Covering the Industry's Economic, Legal & Financial Issues
MexicanAutomotive covers the Mexican automotive and auto parts industries, and is published monthly in English and Spanish. MexicanAutomotive reports on general Mexican automotive industry topics, as well as economic, financial and legal issues affecting the North American automotive industry. Published by Cacheaux, Cavazos & Newton (CCN), subscriptions to MexicanAutomotive are free. CCN is an international law firm with offices in Texas and Mexico. The firm provides legal services in many practice areas including Automotive law to clients doing business in the NAFTA region.
A problem similar to that faced by Mexico and Brazil is the one that may arise between Mexico and Argentina. Mexico, as is the case with other countries exporting to Argentina, increasingly faces more restrictions with respect to the entry of its products in a trend dating to the global crisis of 2008. Mexico faces problems selling automobiles and auto parts to Argentina. For example, Nissan was supposed to import wine from Argentina in 2011 in order to introduce Mexican vehicles to that country in accordance with an informal rule imposed by the administration of President Cristina Fernandez, requiring importers to restore their trade balances. To that effect, at the end of March, Debora Giorgi, Minister of Industry of Argentina stated to the press that Argentina was going to communicate to Mexico the need to restructure the agreement on the trade of vehicles. “As it stands, the agreement is not beneficial for Argentina and should be reconsidered to quickly achieve balance,” said the Minister of Industry. In 2011, Mexico sold vehicles and auto parts to Argentina worth 759 million Euros and imported 232 million units. Bruno Ferrari, Mexico’s Secretary of the Economy, clarified that Argentina will not be treated the same as Brazil. A few days later, Mexico joined Panama and 38 other countries, including the United States and the countries of the European Union in a formal complaint before the World Trade Organization regarding the difficulties of exporting products to Argentina. Ferrari indicated that such complaint may be the basis for filing a claim against Buenos Aires, a step toward the formation of a dispute resolution panel in the world trade governing body. Unlike Peru, Colombia and Chile, which only verbally joined the complaint, Mexico formalized it. Ferrari explained that Mexico took this decision because Argentina’s intentions to revise the automotive agreement had become the straw that broke the camel’s back. Argentina is the second largest South American market for Mexico. Mexican exports grew 327% between 2007 and 2011. Mexico’s Secretary of the Economy rejected any possibility for a renegotiation with Argentina and reiterated that in the unlikely event that this occurs, Mexico will report this to the World Trade Organization.