You say that like the US would not try to strong arm and threaten to break trade relations. This is something I 100% see happening, and I hope, and truthfully expect Mexico to stand up to, but it is something I see as very likely for the US to attempt
Its empty threats, they literally cant decouple from México. In fact many industries are moving their production to México in what they call “nearshoring” in an attempt to decouple from China. They can’t decouple from China and México at the same time.
This conjuction provides a ton of leverage for México, which fortunely coincided with the first nationalist gov in decades.
biden told mexico not to extend tax benefits for chinese near shore manufacturing for EV’s to protect american companies and that’s exactly what the mexico did last month; to the detriment of all mexicans.
Fortunately for us mexicans, the USA has a lot in its plate at the moment with the active fronts and their plans to destabilize China with Taiwan. The current pressure over our country is with the reform of the judiciary branch, the energy sector(where even Washington’s John Kerry came to extort us) and their implementation of the migrant “solution”.
Some of the pressure is done through the NED funding of some prominent ONGs that in turn fund the opposition to Morena.
Sorry, I should have said “rupture” instead of “break”
I mean the relationship will rapidly change in ways that are hard to predict, and for the worse. Mexico is already seeking to join BRICS and attracting a lot of Chinese investment, these are antithetical to US interests.
This could also result in some Jakarta Method bullshit to remove her and install a US puppet to hunt down leftists.
This has been a talking point pushed by the (comprador) opposition to align us with “the axis of evil”, AKA the wrong side of history (fucking liberals) but its not true. Mexico is in an unique spot compared to other global south nations, our main trading partner is the US we cannot simply detach so its in our best interest to play both sides in this unique situation.
Very true. However, while playing both sides, we have fortunately gotten close to China and Rusia. If this trading partnership grows while the USA exhausts itself, it leaves us in a similar position as Brazil who is in both the G7 and BRICs.
not close enough to china to prevent the biden administration from successfully pressuring the mexican government to make chinese EV manufacturing as difficult as possible to protect american companies by withholding tax and legal benefits for any chinese company that wants to setup shop in mexico.
Fortunately, the impact of removing the tax credits is very small or even unrecognizable. Also, Chinese EV manufacturing is already being done in Mexico with no issues whatsoever because the main market is Mexico for those EVs:
Isidoro Massri, director of JAC in Mexico, assured that the prices of its models will not be affected after the end of the tariff exemption, thanks to the final assembly of its vehicles in the country, which allows them to avoid those additional costs. “We have a plant that allows us not to pay tariffs. When the product is assembled locally under the CKD (Completely Knocked Down) process, in which the modules are imported from China and assembled here, acquiring a Mexican VIN, no tariffs are applied,” he explained in an interview.
Even if you check the EV market in Mexico, the Chinese EV are taking a big share and it is expanding with every passing day regardless of the pressure from the USA.
lol thats bullshit, the us simply cannot break trade relations with mexico.
You say that like the US would not try to strong arm and threaten to break trade relations. This is something I 100% see happening, and I hope, and truthfully expect Mexico to stand up to, but it is something I see as very likely for the US to attempt
Its empty threats, they literally cant decouple from México. In fact many industries are moving their production to México in what they call “nearshoring” in an attempt to decouple from China. They can’t decouple from China and México at the same time.
This conjuction provides a ton of leverage for México, which fortunely coincided with the first nationalist gov in decades.
biden told mexico not to extend tax benefits for chinese near shore manufacturing for EV’s to protect american companies and that’s exactly what the mexico did last month; to the detriment of all mexicans.
TIL that not subsidizing foreign companies is bad for mexico!
It was not “biden order” or “US pressure” that led to these policies, it is completely consistent with the current nationalist goverment. It’s the same reason why Tesla doesn’t build their factory in Mexico, they’re not getting concessions like they used to before this goverment. And BYD is going to build their factory regardless (https://www.elfinanciero.com.mx/empresas/2024/09/03/byd-desmiente-pausa-en-construccion-de-planta-en-mexico-tendra-los-mas-altos-estandares-tecnologicos/), so it’s a W in my book. 🧏 🤫
Fortunately for us mexicans, the USA has a lot in its plate at the moment with the active fronts and their plans to destabilize China with Taiwan. The current pressure over our country is with the reform of the judiciary branch, the energy sector(where even Washington’s John Kerry came to extort us) and their implementation of the migrant “solution”. Some of the pressure is done through the NED funding of some prominent ONGs that in turn fund the opposition to Morena.
Sorry, I should have said “rupture” instead of “break”
I mean the relationship will rapidly change in ways that are hard to predict, and for the worse. Mexico is already seeking to join BRICS and attracting a lot of Chinese investment, these are antithetical to US interests.
This could also result in some Jakarta Method bullshit to remove her and install a US puppet to hunt down leftists.
Mexico has not expressed interest in joining BRICS actually, this has been officially debunked:
https://www.eleconomista.com.mx/internacionales/SRE-desmiente-que-Mexico-haya-solicitado-su-adhesion-a-los-BRICS-20240303-0058.html
This has been a talking point pushed by the (comprador) opposition to align us with “the axis of evil”, AKA the wrong side of history (fucking liberals) but its not true. Mexico is in an unique spot compared to other global south nations, our main trading partner is the US we cannot simply detach so its in our best interest to play both sides in this unique situation.
Very true. However, while playing both sides, we have fortunately gotten close to China and Rusia. If this trading partnership grows while the USA exhausts itself, it leaves us in a similar position as Brazil who is in both the G7 and BRICs.
Evidence -> (With China) https://noticiaslatam.lat/20240920/transporte-agricultura-y-hasta-deportes-la-presencia-de-china-en-mexico-crece-dia-a-dia-1157650849.html
-> (With Russia) https://noticiaslatam.lat/20240914/ciencia-tecnologia-y-cultura-mexico-tiene-un-la-oportunidad-de-estrechar-su-cooperacion-con-rusia-1157476472.html
not close enough to china to prevent the biden administration from successfully pressuring the mexican government to make chinese EV manufacturing as difficult as possible to protect american companies by withholding tax and legal benefits for any chinese company that wants to setup shop in mexico.
Fortunately, the impact of removing the tax credits is very small or even unrecognizable. Also, Chinese EV manufacturing is already being done in Mexico with no issues whatsoever because the main market is Mexico for those EVs:
Even if you check the EV market in Mexico, the Chinese EV are taking a big share and it is expanding with every passing day regardless of the pressure from the USA.
https://expansion.mx/empresas/2024/08/26/subiran-de-precio-autos-electricos-importados-de-china
Yes thats the advantage of playing both sides, we get concessions from both sides!