The electric car initiative in the United States has caused concern in Mexico and Canada

Derived from the progress made in the US Legislature Reform proposal on tax concessions that the government can provide for electric cars Thus up to 50 per cent of the parts, parts and batteries were manufactured in the northern neighborhood, and the administrations of Mexico and Canada expressed concern that such a change might override the current T-MEC.

They agreed, in separate letters sent by the Mexican government on September 20 and Canada to their counterparts in the United States on October 22. Concerns that a change of this nature may be created, Regarding compliance with the agreement that came into force in July 2020.

In a letter sent from Mexico, The The Ministry of Economic Affairs expressed concern over the various sections of the proposal Tax incentives for consumer electric vehicles (EVs) currently under consideration in the so-called bill Better rebuild, Because some points of initiative will offer higher tax breaks for this type of vehicle.

In this sense, he insisted The changes proposed by the United States are the complete opposite of T-MEC, In particular, Mexico called for a “reconsideration of incentives for all North American regional content and assemblies in accordance with the agreement” on regional content value rules.

On the Canadian side, the government highlighted elements of the US reform proposal “Undermining the Integrity of the North American Automotive Industry”, Will be extended to the United States as the changes will cause severe and irreparable damage to the Canadian automotive industry.

“This proposal would undermine decades of cooperation between the United States and Canada to develop an integrated and mutually beneficial vehicle manufacturing and distribution chain; each assembled vehicle manufactured in Canada has approximately 50 percent U.S. content, which could be detrimental to U.S. suppliers and their employees.” Area dictates.

He added that the measures involved in this effort Can adversely affect Canadian vehicle assembly, The U.S. Department of Automotive Parts and Jobs will be affected, “because every Canadian-made assembled vehicle has a U.S. content of approximately 50 percent.”

AMP