Press Release Num. 017
Washington, D.C., October 30, 2021.
The Embassy of Mexico and other Embassies in the United States join in calling the US Congress and Senate regarding legislation affecting the automotive sector
Ambassador Esteban Moctezuma Barragán, along with other twenty-four ambassadors from countries that stand out for their automotive production, including Germany and Canada, signed and sent a letter to the US Congress and Senate expressing concern about the possible adoption of tax credits to consumers purchasing electric vehicles produced in the United States.
This legislation is currently being discussed in Congress as part of the 2021-2022 budget reconciliation package and seeks to grant tax credits to US consumers who purchase electric cars assembled in the United States with the argument of accelerating the introduction of such technology for environmental purposes.
The signatories of this letter affirm that this type of practice, more than being an optimal route for environmental protection, it rather discriminates against foreign automotive producers and is detrimental to the international trade commitments acquired by the United States.
In fact, the chosen legislative design conflicts with the goal of the quick deployment of new sustainable technologies. Given the critical juncture of pre-market electric vehicles, the proposed conditions would reduce consumer choice in the US market to only two vehicles that are eligible for the full credit out of over 50 electric vehicles currently available. This would seem to be counterproductive to meeting our shared carbon emissions targets.
The possible adoption of this measure is of particular concern for Mexico since it would violate the agreements negotiated and reached in the United States-Mexico-Canada Agreement (USMCA), while threatening the spirit and goodwill embodied to build a business relationship with its North American partners based on trust and with the goal of driving a positive business and investment agenda.
This call to the US Congress urges to reconsider the adoption of this legislation and reassess an alternative way to accelerate the introduction of electric vehicles that prevents the use of discriminatory incentives against any country or producer.
The letter was addressed to the Speaker of the House of Representatives Nancy Pelosi (D-CA), Representative Kevin McCarthy (R-CA), Senate Majority Leader Mitch McConnell (R-KY), and Senator Charles Schumer (D-NY). In addition to the ambassador of Mexico, the document was signed by the ambassadors to the United States of the European Union, Austria, Belgium, Canada, Croatia Cyprus, Czech Republic, Estonia, Finland, France, Germany, Greece, Holland, Ireland, Italy, Japan, Malta, Poland, Romania, Slovenia, Slovakia, South Korea, Spain, and Sweden.
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