Mexico. The rules of origin agreements established in the USMCA will favor the production and export of auto parts in Mexico.
The National Auto Parts Industry (INA) announced that it expects an increase in the production and exports of auto parts to North America by 2023, as a result of the agreements on rules of origin established in the Agreement between Mexico, the United States and Canada, known as T-MEC.
The association indicated that the forecast of exports of auto parts from Mexico to the United States and Canada reached 79,500 million dollars at the end of 2022, while imports registered 34,800 million dollars, reflecting a surplus in the trade balance of these components.
In addition, the INA mentioned that the strength of the export arm of the Mexican auto parts sector has allowed the country to consolidate itself as the main supplier of the United States sector, covering about 40% of the market.
This represents a figure four times higher than that of its second supplier, China, which has only 9.2% of the value of the US market in this area.
INA also highlighted the trend towards electromobility that prevails in the North American vehicle market, through incentives created with the aim of replacing internal combustion units with alternatives that reduce emissions of polluting gases.
According to the association, this will cause the increase in demand for auto parts to manufacture such vehicles, and will become an opportunity to further strengthen the industry in Mexico.
As for the forecast of auto parts production for the end of 2022, the association stated that the figure reported last month was exceeded, reaching 106,741 million dollars, which represents a growth of 12.73% compared to what was registered in the same period of 2021.
This marks a new historical record for Mexico in the auto parts sector, despite the challenges faced during the pandemic.
In terms of human capital and direct jobs generated by the auto parts sector, the association forecasts that 2022 closed with almost 880,000 jobs, which will represent an increase of 5.2% compared to 2021.
This figure is relevant, as it will be the second highest in the history of the indicator, after the 886,000 jobs generated in 2018.
