The United States–Mexico–Canada Agreement (USMCA) replaced NAFTA in 2020 and governs trade among the three countries. USMCA-origin treatment requires meeting specific rules of origin, regional value content (RVC), and — for autos — labor value content (LVC) thresholds. TariffSignals tracks USTR enforcement actions, Federal Register notices, CBP CSMS guidance on USMCA certifications, and the joint review process leading to the 2026 statutory review.
The United States–Mexico–Canada Agreement (USMCA) replaced NAFTA on July 1, 2020. USMCA preserved tariff-free trade among the three countries for qualifying goods, but tightened rules of origin, added labor and environment provisions, and introduced new enforcement mechanisms.
RVC is the share of a product's value that must be sourced from USMCA countries to qualify for tariff-free treatment. The threshold varies by product, with the highest thresholds applying to autos (75 percent core RVC for passenger vehicles and core auto parts).
LVC is a USMCA-specific requirement for the auto sector — a portion of qualifying production must be performed in plants paying at least USD 16 per hour. LVC works alongside RVC for autos and is unique among U.S. trade agreements.
The importer files a certification of origin with the entry. There is no specific form — the certification can come from the importer, exporter, or producer and must contain specified data elements. Records must be kept for at least five years.
Article 34.7 requires a joint review of USMCA on the six-year anniversary in 2026. The three countries are conducting consultations and stakeholder processes. The review can lead to amendments or, if a party chooses, trigger the path toward a sixteen-year sunset.
TariffSignals provides informational analysis for issue-spotting and professional awareness only. It is not legal, tax, customs, or compliance advice. USMCA origin determinations, RVC and LVC calculations, and certificate preparation are fact-specific. Verify with a licensed customs broker or qualified trade attorney before any commercial decision. See our Terms and Privacy policies.