Borderlands: US Supply Chains’ future could be tied to Mexico and USMCA
Cross-border trade is facing two uncertainties: COVID-19 and the scheduled July 1st rollout of the United States-Mexico-Canada Agreement (USMCA). Mexico is the leading commercial partner of the United States and is currently in its seventh week of shutdown due to the pandemic. As U.S. manufacturers, particularly automotive and aerospace, plan to reopen factories across the U.S starting on May 15th, they are grasping the reality of how to maintain their supply chains while Mexico’s factories remain shuttered.
In this new article in FreightWaves, David Henry, GlobalTranz’s regional Manager, Mexico, joins industry experts from Forager, U.S. Customs and Border Protection (CBP), and Dascher Mexico, to share insights on the current state of cross-border trucking and trade.
“U.S. industries and North American supply chains are highly dependent on Mexican parts. Some of these plant openings are not going to be able to take place in a very big way if they’re not able to get 40% or more of the supplies that they typically get from Mexico. I think now more than ever, people have realized how important Mexico is to the U.S. economy,” commented Henry.
Companies on both sides of the border are also concerned about the impact USMCA will have on manufacturing. “This is going to bring some pretty big challenges. I believe the USMCA requirements will be implemented in phases (starting in July), and they will be staggered out as well. We’re monitoring it closely because we know that that’s going to impact several industries, particularly the automotive industry,” said Henry.
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