Not all news is good news for the Mexican automotive industry. The North American Free Trade Agreement, or NAFTA by its initials in English, has opened, in successive stages, the Mexican border for the importation of used vehicles from the U.S. and Canada. The opening of Mexico’s borders to used autos was not unplanned, as such was subject to a strict schedule and various regulations. Even with such regulations, imports of used autos into Mexico have increased and affected the domestic auto market. According to Mexico’s Customs Service, during 2012, 458,114 used vehicles were imported into Mexico from the United States. If such figures are compared with the number of light vehicles sold in Mexico during the same period (987,747), the total of imported used vehicles reaches 46.4% of the total of new vehicles sold in Mexico. This results, in addition to damages suffered by the domestic market, in a surcharge caused by such used vehicles on Mexican traffic safety, health, energy efficiency, environmental pollution and taking advantage of consumers who are not able to determine the mechanical condition of vehicles of unknown origin. Mexico hopes that the Decree Regulating the Definitive Importation of Used Autos, published in Mexico’s Official Journal of the Federation on January 31, 2013, will serve to mitigate these negative effects.
