First modification:
The Mexican government is closely following the possible approval of Washington’s social spending plan promoted by US President Joe Biden. The law, if approved, would facilitate the purchase of electric vehicles manufactured in the United States, which undermines the interests of the Mexican automobile industry.
The spending plan proposed by the US president already has the backing of the House of Representatives and will be debated on December 13 in the Senate.
The Mexican Government, through the Ministry of the Economy, has conducted conversations with some US senators in order to express the importance of the automotive industry in Mexico and the damage that the T-MEC (Treaty between Mexico, the United States and the United States) could receive. Canada) to support Biden’s initiative.
As we mentioned yesterday, we are going to knock on every door to defend our auto industry.
Therefore, I had a meeting with him @SenBenHueso to express concern about this initiative that threatens the competitiveness of our region.– Tatiana Clouthier (@tatclouthier) December 3, 2021
If the package – valued at $ 1.75 trillion – is approved by 2027, Americans could be receiving incentives of up to $ 12,500 to purchase American-made electric vehicles. Mexico has denounced that the initiative violates part of what is established in the T-MEC agreement.
“This proposal would discriminate against Mexican exports of electric vehicles and would put us at a disadvantage compared to vehicles produced in the United States,” said the Mexican Secretary of the Economy, Tatiana Clouthier, on December 2.
Mexico does not rule out “all kinds of retaliation”
For Mexico, according to the Ministry of Economy, the automotive industry represents 4% of the country’s Gross Domestic Product (GDP) and around 25% of the nation’s exports. For this reason, and as part of the efforts to defend the sector, the Government does not rule out the establishment of reprisals.
“In the event that the proposal is approved and the tax credits are implemented, Mexico will resort to the legal instruments it has at its disposal to enforce our rights. (…) We are evaluating all kinds of retaliation, such as the imposition of tariffs, where it hurts the United States the most, “he added.
Additionally, in Clouthier’s opinion, the establishment of the measure could generate an increase in migration to the United States due to a loss of jobs in the automotive sector.
“It is not worth that we are playing that we are partners when it suits me and when not, I apply the dark way,” said the representative of the Mexican Government, who added that the situation could cause “a return of the automotive plants to the territory U.S”.
The business sector, through a statement, has indicated its willingness to support government measures.
According to the Mexican newspaper ‘El Financiero’, the dispute over electric vehicles could be added to other differences that have been controversial, such as changes in Mexico’s energy policy or the stagnation of permits for US agricultural biotechnology.
With EFE and Mexican media
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