Red Sofa: Toyota México's Lizette Gracida on trade uncertainty and regulatory changes in Mexico

Описание: After taking part in a panel discussion on priorities to propel Mexico’s supply chain forward, Lizette Gracida, senior director of external affairs and trade compliance Toyota México, sat on the iconic Red Sofa at Automotive Logistics & Supply Chain Mexico to talk all things trade.

The need for certainty
"More than policy, what I would say the industry needs at this moment is certainty – that is the magic word," Gracida said. "The industry needs certainty in terms of clear rules and no sudden context."

She explained that the context surrounding tariffs in North America is "creating a great deal of uncertainty in the business environment". There have been questions as to whether tariffs will change, whether new ones will be imposed and how long existing tariffs will remain in place.

She acknowledged the industry's anticipation of the forthcoming review of the US-Mexico-Canada Agreement (USMCA) in 2026, noting that there is uncertainty surrounding this, not just around what will be agreed, but also around how long it will take all parties to reach an agreement.

Regulatory changes in Mexico
Cross-border trade aside, Gracida noted that the automotive sector in Mexico is also experiencing a period of regulatory change. "Within Mexico, we are exposed to sudden regulatory changes that range from regulatory matters to constitutional reforms, and of course these types of changes impact the auto industry as a whole," she said.

With around 87% of vehicles produced in Mexico being exported, recent changes to Mexico's customs laws, Gracida said that changes of this scale are "really concerning" for the automotive industry.

"Having stricter controls and the regression of the flexibilities that the industry got for more than 20 years is really concerning," she shared. Gracida recommended that the government of Mexico should make ensuring regulatory predictability – for the auto industry and the private sector as a whole – a top priority going forward.

She shared her belief that workable rules and realistic timelines are key to providing legal certainty and supporting the automotive sector in Mexico for the coming years.

Areas for investment
Gracida also touched on some of the shortcomings of Mexico as a hub for automotive supply chains, claiming that when it comes to infrastructure, "Mexico remains behind". She said that this is because in recent years, public resources have been directed to "specific presidential projects", meaning that investment in new infrastructure, improvements to existing infrastructure and clean energy availability has been relatively low.

"Mexico needs to work jointly with the private sector on developing and implementing a logistics and infrastructure masterplan that has specific milestones and long-term objectives, and also can identify critical bottlenecks and key areas in which Mexico needs to invest," she said.

She alluded to the potential for a lack of clean energy to leave Mexico behind other parts of the world as industry as a whole transitions to more sustainable fuel and energy sources.