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Mexican Automotive Industry Seeks Modification of NAFTA
04:12 p.m. EDT, December 06, 2007

The Mexican automotive industry is seeking a modification to the North American Free Trade Agreement (NAFTA) postponing implementation of a clause that would allow light and heavy-duty used vehicles of as much as ten years of age to be brought into the country.

The clause, which would take effect on January 1, 2009, would increase the number of second-hand vehicles coming into the country from the already high level of 2.3 million that crossed the border from October 2005 to October 2007.

Technically, those vehicles were to be between 10 and 15 years of age, but industry representatives claim many were of a newer vintage and were not adequately checked for compliance with emission and safety standards.

The president of the Mexican Automotive Industry Association, Cesar Flores, speaking to Automotive News on December 3, indicated a deferment of the provision would be sought.

"In other words, Mexico should not allow the importation of wrecks, as is the case today. In the future, the importation (of used vehicles) may increase, and the impact on the environment would be felt not only by Mexico but the whole North American region."

Although the automotive industry in Mexico is not given to united action, all five of the major industry associations back the move, which would undoubtedly protect domestic production and the level of their own sales.


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