The automotive industry of Mexico warned about a “complex panorama” before the 2026 review of the Treaty between the United States, Mexico and Canada (TMEC), and its executives cited concerns about more strict rules of origin and the scrutiny of the Asian content in the components.
In their speech at the Cian Automotive Conference, heavy vehicle manufacturers expressed concern about compliance with the commercial requirements of the TMEC and their adaptation to current regulations.
The agreement requires that a certain percentage of vehicle parts from North America to access tariff exemption.
Lee: Government starts consultations to relevant sectors for TMEC review
“We pass to 64% in 2024 and we must reach 70% in 2027; changing the rule is now not viable,” said Rogelio García, head of the National Association of Bus, trucks and tractocamion manufacturers (ANPACT), noting that the components often cross the borders several times before the final assembly.
Industry concerns arise after President Donald Trump announced last week to impose 25% tariffs on imported heavy trucks.
The TMEC, which replaced the North American Free Trade Agreement in 2020, is expected to be reviewed in 2026.
Rogelio Garza, head of the Mexican Association of the Automotive Industry (AMIA), requested greater coordination between the industrial groups of North America, stating that “it is the same industry.”
You may be interested: EU provides that TMEC conversations will be bilateral
Mexico also plans to increase tariffs on cars from China and other 50%Asian countries, as part of a broader review of imports to imports aimed at protecting jobs and addressing the concerns of the United States, according to analysts.
Francisco González, president of the National Autopartes Association (INA), highlighted the need to accelerate the development of smaller local suppliers, known as Tier-2 and Tier-3 companies, to strengthen supply chains and boost software and electronic capabilities.
Despite the challenges, industry leaders expressed caution optimism. “The panorama is complex, but we are prepared,” said Garza.
With Reuters information
Inspy, discover and share. Follow us and find what you are looking for on our Instagram!
