The tariffs imposed by the government of Claudia Sheinbaum Pardo to the cars of China, South Korea, India and Thailand will encourage sales of vehicles made in Mexico, considered José Rogelio Garza Garza, executive president of the Mexican Association of the Automotive Industry (AMIA).
“The same Secretary (of Economy) Marcelo Ebrard had commented that there were companies that gave prices below inventory, which helps (the collection of tariffs to cars imported from China, South Korea, India and Thailand) balances the Mexican automotive market,” said the businessman in the framework of the XXIII International Congress of the Automotive Industry (CIIAM), organized by the national auto industry.
“I must encourage sales of car manufacturers in Mexico, because there is competition and that competition should generate greater balance and competition,” said the leader.
“For the issue of countries that we do not have treaty we see well the initiative to (charge tariffs), as presented by the Ministry of Economy not only for the automotive sector, but to textile,” he said
The proposal of the Sheinbaum government is a measure that balances the market and competition in the national market, said the president of the AMIA.
For the manager, little by little there will be a better international competition with the collection of tariffs on the cars imported from countries with which Mexico does not have commercial agreements and treaties.
“Chinese brands have managed to position themselves in electric vehicles and cars in Mexico, thanks to technological advances and low prices, which aroused a concern in the Government of Claudia Sheinbaum, who seeks to control their arrival and defend the automotive industry with tariffs,” he explained.
Mexico proposed to charge a 50 percent tariff to light cars imported from China, South Korea, India, Thailand, Indonesia, Russia and Turkey.
The Ministry of Economy (Se) sent a few days ago to Congress an initiative entitled “Protection Program for the Strategic Industries of Mexico”, which contemplates the imposition of tariffs to various countries with which there is no commercial agreement (mainly of the Asian continent), with the objective of protecting 19 strategic sectors of the national industry and strengthening the commercial balance of the country, in line with the provisions of the established in the Mexico Plan.
Mexico made a consultation and listened to any country that feels, at a given time, affected by a tariff decision that is not considered by the World Trade Organization (WTO), Marcelo Ebrard, Secretary of Economy (SE) said.
The Government of Mexico is listening to China, South Korea, India, Thailand and other countries that tariffs were imposed to “see what their arguments are and expose ours.”
The argument presented by the Ministry of Economy focuses on 2020 to 2024 grew 83 percent the deficit of Mexico compared to China, South Korea, India and Thailand, said the official then.
“And that resulted, as a consequence, in our country the loss of jobs in several sectors, for example in the textile industry and footwear are 130 thousand jobs,” he said.
“I estimate that the automotive industry could be at risk (to get lost), if this trend continues (commercial with China, South Korea, India and Thailand), of the order of 320 thousand jobs,” said the head of the Ministry of Economy.
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