Business Section of the Reforma:
By Silvia Olvera
MONTERREY. Ahead of the upcoming review of the Mexico–United States–Canada Agreement (USMCA), both the private sector and the Federal Government are focusing efforts on ensuring that Mexico is excluded from discussions and the imposition of trade tariffs by the United States, said Emilio Cadena, President of Prodensa, during the Caintra Nearshoring Forum.
He explained that eliminating tariffs is the number-one priority in negotiations with the United States, as these tariffs hinder the smooth flow of supply chains.
Cadena noted that a second reason behind this effort is that production costs for finished goods in Mexico have risen, since about 40% of the inputs used by manufacturing companies in the country come from China.
This situation, he said, has also caused market disruption, leading to shortages and higher prices for some materials.
Cadena added that before claiming Mexico will maintain its competitiveness in the USMCA review, it is essential to ensure that the United States does not impose tariffs on products manufactured in Mexico, allowing the country to preserve its strength in manufacturing, including the automotive, metalworking, and electronics sectors, thereby reducing dependency on China.