The rules of origin established in the United States-Mexico-Canada Agreement (USMCA) are leading companies to review their supply chains and evaluate the incorporation of regional suppliers, a process that could open new opportunities for Mexican companies , particularly in the automotive and auto parts industry, noted specialists from CETYS University during the webinar “Which industries will change after the USMCA review?” .
The meeting, the second episode of the series “USMCA in Key: The Border Explains the Future of North America ,” featured Leticia Sepúlveda Fierro , director of the School of Engineering at CETYS University . She explained that regional content requirements are forcing companies to reconsider the origin of their components, as well as the costs associated with supplier substitution and compliance with trade regulations. She noted that, in the automotive sector , these requirements also involve industries such as steel, aluminum, electronics, and semiconductors, due to their role in the manufacture of vehicles and auto parts.
Mexican suppliers face an integration opportunity
Greater regional integration involves reviewing supply contracts , identifying the origin of inputs, and keeping the necessary documentation to prove compliance with trade rules.
The process described may generate short-term adaptation costs, especially for companies that already have established suppliers and need to evaluate alternatives within North America . However, the specialist considered that the reconfiguration represents an opportunity to strengthen the domestic supply base.
Sepúlveda Fierro added that Mexico could strengthen its participation in the manufacture of auto parts and electronic components , while small and medium-sized enterprises find opportunities to become suppliers to larger companies.
However, he also warned that taking advantage of these opportunities will require investments in technology , improvements in production processes and the development of competitive infrastructure, as well as energy availability and specialized talent.
Compliance and responsiveness
On the other hand, Leticia Ramírez Rubio , coordinator of the Bachelor’s Degree in International Business at CETYS University , explained that agri-food chains face requirements related to the origin of products, health and safety.
“My prediction, or what I envision, is that companies will seek suppliers with a greater capacity to document their operations, maintain consistent quality and volumes, and respond to disruptions,” he emphasized.
Regionalization can open up opportunities for new participants, although it will also be necessary to support small producers so that they can meet commercial and operational requirements, he stressed.
The reconfiguration of supply chains also poses challenges for logistics . Sepúlveda Fierro pointed out that the requirements for documentation and verification of goods can impact administrative processes and border crossing times, with economic consequences for companies that depend on trucking.
This is how the USMCA review presents Mexico with a scenario in which the integration of national suppliers could strengthen its participation in North American production chains .
Harnessing that potential will depend not only on compliance with trade rules, but also on the industry’s ability to enhance its competitiveness through investments in technology, infrastructure, and the development of specialized talent.
The image in this article was generated using artificial intelligence.
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