In light of the review of the United States-Mexico-Canada Agreement (USMCA) , the National Agency of Automotive Sector Suppliers (Anapsa) raised the need for Mexico to promote the signing of “parallel letters” that would protect heavy and light vehicles and auto parts from possible tariff measures by the United States.

Alberto Bustamante, president of Anapsa, explained that the automotive industry is once again at the center of North American trade discussions due to its importance in the trade between Mexico and the United States.

The executive noted that the sector represents approximately 5% of the national Gross Domestic Product (GDP) and 24% of the manufacturing GDP, so any modification to trade rules would have significant repercussions for the Mexican economy.

“Difficult times are coming, the issue is that a good negotiation has to be done,” he stated during a discussion organized by Mundi .

Although Anapsa has already presented the proposal to the Ministry of Economy (SE) , Bustamante indicated that so far they have not received a response regarding the possibility of incorporating parallel letters or a similar scheme that would help protect the industry from potential tariff measures by the United States.

He also warned that one of the proposals currently under discussion includes raising the “regional content value of vehicles ,” as well as incorporating a requirement that 50% of said content must come from the United States.

Bustamante explained that the regional content value corresponds to the percentage of components, materials and manufacturing processes that a vehicle incorporates from North America to access the tariff benefits of the USMCA.

Currently the requirement is 75%, but the proposal would raise that percentage to 85% and add a specific minimum share of content produced in the United States.

“There is an increase in the value of regional content, which now includes US content that is not currently available,” he commented.

The representative of Anapsa indicated that the organization stated that it is a priority to avoid establishing mandatory percentages of national content for any of the three member countries of the trade agreement, considering that this could alter the productive integration that currently exists in the region.

He argued that the review of the USMCA is taking place in a different context than originally planned and that, in practice, it has evolved into a renegotiation driven by the trade policies of the administration of Donald Trump, President of the United States.

According to the business leader, the outcome of the negotiations will be decisive for an industry that currently produces around 4.2 million light vehicles per year in Mexico and whose auto parts chain exceeds 120 billion dollars in annual production.

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El cargo Anapsa calls for protecting the automotive sector with parallel letters ahead of the USMCA review apareció primero en T21.

Amid growing trade tensions and on the eve of the review of the United States-Mexico-Canada Agreement ( USMCA) , the Mexican automotive sector faces one of the most complex and, at the same time, decisive moments in its recent history.

During the conference “State of the Mexican Automotive Sector: USMCA, Tariffs and Statistics” , Alberto Bustamante , president of the National Agency of Suppliers of the Automotive Sector (Anapsa) , outlined a scenario in which US tariff pressure, the tightening of trade rules and, at the same time, a window of opportunity to consolidate Mexico as a global power converge.

The starting point was that Mexico is no longer a secondary player . With exports to more than 100 countries and a production of around 4.2 million vehicles per year, the country has consolidated its position as the second largest manufacturer in North America, surpassing Canada, whose market share has been steadily declining.

For Bustamante, this change is not a coincidence, but the direct result of trade integration since 1994.

“The only winner has been Mexico,” he stated.

However, the sector’s importance is not limited to production volume. The automotive industry accounts for approximately 22% of the country’s manufacturing employment and has built a supply network that provides over 900,000 direct jobs in auto parts.

This ecosystem not only supports the assembly plants, but also multiplies the economic impact, so that for every job in an assembly plant, multiple positions are generated in the supply chain.

The true weight of the sector is reflected in its trade balance. With a surplus of nearly $108 billion , the automotive industry surpasses, even combined, industries such as remittances, tourism, and oil.

This strength is largely explained by Mexico’s strategic role as a supplier of auto parts to the United States. Today, 43% of U.S. imports in this sector come from Mexico , an advantage that places the country well ahead of other partners like Canada.

This interdependence has generated a stark reality: no internal combustion engine vehicle in the United States can be manufactured without Mexican components.

Each unit produced in that country incorporates, on average, more than $10,000 worth of auto parts from Mexico .  But this very importance is what has placed the sector at the center of the trade dispute.

Heading towards the USMCA review

Ahead of the trade agreement review, the United States is seeking to tighten the rules of the game. The proposal includes raising the regional content requirement for vehicles from 75% to 85% , requiring that at least half of the components come directly from U.S. territory, and strengthening labor provisions.

This is in addition to a broader strategy aimed at reducing dependence on Asia, particularly China.

Meanwhile, the tariff environment has become more aggressive. Although the USMCA allows for exports with preferential rates, various measures implemented by Washington have resulted in tariffs of up to 25% for certain vehicles and components, especially those with high steel, aluminum, or copper content.

“The automotive sector is in the eye of the storm,” Bustamante warned.

Mexico, for its part, has begun to take measures following the same geopolitical logic. The imposition of tariffs of up to 50% on products from countries without trade agreements , particularly China, seeks to strengthen regional integration.

However, the industry has expressed concerns when these measures affect essential raw materials for manufacturing, such as plastic, which could increase the cost of local production.

In this context, the upcoming review of the USMCA, which will formally begin in July, is shaping up to be a turning point. Anapsa is calling for ensuring conditions of certainty and protecting the sector from unilateral measures.

Among the proposals, the signing of parallel agreements to protect the automotive industry from new tariffs stands out, as well as the strengthening of the rule of law and security, factors that directly affect competitiveness.

Despite the adverse environment, the diagnosis is not pessimistic; on the contrary, Bustamante anticipated that Mexico is heading towards a new stage of expansion.

In the coming years, the country could position itself as the world’s fourth largest producer of light vehicles and the third largest in auto parts, driven by greater regional integration and new investments, many of which, he assured, are already taking place, although with less public visibility.

“Turbulent times are coming,” he acknowledged.

But he also made it clear that the sector has built a solid enough foundation not only to withstand the strain, but to grow.

The Mexican automotive industry, which took more than two decades to consolidate, now faces its next big test: adapting to a more restrictive environment without losing its place as one of the country’s economic pillars and an indispensable partner for North America.

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El cargo Mexican automotive sector, a global powerhouse amid trade turbulence apareció primero en T21.

The proposal, included in the 2026 Economic Package and announced by Marcelo Ebrard, head of the Ministry of Economy (SE) , comes at a time when companies are facing rising costs, competitive challenges, and pressure to renew their fleets.

The initiative proposes reforming various tariff sections of the Tariff Schedule of the General Import Tax Law , the purpose of which is to increase the most-favored-nation tariffs applicable to the import of various goods, including auto parts and vehicles, explained Luis Miguel Jiménez, partner in the International Trade practice at the law firm Von Wobeser y Sierra .

For auto parts, tariffs are expected to range from 10% to 50% of the customs value, while for vehicles the tariff would be 50%.

“Only those products whose tariff fraction is listed in the proposed modification would be affected,” he told T21.

The list includes three sensitive items: auto parts, finished vehicles, and raw materials. Within this framework, utility vehicles and heavy trucks will not be taxed in this first package , which represents a respite for the auto transport industry, commented Alberto Bustamante, general director of the National Agency of Suppliers of the Automotive Sector (ANAPSA) .

Impacts to come

The consequences would be far-reaching. Vehicles and auto parts from countries without a trade agreement with Mexico would become more expensive, as the tariff increase would be passed directly on to consumers, explained Luis Miguel Jiménez.

The scenario could be even more drastic for Asian-origin units , which would lose competitiveness or even exit the market, reducing the diversity of available options and affecting the quality-price ratio. In this context, used cars would gain ground, also pushing up their values, he emphasized.

Furthermore, in the aftermarket, 85% of the auto parts consumed in Mexico come from China , which is necessary to keep a fleet of 85 million vehicles on the road , according to Alberto Bustamante. Since there is insufficient local production capacity, imposing a tariff on these parts without industry consensus would directly affect the availability of spare parts in the country , he noted.

Fractions included in the proposal

The measure’s purpose goes beyond revenue collection. According to the Ministry of Finance and Public Credit (SHCP) , the implementation of the new tariffs would generate 255 billion pesos in 2026 , which would represent 97 billion pesos more than expected this year in import revenue.

The goal, explained Marcelo Ebrard, is to curb the entry of products below reference prices and protect approximately 320,000 jobs linked to the automotive industry .

The debate is taking place in an international environment marked by trade tensions. The World Trade Organization (WTO) requires the same rate to be applied to all countries without a free trade agreement, while in the United States, President Donald Trump has insisted that his partners in the United States-Mexico-Canada Agreement (USMCA) raise barriers against Asian products.

With Morena’s legislative majority, approval in the Union Congress seems assured, and if approved, the new tariffs would take effect 30 days after their publication in the Official Gazette of the Federation.

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Mexico has established itself as a key player in the automotive industry, being the world’s fourth-largest producer of automotive parts and the fourth-largest exporter of heavy vehicles, in addition to being the leader in tractor-trailer exports. However, the United States’ tariff policy has harmed the sector, prompting the National Agency of Automotive Suppliers (ANAPSA) to introduce a strengthening program for affiliated companies, seeking to improve their competitiveness and strengthen the industry.

“The automotive sector strengthening program stems from the uncertainty we’ve been experiencing with the executive orders issued by U.S. President Donald Trump . Therefore, we have taken on the task of creating the automotive sector strengthening program for companies affiliated with these organizations,” said Alberto Bustamante, CEO of Anapsa.

The executive reported that the program seeks, among other objectives, to support the organization’s 5,000 member companies in improving their quality, increasing their supply chain, and diversifying their markets and expanding into 40 countries. It also aims to attract investment for new plants and production lines , as well as increase multilateral trade and job creation.

Pillars of the program

The program is based on four main pillars : market diversification, supplier location and linkage, investment attraction, and import substitution.

According to Anapsa, the aim of market diversification is to reduce dependence on the United States, a country that currently imports 80% of Mexican production, and therefore will seek to have 40 trade missions , which will be supported by the consulting firm How2Go (H2G) .

We will also seek to make better use of the trade agreements we have with 52 countries and increase the flow of trade.

The second pillar, which focuses on supplier location and business linkages, will strengthen relationships between affiliated companies and facilitate the identification of strategic suppliers.

Alberto Bustamante emphasized that the main objective is to bring companies closer together in two ways: first, by integrating those not yet part of the automotive sector, and second, by providing opportunities for those already in the industry to diversify their client portfolio.

In addition, they will be presented with strategic prospects to expand their business opportunities and strengthen their market position.

The third pillar is investment attraction , which seeks foreign capital  to promote manufacturing and sales in Mexico through various strategies, such as leveraging relationships with embassies and chambers of commerce to facilitate the generation of opportunities and strengthen international ties.

In addition, there is support from the federal government through Plan Mexico, a comprehensive economic strengthening program that seeks to promote market diversification and increase the value of national content.

The fourth and final pillar focuses on import substitution , with the aim of strengthening the domestic market and encouraging the purchase of local products. To this end, purchasing from companies affiliated with chambers of commerce and strategic organizations will be prioritized.

This pillar focuses on countries with which Mexico maintains free trade agreements, leveraging the benefits of these agreements to increase the competitiveness of local companies. Additionally, the goal is to increase the value of domestic content by 10% to 15% , promoting greater participation of Mexican industry in the global market.

Signing of agreements

Anapsa highlighted its agreement with H2G, which seeks to strengthen the international expansion of national automotive companies and place them on the map in foreign markets.

Through this alliance, we will work to identify new business and investment opportunities internationally, as well as to design entry and commercial positioning strategies that will allow Mexican companies to consolidate their presence abroad.

At the event, which was attended by Jorge Ayala , president of the Mexican Association of Mold and Die Manufacturers (AMMMT) , Ayin Decer , country manager of How2Go, and others, Alberto Bustamante signed an agreement with Miguel Ruiz , president of the Mexico-Brazil Chamber of Commerce (Camebra).

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El cargo Anapsa aims to strengthen the Mexican automotive sector in the face of US tariffs. apareció primero en T21.

In order to strengthen and diversify the competitiveness of the Mexican automotive sector in Latin American markets , the National Agency of Automotive Sector Suppliers (Anapsa) and the Spanish global internationalization consultancy How2Go will carry out a trade mission of the Mexican automotive industry to Brazil.

The mission will take place from December 3 to 7 of this year and also seeks to deepen the Economic Complementation Agreement No. 55 (ACE 55) , which regulates trade in this industry between Brazil and Mexico, and in which the new phase of the agreement and its implementation will be discussed, which aims to eliminate tariff barriers, promoting greater integration of regional production chains .

“ACE 55 is essential for the growth and integration of the automotive sector in Mexico and Brazil. We believe that its implementation in the coming years will be key to ensuring more fluid and competitive trade between both nations,” said Alberto Bustamante, general director of Anapsa.

The mission also aims to increase Mexican exports in the sector by 2025, the organization said in a statement.

“Meetings with buyers in Brazil will offer Mexican companies the opportunity to open new lines of business and diversify their export markets,” said Ayin Decer, director of How2Go Mexico.

As part of the mission’s agenda, which also aims to facilitate strategic meetings between Mexican companies and Brazilian buyers, meetings will be held with Brazilian government actors and regulatory bodies, “in order to align trade policies that favor the competitiveness and development of the Mexican automotive sector in Brazil .”

During his participation, Marcelo Vitali , director of How2Go in Brazil, highlighted the importance of this collaboration.

“How2Go, with its own offices in 11 countries, including Mexico and Brazil, is proud to be a strategic partner in this trade mission, supporting Anapsa in identifying and consolidating new opportunities in Brazil,” he said. ACE 55 “is key to boosting the sustainable growth of automotive exports between both countries.”

In 2023, the main sale of vehicles from Mexico to Brazil was of cars and other vehicles designed primarily for the transportation of people , which had a value of 677 million dollars (mdd) , according to the DataMéxico portal of the Ministry of Economy .

Meanwhile, in July 2024, Mexico’s main sale to that nation was parts and accessories for motor vehicles for an amount of 67.6 million dollars , the same portal reported.

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