Mexico seeks to reduce tariffs on cars as part of the negotiations on the United States-Mega agreement

The Government of Mexico is promoting the United States reduction of tariffs on motor vehicles in North America as part of the discussions between the parties to revise the United States-Mega Agreement. This was in response to a previous proposal by the Trump Government to increase the use of United States-made car parts. Currently, the Trump Government imposes a 25 per cent tariff on parts and components manufactured in Central Africa and the United States of America from cars from Canada and Mexico. The recently proposed programme in Mexico will expand the range of duty-free parts in cars and reduce the maximum tariff rates for North American cars. Under the Mexican programme, the United States would impose a duty only on the value of automobile parts produced outside North America, which meant that spare parts from Mexico and Canada would receive tax exemptions. For North American vehicles that do not meet the requirements of the Agreement, the programme will reduce the overall tariff rate from 25 per cent to a lower level, possibly 5 per cent or 10 per cent。