Mexico will give incentives to car manufacturers and other companies

The Mexican government is considering offering tax credits to attract foreign firms to invest and produce in the country, specifically in sectors such as electric vehicles, semiconductors and rare minerals, said Foreign Trade Undersecretary Luis Rosendo Gutiérrez.

We are seriously looking at making tax credit incentive programs very similar to those in the United States and Canada. We believe that this would allow us to attract many companieshe declared.

The official explained that the incentives would apply to companies from any country interested in investing, including China, and stressed that Mexico would not be a trampoline for the Asian country to enter the United States.

The question is what we are going to do with China in the face of some practices that sometimes seem to be unfair. We are analyzing these practices to standardize what the United States and Canada are doing with Chinese investment or with Chinese imports.he added.

Mexico would continue to give priority to the United States and Canada due to the trilateral treaty (T-MEC), but that does not imply break with China o deny them from making investments in MexicoGutiérrez noted.

US Republican presidential candidate Donald Trump has warned that he will impose new tariffs to prevent Chinese automakers from producing vehicles in Mexico and exporting them to that country.

A government document seen by Reuters revealed that Mexico has begun working with companies such as electronics maker Foxconn, chip maker Intel, automobile makers General Motors and Stellantis, and logistics firm DHL to identify products that can be manufactured locally rather than in Asia.

According to the document, Mexico seeks to substitute imports from China, Malaysia, Vietnam and Taiwan.