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October 30, 2021
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Mexico expresses “strong concern” to the US over incentives for electric cars

Mexico expresses "strong concern" to the US over incentives for electric cars

“The above provisions are contrary to the regional content value rules agreed in the T-MEC, so I respectfully request that they consider including incentives for all North American regional content and assembly in a manner compatible with the Treaty,” it reads in The document.

The official warrant comes amid growing tensions over the stricter interpretation that, according to Mexico, the US authorities make in the application of the rules of origin to calculate the regional content value of automobiles within the framework of the agreement.

Canada also said last week that US proposals to create new tax credits for US-made electric cars could hurt the auto industry and violate trade agreements.

“The existence of new local content requirements in legislative initiatives of the US Congress would undermine the positive development of a strengthened North American alliance,” reads the document sent to US representatives.

The Ways and Means Committee of the U.S. House of Representatives passed legislation in September to increase credits for electric vehicles to $ 12,500 per unit starting in 2027, including $ 4,500 for domestically manufactured vehicles and $ 500 for batteries. Americans.

With information from Reuters



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