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USMCA Takes Effect July 1

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July 1, 2020—The Automotive Aftermarket Suppliers Association (AASA) and the Motor and Equipment Manufacturers Association (MEMA) helped negotiate terms on the new United States-Mexico-Canada Agreement (USMCA) for the automotive aftermarket, according to a press release.

The USMCA now 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 used in the industry, which means that 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, according to the release.

While the federal government continues to finalize the key regulatory language, it is said in the release that this interpretation of the definition will be final.

The automotive industry and aftermarket will not be able to use the NAFTA certificate after June 30, as the new USMCA terms go into effect today, July 1.

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