Automotive exports from the United States to Mexico and Canada were $84.002 billion dollars from January to September 2024, according to data from the Department of Commerce.
This amount represents a 9.7% increase compared to the same period in 2019, the year prior to the entry into force of the Treaty between Mexico, the United States and Canada (USMCA).
Among its main changes with respect to its predecessor (the North American Free Trade Agreement -NAFTA-), the USMCA tightened the rules of origin for the automotive industry.
What does this mean? It means that in order not to pay tariffs, automotive products traded between the three nations must have a higher regional content value and, therefore, fewer inputs and parts from third countries.
Automotive exports from the United States
In particular, considering the above comparison, U.S. automotive sales to Mexico grew 14.8% to US$33.091 billion.
On the other hand, automotive exports from the United States to the Canadian market rose 6.6%, to 50.911 billion dollars.
A July 1, 2022, White House Trade Representation (USTR) report states that USMCA and NAFTA “have played an important role in the industry’s success.”
Automotive Integration
According to the Mexican Automotive Industry Association (AMIA), this sector has become much more competitive in North America thanks to the effective development of regional supply chains, as well as the levels of professionalization and sophistication compared to the other main producing regions in the world.
North America is a global automotive powerhouse. Together, the three nations produced nearly 15 million 648,000 light vehicles 2023, up 9 percent year-on-year.
Two of the countries are among the world’s top 10 vehicle producers, and the region is a major player in auto parts production.
In an international environment of uncertainties such as pandemics, trade tensions and armed conflicts, globalization has shifted towards regionalization so that countries can be better prepared and protected against sudden crises that threaten to disrupt supply chains.
Automotive exports from the United States to the entire world were 134,740 in the first three quarters of 2023, a 7% advance over the same period in 2019.