Latin America. In a recent statement, the National Auto Parts Industry (INA) highlights the importance of the free trade agreement between Mexico, the United States and Canada (TMEC) for the automotive industry.
"In the last 23 years, the TMEC has attracted a foreign direct investment (FDI) of 83,883 million dollars for our country and with it, the creation of more and better jobs for Mexican families," begins the INA note published on the Industrial Cluster platform.
There, the association indicates that the TMEC currently allows an important economic spillover in Mexico by contributing 18.3% of manufacturing GDP and 3.8% of national GDP.
This is reflected, according to the INA, in more than one million direct jobs, in the manufacturing sector, to which are added the millions generated in branches such as distributor agencies, repair shops, among others.
"Since this important sector has an impact on 252 economic branches, being the fourth producer of auto parts in the world, the seventh in the manufacture of light vehicles, which are exported to more than 100 countries, as well as being the main exporter worldwide of tractor-trailers," says the organization.
Next, he highlights that Mexico is the main supplier of auto parts for the United States, since 36% of the total imports of the North American country come from the Latin American nation.
This is equivalent, according to the association, to almost US $ 80,000 million at the end of this 2022, because "the Mexican auto parts industry is the backbone for the manufacture of vehicles in Mexico and throughout North America, with a production for this year exceeding US $ 102,000 million," he says.
In addition to the above, the INA points out that in recent years, with the renegotiation of the so-called NAFTA, now T-MEC, the so-called nearshoring has been detonated, "which further encourages the arrival of new investments, mostly from Asia."
"This is why it is important, not only to maintain the USMCA, but we have to take care of it and improve it, so that the automotive sector continues to be the pride of the Mexican families that depend on it," concludes the association, indicating that this branch is the second most important pillar for the economy of Mexico, with a surplus higher than that of foreign exchange inflows, oil or the tourism sector together.
