AMIA proposes to postpone the entry into force of the T-MEC in the face of the Covid-19 pandemic

MEXICO  — Entrepreneurs in the automotive industry demanded fiscal, economic, and regulatory support from the federal and state governments to maintain their workforce, while the Covid-19 pandemic that forced them to stop their operations continues.

The Mexican Association of the Automotive Industry (AMIA) asked the authorities to work hand in hand and allow tax strategies such as eliminating, reducing and returning taxes to the industry and its workers, granting credits to employees and SMEs suppliers, as well as delaying entry in force of the Mexico, United States, Canada Treaty (T-MEC) until July 2021.

So far 10 of the 12 vehicle manufacturing companies in Mexico have temporarily closed their plants as a measure to mitigate the coronavirus pandemic and adjust production to lower demand for vehicles.

Source: El Economista