EXPERT INSIGHT 40 WWW.LAWYER-MONTHLY.COM | AUG 2022 principal, and complementary parts with North American contents requirements of 75%, 65% and 60% respectively; - 70% of steel and aluminium used in auto production must originate in North America, on top of a plan to enforce the implementation of manufacturers’ rules of origin certification requirements; - A total quota of 2.6 million passenger vehicles from Canada and Mexico on an annual basis versus the 1.8 million established by NAFTA; - Quotas of $32.4 billion in Canadian auto parts imports and $108 billion in Mexican auto parts imports. Other sectors are affected by said new rules of origin, including the textile, chemicals, and steel-intensive products industries, among others. However, it can be a little risky to talk about what to expect of the USMCA in the short term. From a broad perspective, it is beyond any doubt that the USMCA provides the means to increase the growth of the North American region – which generates most of the wealth worldwide – making it stronger. The automotive sector is the most affected by the USMCA. The new rules of origin determine the effect on supply chains, resulting in meaningful increases to costs and making industries pay a high price. On the other hand, the agreement encourages Canada and Mexico to find new ways to become more competitive. According to experts, this agreement encourages an invasion of Chinese auto parts manufacturers in Mexico. By opening facilities in Mexico, Chinese auto part manufacturers will be able to avoid the more severe rules. International treaties have always been a fundamental part of Mexico’s development. The treaties mentioned above not only create new rules for the game, but also motivate the creation of more alliances, mergers and acquisitions to comply with their new provisions. The UMSCA and other free trade agreements place Mexico in a good position in the global M&A market, as we represent a strategic partner when it comes to international trade. Has the 2018 Fintech Law had any notable impact on tech deals? Mexico is still in a development process regarding technological issues. The Fintech Law has not yet had the impact that was expected; in my opinion, we could have a better regulation to generate a greater impact. What we must consider is that the Fintech Law is not the only law that currently regulates digital issues; the USMCA contains a chapter that elaborates specifically on digital matters. It includes, in general, all industries, but specifically excludes government provisions on data held or processed by the governments of the three countries. The main objectives of this chapter are: - Equal treatment of electronically delivered goods and services as compared to physical products; - Protection of cross-border data flows; - Prohibition of data localisation regulations; - Prohibition of tariffs or other charges for electronically transmitted products, such as e-books, software, games, videos and music; - Cooperation on cybersecurity and publication of open government data in a machine-readable format for public use. In brief, what are the major statutes governing M&A law in Mexico? The three main regulations governing
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