Coronavirus policy complicates Mexican automotive recovery
By Victoria Johns2020-05-12T09:03:00
After significant declines in production and sales through March and April this year, Mexico is restarting its automotive manufacturing, but the country’s states are setting different rules regarding ramp up, which is restricting the movement of parts across borders. What could further complicate the situation in the near-term is the US-Canada-Mexico trade agreement (USMCA), which comes into effect on July 1, enforcing complex changes in trade, parts sourcing and labour rules.
After significant declines in production and sales through March and April this year, Mexico is restarting its automotive manufacturing, but the country’s states are setting different rules regarding ramp up, which is restricting the movement of parts across borders. What could further complicate the situation in the near-term is the US-Canada-Mexico trade agreement (USMCA), which comes into effect on July 1, enforcing complex changes in trade, parts sourcing and labour rules.