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Mexico Threatens Biden, Claims ‘Build Back Better’ Plan Violates Trade Deal

México amenaza con "represalias" a Estados Unidos si vulnera el tratado de libre comercio

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The Mexican government threatened on Thursday with “all kinds of commercial retaliation” against the United States if the country approves tax credits for electric vehicles manufactured in American territory because in its opinion it would be violating the Treaty between Mexico, the United States and Canada (T-MEC).

“In the event that the proposal is approved and the tax credits are implemented, Mexico will resort to the legal instruments at its disposal to enforce our rights,” warned Tatiana Clouthier, Secretary of Economy, at a press conference.

The high-ranking official assured that the Mexican government is “evaluating all types of retaliation” such as the imposition of tariffs “where it hurts the most” to the United States.

According to her, the U.S. Senate will debate on December 13 a proposal for tax credits of up to 12,500 dollars for electric vehicles manufactured in the United States.

“This proposal would discriminate against Mexican exports of electric vehicles and would put us at a disadvantage compared to vehicles produced in the United States,” said Clouthier.

The secretary considered that this proposal is “inconsistent” with the obligations of the United States in the T-MEC with agreements of the World Trade Organization (WTO) and with the “productive integration of North America”.

“It is not acceptable that we are playing that we are partners when it is convenient for me and when it is not, I apply the dark path,” she criticized.

Furthermore, Clouthier warned that this initiative would “exorbitantly increase” migration to the United States due to an eventual loss of jobs in the automotive sector in Mexico.

According to Clouthier, the automotive industry represents 4% of Mexico’s GDP, 25% of exports and has one million direct jobs in Mexico.

Clouthier was accompanied by the Secretaries of Economy of Nuevo León, Morelos, Puebla, San Luis Potosí, Querétaro, Guanajuato, Aguascalientes and Coahuila, Mexican states with a strong presence of the automotive industry.

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