The Secretary of Economy, Marcelo Ebrard, estimated Thursday that the new fiscal plan proposed by President Donald Trump will not have effects for the country’s economy and, on the contrary, could strengthen the competitive position of national products compared to other markets.
The official stressed that, beyond the fiscal figures, which really defines competitiveness is the productivity and logistical advantages that Mexico offers.
“Mexico has a series of very important advantages on that subject so that we can be competitive for our productivity, our closeness and a series of logistics advantages that we have in the world of mind. That is, your production cost will not vary,” said Ebrard during the town’s morning.
He affirmed that the country, at the production level, is very competitive, although he acknowledged that a system of comparative disadvantages is being entered, in which each country will have to pay a different amount to enter the United States market.
Ebrard explained that with Trump’s fiscal plan they could enter Vietnam products, which is a competitor in Mexico, with higher costs for them.
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“Entering the United States market will cost them (to Vietnam) some average percentage between 35 and 40%, when we will cost us on average 6%. Then, you can realize that there is a big difference,” he emphasized.
He also assured that the tax incentives proposed by the United States could have a limited impact, because companies evaluate factors beyond tax exemptions, such as infrastructure, commercial agreements and the stability of the labor market.
“Therefore, the balance in the end is that our advantage will be accentuated, it is what we are seeing. That is why I think it will not affect the tax package,” he settled.
Ebrard’s reaction occurs in commercial tensions between the two countries, in which Mexico seeks to consolidate its position as an attractive destination for foreign investment and manufacturing, especially within the framework of the T-MEC review.
A few days ago the American Senate approved Donald Trump’s fiscal plan that, among other things, has large fiscal stimuli to large companies; and that it is still guaranteed by the House of Representatives.
With EFE information.
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