Background on Claudia Sheinbaum and the Automotive Industry
Claudia Sheinbaum, the current head of Mexico City’s government, has taken action to end a program that allowed the regularization of used cars imported from the United States and Canada since 2022. This move addresses concerns raised by the automotive industry, which considered this practice unfair competition in vehicle sales.
Details of the Program and its Reversal
The decision was formalized through a decree published in the Diario Oficial de la Federación (DOF), which revoked the Agreement instructing various governmental bodies on the definitive importation of used vehicles and reformed the regulation fostering the regularization of foreign-origin used cars. This effectively reversed a November decree that had extended the importation deadline until December 2026.
This program, initiated in 2022 under the administration of Andrés Manuel López Obrador, is now officially closed. The Automotive Distributors Association of Mexico (AMDA) claimed that this program led to corruption and was used as a tool for smuggling.
Impact on Specific Regions
Over 2.5 million vehicles have been regularized since the decree’s promulgation in 2022, benefiting states like Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, Tamaulipas, Sinaloa, Durango, Nayarit, Michoacán, Jalisco, Zacatecas, San Luis Potosí, Tlaxcala, and Hidalgo.
Reactions from Importers
Importers who utilized this instrument to bring used cars into Mexico are upset, as they enjoyed benefits such as free license plates and minimal importation costs. The new regulations will now fall under the United Mexican States-Trade Agreement (TMEC) rules, which set age limits and physical-mechanical conditions for vehicles to operate in Mexico.
AMDA’s Stance
Guillermo Rosales Zárate, President of the AMDA, stated that there was “no justification whatsoever to maintain the legalization of automotive smuggling.”
Key Questions and Answers
- What was the program about? The program allowed the regularization of used cars imported from the U.S. and Canada since 2022, extending the importation deadline until December 2026.
- Who initiated the program? The program was started in 2022 under the administration of Andrés Manuel López Obrador.
- Why was the program ended? The automotive industry claimed it created unfair competition, and the AMDA reported corruption and smuggling through this program.
- How many vehicles were regularized? Over 2.5 million vehicles have been regularized since the program’s inception.
- Which states were affected? The program benefited several Mexican states, including Baja California, Sonora, Chihuahua, Coahuila, Nuevo León, Tamaulipas, Sinaloa, Durango, Nayarit, Michoacán, Jalisco, Zacatecas, San Luis Potosí, Tlaxcala, and Hidalgo.
- What are the new importation rules? Importation of used cars will now follow TMEC regulations, which set age and condition limits for vehicles to operate in Mexico.
- What is the AMDA’s position? The AMDA’s president, Guillermo Rosales Zárate, believes there was no justification to maintain the legalization of automotive smuggling.
