“We would have to do or propose something strategic for, in those products and those places that also hurt on the other side, to give precision shots so that the consequences are felt,” added the official.
The automotive sector, Clouthier stressed, represents 4% of the Mexican gross domestic product, as well as 25% of exports and is responsible for more than one million jobs in the country.
In addition to the mechanisms contemplated in the Agreement between Mexico, the United States and Canada (T-MEC) -consultations and panels, etc.-, Mexico will also act through the World Trade Organization (WTO).
“It is an issue that we will be evaluating with our partners at the World Trade Organization; countries such as Canada, Japan, South Korea, the European Union, Germany, among others. We have seen that this is a measure that could be contrary to the obligations of the United States in the WTO, ”said Luz María de la Mora, Undersecretary of Economy.
“It could, for example, be flagged as a performance requirement, which is prohibited. The type of tax credit that is being proposed conditions the final assembly of the electronic vehicle in the US, that they operate under a unionized collective bargaining agreement, “added the undersecretary.
The incentive proposal for the production of electric cars and electric batteries in the United States includes, among other things, tax credits of up to $ 12,500 for armed vehicles in the United States, and another $ 500 for materials made in the northern neighbor. The benefits will go to companies with unionized workers.
If approved, the legislation will come into force until 2027. The Clouthier secretariat ruled out capital flight as a consequence, however, “it could generate a movement of plants,” he anticipated.
Mexico will begin with the defense of the automotive sector and the competitiveness of North America once the initiative is approved. The US Senate is scheduled to debate it on December 13.
“We will do our part; We will knock on all the doors we have to knock, senator for senator. We will make this call to the United States, also through the T-MEC mechanisms ”, assured Clouthier Carrillo.
He added that it is also contemplated to mobilize voters in the United States to speak with their representatives.