Heading towards the reconfiguration of the USMCA in 2026 and its impact on the Mexican automotive industry

Abstract

This article seeks to analyze the current situation of the Mexico–United States–Canada Agreement (USMCA) in the automotive sector by reviewing the agreement’s current conditions and the sector’s performance through the lens of Trade in Value Added (TiVA), as measured by the Organisation for Economic Cooperation and Development (OECD). The study concludes that the value-added differential generated by the automotive sector is sufficient to justify the continuation of the trilateral relationship, given the high degree of complementarity within the North American automotive industry.