Key agreement! Mexico secures preferential 15% auto tariff with the U.S.; Ebrard celebrates "bargain" amid crisis-dominated presidential agenda

Economy Secretary Marcelo Ebrard announced this Wednesday an important agreement with the United States that sets an average tariff of 15% on vehicles manufactured in Mexico and exported to the U.S. market. This measure, described by the official as a "bargain," seeks to strengthen the national industry and the nearshoring phenomenon, although Claudia Sheinbaum's presidential agenda was dominated by the security crisis following the murder of Clara Brugada's associates.

In a significant move for the Mexican automotive industry, the government has secured preferential tariff treatment from the United States. Secretary of Economy Marcelo Ebrard announced that vehicles assembled in Mexico and destined for the U.S. market will face an average tariff of 15%, a considerable reduction from the 25% previously applied under certain conditions.

"It's a competitive advantage for Mexico," stated Ebrard, who, while admitting he would have preferred a zero tariff, emphasized the importance of this negotiation. The benefit, established in Proclamation 10908, represents an approximate 40% discount on the general tariff and applies exclusively to vehicles manufactured in Mexican territory. Furthermore, the possibility of retroactive treatment is contemplated, which could allow some companies to recover previously paid tariffs.

The agreement also includes the acceptance that auto parts assembled in the United States will be considered U.S.-origin content under the rules of the United States-Mexico-Canada Agreement (USMCA). This is relevant given that a joint report by the U.S. Department of Commerce and the International Trade Administration revealed that cars exported from Mexico and Canada under the USMCA contain, on average, only 40% U.S. components. With this rule, importers avoid paying the tariff on that percentage, and the new proclamation further reduces the impact for Mexico.

"The benefit applies exclusively to vehicles manufactured in Mexico, which strengthens the competitiveness of the national automotive industry in the U.S. market."

The announcement has generated mixed reactions among analysts. Adrián González, president of Global Alliance Solutions, while considering the agreement positive, warned of the "very significant operational complexity for companies" and noted that not all automakers, especially Japanese or German ones, could easily comply with the 40% regional content requirement to fully benefit.

For his part, Rodolfo Ramos, an economist at Bradesco BBI, saw the measure as a potential boost for nearshoring in Mexico. However, he warned that the upcoming revision of the USMCA could tighten regional content rules, which would represent a "challenge for Mexican negotiators." This outlook tempers official optimism, highlighting that, while this represents progress, trade relations in the automotive sector are a constant and complex area of ​​negotiation, subject to protectionist pressures and the operational realities of multinational companies.

Curiously, although it was anticipated that President Claudia Sheinbaum would offer more details on these negotiations in her morning press conference this Wednesday, her agenda was dominated by the crisis unleashed by the murders of Ximena Guzmán and José Muñoz, close collaborators of the Head of Government of Mexico City, Clara Brugada, as well as by reports on the progress of passenger trains. This prioritization of the security crisis over a potentially favorable economic announcement could indicate the perceived severity of the attack and its impact on the national agenda, or a communications strategy to handle both issues on separate tracks, leaving the technical details of the agreement to the Ministry of Economy.

What impact do you think this new tariff will have on the Mexican economy and your wallet? Leave your comment.

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