The United States’ actions delay global decarbonization
Rumors have been circulating for some months now that Mexico could be the ideal location for rapidly growing Chinese EV makers to set up factories. Low unit labor costs, skilled labor, industrial tradition and even better, a free trade agreement with its northern neighbor would allow it to flood the US and Canadian markets with cheap vehicles, in addition to meeting the modest, but growing demand in Latin America.
But as Mexico knows all too well from its history, the United States will not tolerate what it sees as interference in its zone of power: a Reuters exclusive reveals that the United States Trade Representative’s Office (USTR), alarmed by the idea of Chinese EV factories south of its border, is pressuring the Mexican government not to grant any subsidies to these companies, saying it will not allow the free trade zone with Mexico and Canada to be used for Chinese products to access its domestic market tariff free.
The Mexican government has been offering generous subsidies to automotive companies to set up factories in its territory. Now, sales of a product as important for the decarbonization of the planet as the EV are to be restricted by Washington, illustrating how the United States puts its economic interests before all else, whatever the impact for everybody else on the planet.
