Background on Key Figures and Relevance
The automotive industry in Mexico is bracing for a complex scenario as consultations with the Secretaría de Economía commence for the review of the Tratado México, Estados Unidos, Canadá (T-MEC). Rogelio Garza, president of the Mexican Automotive Industry Association (AMIA), highlighted the anticipated challenges in negotiations, particularly the potential tightening of the vehicle light rule of origin due to Chinese components.
Key Concerns and Proposed Solutions
During the 23rd International Automotive Industry Congress in Mexico (CIIAM), the automotive industry, represented by AMIA, ANPACT, INA, and AMDA, urged the Mexican, US, and Canadian governments to approach the T-MEC review as a North American region, fostering public-private dialogue and trilateral coordination.
Francisco González, president of INA, warned that if the Mexican parts and components industry ceases operations in the US, the latter would lose $3.2 billion due to a decline in demand for intermediate goods.
The industry plans to submit comments during the public consultation in the US and will participate physically in Washington, D.C.
Heavy Truck Industry’s Perspective
The heavy truck industry remains uncertain about the potential 25% tariff imposition by the US government. However, ANPACT is preparing for the T-MEC review, focusing on increasing the capacity of heavy truck suppliers and maintaining foreign direct investment attraction. This includes components not necessarily regional or Mexican-based, which could be established in Mexico from China.
Key Questions and Answers
- What is the T-MEC review about? The T-MEC review focuses on potentially tightening the vehicle light rule of origin, analyzing the impact of Asian participation in components.
- Who are the key figures involved? Rogelio Garza, president of AMIA; Francisco González, president of INA.
- What are the industry’s concerns? The automotive industry is concerned about the potential loss of operations in the US and the tightening of the rule of origin, which could negatively impact Chinese components.
- What is the industry’s proposed solution? The automotive industry advocates for a North American regional approach to the T-MEC review, emphasizing public-private dialogue and trilateral coordination.
- What is the heavy truck industry’s uncertainty? The heavy truck industry is uncertain about potential 25% tariffs imposed by the US government.
- What are ANPACT’s preparation strategies? ANPACT is preparing for the T-MEC review by focusing on increasing heavy truck supplier capacity and maintaining foreign direct investment attraction, including components sourced from China.
