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.

automotive industry mexico

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
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/




Related posts

November 28, 2022
Global Manufacturing Tumbles but Mexico Remains Strong
Global Manufacturing Tumbles but Mexico Remains Strong
Global manufacturing activities have not recovered from the impact of the COVID-19 pandemic and following disruptions, contracting for the third consecutive month in September 2022. The […]
November 24, 2022
Nidec Control Techniques expands Into Mexico
Nidec Control Techniques expands Into Mexico
Control Techniques and Nidec entered the next phase of its expansion plans for global manufacturing. On Wednesday 12th October a brand-new manufacturing facility was opened in […]
November 23, 2022
Mexico increases vehicle production and exports
Mexico increases vehicle production and exports
Carmakers based in Mexico increased production and exports in October this year as supply chain constraints eased, according to the Mexican Automotive Industry Association (Amia). Mexico […]
October 20, 2022
Chinese investment in manufacturing on the rise in Mexico
Chinese investment in manufacturing on the rise in Mexico
Chinese investment in Mexico continues to grow as more and more companies from the world’s most populous nation seek to take advantage of the country’s proximity […]
October 20, 2022
BRP will produce the first electric motorcycles in Mexico
BRP will produce the first electric motorcycles in Mexico
BRP laid the first stone of its new plant for the production of latest-generation electric Can-AM motorcycles and electric batteries, with an investment of more than […]
September 30, 2022
J.P. Morgan ups Mexican economic growth forecast on manufacturing boost
J.P. Morgan ups Mexican economic growth forecast on manufacturing boost
MEXICO CITY, Sept 27 (Reuters) – J.P. Morgan analysts raised their economic growth forecast for Mexico’s third quarter gross domestic product (GDP), as well as for […]