Classic cars are displayed during the inauguration of the 2015 Mexico FIA Motorex, as part of the World Motorsport Week, at Banamex Center in Mexico City, Mexico, on July 8, 2015. (Xinhua/Alejandro Ayala)

 
The Mexican auto parts industry could see investments rise to over 5 billion US dollars in 2020 thanks to the renovated free trade agreement between Mexico, the United States, and Canada, the director of Foreign Trade for Mexico's National Auto Parts Industry (INA), Alberto Bustamante, announced on Monday.

Bustamante explained that investments in Mexico could rise to between 6 and 8 billion US dollars in 2021 after the United States-Mexico-Canada Agreement (USMCA) goes into effect.

"This could happen if what we are predicting goes forward, and if we have the support of the federal government in terms of public policies," Bustamante stated at a press conference.

According to the official, auto parts exports could reach levels of 102 billion US dollars in 2020 and 105 billion US dollars in 2021, up from almost 99 billion US dollars in 2019.

Bustamante said the ratification of the USMCA is "fundamental" for auto parts suppliers, and that the industry has to begin to prepare for the approval of the treaty.

Canada is the only treaty partner that has yet to ratify the USMCA, which will replace the former North American Free Trade Agreement (NAFTA).