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The
proposed $12,500 electric vehicle tax credit would include
$4,500 for EVs built in the United States by union workers,
effective after 2027. It is included in the Biden
administration's sweeping climate and social spending
legislation now under consideration by Congress.
Mexican Economy Minister Tatiana Clouthier said the tax credit
was "discriminatory," and would violate the U.S.-Mexico-Canada
Agreement on trade. Mexico is analyzing a range of legal actions
in response that may include tariffs, Clouthier said on
Thursday.
"In the past we have imposed tariffs and we would have to do or
propose something very important and strategic for those
products, in those places where it hurts them ... so that the
consequences can be felt," Clouthier told a news conference.
She added that it was "totally contrary to free trade" and has
previously rebuked the United States
https://www.reuters.com/world/
americas/mexican-minister-chides-us-protectionism-ahead-summit-2021-11-17
for pursuing what she described as protectionist policies that
were liable to backfire and spur more migration to the U.S.
border.
U.S. Trade Representative Katherine Tai has said she is aware of
trading partners' objections and was discussing the matter with
them.
"The Biden-Harris Administration is committed to tackling the
threat of climate change by supporting the transition to
electric vehicle manufacturing," USTR spokesman Adam Hodge said
in a statement.
"We will continue to engage a range of stakeholders, including
our close trading partners, as Congress considers legislation to
strengthen U.S. leadership in the sector," he added.
In late October, Mexico, along with the European Union, Germany,
Canada, Japan, France, South Korea, Italy and other countries
wrote U.S. lawmakers https://www.reuters.com/business/autos-transportation/international-opposition-mounts-proposed-us-ev-tax-credit-2021-10-30
saying the proposed electric vehicle tax credit violates
international trade rules.
The proposal has been backed by U.S. President Joe Biden, the
United Auto Workers (UAW) union and many congressional
Democrats, but opposed by major international automakers,
including Toyota Motor Corp, Volkswagen AG, Daimler AG, Honda
Motor Co, Hyundai Motor Co and BMW AG.
The EV tax credit issue was also expected to be raised by
Canada's trade minister, Mary Ng, during meetings this week with
Tai in Washington, along with other U.S.-Canadian trade
irritants, including on U.S. softwood lumber tariffs.
(Reporting by David Lawder and Anthony Esposito; Editing by
Chizu Nomiyama)
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