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RVIA Comments on Automotive Goods Trading Through the USMCA

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The RV Industry Association (RVIA) expressed its support for the Biden Administration’s commitment to implementing the United States-Mexico-Canada Agreement (USMCA) and continuing the North American market, according to the News & Insights report of the RVIA.

The Office of the United States Representatives (USTR) and the Interagency Committee on Trade in Automotive Goods recently sought feedback from manufacturers of automotive products or labor groups and other interested parties regarding specific areas of the USMCA concerning automotive goods.

They also have asked for thoughts on the impact, relevance, enforcement, and overall effects of automotive rules on manufacturers of parts and vehicles and any other topics relevant to USMCA’s trade-in automotive goods.

RVIA has described some current challenges that directly impact the industry’s manufacturing capacity for Canadian or Mexican markets.

The association has stated that its members continue to experience persistent delays at ports and domestic rails. They also report costs that are consistently five times higher than pre-pandemic levels.

Although the RV industry sources domestically whenever possible, the association noted that the RV manufacturers rely on the Generalized System of Preferences (GSP) program to source the required components for U.S. manufacturing. The expiration date for the program has cost the industry over $1 million per month.

The RVIA calls on the administration to remain focused on resolving the current rail and port issues and cooperate with congress for the long-term GSP renewal as soon as possible.

The United States is the world’s largest producer of RVs, manufacturing twice the number of RVs as the rest of the world. In 2020, more than 95% of U.S. RV exports were to Canada, which accounted for almost 10% of United States RV shipments—nearly 30,000 RVs with a wholesale value of $884 million.

While far behind Canada, Mexico is also the top destination for RV-related shipments. The association said that maintaining export relations is essential to ensure that the unique American RV industry thrives in a difficult period for producers.

For questions, contact the RV Industry Association’s Senior Manager, Samantha Rocci, at [email protected].

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