Photo: Carsten Koall / Getty Images
According to the Secretary of the Economy of Mexico, Tatiana Clouthier, the proposal of the United States government to grant tax credits to citizens who buy electric vehicles manufactured in their country, seriously threatens to damage Mexico’s industry, which would stimulate the migration of undocumented people to the United States, unveiled Common Sense.
For the Mexican official, the tax credit proposed by the United States can cause market distortions and bring jobs from Mexico to the United States. Clouthier points out that it would be a way of saying that electric vehicle plants have four years to leave Mexico or Canada and go to the United States.
For the Minister of Economy, the proposal could even endanger bilateral cooperation for control the migratory flow through Mexican territory.
Although Mexico does not have a large production of electric cars, many hope that it may have more in the future. Currently, Mexican sales of electric vehicles have doubled this year, accounting for just 0.3% of total new car sales in the first eight months of the year, including electric hybrids.
But the Mexican automotive industry represents around 4% of Mexico’s gross domestic product and 20% of the country’s exports, thus generates employment for one million people directly and four million indirectlyClouthier pointed out.
“On the one hand, he is asking me as a nation to support him in immigration matters, and on the other, he is somehow eliminating, in a distorted way, four million jobs” in the country, the secretary explained. “So the question is: do I help you with something you are asking for, or not? Because you yourself are distorting the market to generate more migration”.
For the week, Democrats were stuck on the bill after Senator Joe Manchin said that if a spending package that includes those tax credits is proposed, he would vote against it, stopping the initiative. Hence probably the proposal could be taken up by legislators until 2022.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.