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Home Automotive

Mexico and the automotive industry face the challenge of revising the USMCA

Tariff uncertainty and traceability in rules of origin are setting the industry agenda, experts agreed at the launch of CIIAM.

T21 Media by T21 Media
1 October, 2025
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The kickoff of the 23rd International Congress of the Automotive Industry in Mexico (CIIAM) was marked by a reiterative message: the industry cannot face the upcoming revision of the United States-Mexico-Canada Agreement (USMCA) alone .

In this sense, the uncertainty generated by tariff changes and political pressures requires joint strategies and more robust supply chains to sustain Mexico’s competitiveness in the North American context.

The warning came initially from Alejandro Malagón, president of the Confederation of Industrial Chambers (Concamin) , who said the automotive sector faces an environment of uncertainty and tariff pressures that could be complicated by the revision of the treaty in 2026.

“The industry needs to be united and have strategies,” he noted, emphasizing that the challenges are not only economic, but also political, technological, and social , which increases the complexity of the situation.

Malagón argued that the solution cannot be achieved in isolation. North American integration is the only path, as the benefits are not only reflected in maintaining competitiveness, but also in ensuring that investment continues to flow and consolidate quality jobs.

“Mexico must compete as a region with the United States and Canada,” he emphasized, while calling for the creation of internal conditions (infrastructure, regulatory certainty, and a skilled workforce) that will attract and retain new investment.

Along the same lines of strengthening regional integration, Claudia Ávila, Director General of Customs and International Affairs at Mexico’s National Customs Agency (ANAM) , emphasized the strengths that distinguish Mexico from other countries.

He emphasized that the country is the only one in the region capable of guaranteeing geographic visibility and traceability in compliance with rules of origin , which has motivated several companies to move production processes from China to the country.

“Today, 90% of the manufacturing industry installed in Mexico complies with these rules,” he stated. He said this situation constitutes clear evidence of the solidity of the trade legal framework and the country’s ability to take advantage of its geographic proximity.

He recalled that since the North American Free Trade Agreement (NAFTA) came into force in 1994, Mexico has ceased to be an oil-producing nation and has become a high-value-added manufacturing nation , “with talent that breaks the notion of cheap labor and positions itself on a plane of increasing specialization.”

Ávila went further, warning that Mexico cannot be content with being just an assembly country. The next step is to increase the domestic content in the vehicles of the future , a task that involves integrating small and medium-sized enterprises (SMEs) as second- and third-tier suppliers, linking them with large automakers, he explained.

To achieve this, he said, financing, training, and quality certifications are essential, since each additional point of regional content means more jobs, more local innovation, and more foreign direct investment .

Another point he emphasized was the role of customs. He made it clear that their role should not be limited to being a tax collection authority, but rather they must become catalysts for competitiveness , adopting smart systems and agile processes to simplify procedures, combat corruption, and streamline foreign trade operations.

The opening remarks at CIIAM agreed that the current situation (marked by the tariff discussion and the revision of the USMCA) requires Mexico to strengthen its supply chains and strengthen regional integration.

Both Malagón and Ávila emphasized that the country has unique conditions to play a strategic role in North America , but warned that the challenge will be maintaining that position in an increasingly demanding environment with rules subject to constant review.

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

Tags: automotive industryCOMPETITIVENESSDUTYREGIONAL INTERULES OF ORIGINTRACEABILITYUSMCA

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índice de Confianza del Transporte y Logística – Cuarto trimestre 2023 10 destinos de exportación de vehículos pesados 2023 Descubre el Top 10 de destinos de exportación de vehículos pesados en México en 2023 La venta de vehículos pesados rompe récord en 2023 5 marcas de camiones más vendidas