Introduction
In a time of global shifts, the International Chamber of Commerce Mexico (MIC) has suggested that Mexico should build its own long-term competitiveness agenda. While acknowledging the U.S.’s strategic partnership with Mexico amidst recent reciprocal tariffs imposed on over 75 countries, excluding Mexico and Canada, the MIC emphasized that this is “no guarantee for the future.”
MIC’s Recommendations
In a statement, the MIC—which connects Mexican businesses with the international community—recommended that Mexico adopt a strategy to strengthen its infrastructure, innovation, and technological capabilities. This approach would make the country resilient and competitive in the long term.
Enhancing these areas would help Mexico capitalize on the current situation and avoid losing ground to other countries like India or Vietnam, which have become competition in U.S. trade over the past three years.
Current Tariff Landscape
Blind City
Gabriela Siller, Director of Economic and Financial Analysis at Banco Base, reminded that 25% tariffs on goods outside the T-MEC, 25% on steel and aluminum, and another 25% on cars (excluding parts made by any of the three T-MEC partners) remain in effect.
When referring to goods outside the T-MEC, Siller means the 51.5% of Mexican exports sent to the U.S. under the “most-favored-nation” principle of the World Trade Organization (WTO). This clause requires a minimum special tariff but does not demand T-MEC compliance for components produced by any of the three partners.
According to Siller, 48.8% of Mexican exports fall within the T-MEC, and tariffs imposed on Mexico target this 51.5% of its exports. The expectation is that businesses operating outside T-MEC rules will integrate and utilize the agreement, she highlighted.
She believes there is a market opportunity for Mexico, as despite tariffs in Mexico, there are exemptions within the T-MEC framework—a luxury not afforded to the rest of the world.
Key Questions and Answers
- What is the International Chamber of Commerce Mexico (MIC)? The MIC connects Mexican businesses with the international community and represents their interests on a global stage.
- What tariffs remain in effect? 25% tariffs on goods outside the T-MEC, 25% on steel and aluminum, and another 25% on cars (excluding parts made by any of the three T-MEC partners) remain in effect.
- What percentage of Mexican exports are within the T-MEC? 48.8% of Mexican exports fall within the T-MEC.
- How do current tariffs impact Mexican exports? Tariffs imposed on Mexico target the 51.5% of its exports that are outside the T-MEC.
- What opportunities does Mexico have in the current tariff landscape? Despite tariffs, there are exemptions within the T-MEC framework, providing Mexico a competitive edge compared to other countries.
