The Trump administration will seek to make adjustments to the rules of origin for the automotive and aerospace industries during the T-MEC review in 2026, aiming to prevent third countries from improperly benefiting from the treaty, according to Jamieson Greer, nominated U.S. Trade Representative (USTR).
Greer, who played a key role in negotiating the T-MEC, indicated that one of the main concerns is ensuring that the benefits of the agreement remain within North America and do not leak to countries operating under unfair trade practices. During his confirmation hearing before the Senate, Greer emphasized the need to reinforce the provisions regulating the regional content of products crossing the borders of the three countries.
"We must closely examine the rules of origin to ensure that third countries or non-commercial economies do not benefit from the agreement at the expense of the United States and our trading partners," Greer stated before the Senate Finance Committee. In this regard, he noted that it is essential to examine the rules of origin for automobiles, the aerospace industry, and other sectors to determine whether it is necessary to implement restrictions on the content or added value from foreign countries that do not comply with trade norms.
The current T-MEC rules of origin scheme stipulates that vehicles must contain at least 75% of inputs produced in North America to qualify for preferential tariff treatment. Greer mentioned that his office will work closely with labor unions and industries to ensure that modifications to the treaty protect the interests of American workers and businesses.
"The political and economic sustainability of the T-MEC depends on addressing these issues in a timely manner," concluded Greer. The T-MEC must benefit exporters and workers in the involved countries, preventing foreign companies from taking advantage of the treaty without assuming the corresponding obligations. In addition to the rules of origin, Greer mentioned other areas of trade tension, such as access to the dairy market in Canada and Mexico's energy policies.
