Chocolate cars: the American controversy resurfacing in Mexico

The controversy over “chocolate” cars, as irregular vehicles entering from the United States are called in Mexico, was rekindled by the government’s announcement to regularize them. in a possible attempt to collect more taxes in the face of industry opposition.

The controversy has intensified since President Andrés Manuel López Obrador announced this week that the regularization of these vehicles would begin in Baja California next month and then extend it to the rest of the northern states.

“Making a regularization has been a politically profitable issue, there are a lot of organizations that revolve around it and it is supposedly an action which benefits people with less resources”Economist Eliseo Díaz, from Colegio de la Frontera Norte (Colef), told EFE on Saturday.

THE DRIVER OF THE PROBLEM

Before the pandemic, the ruling National Regeneration Movement (Morena) called on Congress to regulate these cars to raise an additional 50,000 million pesos (roughly $ 2,500 million) for the 18 million irregular vehicles it estimated. while there was in Mexico.

Mexican migrants to the United States and border residents often bring these vehicles because they are cheaper, but also There are groups dedicated to it and criminals who take advantage of their irregularity to commit crimes, Professor Díaz explained.

“There is the problem that the importation of these cars has become a business, which cannot circulate in Mexico, so there is a parallel and illegal market, where they are sold to organizations that place (place plates of ‘registration) irregularly,’ he warned.

In this context, López Obrador justified the need to regulate them to “Have control” Due to “Security”.

“There are a lot of people who don’t have one, they are not enough to have a new car, agency, and because with these cars they get around town, take their children to school and so on. ‘is a necessary means, “he argued in the border town of Juárez.

SHOCK OF POSTURES

The Confederation of Employers of the Mexican Republic (Coparmex) questioned the measure while the country’s automotive industry, which contributes more than 20.5% of manufacturing GDP, it is about 20% below its pre-pandemic levels.

Its regulation would imply a drop of up to 39% in sales in the national market, according to the Mexican Association of Automobile Distributors (AMDA).

“(There is) concern that the announcement made by the president has limits regarding the regularization decree, that it is not a lax process”Guillermo Rosales, deputy managing director of AMDA, observed at a press conference this week.

The Secretary of the Economy, Tatiana Clouthier, promised to “take note”, but clarified that there are already rules.

“I think that the institutions have every right to make their voice heard and to express their point of view, we take note of it, and we also recall that there is a decree ”, Indian.

AN OLD PROBLEM

The regularization of the so-called “chocolate cars” is an “old problem” that dates back to the administration of Felipe Calderón (2006-2012), explained Díaz.

But now that this government “to throw back“The problem could create incentives to import more of these vehicles, although the border remains closed to non-essential crossings by covid-19.

“Usually, these are vehicles that are no longer allowed to circulate in the United States and car couriers bring them in and sell them in Mexico, and they do so in violation of environmental regulations,” observed the economist.

Automotive industry leaders They also criticized the measure for its ecological impact.

From the United States come in “heavy junk vehicles,” said Miguel Elizalde, president of the National Association of Bus, Truck and Tractor Producers (ANPACT).

“If right now in our figures we say that we are placing 100 new vehicles, 35 additional vehicles are still being imported, second-hand vehicles imported, which pay nothing to the environment or to safety ”, he said in conference.

At the Ministry of the Economy, they defended that there is a decree that allows the definitive importation of used vehicles and that it is part of the Treaty between Mexico, the United States and Canada (T-MEC ).

“Today, the conditions and commitments exist to establish the possibility of having the trade of this type of vehicle, now, this decree very clearly establishes certain criteria and certain requirements“said Luz María de la Mora, Undersecretary for Foreign Trade.

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