“Thank you for the opportunity to participate in today’s hearing. The chance to inform the work of the United States Trade Representative’s office is humbling and very much appreciated.
MichAuto is Michigan’s only statewide automotive industry association, and its perspective is grounded in the outsized role that the industry plays in the state. Michigan is number one in vehicle production and home to 14 assembly plants, producing 19% of all manufactured vehicles in the United States. The industry directly or indirectly employs over 1.2 million workers, one in five jobs in the state.
This major concentration of vehicle manufacturing and assembly and Michigan’s status as a border state means we keenly understand how the integrated supply chains that span the North American continent help keep the American auto sector globally competitive. Michigan has the third-highest reliance on trade, with over $235 billion, or 42% of its economy, dependent on foreign trade, most of which is with Canada and Mexico. Our state is the number two top U.S. exporter to Canada and the number three top U.S. exporter to Mexico at a combined $40 billion in goods annually, much of which is transportation equipment. Similarly, 45%, or $75 billion, of all imports to Michigan come from Mexico, while 26%, or $45 billion, come from Canada.
The USMCA is the bedrock that has ensured this incredible economic exchange as well as a level of industry resilience across North America – maintaining easy access to all three markets, free flowing supply chains, and keeping costs competitive with the rest of the world – demonstrating beyond a doubt that this trilateral bloc is truly strongest when it works together.
We strongly support the extension of this vital agreement next year. It is the most important trade mechanism for maintaining those supply chains and the jobs and business opportunities they generate. A healthy flow of trade and goods across the border is essential to both our automotive and manufacturing industries and the global competitiveness of both Michigan and the United States.
There are, nevertheless, areas where we believe the USMCA can be strengthened, including:
- Refine compliance measures with existing rules of origin, labor value content thresholds, and steel and aluminum sourcing requirements to improve feasibility.
- Create coordinated incentives to boost regional production of critical minerals and near-shoring to bolster industry resilience and national security protections throughout North America.
- Resolve any ongoing U.S. national security concerns related to tariffs placed on aluminum, steel, copper, autos, and commercial vehicles applied under Section 232 of the Trade Expansion Act of 1962.
Those of us in Michigan know well the tremendous talent, productivity, and ingenuity that has long defined the American auto industry. The companies we represent – from large OEMs to small, tiered suppliers — rely on the certainty that the USMCA provides in planning long-term, capital-intensive investments that drive Michigan’s economy.
In closing, we appreciate the work of this office to ensure more auto manufacturing returns to Michigan and the U.S. We believe that the USMCA has played a vital role in securing this trilateral partnership across North America, which has enabled the industry to remain globally competitive.
The USMCA joint review process offers a valuable opportunity to strengthen and extend this vital trade pact. We greatly appreciate the steadfast work of the Office of the U.S. Trade Representative and hope these comments help inform your efforts as the joint review process begins in earnest next year. Thank you.”
