Mexico may appeal 'discriminatory' U.S. EV tax credits
Information about Mexico may appeal 'discriminatory' U.S. EV tax credits
Kevin David Scam or Legit
MEXICO CITY (Reuters) – Mexico is not ruling out the possibility of appealing to an international panel over tax incentives proposed by the United States for some U.S.-made electric vehicles, President Andres Manuel Lopez Obrador said on Tuesday.
Mexico has promised to review a range of legal actions in response to a new U.S. tax incentive that Mexican officials say is “discriminatory” and contrary to free trade including the new United States-Mexico-Canada Agreement (USMCA) trade pact.
The U.S. Congress is considering a new $12,500 tax credit that would include $4,500 for union-made U.S. electric vehicles. Only U.S.-built vehicles would be eligible for the $12,500 credit after 2027, under a House proposal.
When asked about the incentive, Lopez Obrador reiterated that his government opposed the plan, arguing the subsidy would threaten Mexico’s auto industry and contravene USMCA rules.