Mexican auto parts’ exports face a complicated scenario

MEXICO — Mexican auto parts’ exports will be affected by the closings of assembly plants in the United States. Due to coronavirus logistics problems, it could interrupt its upward trend in exports of automotive parts to its northern neighbor.

Mexican exports of auto parts to the United States maintained a continuous rise over the last 10 years at year-on-year rates, reaching US$61.682 million in 2019; in fact, of all Mexican auto exports to the US market in the past year, auto parts accounted for 45.1%.

In 2020, exports of automotive parts will be influenced mainly by the effects of the coronavirus and, probably in a positive sense, by the greater regional content required in the Treaty between Mexico, the United States and Canada (T-MEC), if this agreement takes effect in June, as the US government has scheduled.

Source: El Economista