Changes with USMCA... KOTRA Hosts Webinar

Webinar on "Key Points and Impact of USMCA" on the Morning of the 16th on YouTube Channel

KOTRA will hold a webinar on the topic "Key Contents and Impact of USMCA" at 10 a.m. on the 16th. You can watch lectures by domestic and international experts on the YouTube channel "KOTRA TV." (Photo by KOTRA)

[Asia Economy Reporter Kim Ji-hee] KOTRA announced on the 14th that it will hold a webinar on the 16th under the theme "Key Contents and Impact of the United States-Mexico-Canada Agreement (USMCA)."

USMCA, which came into effect on the 1st of this month, is an agreement reflecting the Trump administration's intention to modernize the North American Free Trade Agreement (NAFTA). It includes new rules of origin such as an increased ratio of North American parts, as well as provisions related to labor, environment, and intellectual property rights.

KOTRA prepared this webinar in response to the need for changes in export strategies to the U.S. for Korea's key products such as automobiles and the response methods of local companies. The lecture videos by domestic and international experts can be viewed on the YouTube channel "KOTRA TV."

Professor Kang Jun-ha of Hongik University will introduce the significance and key contents of USMCA. Professor Kang explained, "The Trump administration, which prioritized nationalism, is trying to introduce norms that align with its national interests not only in trade and investment but also in intellectual property rights, labor, environment, and digital trade," adding, "There are also business-friendly elements such as simplified customs procedures and proof of origin."

Mark Talor, a U.S. international trade specialist lawyer, will explain the rules of origin for automobiles and parts. Lawyer Talor said, "Under USMCA, the regional value content requirement for automobiles has increased to 75%, and a certain proportion of North American steel and aluminum must be used, as well as parts manufactured in places where the hourly wage is at least $16." He forecasted that the strict labor value ratio would make it difficult for domestic companies to respond.

In the Mexican automobile industry, which is expected to be affected by the strengthened rules of origin, Mario de la Cruz, Vice Chairman of the Purchasing Committee of the Guanajuato Automotive Industry Cluster, commented, "It is difficult to comply with the obligation to use North American steel and aluminum."

Finally, Lee Ji-hyung, Head of KOTRA's North America Regional Headquarters, will present the industry-specific impacts and market entry strategies following the enforcement of USMCA.

Son Soo-deuk, Head of KOTRA's Economic and Trade Cooperation Headquarters, said, "Since USMCA involves the U.S., the largest market, and Mexico, where many of our production bases are located, thorough industry response is required," adding, "KOTRA will continue to monitor local market changes and proactively discover useful information for our companies."