Automotive rules of origin have formed the center of NAFTA negotiations, which are running out of time ahead of forthcoming negotiations. Mexican officials have indicated that there will be a push to ensure more engines are produced in the U.S., partly by applying assumed wage rates of $15/hour in calculating the regional content values. Mexico is already a net exporter of engines to the U.S. to the tune of $1.1 billion in the past 12 months. That follows a 17% rise in imports from (led by Ford and Cummins) and a 13% drop in exports to the U.S. on a year earlier.
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