Jalisco strengthens local supply chains ahead of USMCA review

The government of Jalisco is developing a strategy to strengthen local supply chains in the automotive and electronic sectors in anticipation of stricter rules of origin during the USMCA review process. Cindy Blanco, head of the Jalisco Secretariat of Economic Development, stated that the state is working with the private sector on a public-private vehicle to promote import substitution, specifically targeting micro, small, and medium-sized enterprises (MSMEs).

In the electronics sector alone, there is an opportunity to substitute approximately $500 million in imports. Jalisco has seen foreign investment rise to $1.4 billion in the first half of 2026, compared to $1.2 billion the previous year, with the United States being the primary source of investment.

Meanwhile, the USMCA review process faces challenges due to a fragmented agenda within the United States. While the Office of the United States Trade Representative (USTR) manages treaty text changes and non-tariff barriers, other departments handle new topics such as critical minerals and artificial intelligence. This segmentation of responsibilities has led to coordination issues, as seen in recent negotiation collapses between Canada and the United States.