In an interview with Fortuna Magazine during the Mexico-European Union Business Summit, Francisco González, president of the INA (National Automotive Industry Association), stated that one of the main benefits of the agreement will not only be the tariff reduction, but also the harmonization of certifications and technical standards between both regions.
“It opens up much more, not so much in terms of tariffs, but in terms of the harmonization and recognition of parts, certifications, and standardization,” he explained.
The leader detailed that the mutual recognition of standards linked to the United Nations Economic Commission for Europe will reduce bureaucracy and simplify processes for Mexican companies.
“All of this leads to less bureaucracy and fewer steps required; it simplifies the way we can export and recognize our levels of safety and compliance,” he maintained.
Electric Vehicles and Components: The Growth Bet
The INA believes the agreement comes at a strategic moment for the industry, particularly given the global transition to electric vehicles and specialized components.
During the automotive panel at the summit, industry representatives pointed out that Mexico is already developing components for electric vehicles and is increasingly participating in value chains related to batteries, electronic systems, and advanced manufacturing.
The organization also noted that the auto parts sector exports approximately $106 billion annually and remains one of the country’s main manufacturing drivers.
“You can’t choose Mexico or the US alone.” Regarding the North American trade landscape and a potential complication in the USMCA renegotiation, the president of the INA (National Automotive Industry Association) maintained that regional integration makes it impossible to separate the production chains of Mexico, the United States, and Canada.
“The hub is called North America, and production is North American. You can’t choose Mexico, Canada, or the United States alone,” he stated.
He explained that, in the case of auto parts, components can cross regional borders seven to eight times before becoming a finished vehicle, demonstrating the level of manufacturing integration achieved in the region.
While acknowledging that the automotive industry faces increasing competition from Europe and Asia, especially in electric vehicles, he asserted that Mexico maintains a strong position in auto parts.
“We are in a very good position in auto parts,” he stated.
The INA (National Automotive Industry Association) affirmed that Mexican production chains are prepared to take advantage of the new trade agreement, although it cautioned that it will be necessary to strengthen certifications, technical training, and traceability mechanisms to meet European standards.
“We are also ready to reinforce,” the leader stated, referring to training and mutual recognition of technical capabilities.
During the panel, executives from BMW and Stellantis agreed that the industry requires regulatory stability, access to energy, and greater development of specialized talent to sustain long-term investments.
The INA also indicated that Mexico must make progress on issues such as sustainability, the circular economy, and access to strategic minerals to maintain competitiveness against Europe and Asia in this new phase for the automotive industry.
Source: revistafortuna
