TPP auto parts deal must serve all sides: U.S. MEMA re rules-of-origin

The U.S. parts-manufacturing industry shares the concerns of our counterparts in Mexico and Canada. There is no doubt that a fair trade agreement benefits all parties. Key to any trade agreement are the rules outlining the amount of content that must come from Trans-Pacific Partnership countries to be eligible for preferred tariff treatment. Reportedly the TPP requirements for auto parts are proposed to be as low as 30%. This hardly compares to the reports of a 45% content rule for finished autos. This inadequate content rule for parts will dramatically impact our domestic parts-manufacturing industry and the jobs that come with it.

New autos have a growing amount of electronic content that comes from parts manufacturers. The U.S. is a good place to develop and manufacture these components which are easily shipped world-wide. The TPP should encourage the continued development and manufacture of this technology in the U.S., not provide other countries with an opportunity to push U.S. parts manufacturers aside.

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