The automotive sector will be one of the most sensitive issues at the end of the year, but also at the beginning of 2022. Not only in Mexico but also in the relationship that Mexico has with its main trading partner and neighbor, the United States. It can even be said that it is the central point of the T-MEC trade agreement that was signed during the administration of Andrés Manuel López Obrador.

On the one hand, the electric car sector, where Mexico is lagging behind, and, on the other, in the national territory it is seeking to carry out a decree to legalize the illegal.

The automotive sector is the central theme of the T-MEC signed by Mexico, the United States and Canada. However, it has been a sector that has been considerably affected by the same reconversion that it has had to undergo this year to evolve towards electric cars.

Mainly to be able to reduce its polluting levels and evolve to electric cars. They want to have more environmentally friendly cars and reduce dependence on hydrocarbons. In this sense, President Joe Biden seeks a boost in electric cars, where, by the way, Mexico is lagging behind, and the response that our country has given is questioned, as it tries to regulate chocolate cars.

In addition, the issue of the rules of origin of the sector is challenging in the midst of these decisions.

And it is clearly seen that the Mexican government is going in the opposite direction to what its US counterpart wants. In other words, Biden has promoted the environmental issue, even the vice president of the United States voted against the TMEC on the environmental issue, because she thinks that much more had to be done.

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Issues that are lost sight of.

The US administration is obviously going to put pressure on the Mexican government because Mexican energy policies favor an energy doctrine of the past, something that does a lot of damage to the environment, and, of course, aligned with the policies of the past. The world is going to align itself with clean energies, and Mexico should head towards the path that the developed world points out. But since it is not happening and we are going in the opposite direction, according to the internationalist Cristina Rosas, there will be measures to pressure the Mexican government and avoid fossil hydrocarbons.

And it is that the automotive sector has lost competitiveness, and it is considered that the initiative of the US president is not only to make the president of Mexico see reason, but also to promote automotive reconversion. Things get complicated because the rules of origin are focused on increasing the percentage of national content, since we were at 65% by June 2020, in 2023 it will be the rule of origin of 76 percent.

Therefore, in the event that Mexico cannot comply with the rules and the world trend, we will see investment outflow, which can continue to be oriented towards losing competitiveness.

Hence, it is necessary to lean towards clean technologies, not only attend to fossil fuels.

Because there are many foreign companies that want to close clean energy investment businesses in Mexico, and Mexico may be left out.

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