THE AUTOMOTIVE AND ENERGY SECTORS OF MEXICO IN USMCA’ S LABYRINTHS
This paper aims to assess the main consequences of the USMCA provisions on Mexico’s automotive and energy sectors’ performance. By running an autoregressive vector model, we set three scenarios to measure the potential impacts of higher production costs resulting from the rules of origin on the auto...
| Authors: | , , |
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2023 |
| Country: | México |
| Institution: | UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO |
| Repository: | Investigación Económica |
| Language: | Spanish |
| OAI Identifier: | oai:ojs.pkp.sfu.ca:article/84653 |
| Online Access: | https://www.revistas.unam.mx/index.php/rie/article/view/84653 |
| Access Level: | Open access |
| Keyword: | T-MEC déficit comercial industria automotriz energía reglas de origen vectores autorregresivos USMCA trade deficit automotive industry energy rules of origin autoregressive vectors |
| Summary: | This paper aims to assess the main consequences of the USMCA provisions on Mexico’s automotive and energy sectors’ performance. By running an autoregressive vector model, we set three scenarios to measure the potential impacts of higher production costs resulting from the rules of origin on the automotive plants’ critical variables (employment, production, investment, and foreign exchange). The paper also analyzes USMCA’s influence on labor changes in the Mexican automotive industry to highlight the social content of the rules of origin. Finally, we provide a qualitative study on contentious issues between the U.S. and Mexico stemming from recent changes in the Mexican energy sector. The main conclusion is that USMCA’s impact on the performance of both sectors depends on the scenarios presented and the degree of compliance with certain treaty chapters. |
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