Boosting US Exports: Mexico Aims for Higher Compliance Under USMCA

Mexico plans to significantly increase the number of compliant companies exporting to the U.S. under the USMCA trade agreement. This move follows the U.S. pausing tariffs on Mexican shipments. Economy Minister Marcelo Ebrard predicts compliance could rise to between 85% and 90% as firms adjust their practices.

Mexico is planning to boost its compliance with the USMCA trade agreement, aiming for more companies to export to the United States without facing tariffs. Economy Minister Marcelo Ebrard made this announcement following a pause in U.S. tariffs on certain Mexican shipments, aiming to increase compliant exports significantly.

Currently, over 50% of goods exported from Mexico to the U.S. adhere to the USMCA standards, allowing for tariff exemptions. Ebrard projects that this figure could rise to 85% to 90% as businesses adapt their export strategies. Some companies, however, particularly in the auto sector, may face challenges in meeting these requirements.

Mexico is set to engage with auto manufacturers to address these challenges. Additionally, discussions with U.S. trade authorities are scheduled to tackle fresh tariffs on steel and aluminum imports into the U.S. The complexity of USMCA's rules on parts origin could expose numerous firms to tariff penalties in the North American auto supply chain.

(With inputs from agencies.)