Mexico threatens legal action on US electric vehicle subsidy

MEXICO CITY (AP) — The Mexican government has threatened legal action over provisions of U.S. President Joe Biden’s Build Back Better framework that would give subsidies of up to $12,500 for purchases of union-made, American-made electric vehicles. Mexico’s secretary of the economy said Thursday the bill, currently before the U.S. Senate, would violate non-discrimination clauses of the U.S.-Mexico-Canada free trade pact. Tatiana Clouthier said the measure would discriminate against potential exports of Mexican-built electrical vehicles. It was the latest dispute over countries favoring domestic producers, which is forbidden under the USMCA pact. The United States is concerned Mexico is trying to favor its own state-owned electrical power plants.