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Mexican exports of auto parts to US rise 17%

Mexican exports of auto parts to the United States reached a growth of 16.7% year-on-year in 2021, to 61,945 million dollars, according to data from the Department of Commerce (DOC).

If that same amount is compared to the result of 2019, before the Covid-19 pandemic, the growth was 0.4 percent.

In Mexico, car manufacturers operate mainly in the states of Baja California, Sonora, Chihuahua, Coahuila, Nuevo León and San Luis Potosí.

Also the original equipment manufacturers (OEM) plants are located in Guanajuato, Aguascalientes, Jalisco, State of Mexico, Hidalgo, Morelos, Puebla and Veracruz.

In terms of supply chains, auto parts producers are located near these plants, mainly in Coahuila, Chihuahua, Nuevo León, Guanajuato and the State of Mexico, although they are also located in other parts of the country.

From around the world, US imports of auto parts totaled $160.522 million in 2021, representing a growth of 20.3% compared to 2020 and an increase of 3.5% compared to 2019.

Auto parts

Under pressure from the US government, the Agreement between Mexico, the United States and Canada (USMCA) entered into force on July 1, 2020, updating the provisions of the North American Free Trade Agreement (NAFTA) to reflect the standards of the 21st century and, according to the White House, rebalance the benefits of the agreement.

From the perspective of the United States Trade Representation (USTR), the USMCA maintains the NAFTA import duty-free treatment for originating industrial goods; expands market access opportunities for products made in the United States; and strengthens disciplines to address non-tariff barriers that restrict US exports to Canada and Mexico.

The USMCA also modifies the rules of origin, as necessary, to guarantee that the benefits of the agreement go to products genuinely manufactured in the United States and in other parts of North America, and to incentivize production in North America and specifically in the United States.

In addition, the USMCA Parties seek to achieve greater regulatory compatibility in key manufacturing sectors, including automobiles, pharmaceuticals, medical devices, and chemicals to reduce the burdens associated with differences in regulation between the Parties.

 

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