Concern about opening the border to used cars from the US

The automotive industry, it is worrisome that borders are once again being opened to import used vehicles from the United States.

The deputy general director of the Mexican Association of Automotive Distributors (AMDA), Guillermo Rosales Zárate, revealed pressure to “violate the public policy that regulates the importation of used vehicles and that has been successful so far.”

Reversing the decree that regulates the importation of imported used vehicles, said “it would be a very important blow to the growth of the industry, expansion of the labor plant and in an international context of downward adjustment of demand in the main markets.”

Rosales Zárate, reiterated that all organizations in the sector, such as the Mexican associations of Automotive Distributors (AMDA), the Automotive Industry (AMIA), National Producers of Buses, Trucks and Tractor Trucks (ANPACT) and the National Autoparts Industry ( INA), which represent more than one million jobs in the country, oppose “losing control schemes”.

He stressed that “the efforts that have been made in recent months to modify the rules of foreign trade are allowing the violation of controls through fraudulent practices .”

He explained that although the efforts of the previous administration were recognized, which gave jurisprudence to the decree, after in 2006 the practice overflowed with the import of one million 300 thousand junk units, in recent months the importers and the houses of auction found a way to introduce cars with apocryphal documentation.

“While we recognize the merit, when only 700 thousand units were marketed in the last administration, compared to what is expected when stopping the injunctions with which the market’s legality and prosperity were violated; It would have been desirable to correct the failures documented with the updating of the general rules of foreign trade, “he said.

Faced with this, and facing the start of the new administration , the director stressed the insistence that “the commitment not to give in to pressures to legalize contraband vehicles or those that violate imports and rules be maintained”, because to be allowed will be one of the determining factors to stop the development of the automotive industry in Mexico.

With data accumulated to October, there was an increase of 15.4 percent in the import of these units, reaching 115 thousand 787 vehicles, and it is estimated that by the end of the year some 150 thousand imported used units will be introduced.

He revealed that the market in the northern border of the country is under pressure, given the lack of response from the Tax Administration Service (SAT) in the past administration to modify the import rules and close the gap to the gaps in the regulations.

“It is notorious on the border, even in northern states, the increase in the circulation and commercialization of illegal vehicles. A phenomenon that over 10 years we had seen diminished and expanded during 2018, “he said.

Rosales Zárate denounced that the apathy or in many cases the convenience of the local authorities, governors, and mayors, caused the overflow in this practice and with it the consequences.

Similarly, he recalled the consequences of not having met the demand at the time, which came to fall 30 percent between 2009 and 2008.

“This we already live, we are at risk of reoccurring if President Andrés Manuel López Obrador gives in to the foundations or demands of congressmen that promote the regularization of used vehicles and also if there is no capacity to reach an agreement with the governors will bring order to the illegal introduction and marketing impunity in border cities, mainly smuggling vehicles, “he said.

Source: Dinero en Imagen

The Mazatlan Post