The automotive industry in Mexico fears paying for the commercial reprisals determined by the dispute panel filed by the United States and Canada on Mexico’s energy policy, which would put the main generator of foreign exchange at risk.
This was warned by José Zozaya, president of the Mexican Association of the Automotive Industry (AMIA), warning that the productive chains will be the most affected with the risk of breaking, if a tariff is imposed, since the retaliation would be against those sectors. sensitive in Mexico.
The risk that a resolution contrary to Mexico’s position on energy is issued will translate “into strong economic consequences and tariff retaliation that would interrupt the value chain of the automotive industry in the region,” he said.
After the consultation process began on August 20 (Saturday) for the settlement of disputes in energy matters of the T-MEC by the three countries, the automotive industry trusted that the energy dispute would be resolved during the consultations, and with this, avoid reaching a panel that could put at risk the benefits that the T-MEC provides to the industry and the country.
The industry has stated that the energy policy implemented by the current government goes against trade agreements such as the T-MEC and threatens competition by restricting private participation, so it is likely that the result will be the opposite for Mexico, and EU with Canada impose tariffs on the most dynamic sectors of the agreement.
Mexico is the main exporter of light vehicles to the United States, with a 35% share of such imports to its territory.
“Our sector is the main generator of foreign exchange for the Mexican economy, with 32 of every 100 dollars of manufacturing exports resulting from automotive operations. Additionally, in the last five years, 20% of Foreign Direct Investment (FDI) has been directed to this field”, specified the president of the AMIA.
The position of the automotive industry is to reaffirm the commitment to enforce compliance with the Mexico-United States-Canada Treaty (T-MEC), always seeking the benefit of Mexican families and the economic development of our country, he stressed.
In case of reaching the panel, Zozaya said, the automotive sector is willing to maintain the dialogue, recognizing the opportunities that the T-MEC offers to the three nations that comprise it.