Representatives of Mexican and Canadian consulates in the Midwest say electric vehicle tax credit provisions in the Build Back Better Act conflict with the USMCA.

“Of course we’re all in favor of clean cars, but by bringing in these kinds of subsidies, we’re undermining free trade,” Consul General Julien Adem of Mexico said yesterday during a virtual discussion hosted by, and the Wisconsin Technology Council. “That’s not the way to go. Personally, I don’t think the bill can be passed in its current form.”

One provision of the Build Back Better Act that’s pending in the U.S. Senate would provide a $4,500 tax credit for electric vehicles assembled in the United States with union labor. Adem, who represents the Mexican consulate in Milwaukee, said Mexico “would do all that is within our scope” to avoid this going into effect, including seeking resolution through official dispute channels.

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