Mexico City, Sep 12 (EFE).- Mexico and the United States agreed on Monday to work on a collaborative plan on building robust semiconductor supply chains and expand electric vehicle production in North America.
The two countries agreed to tackle global climate change by accelerating North America’s transition to clean energy through Mexico’s nationalized lithium industry.
The two sides held the annual so-called High-Level Economic Dialogue (HLED) in Mexico City.
The structured dialogue was launched by Joe Biden when he was the vice-president in 2013. The talks resumed last year in Washington after the Trump administration halted them.
The dialogue promotes strategic economic and commercial priorities for Mexico and the US to promote development and economic growth, job creation, improve competitiveness, and reduce inequality gaps in the two countries.
The Mexican and US governments set aside a dispute sparked after Washington complained that President Andrés Manuel López Obrador’s move to tighten state grip on the energy market was unfair to American companies in breach of a regional trade agreement.
US Secretary of State Antony Blinken acknowledged the dispute but said it would not come in the way of the progress of deepening partnership because partners who work together “may not agree on certain issues.”
“But we will always work to be able to solve this in a practical way,” Blinken said.
Blinken addressed a joint press conference with US Secretary of Commerce Gina Raimondo, Mexican Foreign Minister Marcelo Ebrard, and the Mexican Secretary of Economy Tatiana Clouthier in the Mexican capital.
The US officials asked the Mexicans to join President Joe Biden’s plan to manufacture semiconductor chips in the region and for 50 percent of cars built by 2030 to be electric.
Secretary Raimondo promised opportunities to companies and workers in Mexico with the Chips and Science Act which provides $52 billion in subsidies and additional tax credits to companies that manufacture chips in the US.
Raimondo also offered incentives under the US Inflation Reduction Act (IRA) that aims to accelerate electric vehicle (EV) adoption across the country.
Mexican Foreign Minister Marcelo Ebrard considered it a big opening for the Mexican economy.
“This means more jobs for Mexico, more integration,” Ebrard said.
“We think Mexico could grow twice as much with what was proposed to Mexico today and this means we can reduce poverty even faster in our country and that the infrastructure of Mexico can grow faster.”
Blinken and Ebrard also discussed the issues of migration, the fentanyl trade, the security dialog that will take place in Washington in October, and the summit of North American leaders in Mexico.
“Regarding security, I would say very briefly that there is a joint action plan for the first time between Mexico and the United States, and the meeting we have in October is to exchange the results we have,” Ebrard said.
After the meeting with Ebrard, Blinken went to the National Palace for a meeting with López Obrador. EFE