Mexico is hoping to work with Asia-based businesses in order to make the most of the North American trade deal between the U.S., Mexico and Canada (USMCA), Reuters reported.
On July 20, Mexico’s Economy Minister, Graciela Marquez said that this is an excellent time for Mexico to capitalize on steel manufacturing.
USMCA will replace the old North American Free Trade Agreement that has been around since 1994. The new deal has higher content regulations for cars, steel and aluminum than the previous agreement did.
“We want to show these companies the opportunities that open up with this increase in regional content requirements,” Marquez told Reuters.
President Andres Manuel Lopez Obrador has been speaking with South Korea’s POSCO, Nippon Steel Corp. and Mitsubishi Corp. and Ternium from Japan in the hopes they can produce steel for Mexico’s automobile sector.
While none of the steel producers had replied right away to comment requests, Marquez said Mexico is hoping to attract a number of companies who may do business with their robust auto manufacturing industry.
Obrador even said that the foreign steelmakers could partner with the country’s Altos Hornos de Mexico company, but an Altos spokesman said no talks are underway.
Marquez also said that the Mexican government was looking for opportunities with Apple, hoping that they might consider moving their supply chain south of the border, now that USMCA is in full swing. Mexico’s government is also interested in speaking with companies from Europe, who produce their products in Singapore and Vietnam.
Marquez believes the cellphone industry could thrive in Mexico, despite the fact that many cell phones are currently being produced in China.
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