The Ministry of Economy released the results of Mexico‘s automotive imports (new light vehicles) under quota.
As part of the actions to boost the competitiveness of Mexico’s automotive industry, quotas were authorized between September 2023 and June 2024.
These quotas allow for the import of 853,762 new light vehicles with an ad-valorem tariff of 0%, under the Automotive Decree.
Automotive sector investments in Mexico
FDI inflows in automobile and truck manufacturing to Mexico, in millions of dollars:
- 2018: 3,480.
- 2019: 4,321.
- 2020: 3,218.
- 2021: 1,651.
- 2022: 3,018.
- 2023: 5,092.
- Jan-Jun 2024: 5,400.
- Jan-Jun 2024: 6,091.
Mexico’s automotive imports
Imports through the quota were made in recognition of the industry’s production during the previous year, which reached 3,730,577 units.
In addition, investments made to establish, expand or modernize production facilities were valued. These investments amounted to 3,160.1 million dollars between September 2023 and June 2024.
At the same time, purchases from domestic suppliers totaled 716 million dollars.
Exports
The Ministry of Economy also reported that it supported the diversification of export markets for vehicles manufactured in Mexico. To this end, specific quotas were assigned for exports to the Argentinean market. These exports represented a value of 334.9 million dollars.
In 2022, Mexico agreed to new provisions for trade in certain types of light automobiles with Argentina; the reduction of tariffs to 0% planned for 2019 was postponed to 2022 and then to 2025. Tariff quotas were maintained.
In the case of Brazil, trade in light vehicles was liberalized in 2019; while the tariff reduction for heavy vehicles was postponed from 2020 to 2023 and a tariff reduction schedule of 20% (2020-2021), 40% (2021-2022), 70% (2022-2023) and 100% (as of July 1, 2023) was negotiated.
Mexico has negotiated preferential quotas under its trade agreements.
With Argentina it was through ACE Nº 6 (56 tariff lines at the 2017 HS 8-digit level) and ACE Nº 55, appendix 1 (25 lines).
And with Brazil through ACE Nº 53 (8 lines).