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Tatiana Clouthier threatens retaliation if US Senate passes stimulus for electric cars

The government of Mexico will act in defense of the sector automotive against a possible approval of fiscal incentives for electric cars in the United States and, if necessary, will be taken business retaliation, assured the Secretary of Economy, Tatiana clouthier.

“We, to defend our industry automotive and the commercial commitments, we would take business retaliation. It is not worth that we are playing ‘we are partners when it suits me and when I do not apply it through the dark path, ‘”he said at a press conference this Thursday.

Read here: The US continues to be “mounted” in its interpretation of the T-MEC’s ​​rules of origin, criticizes Clouthier

The Secretary of Economy expressed concern about the possibility that the US Congress approves a new tax credit for vehicles electrical, as part of the bill Build Back Better Plan, approved on November 19 by the House of Representatives.

“In its current wording, this initiative is inconsistent with the United States’ obligations in the T-MEC and with the agreements in the World Organization of Commerce“, He raised Clouthier.

In addition, it goes against the spirit of productive integration in North America, which, he recalled, has just been reaffirmed at the summit of High-Level leaders.

Clouthier explained that the reform contains a proposal that grants a tax credit amount, which reaches up to $ 12,500 for electric vehicles Assembled in the US that meet minimum domestic content criteria. In addition, another support of $ 500 for batteries made in that country.

Since 2027 only electric vehicles made in ME could be eligible to access any of the fiscal incentivesthe secretary continued.

You can read: Clouthier assures that “there have been no complaints” from other countries for AMLO’s energy reform

Considering it a violation of the terms of the T-MEC, reported that the Ministry of Economy would initiate the required processes and all kinds of retaliation. “It is not the first time that we have made decisions of this nature and we would be doing the same,” he said. Clouthier.

Among the effects that this normal could leave in Mexico would be the movement of producing plants automotive, who would move to the United States to obtain the benefits with which the generation of jobs and thus generating new migratory pressures.

It would also affect the exports automotive of the country, which represent more than 25% of the national total. “This proposal would be discriminatory against Mexican exports and could put them at a disadvantage,” he added. Clouthier.

Also read: “Mexico does not need to be told what to do” on labor rights issues, says Clouthier

“In the event that the proposal is approved and said tax credits on the part of the US, Mexico will resort to legal instruments at its disposal to enforce our rights ”added the secretary.

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