Background on AMIA and its Relevance
The AMIA, or the Mexican Association of the Automotive Industry, is a crucial organization representing original equipment manufacturers (OEMs) based in Mexico. AMIA members account for approximately 4.5% of Mexico’s GDP, 32% of the country’s total exports, and over 3.5 million direct and indirect jobs in Mexico.
AMIA’s Request to USTR
Rogelio Garza, the CEO of AMIA, has requested that Mexico be allowed to file labor claims in the United States and Canada under the framework of the USMCA (United States-Mexico-Canada Agreement). This request is part of the consultation process for the USMCA review, scheduled for July 1, 2026.
AMIA’s Perspective on the Rapid Labor Response Mechanism (MLRR)
Garza highlighted that the automotive sector has been the primary target of the U.S. under the MLRR in Mexico, and its experience demonstrates that this mechanism can be an effective tool for ensuring compliance with labor commitments outlined in the USMCA.
AMIA’s Additional Demands
In addition to the labor claims, AMIA has demanded that the U.S. respect parallel letters concerning Section 232, National Treatment, Market Access for Goods, and the dispute settlement panel on rules of origin within the USMCA framework.
AMIA’s Stance on MLRR Application
Garza emphasized the need for balance in MLRR application, suggesting that it should be genuinely trilateral, allowing Mexico to file claims in the U.S. and Canada. He also stressed that MLRR implementation should be equitable.
- Balanced Application: Garza believes that MLRR should be truly trilateral, enabling Mexico to file claims in the U.S. and Canada.
- Equitable Implementation: He also advocates for equitable MLRR implementation.
Furthermore, Garza argued that promoting labor rights should extend beyond punitive actions. He proposed that MLRR should be accompanied by significant efforts in education, awareness, and capacity building.
AMIA’s Concerns Regarding U.S. Compliance
AMIA has expressed concern that the U.S. has not yet complied with original parallel letters related to the automotive sector, which are integral parts of the USMCA. These letters explicitly state that Mexico should be excluded from any tariffs established under Section 232 up to the specified amounts.
- Impact on Mexican Exports: Garza pointed out that this non-compliance affects Mexican vehicle exports and is exacerbated by the U.S.’s bilateral agreements with countries like Japan, the European Union, and South Korea, which further restrict access to the U.S.’s primary preferred trading partner.
