Tax credit for electric cars in the US unites Canada and Mexico | WORLD

The Mexican ambassador to Canada said that his Government and that of Justin Trudeau have the same opinion on how to counteract the tax credits of the program “Buy American”Of the Biden Administration for electric vehicles, as the proposal heads to a vote in the United States Senate.

While Mexico’s economy secretary has explicitly threatened trade retaliation against other US assets if the measure passes, Canada has taken a more cautious stance. But the top Mexican diplomat in Ottawa said in an interview that the two countries are united.

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

What is at stake is a provision in the law Build Back Better US $ 1.75 trillion that offers an additional $ 4,500 in tax credits to buyers of electric vehicles made by unionized American workers.

Gómez Camacho argued that this goes against the trilateral trade pact between the countries – the Treaty between Mexico, the United States and Canada – and puts at risk continental integration, which, he said, is crucial to make cars produced in North America competitive in everyone.

According to the ambassador, the measure is counterproductive for the United States and for the region. Disintegrating the integrated auto market now would be very damaging, he said, and there are no positive outcomes possible.

A series of pressures

There is still a lot of uncertainty surrounding the blanket bill. Provisions – including the electric vehicle tax credit – are being reviewed in the Senate to see if they meet legislative standards that govern budget bills, and political disputes could still delay a vote until the new year.

Trudeau Commerce Minister Mary Ng continues to lobby US lawmakers and union leaders on the issue.

“Canada will not sit quiet, allowing our industry and workers to be unfairly harmed by protectionist policiesAlice Hansen, Ng’s press secretary, said by email Thursday. “Several senators agreed to go deeper into this issue and opened the door to work together on the matter”.

The Canadian Government is also “evaluating the next steps”In another dispute over the interpretation of automobile content standards under the T-MEC. Regulatory consultations among the three countries yielded no resolution, and both Canada and Mexico are evaluating a request for a formal arbitration panel under the trade agreement.

“It is smart for us to be working with Mexicans, and Mexicans are right to push”On the subject of electric vehicles, according to Meredith Lilly, a professor of international affairs at Carleton University in Ottawa who served as business adviser to former Prime Minister Stephen Harper.

Lilly warned not to fall into a “‘radio’ relationship where Americans are in the center and Mexico and Canada do not work together”.

He also noted that it is no surprise that the government of Andrés Manuel López Obrador shows a tougher stance in public.

“Prime Minister Trudeau likes to be seen as a president who gets along with Americans and works effectively with the Biden Administration.“Lilly said over the phone. “President López Obrador is less restrained”.

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

“We don’t have Washington’s attention on this issue because they are out there with their mind set on a much larger bill that reflects a number of internal affairs in the United States that are receiving most of their attention right now.Lilly said.

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