Alejandro Gomez-Strozzi on Mexico-US Auto Parts Trade – 'Going forward, there is nothing but integration'

Foley & Lardner lLP partner Alejandro Gómez-Strozzi shared insights on foreign direct investment around Mexico’s automotive parts sector in the El Economista article, “Efecto Trump pega más a IED en autopartes que en autos y camiones.”

Gómez-Strozzi said that several investors are waiting to see how U.S. trade policy will be defined, remaining idle for the present with respect to their productive capital.

He noted though that Mexico’s comparative advantages, including long-term business relationships, skilled and cheap labor, and lower logistics costs, give the country a strong footing to continue supplying the U.S. automotive market as its vastness and complexity likely put self-sufficiency out of reach.

“Going forward, there is nothing but integration,” he suggested.