Nuevo Leon Leads State Coordination Effort

Summary: Nuevo Leon is leading a coordinated push among Mexican states to align economic policy, attract investment, and strengthen competitiveness as the country prepares for the first review of USMCA since 2020. The federal government is prioritizing tariff elimination on steel, aluminum, and automotive exports, placing the automotive and manufacturing sectors at the center of negotiations amid US pressure on rules of origin and regional supply chains. The outcome will shape Mexico’s position in North American trade, testing its ability to address structural gaps in domestic supply chains, logistics and SME financing.

Nuevo Leon has positioned itself at the center of a nationwide effort to strengthen inter-state coordination and define a joint economic strategy, as officials gathered for the First Ordinary Assembly of the Mexican Association of Ministers of Economic Development A.C. (AMSDE).  Held in Monterrey, the meeting brought together state economic leaders to address key issues shaping Mexico’s economic agenda, including export performance, tariff pressures on strategic industries, and the upcoming USMCA review. 

As global economic uncertainty intensifies, state officials emphasized the importance of aligning policies and strategies to maintain Mexico’s competitiveness in international markets. During the session, Nuevo Leon Minister of Economy Betsabé Rocha underscored the need for ongoing collaboration among states. “Spaces like AMSDE allow states to share experiences, build joint strategies and move toward economic growth that benefits all of Mexico,” Rocha said.

Building on that discussion, participants highlighted how coordinated efforts can translate into tangible economic outcomes, particularly in attracting investment and generating employment. Officials noted that sharing best practices and aligning public policies can help Mexico better navigate global economic headwinds while capitalizing on opportunities within international value chains.

“The economic development of Mexico is strengthened when there is coordination, knowledge-sharing and public policies that promote investment, employment and competitiveness,” Rocha added. Discussions also focused on attracting foreign investment and reinforcing domestic industry as critical pillars in the current global environment.

Mexico Pushes Tariff Reduction Ahead Of USMCA Review

Against this backdrop of domestic coordination, Mexico is also preparing to advance its economic priorities on the international stage through the upcoming USMCA review process. Mexican President Claudia Sheinbaum said the government will seek to eliminate tariffs on steel, aluminum, and vehicles during negotiations with the United States and Canada, reported MBN. 

The formal review is expected to begin with initial talks between Mexico and the United States, followed by discussions with Canada in May. “We want the reduction, or outright removal, of all tariffs on products that comply with the rules of origin,” Sheinbaum said, referencing measures imposed by Washington under Section 232.

As negotiations approach, the automotive industry is emerging as a central focus due to its deep integration across North America. Sheinbaum stressed that Mexico is seeking zero tariffs on vehicles, while also pushing to ensure that any quotas applied to Mexican exports are not less favorable than those granted to other US trading partners. “Our position is clear. We want tariffs on vehicles to reach zero,” she said.

According to the Mexican government, these priorities have been raised directly with US President Donald Trump, as well as through ongoing discussions between trade officials.

Supply Chains And Rules Of Origin Under Scrutiny

Beyond tariffs, the review is expected to focus heavily on compliance with rules of origin and the strengthening of regional supply chains. US officials have emphasized the need for production in Mexico to rely more heavily on North American inputs, a position that could reshape manufacturing dynamics across the region.

Sheinbaum said Mexico remains engaged in continuous dialogue with US counterparts to ensure the review process benefits all parties involved. “There is permanent communication, and we believe that, for the benefit of both countries, these tariffs should not exist,” she said.

First Major USMCA Review Since Nafta Replacement

The upcoming review marks the first comprehensive evaluation of the USMCA since it replaced the North American Free Trade Agreement in 2020. Such periodic reviews allow member countries to address emerging trade challenges, adjust rules of origin and reconsider tariff structures and quotas.

Industry analysts say eliminating tariffs on steel, aluminum and vehicles could significantly boost the competitiveness of Mexican exports, particularly in the automotive sector, where supply chains are deeply interconnected across North America. Tariffs, they note, can disrupt efficiency and distort competition within these highly integrated production networks. 

Paulina Aguilar, Co-Founder and CRO, Mundoi Trade Inc., wrote for MBN a column that argues that the upcoming USMCA review will test whether Mexico’s economic strength is truly structural or just temporary. “While the growing US trade deficit with Mexico may drive political pressure in Washington, Mexico’s real advantage lies in its strategic importance: a large trade volume, extensive free trade network, and diversified manufacturing base that strengthens North American competitiveness and reduces reliance on China,” said Aguilar.

However, to make this case convincingly, Aguilar explained that Mexico must address internal challenges, such as developing domestic suppliers, modernizing logistics, securing supply chains, and improving access to financing for SMEs. Weaknesses in these areas can disrupt production more than border issues.

Negotiating from strength, Aguilar argues, means pushing proactively for tariff removal, prioritizing supplier development and trade finance, and positioning Mexico’s industrial and logistics capacity as essential to the region.