Mexico Solidifies Leadership in Auto Parts Supply to US Market
The U.S. Department of Commerce reveals that Mexico has strengthened its position as the leading supplier of auto parts to the U.S. market. During the first two months of 2024, Mexico achieved a 42.5% share in total U.S. imports, a significant increase from the 38.2% recorded six years ago.
This growth is partly attributed to the new rules of origin under the USMCA, which have influenced the dynamism of the automotive sector. Mexican exports of auto parts to the United States amounted to $13.56 billion in the first bimester of 2024, marking a 41.1% increase compared to the same period in 2018.
The USMCA establishes stricter North American content requirements for automotive trade, leading to debates among member countries. Mexico and Canada have advocated for a flexible interpretation of these rules, while the United States advocates for a stricter approach.
Despite disagreements, a USMCA panel sided with Mexico and Canada in January 2023, and the three countries continue to work towards resolving their differences. The USMCA’s rules of origin are expected to be gradually implemented until 2027, although their full impact will not be evident until then.