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Home Automotive

Automotive industry prepares for the T-MEC review: challenges, progress, and opportunities towards 2026.

It focuses on meeting labor standards, promoting gender equity, and strengthening regional integration in an environment shaped by the transition to electromobility.

T21 Media by T21 Media
26 November, 2024
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The National Auto Parts Industry (INA) faces a key juncture in view of the revision of the Treaty between Mexico, the United States and Canada (T-MEC) in 2026, with the growth of electromobility, regulatory changes in labor matters and pressures for greater regional integration; positioning itself, in turn, to lead compliance and innovation in North America.

“Our industry is vital for the region: we are the supplier of 53% of automotive components in North America. The review of the USMCA is an opportunity to strengthen this integration and overcome the challenges ahead,” said Gabriel Padilla, general director of INA.

In this regard, he highlighted the importance of preparations for the review of the USMCA, which will be an opportunity to consolidate regulatory progress and respond to the challenges of economic and commercial integration in North America.

“2025 will be a crucial year for carrying out technical work to strengthen regulatory provisions, especially in labor, environmental and rules of origin issues ,” said Padilla.

One of the main challenges identified is compliance with the labor provisions of the USMCA , such as freedom of association, genuine collective bargaining, and gender equality.

Gabriel Padilla pointed out that, although the automotive and auto parts industry has shown compliance of over 75%, the goal is to reach 90% by 2026.

“We have no major concerns about compliance with Chapter 23 of the USMCA (on labor obligations), but we are committed to improving further, especially in matters of gender equality and female representation in technical and management areas,” he said.

For his part, Mauricio Cortés, labor attaché at the U.S. Embassy in Mexico, reaffirmed his country’s commitment to monitoring labor rights.

“Labor compliance under the USMCA will not experience significant changes, but there will be a stronger focus on ensuring that the provisions are fully complied with,” he said.

Cortés also stressed that the technical and financial support of the United States will continue until 2027, strengthening tripartite collaboration between the signatory countries.

In this context, the INA outlined four key commitments to strengthen regulatory compliance and the competitiveness of the sector.

The first of these is regulatory monitoring , with the creation of a labour observatory to identify risks of non-compliance in associated companies.

Another point is gender equity , developing programs to train women in technical skills and leadership, promoting equal opportunities.

On the other hand, social dialogue , with the establishment of working groups between unions, employers and local authorities in key regions.

Finally, transparency and training , through the dissemination of information on labor rights and training throughout the supply chain.

“We are committed to strengthening training and transparency in the sector, working closely with unions, government and international organizations to ensure regulatory compliance,” Padilla reiterated.

Electromobility and updating rules of origin

The USMCA review will also include discussions on new trends, such as electromobility and the need to update rules of origin to include components such as batteries, semiconductors and software.

Padilla explained that these areas represent an opportunity to consolidate regional integration, especially in high-value sectors.

In addition, the transition to electric vehicles has driven policies in the United States and Canada, such as stricter environmental standards in California and Texas, which have opened up new export opportunities for Mexico.

On the other hand, Gabriel Padilla also emphasized the importance of the tripartite relationship with the United States and Canada, highlighting the need for constant dialogue and technical cooperation on sensitive issues such as rules of origin, gender equality and labor standards.

Finally, Padilla stressed that the industry is focused on maintaining the strength of supply chains in the region, highlighting that the review of the USMCA towards 2026 represents a challenge, but also an opportunity to consolidate the Mexican automotive industry as a key player in North America, promoting competitiveness, innovation and regulatory compliance for the benefit of the entire region.

“Despite geopolitical concerns about countries like China, investments in our region have shown solid and stable growth. Mexico represents a key piece in North American integration,” he said.

Comment and follow us on X: @jenna_GH_ / @GrupoT21

Tags: automotive industryNATIONAL AUTO PARTS INDUSTRYT-MEC REVIEWUSMCA

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