AMIA Raises Alarm on Migration’s Impact on Mexican Auto Industry

The Mexican Association of the Automotive Industry (AMIA) has issued a cautionary statement regarding the impact of a recent surge in migration on the country's automotive sector. AMIA reports that the situation has resulted in commercial transit suspensions at critical border crossings, leading to significant delays and economic setbacks.

Mexico is witnessing a substantial increase in the flow of migrants to its northern states, significantly affecting international trade in regions adjacent to the US. AMIA's announcement highlights the implications of this migration wave on cross-border commerce.

Mexico has experienced a notable surge in migratory activities, resulting in the suspension of freight train services due to the presence of numerous migrants on trains and railway tracks. The situation has also led to public demonstrations, encampments along the Rio Grande on the US-Mexico border and confrontations involving both Mexican and US authorities. Between January and February this year, 70,526 events of people in irregular migration situations were recorded in Mexico, meaning a 54.6% increase compared to 2022, according to Unidad de Politica Migratoria, Registro e Identidad de Personas (UPMRIP).

Additionally, stringent immigration security measures imposed last week by Texas Governor Greg Abbott have disrupted exports valued at US$1.5 billion from crossing the border, revealed the National Chamber of the Manufacturing Industry (CANACINTRA) in a press release.

In response to these challenges, AMIA has called for immediate attention to the ongoing migration and commercial crisis in northern Mexico. The automotive association emphasizes that the circumstances have caused significant interruptions at critical border crossings, resulting in delays and economic losses.

The automotive industry holds paramount importance in Mexico, contributing nearly 4% to the nation's Gross Domestic Product (GDP) and accounting for 20.5% of the manufacturing GDP.