Impact of the United States-Mexico-Canada Agreement (USMCA) Rules of Origin On the Automotive Sector in Mexico

This article aims to analyze the impact of the USMCA’S new rules of origin on the automotive sector in Mexico. Specifically, to understand the dynamics of change and protectionism, the author explores possible adjustments in light vehicle production, variations in the imports of regulated auto parts...

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Detalles Bibliográficos
Autor: María de Lourdes Álvarez Medina
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2021
País:México
Institución:Universidad Nacional Autónoma de México
Repositorio:Redalyc-UNAM
OAI Identifier:oai:redalyc.org:193771604015
Acceso en línea:https://www.redalyc.org/articulo.oa?id=193771604015
https://www.redalyc.org/journal/1937/193771604015/
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https://www.redalyc.org/journal/1937/193771604015/193771604015.epub
https://www.redalyc.org/journal/1937/193771604015/movil
Access Level:acceso abierto
Palabra clave:Relaciones Internacionales
USMCA
protectionism
rules of origin
Automotive industry
industry relocation
Descripción
Sumario:This article aims to analyze the impact of the USMCA’S new rules of origin on the automotive sector in Mexico. Specifically, to understand the dynamics of change and protectionism, the author explores possible adjustments in light vehicle production, variations in the imports of regulated auto parts, and changes in labor regulation, and analyzes the regional value content (RVC) reported for each car assembled in Mexico and sold in the U.S. in 2020 and 2021. She uses a trade database to analyze changes in imports of the groups of regulated auto parts to determine growth trends. Companies comply heterogeneously with the new rules of the agreement depending on their product strategies, how far they are from meeting the new RVC threshold, and the tariff levied. Rules of origin affected German and Asian automakers producing in Mexico more than their competitors; however, they underwent fewer adaptive changes.