08 May North American governments prepare reopening plan of the automotive industry in the region.
The governments of Mexico, United States and Canada are working together to establish the criteria, guidelines, protocols and conditions which shall be observed for allowing the reopening of the automotive industry in North America.
The aforementioned sector is economically relevant for the following reasons:
1. Represents a pillar of formal employments in North America.
2. The size, geographical scope and length of the supply chains between suppliers of all sizes in the three countries.
Also, it has been recognized that within the three countries, there are regions and geographical areas with particular health conditions, different degrees of propagation of COVID-19 and capacities and restrictions of public health services.
Until the reopening plan is approved, the automotive industry and its supply chains in Mexico must observe the current suspension of activities, since they are not considered essential.
Likewise, once the reopening plan is approved, this exercise will serve as a background to determine the return of other non-essential economic activities in Mexico.
The communication of the Mexican federal government has been made within the context of:
- Petition form the USA Congress for an homologation of the activities considered essential between Mexico and that country, to reduce the impact of supply chains.
- The entry into force of the USMCA announced for July 1st, and petitions from some sectors in the three countries so that certain provisions of the treaty become effective on a later date (such as, the new rules of origin for the automotive industry).
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Contact
Rafael Sánchez
rsanchez@cuestacampos.com
Franscela Sapien
fsapien@cuestacampos.com