The Mexican government threatened legal action Thursday over provisions of U.S. President Joe Biden’s Build Back Better Act that would give subsidies of up to $12,500 for purchases of union-made, American-made electric vehicles.Tatiana Clouthier, Mexico’s secretary of the economy, said the bill currently before the U.S. Senate would violate non-discrimination clauses of the U.S.-Mexico-Canada free trade pact.
Clouthier said the measure would discriminate against potential exports of Mexican-built electrical vehicles and favor domestic producers, something she said is forbidden under the USMCA pact.
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