Legalization of imported used cars will turn Mexico into a U.S. dump

The business agency says that regularizing smuggled vehicles to Mexico will deepen the crisis of car sales in the country

After the Morena deputies modified the Revenue Law 2020, where it is intended to approve the regularization of millions of cars that were smuggled into Mexico, called ” chocolate “, the Employers’ Confederation of the Mexican Republic ( Coparmex ) ruled against this change which will seriously affect the sector of the country.

In his weekly message, the president of the organization, Gustavo de Hoyos, said that according to the Mexican Association of Automotive Dealers ( AMDA ) this regularization will cause a drop of up to 30 percent of car sales in Mexico and that in addition will cause the fall of investment in the sector.

” Coparmex categorically rejects the irresponsible decision of the regularization of chocolate cars, carried out in secrecy and without consensus, with which it turns its back on the sectors involved and worse, consumers, ” said the business leader.

He warned that if the approval of this measure was completed, it would make the country the ” automotive dump ” of the US market. “Literally, Mexico would become the deposit of obsolete vehicles, which violated regulations in the neighboring country,” he said.

He explained that the regularization of scrap vehicles would deepen the sales crisis in the domestic market, would be especially serious for the closure of operations of automotive agencies, generate unfair competition with the formal market and, above all, transfer resources abroad.

In that sense, he called on the Legislative Power so that in order to promote the development of the automotive industry and establish the bases for the generation of investment, stop the regularization of cars resulting from smuggling and traffic.

“This illegal activity does not generate taxes in any government agency; encourages rolling contraband; harms the environment; it benefits the criminal cells of vehicle traffic; bleaches the crime of acquiring goods with resources of illicit origin; it affects the generation of jobs and decreases sales of new cars, ”he said.

Source: milenio

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