Mexico contributes to automotive competitiveness in North America, according to the Mexican government and business sector.

Sergio Gómez Lora, director general of the U.S. Representative Office of the Business Coordinating Council (CCE), stated that U.S. exports of auto parts to Mexico were eight times greater than U.S. exports to Japan or Germany. 

In addition, 40% of all Mexican exports are intermediate goods used by U.S. manufacturers in their industrial production. 

“All of these goods have a significant U.S. component, from natural gas to iron ore, coal, petrochemicals, and many others,” said Gómez Lora at the public hearings organized by the U.S. Trade Representative (USTR) in Washington on December 4. “Not long ago, several of these inputs came from Asia.”

Automotive competitiveness in North America

In fact, Gómez Lora stressed that trade with Mexico is a crucial tool for the United States to compete successfully with North American economies, while also generating jobs in that country. 

“Every dollar that Mexican manufacturers export to the United States supports jobs in the U.S. export sector. This key fact must be taken into account when comparing the U.S. trade deficit with Mexico to the U.S. trade imbalances with other countries,” he said.

In 2024, Mexico produced 4.1 million motor vehicles (both light vehicles and heavy trucks), sold 1.6 million units in its domestic market, imported 1.1 million units, and exported 3.5 million units.

“The U.S. automotive industry would not be competitive without Mexico,” said Marcelo Ebrard, Mexico’s Secretary of Economy, on Sunday during the First National Meeting of Economic Development Hubs for Well-being, held in Mexico City.

Added value

North American trade maintains U.S. value within the region. According to the OECD’s Value Added Trade indicators, approximately 15% of the value of U.S. manufacturing imports from Canada and Mexico reflects U.S. labor (materials, auto parts, design, or services) returning home. 

In contrast, imports from China contain less than 2% U.S. value. In short, every dollar of manufacturing imports from North America drives more domestic economic activity and U.S. employment than trade with more distant partners.