Jalisco Targets Doubling Local Supply
Jalisco aims to increase the share of local suppliers to 15% in export-oriented sectors, primarily in the automotive industry, as part of a strategy to strengthen supply chains and expand the participation of small and medium-sized enterprises (SMEs) in industrial activity, according to Antonio Lancaster-Jones, president of the Jalisco Council of Industrial Chambers.
“Today, the major challenge we face as an industry in the supply chain—and specifically in the automotive sector—is the integration and development of new suppliers,” he emphasized.
The leader also noted that Jalisco is already the second-largest exporting state in the country, a fact that can be attributed to the industry's performance and that has been sustained by the opportunity to increase local content in production chains.
“Our goal is to increase the current 6%, 7%, and 8% local sourcing rates in certain export sectors to 14% or 15% over the next five years,” he said.
Roeglio Arzate, Executive President of the National Association of Bus, Truck, and Tractor Manufacturers (ANPACT), has noted that under the rules of origin of the USMCA, the country already meets 64% of the regional content requirement.
“Right now, in fact, we are working toward meeting a 70% target next year; that is, we are increasing it by six percentage points. This is what we are doing to develop our supply chain,” he added.
“In addition to this, we are complying with the 45% labor content rule, and we are also currently complying with the 70% steel and aluminum content rule. For this reason, throughout this process of reviewing the Agreement, we are seeking to make no changes to the rules of origin; we do not want to change a single thing,” Arzate emphasized.
