Mexico Publishes Agreement to Strengthen Use of Domestic Steel in Public Works

Mexico has introduced rules designed to put domestic steel more directly into public infrastructure spending. The Secretariat for Anti-Corruption and Good Government said it published the agreement in the Official Gazette of the Federation.

For the first time, domestically manufactured steel incorporated into a project can count toward the national-content percentage required for public works. The percentage will vary by project, taking into account production available in Mexico, required quality, delivery schedules and the specific characteristics of the construction.

The government says the change will increase participation by Mexico’s steel industry without sacrificing favorable contracting conditions, technical and economic feasibility or construction timelines. Previously, national-content calculations considered other materials, as well as machinery and permanently installed equipment, but did not specifically include the value of steel directly incorporated into infrastructure.

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In this way, greater participation by domestic industry will be promoted without compromising the best contracting conditions for the state, the technical and economic viability of projects or infrastructure completion times.

The new rules also strengthen verification. Companies awarded contracts must submit documents proving that they meet the required percentages. Government departments and agencies must check the materials upon delivery to ensure they meet the conditions set in each procurement process.

The secretariat described the measure as an advance in implementing the Agreement for the Promotion of Mexico’s Steel Industry, signed by President Claudia Sheinbaum Pardo on April 29. The government presented the new rules as a way to turn public purchasing into a tool for supporting domestic production and supply chains, with clearer tracking of Mexican steel used in infrastructure.

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With this measure, the government of Mexico is moving from commitment to results: the Agreement for the Promotion of Mexico’s Steel Industry translates into concrete rules to harness the state’s purchasing power, strengthen domestic production and provide greater certainty and traceability in the use of Mexican steel in public infrastructure.