CONCAMIN Encourages Spanish Companies to Invest in MexicoBy Antonio Gozain | Wed, 09/15/2021 - 15:29
To comply with the USMCA's rules of origin, Francisco Cervantes, President of the National Confederation of Industrial Chambers (CONCAMIN), encouraged Spanish business to increase their investments in the Mexican automotive industry.
“The opportunities will come due to the USMCA’s requirement of increasing national content to up to 75 percent (as part of the automotive rule of origin). We are an import-exporting country and we only have between 18 percent and 22 percent of national content and that is a serious issue. How are we going to increase to 75 percent in less than the 4 years we have left to fulfill that commitment?” said Cervantes in the SME Commission event from the Spanish Chamber of Commerce in Mexico (CAMESCOM)
Cervantes committed to become the liaison between investors and Luz María de la Mora, Deputy Minister of International Trade, to make the USMCA’s chapters more transparent and offer the best opportunities for SMEs. Since USMCA came into force in 2020, Regional Content Value (RCV) required for light vehicles and light trucks increased to 66 percent and will gradually increase up to 75 percent by 2023. The Mexican automotive industry will need investment to boost the local production of goods.
“(Mexico) is focused on the automotive sector and some industrial branches. The SME Commission should aim to invest here. Asia will be very interested but it will no longer be able to export (into the region) so it will have to make investments in Mexico,” said Cervantes.
Mexico has over 50 free trade agreements with 13 countries. However, “one of the most important is USMCA, which is also crucial for SMEs. There are companies in the automotive sector that are not exporters, but indirectly their parts are exported in cars. We will work with the Commission of SMEs to carry out the B2B, as a boost to SMEs, invite tractor companies to work with SMEs, discuss needs and do networking,” said Cervantes.
The creation of the SME Commission will continue strengthening the commercial relations between Mexico and Spanish investors, while “sheltering” SMEs under the protection of the Spanish Chamber, said Antonio Basagoiti, President of CAMESCOM.
“With that mutual benefit for both countries, we will actively strengthen Spanish investment in Mexico. I know that there are many problems along the way, some related to the crisis we have experienced, the need for financing, the need for support. I also know that SMEs are much stronger than they seem, but the Chamber is here to help them,” said Basagoiti.