Mexico Imposes Tariffs on Countries Without Trade Agreements
The Mexican government has announced a significant trade measure by imposing temporary tariffs on 544 tariff lines for countries without trade agreements with Mexico. These tariffs, ranging from 5% to 50%, will affect a wide range of products, including steel, aluminum, chemicals, oils, soap, paper, cardboard, ceramics, glass, electrical materials, musical instruments, and furniture, among others.
The main objective of this decision is to provide certainty and fair market conditions for national sectors facing vulnerabilities. This measure aims to support the recovery and development of the national industry and strengthen the domestic market. The Ministry of Economy and the Ministry of Finance have emphasized that the economic slowdown resulting from geopolitical and trade conflicts has negatively impacted the competitiveness of national production chains.
This action has been taken in the context of negotiations and trade disputes that Mexico has faced with its main trading partners, especially in strategic sectors such as steel. In this regard, President Andrés Manuel López Obrador has sought to implement measures to combat unfair practices and ensure transparency and traceability in the steel industry.
The measure will take effect from this Tuesday and will last for two years from its publication in the Official Gazette of the Federation. With this measure, Mexico aims to protect and strengthen its national industry in a complex and highly competitive global context.
To read the full article: https://t21.com.mx/mexico-establece-aranceles-a-paises-sin-tratado-comercial/
Mexican Ministry of Economy Registers Investment Announcements Totaling $36.153 Billion
The Mexican Ministry of Economy has announced that, from January 1 to April 15, 2024, investment announcements totaling $36.153 billion have been registered from the private sector. These announcements comprise a total of 93 distinct projects carried out by private companies. It is estimated that these investments will generate approximately 47,702 new direct jobs in the country over the next two to three years.
The manufacturing sector is the main recipient of these investments, capturing 54% of the public investment announcements. Within the manufacturing sector, the most prominent industries are beverages, auto parts, iron and steel, automobiles, and electronic components. Particularly, the automotive industry stands out as the leader in job creation, concentrating 48% of the total projected new jobs.
Regarding the geographical distribution of these investments, Querétaro tops the list of receiving federal entities with a total of $5.783 billion. It is followed by the State of Mexico with $4.542 billion, Nuevo León with $3.646 billion, Sinaloa with $1.687 billion, and Coahuila with $1.662 billion. These figures reflect a reconfiguration in the territorial distribution of investments compared to previous years, with a decrease in the concentration of amounts in the top five entities.
In terms of the origin of the investment, the United States leads with an announced investment of $19.475 billion, followed by Germany with $5.458 billion, and Argentina with $4.395 billion. In total, 90% of the announced investments come from eight of the top ten countries of origin of Foreign Direct Investment (FDI) in Mexico as of the end of 2023.
To read the full article: https://www.eleconomista.com.mx/empresas/Secretaria-de-Economia-registra-anuncios-de-inversion-por-36153-millones-de-dolares-20240421-0022.html
Increased Space Availability Reduces Maritime Rates on Asia-Mexico Route
The maritime transport market between Asia and Mexico has undergone significant changes in recent months. According to Eternity Group Mexico’s EAX Index, vessel capacity has increased significantly, with an addition of approximately 20,000 TEU (20-foot containers) in weeks 12 and 14 of this year. This expansion in space availability has led to an 8.12% decrease in maritime rates for 40-foot containers in March, averaging at two thousand 106 dollars.
Despite this monthly decline, by the end of the first quarter, the average rate rose to two thousand 286 dollars per FEU. This represents a 50% increase compared to the same period last year. This rate hike is mainly due to the growth in space capacity, which increased by approximately 27% (+296 thousand additional TEU in 1Q24). This growth has been driven by the exportation of products such as lithium batteries, electric cars, e-commerce, and retail/fast fashion.
However, despite the increase in capacity, significant challenges persist in the market. High demand for space and limited container inventory in China pose significant logistical hurdles. This situation is exacerbated by delays in service rotation caused by geopolitical conflicts in the Red Sea, affecting the regular flow of goods.
Volatility in rates is expected to continue in the coming weeks. Carriers are considering raising short-term rates (FaK) to around four thousand 500 dollars per container in an attempt to capitalize on high demand. Given this scenario, companies are advised to engage in early planning for their import operations to mitigate the impact on logistical costs. Additionally, it is advisable not to speculate on logistical costs, especially in critical operations.
To read the full article: https://t21.com.mx/mayor-oferta-de-espacios-reduce-tarifa-maritima-asia-mexico/