Exclusive: Mexico eager to lure firms from Asia under new trade deal
MEXICO CITY (Reuters) - Mexico has spoken to a host of foreign companies, particularly steelmakers, in an effort to lure business from Asia to capitalize on a new North American trade deal, Economy Minister Graciela Marquez said on Monday.
The U.S.-Mexico-Canada trade agreement (USMCA) took effect at the beginning of this month, replacing its quarter-century-old predecessor, as the coronavirus pandemic wallops the global economy and international trade.
The new deal includes tougher content rules both for autos and steel and aluminum than when the North American Free Trade Agreement was launched in 1994.
“In steel we see the biggest opportunity,” Marquez, a Harvard-trained economist, told Reuters in an interview. “We want to show these companies the opportunities that open up with this increase in regional content requirements.”
Marquez said the government of President Andres Manuel Lopez Obrador has held talks with foreign steelmakers, including South Korea’s POSCO (005490.KS), Japan’s Nippon Steel Corp (5401.T) and Mitsubishi Corp (8508.T) and Ternium (TX.N), about investing in Mexico to produce steel for the auto sector.
She said there is a possibility foreign steelmakers could partner with or take a stake in Mexico’s Altos Hornos de Mexico (AHMSA.MX). A spokesman said the Mexican company is not currently in talks.
None of the other steelmakers immediately responded to requests for comment.
Considering Mexico’s diverse manufacturing base, Marquez said the government was interested in attracting a range of companies from across the globe.
She said the government also would seek to speak with Apple (AAPL.O) and other U.S. firms about relocating their supply chain to Mexico.
Retelling a recent conversation with Lopez Obrador, Marquez said she pointed to the cellphone she was holding in her hand and said, “These phones don’t have to be produced in China, ... there is an enormous opportunity to produce them” in Mexico.
The government is looking to attract North American and European firms producing in China, Singapore and Vietnam.
Marquez said the new trade deal came into force at a “critical” juncture for both the Mexican and the global economy and that it could help Latin America’s second-largest country recover from the fallout of the coronavirus pandemic.
Get to know this great opportunity - manufacturing in mexico
Source: Reuters
https://www.reuters.com
The U.S.-Mexico-Canada trade agreement (USMCA) took effect at the beginning of this month, replacing its quarter-century-old predecessor, as the coronavirus pandemic wallops the global economy and international trade.
The new deal includes tougher content rules both for autos and steel and aluminum than when the North American Free Trade Agreement was launched in 1994.
“In steel we see the biggest opportunity,” Marquez, a Harvard-trained economist, told Reuters in an interview. “We want to show these companies the opportunities that open up with this increase in regional content requirements.”
Marquez said the government of President Andres Manuel Lopez Obrador has held talks with foreign steelmakers, including South Korea’s POSCO (005490.KS), Japan’s Nippon Steel Corp (5401.T) and Mitsubishi Corp (8508.T) and Ternium (TX.N), about investing in Mexico to produce steel for the auto sector.
She said there is a possibility foreign steelmakers could partner with or take a stake in Mexico’s Altos Hornos de Mexico (AHMSA.MX). A spokesman said the Mexican company is not currently in talks.
None of the other steelmakers immediately responded to requests for comment.
Considering Mexico’s diverse manufacturing base, Marquez said the government was interested in attracting a range of companies from across the globe.
She said the government also would seek to speak with Apple (AAPL.O) and other U.S. firms about relocating their supply chain to Mexico.
Retelling a recent conversation with Lopez Obrador, Marquez said she pointed to the cellphone she was holding in her hand and said, “These phones don’t have to be produced in China, ... there is an enormous opportunity to produce them” in Mexico.
The government is looking to attract North American and European firms producing in China, Singapore and Vietnam.
Marquez said the new trade deal came into force at a “critical” juncture for both the Mexican and the global economy and that it could help Latin America’s second-largest country recover from the fallout of the coronavirus pandemic.
Get to know this great opportunity - manufacturing in mexico
Source: Reuters
https://www.reuters.com
If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:
US toll-free: +1 (877) 698 3905
CAN toll-free: +1 (844) 422 4922
start@americanindustriesgroup.com
US toll-free: +1 (877) 698 3905
CAN toll-free: +1 (844) 422 4922
start@americanindustriesgroup.com
Related posts
June 26, 2020
Arrival, a Hyundai-backed startup preparing to build electric delivery trucks for UPS, wants to revamp the humble transit bus with a boxy battery-powered model with a […]
May 22, 2020
So much has changed in a short space of time. Coronavirus first appeared in China at the beginning of the year, and less than six months later the […]
May 22, 2020
The environment in which electronics manufacturers are building has changed rapidly in the last couple of months. As under-resourced teams face the challenge of solving COVID-19 problems, […]
April 22, 2020
Large-scale coronavirus testing continues to lag and a vaccine could be at least one year away. But in the battle against world pandemic a rapidly expanding […]
February 24, 2020
Microsoft CEO Satya Nadella announced that the company will invest US $1.1 billion in Mexico over the next five years. “Today I am very excited that […]
February 15, 2020
Hyundai, fresh off its investment in a U.K.-based electric delivery van maker, has enlisted a Los Angeles startup to help create a “skateboard” platform the South […]
