Mexico is already in a trade conflict with the U.S.

“The electricity reform proposed by AMLO, and U.S. subsidies for electric cars, are the reason.”
Says Lila Abed.

(MEXICO – El Financiero) – Lila Abed, political consultant, and analyst believe that the U.S. car subsidies and AMLO’s electricity reform have caused Mexico to enter into a trade confrontation with its northern neighbor.

With the electricity reform, Mexico is violating the T-MEC, although the United States is also violating the law by subsidizing electric cars. However, he warned that the risk is more significant for the Mexican nation.

“What the Mexican government must understand is that a treaty, the laws, and the contracts that companies have are with the Mexican State, not with the president in office,” said Abed in his participation in the Sunday program La Silla Roja. Abed assured that a commercial conflict with the United States is perilous because it could be very costly for Mexico, usually losing arbitrations against the United States.

In addition, he stated that the approval of such reform would cause a brake on investments in Mexico, which could halt economic growth. Regarding the subsidies to electric cars by the U.S. government, Lila Abed, Abed assures that “President Joe Biden brings in his DNA support to unions,” so his administration will do what is necessary to protect the labor rights of unions in the U.S. and companies operating in Mexico.

Although there are inconsistencies in the initiative to support U.S. assembly plants, said Abed, Mexico runs a greater risk of losing in a panel and paying onerous penalties.

The Yucatan Times
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