Mexico gets angry with the US: prepares retaliation for electric car initiative


The Government of Mexico warned that it will retaliate commercially against its counterpart in the United States, should it approve a series of credits for electric vehicles, something it considers a violation of the USMCA

Tatiana Clouthier, Secretary of the Economy, announced that commercial retaliation will be taken against the United States, if that nation approves a series of credits for electric vehicles, as they consider that such a measure goes against the USMCA.

The Minister of Economy declared that, if the tax credits are approved in the United States, they will resort to all the legal instruments available to them, since the Free Trade Agreement between Mexico, the United States and Canada (USMCA).

One of the possible reprisals against the US government would be the imposition of tariffs “where it hurts the most Clouthier said Thursday. In addition to this, he described the proposal as “inconsistent” with the obligations that the US has before the members of the USMCA.

The Government of Mexico refers to an initiative for Americans to access a credit of 12,500 dollars (around 250,000 pesos) so that they can access an electric vehicle. The initiative is called the Build Back Better Act and is supported by the House of Representatives, as well as President Joe Biden.

One of the possible collateral effects of this initiative, according to Clouthier, would be the increase in migration to the United States, due to the possible loss of jobs in Mexico; It is worth remembering that the automotive sector represents 4% of the national GDP, 25% of exports and generates one million jobs. 

These statements by Tatiana Clouthier are given during a meeting with the secretaries of the Economy of entities such as: Aguascalientes, Coahuila, Guanajuato, Morelos, Nuevo León, Puebla, Querétaro and San Luis Potosí, where the automotive industry is usually of vital importance.

The Mexican Association of the Automotive Industry (AMIA) also expressed its concern about the initiative implemented in the United States and announced a series of lobbies to try to stop this initiative in the United States Congress.


Mexico Daily Post