Bibliographic Details
| Title: |
THE CHINA CHALLENGE: EXCLUDING MEXICAN/CHINESE EVS FROM THE UNITED STATES. |
| Authors: |
GANTZ, DAVID A.1,2 |
| Source: |
American University International Law Review. 2024, Vol. 40 Issue 1, p73-125. 53p. |
| Subject Terms: |
*Commercial treaties, *Free trade, United States-Mexico-Canada Agreement, Light trucks, National security |
| Abstract: |
Concerns are growing both within the Biden Administration and in Congress over a potential flood of low-priced electric vehicles (EVs) from China, directly or, more likely, via third countries such as Mexico. BYD, a leading Chinese producer, has announced in spring 2024 that it intends to establish production facilities in Mexico soon, with an initial capacity of 150,000 cars annually, although in August it reportedly deferred those plans until after the U.S. presidential election.1 While BYD has contended that such production would be for the local Mexican market and for export to the more than fifty countries with which Mexico has free trade agreements, observers believe that the U.S. market is the real prize given its enormous size, with more than 15.5 million auto and light trucks sold in 2023. This article begins with a brief discussion of the current situation and remedial legal and practical measures likely to be applied to trade in passenger vehicles under the United States-Mexico-Canada Agreement (USMCA) and relevant World Trade Organization (WTO) law. This is followed by the rationale for BYD and perhaps other Chinese auto producers to build factories in Mexico, the legal and practical options for BYD and other Chinese autos and SUVs assembled in Mexico to enter the U.S. market, and the trade remedy and national security actions available to the U.S. government to exclude those imports from entering the United States. Finally, this article examines the implications of the exclusion policies that appear likely to be followed by either Democratic or Republican administrations in the foreseeable future and offers some recommendations. [ABSTRACT FROM AUTHOR] |
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| Database: |
Business Source Complete |
