The United Auto Workers (UAW) union and the Labor Advisory Committee on Trade Negotiations and Trade Policy (LAC) expressed concern about Chinese automakers’ investments in Mexico to take advantage of the USMCA.
“Several commentators, including the UAW and LAC, have expressed concern about the amount of Chinese foreign direct investment in the automotive sector in Mexico, alleging that such investment is intended to evade tariffs on direct imports from China,” the Office of the Trade Representative of the neighboring country to the north (USTR) indicated.
In its Second Biennial Report on the Operation of the USMCA with Respect to Trade in Automotive Goods, the agency noted that there is concern in the sector that the increase in Chinese foreign direct investment in the Mexican automotive sector represents a significant threat to the competitiveness of the North American automotive industry.
Data from the Ministry of Economy (SE) indicate that investment by Chinese companies in Mexico in the transportation equipment manufacturing sector, which includes vehicles and auto parts, rose from $16.8 million in 2020 to $121.6 million last year.
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The U.S. agency said the UAW recommended to the Biden administration and Congress that they review the Most Favored Nation clause in the automobiles and auto parts section of the USMCA, with a particular focus on electric vehicles and related components, to address potential imports of Chinese electric vehicles.
2024-07-02 00:20:14
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