The National Vehicle Parts Industry (INA) said that 92% of the Mexican vehicle parts industry would not be subject to new fees from the United States, as almost all products comply with the current trade rules.
General Director of Mexico’s National Vehicle Participation Department (INA), Gabriel Bodhila, told reporters on Monday that only 8% of the country did not comply with the US-MEXICO-Canada Agreement (USMCA) regulations. As a result, they will be affected by an average fee of 27% to export to the United States
April 29, US President Donald Trump signed the administrative orders Import taxes threatened to hurt US manufacturers to measure the charges on the automotive sector. Mexico’s president Claudia Shinebam said The move provided “additional comparative benefits” to Mexico’s industry.
On May 2, the US Customs and Border Protection (CPP) issued a statement confirming that the new rules would come into effect the next day. After a while, Shinbam announced it In accordance with the USMCA rules, 25% of the tariffs are not applicable for auto -made auto areas in Mexico.
As the new tariff rules are in effect, the INA is consulting with the Ministry of Economic Ministry of Mexico to assist those who do not comply with those companies. Such companies face 25% fees and the most preferred nation (MFN) fees – it is 2% to 3% – because they initially import special components in Mexico, said Bodila.
If there is no priority trade agreement, the MFN fee is the standard fee rate that a country applies to imports from other World Trade Organization members.
In the first two months of the year, Auto parts production declined by 10.5%, although March statistics are expected to improve due to the increase in the production and sales of vehicles in the United States. This increase is due to the consumer’s desire to buy cars before the original fees come into effect on April 3.
Mexico’s vehicle parts industry – comprising more than 2,000 factories – although the USMCA has the highest compliance rate, the sector faces many challenges.
Bodhla said that regional coordination should be strengthened, while the supplier development program must increase regional content. Ina works to divert the markets and suppliers to reduce the dependence on single sources by expanding business alliances and diversification of suppliers.
The production value of the Mexican Auto Parts sector has exceeded US $ 100 billion over the past two years, attributed to the expansion of the nearby trend and the expansion of domestic production clusters.
Mexico’s automotive industry refers to 3.6% of GDP and 20% of total exports. Mexico is the world’s fourth largest Auto accessories exporterThe United States is its main place.
With reports from FinanceOvarian Mexico now And Yahoo! Finance