Mexico’s steel association, Canacero, said this week at the entity’s general assembly that a NAFTA renegotiation could present opportunities for the country’s steel industry, in the sense it could increase the amount of products traded within the members of the trade bloc.
One of the opportunities Canacero sees is the strengthening of the supply chain within the member countries in order to return manufacturing from offshore sources, particularly China.
Canacero’s president, Guillermo Vogel, said that increasing the rules of origin of regional value content for steel products made out of the North American region could increase the presence of manufacturing companies, which generate jobs in the region and protect the trade bloc from what he called as the unfair competition with China.
Vogel said the rules of origin for the regional value content reach on average 50 percent, but the rate could be increased.
Vogel said the close relationship the Mexican steel industry has with both the US and Canada would help NAFTA increase regional value content rates.