A potential border tax from the U.S. — as President Donald Trump has suggested — will most likely violate World Trade Organization (WTO) guidelines, according to the Economy Secretary Ildefonso Guajardo.
In response to the possibilities envisioned by Republicans to tax Mexican exports to benefit imports, Guajardo Villareal pointed out the risks and breaches to international guidelines caused by a future reform in the United Sates tax policies.
Regarding President Trump’s statements of financing the construction of the border wall with tax money, Guajardo stated that it would be “discriminatory not to allow deductions on imports to promote exports and its deductions.”
Guajardo also mentioned that country-specific rules of origin in the North American Free Trade Agreement (NAFTA) are both unprecedented and unacceptable.