The United States-Mexico-Canada Agreement (USMCA) has responded to geopolitical challenges, according to the National Association of Bus, Truck, and Tractor Manufacturers (ANPACT).

ANPACT is a truck association in Mexico composed of 14 original equipment manufacturers and one engine manufacturer. 

Geopolitical challenges

After a year-on-year decline of 9.5% in real terms in 2020, the year most affected by the Covid-19 pandemic, Mexico’s freight transport GDP achieved a significant recovery. In 2021, it grew by 10.8%, according to data from Inegi.

However, in the following three years, the pace slowed. First, in 2022, year-on-year growth was 7.8% in real terms. Then, in 2023, it slowed to 3%. Finally, in 2024, growth fell to 1.2%.

In this context, ANPACT sent a letter to the United States Trade Representative (USTR). In the document, it described the USMCA not only as a trade agreement, but as “a strategic framework that has proven effective in responding to global disruptions and changing geopolitical challenges.”

Therefore, ANPACT expressed its strong support for the implementation and continuous improvement of the USMCA.

The goal, he said, is to ensure that North America remains a globally competitive center for the production of medium- and heavy-duty trucks and their parts.

Rules of origin

By 2027, the regional value content (RVC) requirement for medium- and heavy-duty trucks under the USMCA was set at 70 percent.

As a result, the industry has made significant long-term investments and strategic adjustments to its North American operations. The goal is to comply with the established Regional Value Content.

These efforts include investments in 21 vehicle and engine manufacturing plants throughout the United States.

However, ANPACT warned that any additional changes or increases to the Regional Value Content requirements would have adverse effects. It would disrupt investments already committed. It would alter defined production plans. In addition, it would create uncertainty and weaken the predictability that manufacturers need for their industrial planning.

The 70 percent Regional Content Value seeks to ensure that vehicles are manufactured predominantly in North America and that materials come from the region. Added to this are the specific rules of origin for medium- and heavy-duty trucks established in the USMCA. These rules include a 45 percent labor value requirement.

They also envisage regional sourcing of 70% of the steel and aluminum used in the production of these vehicles.