(Reuters) – The U.S. Trade Representative’s Office said Friday that it is committed to strengthening America’s electric vehicle industry despite the inclusion of a tax credit which has drawn threats from Mexico. Mexico calls it discriminatory.

A $12,500 credit for electric vehicles would also include $4,500 to EVs made in America by union workers. It will be effective from 2027. It’s included in the Biden Administration’s comprehensive climate legislation and social spending legislation, currently being considered by Congress.

Tatiana Clouthier from Mexico’s Economy Ministry said that the tax credit would be discriminatory, and it would go against the U.S. – Mexico-Canada Agreement. On Thursday, Clouthier stated that Mexico was analyzing various legal responses to the tax credit. These could include tariffs.

Clouthier stated that tariffs have been imposed in the past. He said that he would propose or do something strategic and very important for these products.

She added that it was “totally contrary to free trade” and has previously rebuked the United States https://www.reuters.com/world/americas/mexican-minister-chides-us-protectionism-ahead-summit-2021-11-17 for pursuing what she described as protectionist policies that were liable to backfire and spur more migration to the U.S. border.

U.S. Trade Representative Katherine Tai stated that she was aware of objections from trading partners and was discussing it with them.

Adam Hodge from USTR stated in a statement that “The Biden Harris Administration is committed to fighting the threat to climate change through supporting the transition towards electric vehicle manufacture.”

“We will continue to involve a wide range of stakeholders including our close trading partner as Congress considers legislation strengthening U.S. leadership within the sector,” he said.

In late October, Mexico, along with the European Union, Germany, Canada, Japan, France, South Korea, Italy and other countries wrote U.S. lawmakers https://www.reuters.com/business/autos-transportation/international-opposition-mounts-proposed-us-ev-tax-credit-2021-10-30 saying the proposed electric vehicle tax credit violates international trade rules.

U.S. President Joe Biden and the United Auto Workers union (UAW), along with many congressional Democrats, supported the proposal. However, major international automakers including Toyota Motor (NYSE:) Corp, Volkswagen AG (OTC:), Daimler AG (DE:), Honda Motor Co. Hyundai Motor Co. BMW AG.

Mary Ng of Canada was to bring up the EV tax credit topic during talks with Tai this week in Washington.