PROTECTION PROGRAM FOR MEXICO’S STRATEGIC INDUSTRIES
Insights
PROTECTION PROGRAM FOR MEXICO’S STRATEGIC INDUSTRIES

The Government of Mexico submitted to Congress a bill initiative aimed at protecting national industries considered strategic. The program seeks to strengthen domestic production against imports from countries without a trade agreement with Mexico.

MAIN OBJECTIVES

  • Comply with the provisions of the Plan México.
  • Protect strategic sectors of the national industry.
  • Substitute imports from Asia with Mexican production.
  • Improve the country’s trade balance.

SCOPE

  • Tariff increases on 1,463 HTS codes.
  • Coverage of 19 strategic sectors.
  • Impact on USD 52 billion in imports (8.6% of total national imports).
  • Selection based on low dependence on Asian inputs, avoiding inflationary pressures and respecting WTO limits.

EXPECTED BENEFITS

  • Protection of 325,000 jobs currently at risk.
  • Boost to job creation in manufacturing hubs: Nuevo León, Jalisco, State of Mexico, Mexico City, Querétaro, among others.

MOST RELEVANT SECTORS

  • Light vehicles: from 15–20% to 50%.
  • Textiles and apparel: from 10–35% to 35–50%.
  • Aluminum: from 0–5% to 35%.
  • Auto parts: from 0–35% to 10–50%.
  • Steel: from 0–50% to 20–50%.

AFFECTED COUNTRIES

  • Without FTA with Mexico: China, South Korea, India, Indonesia, Russia, Thailand, Turkey, among others.
  • With FTA (unchanged): United States, Canada, European Union, Japan, Singapore, among others.

BACKGROUND

The program is part of the “Plan México: Estrategia Nacional de Industrialización y Prosperidad Compartida (National Strategy for Industrialization and Shared Prosperity)”, 

which promotes domestic content, innovation, digitalization, and sustainability in Mexican industry.

It is also complemented by the strategy “Rumbo a una política industrial (Towards an Industrial Policy)” presented by the Ministry of Economy.

RELATED ACTIONS

  • Possible inflationary pressures if domestic supply cannot meet demand.
  • Production capacity limitations (technology, financing).

IDENTIFIED CHALLENGES

  • Possible inflationary pressures if domestic supply cannot meet demand.
  • Production capacity limitations (technology, financing).

The initiative establishes that the decree will enter into force 30 days after its publication in the Official Gazette of the Federation and will remain valid until December 31, 2026. 

During this period, the Executive Branch may modify tariff lines whenever deemed necessary.

 

J.A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics  contained in this agreement.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.

 

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