It is expected that the next few years will be a challenging time for manufacturers in Mexico, with the automotive industry being particularly vulnerable as multiple pressure points come to a head: (1) the United...more
12/11/2024
/ Anti-Dumping Duty ,
Audits ,
Automotive Industry ,
China ,
Compliance ,
Countervailing Duties ,
Exports ,
IMMEX ,
Imports ,
International Trade Commission (ITC) ,
Manufacturers ,
Mexico ,
OEM ,
Regulatory Agenda ,
Russia ,
Tariffs ,
U.S. Commerce Department ,
United States-Mexico-Canada Agreement (USMCA) ,
USTR
Mexico is a key player in both the United States-Mexico-Canada Agreement (USMCA) and Latin American regions. Nearshoring, the practice of relocating an operating business or supply chain closer to home markets, is a rapidly...more
12/5/2024
/ Compliance ,
CPTPP ,
Fair Trade Agreements (FTA) ,
Foreign Corrupt Practices Act (FCPA) ,
Imports ,
Inventory ,
Latin America ,
Manufacturing Facilities ,
Mexico ,
Multinationals ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Standards ,
Supply Chain ,
Tariffs ,
Trade Wars ,
United States-Mexico-Canada Agreement (USMCA)
The United States-Mexico-Canada Agreement (USMCA) automotive sector must be prepared to navigate a new set of requirements that will likely reshape supply chains, impact costs, and alter the competitive dynamics within the...more
On April 22, 2024, Mexico’s president increased import duties in the range of 5% to 50% on 544 Harmonized System (HS) codes, affecting a significant number of product categories such as steel, aluminum, textiles, plastics,...more
With the push to accelerate electric vehicle production in the U.S. comes concurrent acceleration of an electric vehicle charging network, as well as increasing speed of electric battery manufacturing, clean energy and...more
10/17/2023
/ Advanced Batteries ,
Buy American Act ,
Charging Stations ,
Clean Energy ,
Electric Vehicles ,
Federal Funding ,
Inflation Reduction Act (IRA) ,
Infrastructure ,
Investment ,
Semiconductors ,
Solar Panels ,
United States-Mexico-Canada Agreement (USMCA)
As manufacturing in Mexico returns to pre-pandemic levels, several recent legal developments may affect those operations. Manufacturers, particularly those in the automotive industry, need to consider new Mexican labor...more
5/3/2023
/ Automotive Industry ,
Beneficial Owner ,
Collective Bargaining ,
Coronavirus/COVID-19 ,
Foreign Direct Investment ,
Foreign Investment ,
Free Trade Agreements ,
Mexico ,
Minimum Wage ,
Pensions ,
Supply Chain ,
Transparency ,
United States-Mexico-Canada Agreement (USMCA) ,
Vacation Pay
As the global economy faces the third year of the pandemic, manufacturers are no longer focused on figuring out when things will return to “normal.” Instead, they are applying lessons learned from the past few years to become...more
7/7/2022
/ Artificial Intelligence ,
Audits ,
BPA ,
China ,
Climate Change ,
Compliance ,
Consumer Product Safety Commission (CPSC) ,
Copyright ,
Coronavirus/COVID-19 ,
Customs and Border Protection ,
Disclosure Requirements ,
Due Diligence ,
Environmental Social & Governance (ESG) ,
Ethics ,
False Advertising ,
Food and Drug Administration (FDA) ,
Greenhouse Gas Emissions ,
Greenwashing ,
Human Rights ,
ICFR ,
Internet of Things ,
Investment ,
Liability ,
Machine Learning ,
Manufacturers ,
Mexico ,
Model Contract Clauses ,
NLRA ,
NLRB ,
Office of Foreign Assets Control (OFAC) ,
Patents ,
PFAS ,
Popular ,
Proposed Rules ,
Remote Working ,
Risk Management ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Supply Chain ,
Supply Shortages ,
Sustainability ,
Task Force on Climate-related Financial Disclosures (TCFD) ,
Trade Secrets ,
Unions ,
United States-Mexico-Canada Agreement (USMCA) ,
Uyghur Forced Labor Prevention Act (UFLPA)
As covered by the news, Mexico and Canada have joined forces to challenge the United States’ strict interpretation of some of the United States-Mexico-Canada Agreement´s (USMCA or Agreement) Automotive Rules of Origin (ROO)....more
If you are a U.S. manufacturer with operations in Mexico, please pay attention. As we previously reported, the United States-Mexico-Canada Agreement (USMCA) has certain labor union requirements, a key one being that...more
It’s the beginning of a new year! 2020 is over, COVID-19 vaccines are being administered, the USMCA is in effect, and there is an apparent unofficial understanding that the auto industry is essential in North America (Mexico,...more
3/26/2021
/ Automotive Industry ,
Coronavirus/COVID-19 ,
Enforcement Actions ,
Free Trade Agreements ,
Imports ,
Labor Regulations ,
Mexico ,
Outsourcing ,
Supply Chain ,
Tax Reform ,
United States-Mexico-Canada Agreement (USMCA) ,
Vaccinations ,
Value-Added Tax (VAT)
The Mexican President’s preferential Bill to Reform the Electricity Industry Law has passed both Houses of the Mexican Congress without changes and is now applicable law (the Reformed Electricity Law or the Law).
As we...more
3/12/2021
/ CPTPP ,
Curtailment ,
Electricity ,
Electricity Market Reform (EMR) ,
Energy Sector ,
Geothermal Energy ,
Hydropower ,
International Arbitration ,
Mexico ,
NAFTA ,
Nuclear Power ,
Renewable Energy ,
Solar Energy ,
United States-Mexico-Canada Agreement (USMCA) ,
Wind Power
One year ago, the automotive industry was swiftly and seriously impacted by the COVID-19 pandemic. This disruption, in addition to the new administration, continues to present a variety of fresh issues.
Foley’s...more
3/10/2021
/ Americans with Disabilities Act (ADA) ,
Automotive Industry ,
Biden Administration ,
Coronavirus/COVID-19 ,
Cybersecurity ,
Data Privacy ,
Department of Justice (DOJ) ,
Families First Coronavirus Response Act (FFCRA) ,
Family and Medical Leave Act (FMLA) ,
Mexico ,
NHTSA ,
Patents ,
Safety Standards ,
Supply Chain ,
Trade Wars ,
U.S. Customs ,
United States-Mexico-Canada Agreement (USMCA) ,
Vaccinations ,
Vertical Mergers
President Andres Manuel López Obrador has sent to the House of Representatives a preferential bill to reform the Electricity Industry Law, which Congress will be required to discuss in the next 60 days....more
2/5/2021
/ Clean Energy ,
Electricity ,
Energy Sector ,
Federal Electricity Commission (CFE) ,
Geothermal Energy ,
Hydropower ,
Intended Nationally Determined Contributions (INDC) ,
Mexico ,
Nuclear Power ,
Paris Agreement ,
Power Purchase Agreements ,
Solar Energy ,
United States-Mexico-Canada Agreement (USMCA) ,
Wind Power
The United States–Mexico–Canada Agreement's (USMCA) de minimis provision allows a small percentage of outside-of-North America originating inputs that do not meet the applicable tariff shift, to be used in a qualifying USMCA...more
USMCA´s much expected “Uniform Regulations,” which will be binding in all three member countries, were finally issued on June 3, 2020, less than a month ahead of the July 1, 2020 entry into force of the Trade Agreement...more
We know that, as the internal ratification procedures for the United States of America–Mexico–Canada Agreement (“USCMA”) have concluded, the trade agreement will enter into force on July 1, 2020.
It is clear that the...more
In the three years it took for the United States-Mexico-Canada Agreement (USMCA) to come to fruition, there was much uncertainty surrounding trade relations with Mexico, yet U.S. business executives’ bullishness about...more
...The Impact of Emerging Technologies on Global Automotive Supply Chains -
The intense focus on autonomous vehicles and electrification we see today shows no signs of slowing down: in the new automotive industry, every...more
2/13/2020
/ Antitrust Provisions ,
Automotive Industry ,
Chapter 11 ,
Commercial Bankruptcy ,
Data Privacy ,
Employer Liability Issues ,
Intellectual Property Protection ,
Manufacturers ,
Motor Vehicles ,
NHTSA ,
Supply Chain ,
United States-Mexico-Canada Agreement (USMCA)
The updated USMCA was signed on December 10, 2019.
These are not business-as-usual times in the trading world. As we know, there is the ongoing trade war with China, Brazil and Argentina are back in the steel and aluminum...more
12/17/2019
/ Aluminum Sales ,
Automotive Industry ,
Canada ,
Corporate Counsel ,
Cross-Border Transactions ,
Dispute Resolution ,
Environmental Policies ,
Free Trade Agreements ,
Imports ,
Intellectual Property Protection ,
Investor State Dispute Settlement (ISDS) ,
Labor Regulations ,
Mexico ,
NAFTA ,
Steel Industry ,
United States-Mexico-Canada Agreement (USMCA)
A number of business certainties that we had grown accustomed-to during our adult-lives are being shaken. In addition to monitoring variables such as production-costs and import duties, international trade regulations are...more
11/12/2019
/ Aluminum Sales ,
China ,
Duties ,
Free Trade Agreements ,
Imports ,
Investor State Dispute Settlement (ISDS) ,
Manufacturers ,
Mexico ,
Most-Favored Nations ,
NAFTA ,
Steel Industry ,
Strategic Planning ,
Supply Chain ,
Trade Agreements ,
Trade Wars ,
United States-Mexico-Canada Agreement (USMCA) ,
WTO
There is a new labor ball game in Mexico, as the country has amended its relevant laws to be in compliance with the incoming USMCA (U.S.-Mexico-Canada Agreement, soon to be NAFTA´s successor). Most importantly, (i) there...more
Due to what was firstly characterized as an illegal immigration crisis, and then as a measure to force companies to leave Mexico and return to the U.S., the Trump administration announced that starting June 10, 2019, it plans...more
6/5/2019
/ Automotive Industry ,
Canada ,
Cross-Border Transactions ,
Free Trade Agreements ,
Immigration Reform ,
Mexico ,
NAFTA ,
Supply Chain ,
Tariffs ,
Trump Administration ,
United States-Mexico-Canada Agreement (USMCA) ,
US Trade Policies
The USMCA, signed on November 2018, is making its way through the legislative processes in the United States, Mexico, and Canada. Both Mexico and Canada will be closely looking at the eventual progress in the United States...more
Building upon the centuries-old business relationship between Mexico and the United States, NAFTA allowed both countries to benefit from a seamless workshop that clearly made the pie larger. The 25-year-old contract needed to...more
3/20/2019
/ Automotive Industry ,
Cross-Border Transactions ,
Exports ,
Free Trade Agreements ,
Manufacturers ,
Mexico ,
NAFTA ,
OEM ,
Steel Industry ,
Trans-Pacific Partnership ,
United States-Mexico-Canada Agreement (USMCA) ,
WTO
Welcome to Foley’s new Automotive MarketTrends newsletter. In each edition, we will focus on a different aspect of the automotive sector and highlight key trends in the industry. The global automotive industry is experiencing...more