Mexico’s automotive association (Amia) wants to review the USMCA steel and aluminum amendments before ratification.
The new agreement stipulates that at least 70pc of the steel and aluminum used to make the cars, and 75pc of auto parts used in assembly must be produced on the North American continent. Mexico currently imports slab products from Brazil, South Korea, and China, in addition to sourcing it from North American producers.
According to the new agreement, steel slab products and aluminum components must be produced in North America after seven and 10 years, respectively.
Mexico is one of the world’s largest automobile producers and exporters, but between January and November 2019 production decreased 3.5pc to 3.54mn cars, and exports declined 2.2pc to 3.1mn units, according to Amia figures. By the end of 2019, car production is expected fall 4pc to 3.75mn units, while exports are slated to decline 2.7pc to 3.35mn units because of low demand.