Trade
Net Regional Value Content
RVC calculation method subtracting the value of non-originating materials from the transaction value of goods.
RVC calculation method subtracting the value of non-originating materials from the transaction value of goods.
Net RVC is calculated: RVC = ((TV - VNM) / TV) x 100, where TV is transaction value and VNM is value of non-originating materials. USMCA generally requires 75% net RVC for automobiles.
Regional Value Content
The percentage of a product's value that must originate within a free trade agreement's region for the goods to qualify as originating and access preferential tariff treatment.
TradeRules of Origin
Criteria determining the economic nationality of goods, required to qualify for preferential tariff rates under free trade agreements.
TradeUSMCA (T-MEC)
Trade agreement between the United States, Mexico, and Canada that replaced NAFTA in July 2020, governing trade, investment, and intellectual property rules.