Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Mexico factory exports seen slowing in 2019 amid trade wars, labor strikes

Published 2019-02-14, 07:35 p/m
Updated 2019-02-14, 07:40 p/m
Mexico factory exports seen slowing in 2019 amid trade wars, labor strikes

By Sharay Angulo

MEXICO CITY, Feb 14 (Reuters) - Mexico's manufacturing industry expects to export less in 2019 because of uncertainty around delayed ratification of the new U.S.-Mexico-Canada trade deal, global trade tensions and the effects of domestic labor strikes.

The maquiladora and export manufacturing industry, which includes the automotive, aerospace, electrical components, medical equipment and household appliances sectors, exported goods worth $280 billion and grew between 10-12 percent last year, according to industry group INDEX.

But INDEX, the National Council of Maquiladora and Export Manufacturing Industry, projects growth in 2019 of between 5-7 percent for this year, according to its president, Luis Aguirre.

The industry accounted for about 67 percent of non-oil total exports in 2018 and employs almost two out of every 10 working Mexicans, according to government figures.

The forecast growth reflects a trade war between the United States and China and the impact of U.S. restrictions on steel and aluminum products imported from Mexico, Aguirre said in a telephone news conference.

Concerns about a possible delay in the ratification of the U.S.-Mexico-Canada Agreement, meant to replace the North American Free Trade Agreement, weighed on the view for export growth this year, Aguirre added.

In the border city of Matamoros, in Tamaulipas state, a strike at 48 maquiladora plants that began on Jan. 25 led to daily losses of up to $50 million for breaches of international contracts. union representing the factory workers ended the strike last weekend, but new strikes broke out in other plants in Tamaulipas and the INDEX fears they may be replicated in other states.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Urging a resolution, INDEX called for President Andres Manuel Lopez Obrador and other authorities to "immediately intervene."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.