Background on ANAPSA and its Relevance
The Agencia Nacional de Proveedores del Sector Automotriz (ANAPSA) in Mexico plays a crucial role in the automotive industry by representing suppliers and fostering collaboration among various stakeholders. Alberto Bustamante, the director of ANAPSA, is a key figure in this context.
Alberto Bustamante’s insights are particularly relevant as the United States has imposed tariffs on Mexican imports, affecting the automotive industry. His expertise and predictions about tariff exemptions and the T-MEC review provide valuable context for industry players.
Tariff Exemption and T-MEC Review
According to ANAPSA’s projection, by mid-July, the entire automotive industry in Mexico should be exempt from the tariffs imposed by the United States on Mexican imports. This anticipated development stems from two primary factors:
- T-MEC Review: The review of the United States, Mexico, Canada Agreement (T-MEC) is already underway.
- Political Pressure: There is significant political pressure, including calls from the U.S. Congress to amend Section 232 (for Mexico) and Section 301 (for China) tariffs, requiring presidential decisions related to national security to be approved by Congress.
Bustamante emphasized that these factors, along with the initiation of T-MEC review and ongoing arrangements between the U.S. and China, suggest that tariff executive orders should be suspended by the second week of July to pave the way for T-MEC negotiations or review.
Increased Regulations and Content Requirements
During a meeting with various automotive parts company representatives participating in ANAPSA’s supplier development and collaborating on the Plan México, Bustamante forecasted that regulations for automotive parts would become more stringent.
- Higher Rules of Origin: Currently, the rule of origin stands at 75%, but it is estimated to rise to 85% as part of T-MEC negotiations.
- Increased National and Regional Content: Mexico must prepare for higher national and regional content to meet these new regulations.
Bustamante mentioned, “In this review, we expect the regional value for vehicles to increase to 85%, and for parts, a 10% implementation per category.”
Anticipated Foreign Direct Investment (FDI)
Bustamante is optimistic about the potential for increased Foreign Direct Investment (FDI) in Mexico’s automotive sector. He anticipates an additional $5,000 to $10,000 million in FDI as a result of ANAPSA’s efforts to strengthen domestic production and commercial missions.
He expressed hope that the automotive sector’s FDI would surpass $20,000 million and potentially reach $33,000 million due to these business meetings, commercial missions, and new investments stemming from this ambitious program.
Key Questions and Answers
- What is ANAPSA? The Agencia Nacional de Proveedores del Sector Automotriz (ANAPSA) is a Mexican agency representing automotive suppliers and fostering collaboration among industry stakeholders.
- Why is ANAPSA’s prediction important? ANAPSA’s anticipation of tariff exemptions and T-MEC review impacts the automotive industry in Mexico, providing clarity on future regulations and investment opportunities.
- What changes are expected in automotive parts regulations? The rule of origin for automotive parts is projected to rise from 75% to 85%, necessitating higher national and regional content.
- What is the expected impact on Foreign Direct Investment (FDI)? ANAPSA anticipates an additional $5,000 to $10,000 million in FDI for the Mexican automotive sector due to increased domestic production and commercial missions.
