Mexico is a member of the United States-Mexico-Canada Agreement (USMCA), which was designed to strengthen economic relations and encourage trade and investment in North America. As of 2022, Canada and Mexico were the top exporting partners for the United States in 2022, with export values of 356.45 and 324.31 billion U.S. dollars, respectively.
Steel Production Levels
In 2022, global crude steel production reached roughly 1.89 billion metric tons, of which only six percent were manufactured by the USMCA, and less than one percent were produced in Mexico. At present, the Mexican steel industry has been having various problems. The effects of the coronavirus pandemic continued to linger and affect the Mexican economy, as well as the steel industry. The disruption in the supply chain of raw materials for steel production and the escalating costs of these materials pose a challenge to the producers. Furthermore, the weak demand in the global steel market had an impact on the production levels and steel trade between Mexico and other nations. In 2022, crude steel production in the country slightly dropped to roughly 18.4 million metric tons.The hot rolled steel production reached nearly 19.5 million metric tons, which was ten percent higher than the previous year. Hot rolled steel products are widely regarded as the most extensively utilized steel product in the Mexican steel market, owing to their great usage in the construction industry.
