Mexico Limits Tariff Break on Car Parts to Automakers Already Producing in the Country
Mexico said on Friday, October 16, that a new five-year tariff break for imported car parts will apply only to automakers that already have production facilities in the country. The clarification follows questions from industry analysts about whether a decree published Tuesday — cutting the import tariff to zero from 10 percent for certain assembly parts, including semi-knocked-down (SKD) and completely knocked-down (CKD) kits — could open the door to Chinese brands or other newcomers.
The economy ministry said the measure applies only to companies with "productive installations" in Mexico that meet other specific criteria, and that 11 carmakers are eligible, without naming them. Industry data reviewed by Reuters points to those firms as potentially Audi, BMW, Ford, General Motors, Honda, Kia, Mazda, Nissan, Stellantis, Toyota and Volkswagen.
Mexican sales of Chinese-brand vehicles jumped nearly 30 percent in the first six months of the year despite steep tariffs intended to slow the rise of Asian imports. (GSM, based on Reuters reporting)
Source: GSM · USA (original Chinese edition)
Photo: 墨西哥城国家宫。The national palace, mexico city. Photo by Diego Delso, Wikimedia Commons, CC BY-SA 3.0.
