Trade Tariff Concerns Slowing Industrial Operations in Nuevo León
Monterrey, NL. Despite the easing of tariffs for Mexico, industrialists in Nuevo León remain cautious about their implementation. This uncertainty has led many companies to moderate their operations, resulting in a projected 0.3% GDP growth for Nuevo León, according to the Industrial Transformation Chamber of Nuevo León (Caintra). The national GDP growth expectation stands at 0.25%.
Caintra’s Optimistic Outlook and Strategies
Caintra acknowledges the current economic climate but remains optimistic about future growth, though not at the same level as previous years. They anticipate a 0.25% GDP growth for Mexico, generating 193,000 new jobs. The manufacturing sector is expected to contribute 32% (62,000 jobs) to this growth.
Industrialists’ Commitment and Initiatives
In response to the prevailing circumstances, Caintra plans to integrate more national content into their operations to comply with T-MEC rules of origin and avoid tariffs. Additionally, the organization will strengthen its business linkage programs through business meetings and commit to increasing purchases from small and medium enterprises (SMEs) by 1% via the +PyMEx program, which will reach more businesses this year.
Key Questions and Answers
- What is the current situation regarding tariffs in Mexico? Although tariffs for Mexico have been eased, industrialists in Nuevo León remain uncertain about their implementation, causing many companies to moderate operations.
- What GDP growth projections has Caintra made for Nuevo León and Mexico? Caintra expects a 0.3% GDP growth for Nuevo León and 0.25% for Mexico, with the creation of 193,000 jobs nationally.
- How is the manufacturing sector expected to contribute to job growth? The manufacturing sector is projected to generate 32% (62,000 jobs) of the new positions in Mexico.
- What strategies is Caintra employing to address trade uncertainties? Caintra plans to incorporate more national content, adhere to T-MEC rules of origin, and strengthen business linkage programs while committing to a 1% increase in purchases from SMEs through the +PyMEx program.
