Mexico allows imports of used vehicles from U.S.
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Mexico allows imports of used vehicles from U.S.
EFE News Services - August 23, 2005
> Motor Trend
The Mexican government authorized on Monday the importation of selected used vehicles from the United States and Canada, ignoring the protests of local car dealers. Signed by President Vicente Fox, the finance ministry regulation takes effect Tuesday.
It will be legal to import vehicles that are between 10 and 15 years old, the ministry said in a statement. The measure covers passenger vehicles capable of carrying up to 15 people and trucks with a hauling capacity of 4,536 kilos (9,991 pounds).
The reform will also allow the legalization of used vehicles fitting the specified criteria that were imported to Mexico prior to the implementation of the new rules, which were described as aimed at "bringing order to the used-car market."
For more than a decade after signing the North American Free Trade Agreement, Mexico continued to restrict vehicle imports from its NAFTA partners, the United States and Canada, citing the need to protect the domestic auto industry.
The Fox administration noted that the partial deregulation of the market "would tend to slightly lower the prices" of used cars and trucks in Mexico, which are traditionally more expensive than comparable models north of the border.
In January 2004, Mexico authorized the unrestricted importation of new vehicles from its NAFTA partners, pledging to phase out limits on used-vehicle imports by 2009.
The Mexican Association of Automobile Distributors, or AMDA, criticized in advance the finance ministry's decision, particularly the prevision allowing legalization of what the industry group referred to as hundreds of thousands of "junk" cars.
Contending that the new regulation will result in the loss of millions of dollars for the domestic auto sector and the national treasury, the AMDA said it also threatened to turn Mexico into "a dump for the vehicles United States residents discard as polluters."