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 and 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,” added Bill Long, MEMA president & CEO.