Four years after the United States-Mexico-Canada trade agreement was adopted, Mexico and the U.S. face a common concern: the prospect of cheap Chinese electric vehicles dominating a fast-growing market and undermining regional carmakers like GM, Ford, and Tesla in the process.
However, calls to curb Chinese EV makers in the U.S. and Mexico have intensified recently in response to increased imports and investment. According to Baker, who played a critical role in crafting the USMCA, the threat of cheap Chinese EVs flooding the market never emerged as a concern in the two years the trade pact was being negotiated.
Mexico is 'the perfect match' Foreign markets have taken on increased importance for Chinese firms as the domestic market matures and sales in China slow. Brazil — already the fourth-largest importer of Chinese vehicles — saw new electric vehicle sales jump 91%, according to data from the Brazilian Association of Electric Vehicles. Chinese automakers BYD, Chery, and Great Wall were three of the top five car brands.