Home > Business > Industry

Korean firms call for USMCA extension ahead of next year's joint review

Published: 25 Nov. 2025, 09:05

Export-bound cars are lined up at Pyeongtaek Port in Gyeonggi on Nov. 14. [YONHAP]

Korean firms with production bases in North America have expressed their hope for preserving a free-trade pact among the United States, Mexico and Canada in their comments to the U.S. government, stressing the importance of policy certainty, as a joint review of the pact is set for next year.

In comments posted on the website of the Office of the U.S. Trade Representative (USTR), Korean companies called for extending the U.S.-Mexico-Canada Agreement (USMCA), as the review, slated to start in July, could lead to its renewal, revision or expiration in 2036.

Observers have anticipated that U.S. President Donald Trump's administration might demand concessions from Mexico and Canada during the review. Trump signed USMCA into law in 2020 during his first term, supplanting the North American Free Trade Agreement.

In its comment, Hyundai Motor Group (HMG) asked for early confirmation of USMCA's extension, saying that uncertainty regarding its renewal presents "real challenges" to its long-term planning efforts.

It also said that its investment decisions for the 2026-2030 period depend on "clear," "timely" assurance that USMCA will continue beyond 2026, stressing that "every month of ambiguity" slows job creation, site selection and technology development.

"HMG's position is clear: early confirmation of USMCA's extension would immediately unlock over $20 billion in new American investments and further strengthen the region's manufacturing competitiveness," the company said.

It described USMCA as a "cornerstone" of its progress in business activities in America, saying that the pact provided "the confidence to invest, hire and expand at record levels."

"As the joint review nears, HMG urges policymakers to preserve and strengthen this framework," it said. "By reaffirming the agreement's long-term continuity and enhancing regional collaboration, the U.S. can ensure that North America remains the global leader in advanced manufacturing and economic security."

Samsung Electronics said that USMCA has been instrumental in enabling its North America-wide investments and positioning it to operate an integrated regional supply chain network.

In particular, it said that maintaining a predictable and duty-free environment is "essential" to sustaining and expanding manufacturing operations and jobs in the United States, while expressing concerns that sectoral tariffs, including on steel, aluminum and chips, can complicate investment planning and reduce regional competitiveness.

A clear reaffirmation of duty-free trade for USMCA-compliant products would provide investment predictability and reduce planning uncertainty, it said.

"Companies that adhere to USMCA rules of origin have already committed significant capital to North American manufacturing," it said. "Duty-free treatment of their inputs and products would safeguard these investments and support ongoing expansion in North American production, research and development, and work force development."

Samsung has operated factories in Mexico to manufacture televisions and other home appliances for export to the United States. The Trump administration's imposition or anticipated rollout of sector-specific tariffs has been feared to affect its business operations in North America.

In its comment, LG Energy Solution (LGES) said that when it set out to establish an advanced battery supply chain in North America, the regional economic integration, fostered by USMCA, served as a "powerful" incentive for production and trade within the region. It operates a battery plant in Windsor, Ontario, Canada under a joint venture with Stellantis.

"To fully benefit from the agreement, LGES has developed internal processes and management systems to ensure complete compliance with USMCA rules and regulations," it said.

"Accordingly, LGES urges the USTR to prioritize the preservation and continuity of USMCA to safeguard its positive impacts. Significant changes or modifications [...] could heighten business uncertainty across industries that depend heavily on the trilateral economic framework."

The company called for limiting changes to USMCA rules of origin.

"If any modifications to the battery rules of origin are considered, LGES recommends such changes be carefully assessed with full recognition of the industry's operational realities and integrated supply chain structure," it said.

"Providing sufficient transitional periods would be important to allow affected industries to adapt and ensure smooth compliance with new rules."

USTR has received more than 1,510 comments from companies and other stakeholders regarding the operation of USMCA ahead of the formal review.

Yonhap