Nearshoring in Mexico: A Lifetime Opportunity

Railway Age, 05/17/2023

“The thesis for investing in Mexico remains strong,” Ottensmeyer said as he began his NGTC talk. “Mexico has maintained Investment Grade ratings throughout the pandemic. With exception of early in the pandemic, the Peso exchange rate has remained stable for the past five years. Through August 2022, Mexico’s manufacturing sector has grown at three times the rate of GDP growth. The country’s manufacturing base is large and is well integrated into existing North American supply chains. Most trade disputes have been resolved in Mexico’s judicial system, and the Mexican Supreme Court has ruled in favor of investors in proposed changes in Electricity Law.”

Ottensmeyer referred to the ongoing U.S.-China trade war, in which the U.S. imposed trade tariffs on China in the first half of 2018. Since, then China has lost more than four percentage points of its share of U.S. imports.

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Mexico says Texas truck inspections at border causing freight shipment delays, millions in losses

Fox Business, 05/16/2023

Mexican government officials said Monday that renewed inspections of trucks at the Brownsville-Matamoros crossings in Texas are causing delays of between eight and 27 hours for freight shipments across the border. 

“These inspections are causing delays of between 8 and 27 hours in the entry of national cargo transports to Texas, which mainly affects perishable products. Ultimately, American consumers are paying the costs of these policies, so it’s in everyone’s interest to restore normalcy at the border,” the government said in a statement.

It urged Texas to stop the inspections, which began on May 8, noting that an objective of the measures to interrupt migrant smuggling at the border “does not correspond to subnational governments.” 

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Nearshoring and Beyond: Hot Topics for Automotive Companies Operating in Mexico

Foley & Lardner LLP, 05/02/2023

As manufacturing in Mexico returns to pre-pandemic levels, several recent legal developments may affect those operations. Manufacturers, particularly those in the automotive industry, need to consider new Mexican labor regulations, the recent interpretation of the United States-Mexico-Canada Agreement´s (USMCA) Automotive Rules of Origin, and new requirements concerning transparency of ownership. 

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Biden administration announces plan with Mexico to fight fentanyl and firearms

NBC News, April 14, 2023

Mexico has at times been resistant to cooperation with the U.S. on the issue of combating fentanyl. Most of the illicit supply of the potent synthetic opioid that comes into the U.S. is manufactured in Mexico from raw materials sent from China.

A delegation of Mexican officials met with the Biden administration on Thursday, the White House said, and agreed to implement a strategy for combating fentanyl first agreed to by Biden and López Obrador in January.

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Mexico’s auto production and exports rebound

Mexico Now, 04/11/23

MEXICO – At the close of the first quarter of 2023, vehicle production and exports in Mexico rebounded by more than 8% annually, but both items have yet to reach pre-pandemic and peak levels.

Auto production in Mexico was of 922,177 units in the first three months of 2023. This figure still below the 933,567 vehicles assembled in the same period of 2020, but the highest for a single quarter since then.

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Exclusive: US plans ultimatum in Mexico energy dispute, raising threat of tariffs

Reuters, 03/27/2023

The Biden administration plans to send Mexico an “act now or else” message in coming weeks in an attempt to break a stalemate in an energy trade dispute as bipartisan calls grow for the U.S. to get tougher with its southern neighbor, according to people familiar with the discussions.

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Mexico economy minister meets with Canadian firms in energy dispute

01/24/2023

Source: Reuters

Mexican Economy Minister Raquel Buenrostro met with Canadian firms to follow up on energy agreements made at a meeting with President Andres Manuel Lopez Obrador, the ministry said Monday.

Northland Power (NPI.TO), Canadian Solar (CSIQ.O) and pension fund La Caisse de depot et placement du Quebec (CDPQ) are the Canadian firms who met with Mexican officials on Monday, according to Mexico’s economy ministry.

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Canada, Mexico win auto rules trade dispute with U.S.

1/11/2023

Source: Reuters

Canada and Mexico have won their challenge to the U.S. interpretation of content rules for autos under the new North American trade pact, a dispute panel ruled on Wednesday, a decision that favors parts makers north and south of the U.S. border.

A year ago Canada and Mexico filed a complaint against the United States over how to apply automotive-sector content requirements under the United States-Mexico-Canada (USMCA) free trade agreement, which came into effect in 2020.

The U.S. interpretation of the rules is “inconsistent” with the USMCA, the panel said in its ruling.

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AMLO llama a Jesús Seade a apoyar en la controversia por el T-MEC interpuesta por EU y Canadá

Fuente: El Universal

21/07/2022

El presidente Andrés Manuel López Obrador reveló que le pidió a Jesús Seade Kuri, embajador de México en China y negociador del T-MEC en 2018, a que apoye en la respuesta que dará su gobierno a las consultas solicitadas por Estados Unidos y Canadá por la política energética de México. 

En conferencia de prensa matutina en Palacio Nacional, el presidente López Obrador recordó que las consultas son un procedimiento que está establecido en el tratado comercial y que los tres países han recurrido a este procedimiento.

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Mexico’s priorities for USCMA in 2022

Date: Feb. 28th, 2022

Source: Brookings

On July 1, 2020, North America opened a new era of integration, which built on the North American Free Trade Agreement and was renewed to include a deeper and wider integration that puts people at the center of our region.

The new USMCA enables Mexico to deepen its productive integration in North America and to benefit from the opportunities it offers to promote trade and investment, which are essential to our economic growth, job creation and above all, to help us reduce long-term regional and income inequalities.

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