NEWS RELEASES
RVIA Says New Trade Agreement Is A Victory For RV Industry
Editor's Note: This news item was retrieved and first published through the RV Industry Association's website.
According to RV Industry Association (RVIA) news updates, the new trade agreement with Canada and Mexico announced by President Trump which will replace the North American Free Trade Agreement (NAFTA) is “a victory for the RV industry.” The proposed U.S.-Mexico-Canada Agreement (USMCA) exempts motorhomes and travel trailers from the new pact’s rules of origin for motor vehicles, which requires automobiles and light trucks-but not RVs- to have 75 percent North American content to be eligible for duty-free treatment as well as 40 percent of all parts made by workers making at least $16 per hour. These rules are expected to drive up prices for autos once implemented.
The new agreement maintains the current NAFTA rules, which require 62.5 percent domestic content for motorhomes and 50 percent domestic content for trailers, to qualify for duty-free treatment. Domestic content is defined as products or parts produced in any of the three signatory countries. The U.S.-Mexico-Canada Agreement (USMCA) also ensures that Canada and Mexico will be exempt from any future U.S. tariffs on imported automobiles and parts. USMCA must still be signed by the leaders of all three countries and then approved by Congress. It will likely go into effect in 2020.
Read the full news release from RVIA here.