border Protection to issue any needed regulations and other measures to implement the law.
💼Business Impact
This order most affects automakers, auto parts suppliers, logistics providers, and any manufacturer importing/exporting vehicles or components across the U.S.–Mexico–Canada supply chain, because it strengthens interagency oversight of USMCA automotive rules of origin and the “alternative staging” transition rules. Expect tighter and more coordinated enforcement and possible rule adjustments, which can translate into new documentation/audit expectations (e.g., origin calculations, supplier certifications, labor-related attestations, and customs entry support) and opportunities for firms that can qualify more content as USMCA-origin to reduce tariffs and gain sourcing advantages. Businesses should immediately (1) map their North American bill of materials and origin status by part/vehicle, (2) stress-test eligibility under current and potential stricter interpretations, (3) tighten supplier contract language and data collection for origin/labor compliance, and (4) engage customs/trade counsel or brokers to prepare for CBP verification requests and to monitor forthcoming Treasury/Labor/CBP implementing measures.
Full Text
Executive Order 13908 of February 28, 2020
Establishment of the Interagency Committee on Trade in Automotive Goods Under Section 202A of the United States Mexico Canada Agreement Implementation Act
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, and section 202A of the United States-Mexico-Canada Agreement Implementation Act (Act) (Public Law 116-113), it is hereby ordered as follows:
Section 1 . Establishment of Interagency Committee. The Interagency Committee on Trade in Automotive Goods (Committee) is hereby established to provide advice, as appropriate, on the implementation, enforcement, and modification of provisions of the United States-Mexico-Canada Agreement (Agreement) that relate to automotive goods, including the automotive rules of origin and the alternative staging regime that are part of such rules. The Committee shall also review the operation of the Agreement with respect to trade in automotive goods, including the economic effects of the automotive rules of origin on the United States economy, workers, and consumers, and the impact of new technology on such rules.
Sec. 2 . Membership. The Committee shall be composed of the Secretary of Commerce, the Secretary of Labor, the United States Trade Representative (USTR), the Chairman of the United States International Trade Commission, and the Commissioner of U.S. Customs and Border Protection in the Department of Homeland Security. Members of the Committee may designate an officer of the United States within their respective executive department, agency, or component to serve as their representative on the Committee. The USTR shall serve as Chair of the Committee. The USTR may invite representatives from other executive departments or agencies, as the USTR determines are necessary, to participate as members or observers, and shall include the Secretary of the Treasury as a member of the Committee. Each executive department, agency, and component represented on the Committee shall ensure that the necessary staff are available to assist in performing the responsibilities of the Committee.
Sec. 3 . Committee Decision-making. The Committee shall endeavor to make any recommendation on an action or determination under section 202A of the Act by consensus, which shall be deemed to exist where no Committee member objects to the proposed action or determination. If the Committee is unable to reach a consensus on a proposed action or determination, the Committee may decide the matter by majority vote of its members if the Chair determines that allotting further time will unduly delay implementation of provisions of the Agreement that relate to automotive goods. The Chair, in addition to voting, may also break any tie vote.
Sec. 4 . Implementing Measures. The Secretary of the Treasury, the Secretary of Labor, and the Commissioner of U.S. Customs and Border Protection, are directed to issue, in consultation with the USTR (and with each other, as directed in the Act), such regulations and other measures as are necessary or appropriate to implement section 202A of the Act.
Sec. 5 . General Provisions. (a) Each executive department and agency shall bear its own expenses incurred in connection with the Committee's functions described in section 202A of the Act. ( printed page 12984)
(b) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(c) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
February 28, 2020.