January 28, 2022

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Tax credit for electric cars in the United States connects Canada and Mexico | The world

Mexico’s ambassador to Canada said his government and Justin Trudeau agreed on how to deal with the project’s tax debt.Buy American“The Biden administration’s proposal for electric vehicles goes to a vote in the U.S. Senate.

Although Mexico’s economic secretary has openly threatened trade retaliation against other U.S. assets if the move goes ahead, Canada has taken a more cautious stance. But a top Mexican embassy official in Ottawa said in an interview that the two countries are united.

Juan Jose Gomez Camacho He pointed out that not only are they on the same page, they see the next steps in a very similar way.

Being at risk is a rule in law Built Back Better $ 1.75 trillion provides an additional $ 4,500 in tax breaks for buyers of electric vehicles made by unionized U.S. workers.

Gomez Camacho argued that this was contrary to the Tripartite Trade Agreement – an agreement between Mexico, the United States and Canada – and endangers continental integration, adding that it was important to make cars manufactured in North America more competitive for all. .

According to the ambassador, the move is counterproductive for the United States and the region. He said the disruption of the integrated automotive market now would be very damaging and no positive results were possible.

Series of pressures

There is still a lot of uncertainty surrounding the blanket bill. The Senate is reviewing whether they meet the legislative standards governing budget bills – including electric vehicle tax credit – and political controversy could still delay the vote until the new year.

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Trudeau Trade Minister Mary Eng continues to urge US lawmakers and union leaders on the issue.

Canada will not be quiet and our industry and workers may be unjustly affected by protectionist policiesAlice Hansen, Ng’s press secretary, said Thursday by email. “Many senators agreed to go deeper into this issue and opened the door to work together on this issue”.

And the Canadian government. “Evaluating the next steps”In another controversy over the interpretation of automobile content standards under the T-MEC. Regulatory consultations between the three countries have not yielded any resolution, and both Canada and Mexico are evaluating the need for a formal arbitration panel under the trade agreement.

Working with Mexicans is smarter for us, and Mexicans are right to pushAccording to Meredith Lilly, a professor of international affairs at Carleton University in Ottawa, who served as a business adviser to former Prime Minister Stephen Harper on the issue of electric vehicles.

Lily warned one not to fall.The ‘radio’ relationship at the center of the Americans and Mexico and Canada are not co-operating”.

He also noted that the Andrés Manuel López Obrador government was not surprised to show a tough stance in public.

Prime Minister Trudeau wants to see a president who interacts with Americans and works effectively with the Biden administration.Lily said on the phone. “President Lopez Obrador is less restrained”.

But Canada and Mexico still face the great challenge of getting their concerns on the radar of US lawmakers.

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We do not have Washington’s focus on this issue because they are out there with the biggest bill in mind, which reflects many of the domestic issues in the United States.Lily said.