July 2019
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480 Reads
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3 Citations
This paper proposes a first approximation on the possible repercussions of the T-MEC in the performance of the Chinese automotive industry in Mexico. A brief review of the content of the agreement is made, emphasizing the possible limitations to the presence of the Asian country in the North America region. Next, we review the characteristics of the main Chinese investment companies in the country, which gives us an interesting clue to the magnitude of the corporations that already have a presence in the automotive industry in Mexico (AIM). Although Chinese investments can be considered modest, they could tendentially grow significantly. Finally, we refer in an exploratory way the possible influence of the "Chinese model of production" and the type of union relations that could be deployed throughout the country base don the so-called corporate unionism linked to the previous regime. On November 30th, 2018, the Mexico-United States-Canada Treaty (T-MEC) was signed to replace the North American Free Trade Agreement (NAFTA). The signing occurred without solving the problem of tariffs on steel and aluminum, combined with the inclusion of chapter 4 that seeks a greater regional added value (VCR) in the autoparts-automotive chain (CAA), the maximum winner of NAFTA. It is argued that these actions seek to raise the competitiveness of the industry in the region against China, since in addition to Chapter 4, Article 32.10 requires the economies to report their intention to start free trade agreement negotiations with economies of no market at least three months in advance. In the following lines, chapter 4 is examined, identifying the conditions and challenges presented by the triangular relationship between Mexico, the United States and China before the new rules of origin in the CAA.