EE. UU. proposes to end its free trade agreement with Mexico if it accepts Chinese car factories

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According to information published by the Reuters news agency, a US manufacturing trade group urged the administration of President Joe Biden to take the necessary steps to block the import of vehicles from low-cost Chinese manufacturers from Mexico, as they could threaten the viability of US automakers.

The so-called Alliance for the United States, stated in its report that “the introduction of cheap Chinese cars into the US market, which are so economical because they are backed by the power and financing of the Chinese government, could end up being an extinction-level event for the US automotive sector”.

The group argues that the United States should work to prevent cars and parts manufactured in Mexico, by companies based in China, from benefiting from a North American free trade agreement. “The trade back door that is left open to Chinese car imports, should be closed before it causes massive plant closures and job losses in the United States,” the report said.

It is worth pointing out that vehicles and parts produced in our country can qualify for preferential treatment under the trade agreement between the United States, Mexico and Canada, as well as qualify for a $ 7,500 tax credit for electric vehicles that the government of the American Union grants.

The issue gained momentum after the media reported that the Chinese company BYD plans to establish an electric vehicle factory in Mexico. BYD, known for its more affordable models and a more varied range, recently surpassed Tesla to become the world’s leading electric vehicle manufacturer in terms of sales.

Source: Motor Pasion