The uniform regulations of the Treaty between Mexico, United States and Canada (T-MEC) detail how the Labor Content Value (VCL) will be measured in the automotive sector rules of origin.

Currently the VCL is 30%, consisting of at least 15 percentage points of expenses in materials and labor with high salaries, no more than 10 percentage points of expenses in technology and no more than 5 percentage points of expenses in assembly of high wages.

This clause will be in force from July 1, 2020 until June 30, 2021.

On the one hand, High Wage Labor Costs (HWLC) means the sum of wage expenses, not including benefits, for workers performing direct production jobs at a rate vehicle assembly plant wage.

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