United States-Mexico-Canada Agreement Implementation Act (HR 5430) – Passage Passed – House

United States-Mexico-Canada Agreement Implementation Act (HR 5430) - Passage Passed - House
  • Requires a covered vehicle to be produced at an assembly plant or facility located in North America with a production wage rate that is at least $16 per hour in order for the vehicle to be eligible for preferential tariff treatment, according to Annex 4-B of Chapter 4 of the USMCA (Sec. 202A ).

  • Specifies that a covered vehicle will only be eligible for preferential tariff treatment if the producer of the covered vehicle (Sec. 202A):

    • Provides a certification to the Commissioner of US Customers and Border Protection that the production of said covered vehicles meets the labor value content requirements, including high-wage material and manufacturing expenditures, high-wage technology expenditures, and high-wage assembly expenditures, and includes calculations of the producer related to the labor value content requirements; and 

    • Has information on record to support those calculations. 

  • Defines “preferential tariff treatment” as the customs duty rate that is applicable to a good under the USMCA (Sec. 3).

  • Defines “covered vehicle” as a passenger vehicle, light truck, or heavy truck (Sec. 202A).

  • Requires the president to establish an interagency committee no later than 30 days after the enactment of this bill (Sec. 202A):

    • To provide advice on the implementation, enforcement, and modification of provisions of the USMCA that relate to automotive goods, including the alternative staging regime; and

    • To review the operation of the USMCA with respect to trade of automotive goods, including:

      • The economic effects of the automotive rules of origin on the economy, workers, and consumers; and

      • The impact of new technology on such rules of origin.

  • Requires that the members of the interagency group include the following (Sec. 202A):

    • The US Trade Representative;

    • The Secretary of Commerce; 

    • The Commissioner of US Customers and Border Protection;

    • The Secretary of Labor; 

    • The Chair of the International Trade Commission; and

    • Any other members determined to be necessary by the Trade Representative. 

  • Requires the US Trade Representative, in consultation with the interagency committee, to conduct a biennial review of the operation of the USMCA for the trade of automotive goods, including (Sec. 202A):

    • 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; and 

    • Whether the automotive rules of origin are effective and relevant in light of new technology and changes in the content, production processes, and character of automotive goods. 

  • Defines “alternative staging regime” as the application for producers of covered vehicles to bring their products into compliance with the new requirements (Sec. 202A).

  • Requires the International Trade Commission (ITC) to submit to the appropriate congressional committees and the president a report on (Sec. 202A):

    • The economic impact of the automotive rules of origin on:

      • The US gross domestic product;

      • Exports from and imports into the US;

      • Aggregate US employment and employment opportunities;

      • Production, investment, use of productive facilities, and profit levels on the automotive industries and other pertinent industries in the US affected by the automotive rules of origin; 

      • Wages and employment of workers in the automotive sector in the US; and 

      • The interests of US consumers;

    • The operation of the automotive rules of origin and their effects on the competitiveness of the US with respect to production and trade of automotive goods, taking into account developments in technology, production processes, or other related matters;

    • Whether the automotive rules of origin are relevant in light of technological changes in the US; and

    • Other matters as the ITC considers relevant to the economic impact of the automotive rules of origin, including prices, sales, inventories, patterns of demand, capital investment, obsolescence of equipment, and diversification of production. 

  • Appropriates $210 million to the Bureau of International Labor Affairs to administer and operate international labor activities, technical assistance, and microfinance programs, by or through contracts, grants, subgrants, and other arrangements, including (Sec. 834):

    • Grants to support worker-focused capacity building;

    • Efforts to reduce workplace discrimination in Mexico; 

    • Efforts to reduce child labor and forced labor in Mexico;

    • Efforts to reduce human trafficking; and

    • Efforts to reduce child exploitation.

  • Requires the president to establish an Interagency Labor Committee for Monitoring and Enforcement to coordinate US efforts that do the following Sec. 711):

    • To monitor the implementation and maintenance of the labor obligations; 

    • To monitor the implementation of Mexico’s labor reform; and 

    • To request enforcement actions for a USMCA country that is not in compliance with such labor obligations. 

  • Specifies that the duties of the Interagency Labor Committee will include, but are not limited to, the following (Sec. 712):

    • Coordinating the activities of departments and agencies of the Committee in monitoring the implementation and compliance with labor obligations;

    • Establishing an ongoing dialogue with appropriate officials of the Mexican government regarding the implementation of Mexico’s labor reform and compliance with its labor obligations;

    • Coordinating with other institutions and governments to support relating to labor issues, such as the International Labour Organization and the Canadian government;

    • Identifying priority issues for capacity-building activities in Mexico to be funded by the US, drawing primarily on the expertise of the Department of Labor; and

    • Meeting, at least biannually during the 5-year beginning period, to consult and provide opportunities for input with respect to:

      • The implementation of Mexico’s labor reform;

      • Labor-capacity-building activities in Mexico funded by the US;

      • Labor monitoring efforts;

      • Labor enforcement priorities; and 

      • Other relevant issues.

  • Requires the Interagency Labor Committee to establish a web-based hotline, monitored by the Department of Labor, to receive confidential information regarding labor issues among USMCA countries directly from interested parties, including Mexican workers (Sec. 717).

  • Requires the president to establish an Interagency Committee for Monitoring and Enforcement (Sec. 811):

  • Requires the Administrator of the Environmental Protection Agency to carry out the planning, design, construction, operation, and maintenance of high-priority treatment works to treat wastewater, non-point sources of pollution, and related matters resulting from international trans-boundary water flows originating in Mexico (Sec. 821).