The Mexico Plan, announced by President Claudia Sheinbuam, is seen by the National Chamber of the Iron and Steel Industry (Canacero) as an opportunity to boost the competitiveness of the Mexican industry and manufacturing in contrast to imports from Asia.
According to Juan Atonio Reboulen, leader of the Political Liaison Commission of Canacero, the government’s plan to establish Mexico among the 10 most important economies in the world in six years, shows the willingness of the authorities to face the demand to adapt to the scenario of the restructuring of supply chains on a global scale, a phenomenon called nearshoring.
“There are ample possibilities for Mexico to become a competitive replacement for Asian imports and to supply production chains in North America.» The government is committed to this transformation of the model and, from the private sector, we are excited about the opportunity that it represents to strengthen the relationship with the United States and Canada, in the face of the Asian challenge,” said Reboulen in an interview with Econohábitat.
According to the expert, within the framework of the Mexico Plan, four fundamental aspects stand out to promote investment and the development of the metallurgical industry in Mexico: the nearshoring decree (whose details will be revealed in the coming weeks), the decree on the Manufacturing, Maquiladora and Export Services Industry Program.
“In terms of concept, the development poles are well defined, but it is not adequately defined what the advantages will be for the national industry and manufacturing involved.” We must remain alert. However, these aspects will be significant triggers, he added.
According to data provided by Canacero, at the end of 2023, a production of 19.3 million tons of final product was recorded, which implies a decrease of 1.6% compared to the previous year. Throughout the same year, imports reached 12.5 million tons, an increase of 21.3% compared to 2022.
They require a level floor
Reboulen stressed that the steel industry in Mexico needs a “medium level” to compete with imports from Asia, given that they have subsidies and tax incentives.
“There is a need for greater alignment in defense policies and procedures with the United States and Canada.” “The government knows the goals of the Trade Agreement, but we need to promote modifications for solid issues in the International Trade Practices Unit,” he said.
In this scenario, the Canacero spokesperson insisted that the Mexico Plan represents a good start to strengthen the local industry, although resources and specific suggestions for administrative updating, investment in science and technology, as well as the growth of the supply infrastructure are needed.
Regarding the dangers of the United States increasing tariffs with the arrival of Donald Trump to power, Reboulen pointed out that the steel industry is “calm,” given that the trade balance with that country has a surplus of more than 4,000 million dollars a year. Therefore, if such measures are implemented, “Mexico may react and they have more to lose.”