MEMA & AASA score major USMCA trade victory for the automotive aftermarket

June 23, 2020
In a win for motor vehicle aftermarket parts suppliers, MEMA and AASA succeeded in negotiating terms in the new United States-Mexico-Canada Agreement (USMCA) that will ensure stability and certainty in the automotive aftermarket.
In a win for motor vehicle aftermarket parts suppliers, MEMA and AASA succeeded in negotiating terms in the new United States-Mexico-Canada Agreement (USMCA) that will ensure stability and certainty in the automotive aftermarket. The USMCA goes into effect on July 1, 2020.
Largely based on the efforts of MEMA’s DC-based government affairs team, USMCA specifically defines an “aftermarket part” as “a good that is not for use as original equipment in the production of passenger vehicles, light trucks or heavy trucks.” MEMA interpreted this definition to also include “service part” as a term is used in the industry. Therefore, the aftermarket must comply with USMCA requirements, but the provisions for aftermarket parts are less restrictive than for the parts used in the production of original equipment. While the federal government continues to finalize the key regulatory language, MEMA is confident that this interpretation will be final. It is important to note that the industry, including the aftermarket, will not be able to use the NAFTA certificate after June 30.
“MEMA and AASA have worked tirelessly to protect the interests of the automotive aftermarket industry,” said Paul McCarthy, AASA President & COO. “I am so pleased that the MEMA staff were able to identify this issue early in the negotiating process and eliminate any additional compliance requirements for our industry. This measure helps reduce costs and complexity for aftermarket suppliers.” “USMCA will present many challenges for suppliers, and therefore our goal is to minimize these difficulties and provide a clear roadmap for compliance,” said Bill Long, MEMA President & CEO. For more information about this important milestone, contact Leigh Merino or Ann Wilson.About AASA AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products, an important part of the automotive parts manufacturing industry which supports 871,000 American jobs. AASA is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. AASA is the light vehicle aftermarket division of the Motor & Equipment Manufacturers Association (MEMA). “AASA, Connecting Members to What Matters.”About MEMA The Motor & Equipment Manufacturers Association (MEMA) and its four specialized divisions comprise the leading international trade association in the fast-changing mobility industry. Representing vehicle suppliers that manufacture and remanufacture components, technologies, and systems for use in passenger cars and heavy trucks, MEMA serves as a critical bridge between high-tech capabilities in new vehicles –such as autonomous vehicles and vehicle connectivity—and the “nuts and bolts” of vehicle manufacturing. MEMA works at state, federal, and international levels to ensure that the marketplace and public policy support the development of advanced, transformative technologies that enable safer, smarter, and more efficient vehicles. By directly employing more than 871,000 Americans and generating a total employment impact of 4.26 million jobs, MEMA’s member companies are the largest sector of manufacturing jobs in the U.S. MEMA’s members are represented through four divisions: Automotive Aftermarket Suppliers Association (AASA), Heavy Duty Manufacturers Association (HDMA), Association for Sustainable Manufacturing (MERA), and Original Equipment Suppliers Association (OESA). For more information on how MEMA is leading transformation in the mobility industry, visit www.mema.org.

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