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Decision Raises Import Tax From 20% to 50% and, According to the Government, Seeks to Protect the National Industry From Very Low Prices Charged by Asian Automakers.
The government of Mexico has confirmed a drastic change in its trade policy, raising tariffs on automobile imports. The rate, which was previously 20%, now jumps to 50% on vehicles from China and other Asian countries. The measure, announced by the Minister of Economy, Marcelo Ebrard, sparks a debate about the real reasons behind the decision: to protect the local economy or to yield to external influence.
The New Tariff Measure Announced by the Government of Mexico
The announcement was straightforward. “They already have tariffs,” stated Minister Ebrard to reporters. “What we will do is raise them to the maximum allowed level.” This change represents the government’s most vigorous action to rebalance competition in its booming automotive sector.
Protection of Jobs and the Competitiveness of the Local Market
The government’s main justification for the measure is the defense of the national economy. According to Ebrard, the action is crucial to protect jobs in Mexico, as Chinese cars are being sold for prices “below what we call reference prices”.
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He was emphatic in stating that, “without a certain level of protection, it’s almost impossible to compete.” The sectors of light vehicles and auto parts were cited as the most adversely affected by this low-price policy.
The Influence of the United States on the Economic Decision
The Mexican decision cannot be viewed in isolation. It occurs in a context of strong pressure from the United States for Latin American nations to restrict their economic ties with China. The U.S. competes directly with the Chinese for influence in the region.
Context of the WTO and the Position of the Minister of Economy
Despite the significant increase, Marcelo Ebrard assured that the new 50% tariff is in compliance with the limits imposed by the World Trade Organization (WTO). Curiously, the minister himself had previously expressed reservations about tariff measures, considering them an obstacle to economic growth and inflation control.
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