**Renewal of Used Car Import Decree Brings Relief, but Further Improvements Needed: Canaco**
The renewal of a decree facilitating the import of used vehicles from the United States into Mexico has brought some relief, yet significant challenges remain regarding its implementation. According to Jorge Macías Jiménez, Vice President of Automotive at the National Chamber of Commerce (Canaco) Tijuana, the current pricing system for these imports needs revision as it significantly increases the cost of legally bringing a vehicle into the country.
This week’s update to the decree has allowed importers to resume operations but leaves room for improvement, especially concerning cost reduction, which would make these vehicles more affordable for legal importation. Macías Jiménez emphasized the importance of continuing negotiations in hopes of crafting a revised decree next year that would reduce these costs and potentially expand the import options to include vehicles purchased at other auction sites.
Despite the ongoing challenge of regularizing so-called “chocolate cars” — vehicles imported informally — the decree offers a temporary reprieve, enabling businesses to function competitively, at least for the next year, as Macías Jiménez notes.
Previously, the lack of decree renewal had placed significant strain on 115 formal used car dealerships in Tijuana under Canaco’s umbrella, with over a thousand vehicles impounded in San Diego parking lots due to federal transition issues. Despite these challenges, Macías stressed that most business owners, experienced and resilient, expected the decree’s eventual renewal.
In contrast, the federal government extended the timeframe for importing “chocolate cars” by two years, benefiting informal vendors, as reported by Canaco Tijuana. Macías further highlighted the need to adjust the 50% duty imposed on vehicles older than ten years, as these higher costs push importers towards irregular channels.
Reducing this duty could boost tax revenues for the Mexican government and curtail the illegal importation of vehicles.
**Secondary Article: The Impact of Car Import Policies on the Mexican Market**
The debate over import policies for used vehicles in Mexico continues to evolve, with industry leaders advocating for changes that address rising costs and support local businesses. Recent policy adjustments have reignited discussions about the economic implications and the environmental considerations surrounding car imports.
Experts argue that high import costs encourage illegal activities, as many choose to skirt regulations to avoid prohibitive tariffs. A reduction in these fees could lead to increased legal imports, thus improving tax revenues while diminishing the influx of unregulated vehicles.
Additionally, environmental groups have raised concerns about the importation of older vehicles, urging for more stringent emissions standards to be part of the import regulations. This could foster a more sustainable auto market, encouraging the influx of newer, more efficient vehicles.
As stakeholders from various sectors weigh in on these issues, the balance between protecting local industries and addressing environmental impacts remains a focal point in ongoing policy discussions. With negotiations on future decrees looming, there’s hope for a more balanced approach that benefits consumers, businesses, and the environment alike.