Mexico Will Limit The Number Of Used Cars Coming From The US

Sales

Anyone else see the irony?

While the US government, more specifically President Trump, wants to limit US automakers from setting up shop in Mexico at the expense of American workers, the Mexican government is imposing some new trade restrictions of its own with its northern neighbor. According to Reuters, the Mexican government has extended rules imposing restrictions on the importation of used cars coming from the US. The reason being is to bolster domestic sales at a time of uncertainty over trade ties with the US.

The Mexican Association of Automobile Distributors (AMDA) claims this extension is good in that it’ll lower the number of imported poor quality vehicles and, at the same time, help domestic dealerships. Despite internal problems in Mexico regarding drug-related crime, its auto production industry is actually doing extremely well. Thanks in part to lower labor costs, automakers have found Mexico to be an ideal country to do business. Most of the cars produced there are exported, not surprisingly, to the US. And this is where politics comes into play. While President Trump is threatening to end NAFTA or, more realistically, altering it to favor US interests, Mexico is also looking to protect its interests.

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At the same time, it wants to avoid crappy and potentially unsafe used cars Americans didn’t want from entering the country. Analysts further claim these tougher import rules have helped domestic car sales in general. Mexico also just so happens to be the twelfth largest car market in the world with 1.6 million vehicles sold in 2016.

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