Atlantic Council this week released a new commentary arguing that despite booming server exports to the US, Mexico’s data processing sector generates minimal domestic value added because current USMCA rules of origin impose almost no pressure on manufacturers to source inputs regionally.
The commentary states that a phased introduction of regional value content requirements for computers and data processing equipment would advance Mexico’s development goals, reduce supply chain dependence on China, and complement US manufacturing objectives.
Quote from the commentary:
The standard Mexican government position on rules of origin in the USMCA revision process has been to preserve the existing framework. This may make sense for some sectors, such as autos, where already high requirements could hurt competitiveness if pushed even higher. For other sectors, however, Mexico may benefit from reconsidering this position—not only addressing US objectives but also advancing its own development objectives. One of the main stated goals of Plan México, the administration’s vision for long-term economic growth, is to substitute imports from Asia—and particularly from China—with greater domestic value added through Mexican-made inputs in production and exports.
Read the full commentary: Mexico can turn USMCA pressure into an industrial opportunity