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Three Amigos Summit : American EV Protectionist Policies


Industrious1

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Will something positive for Canada come out of this?

 

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Trudeau to push back against protectionist U.S. trade policies at Three Amigos summit

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Ottawa is fighting a proposed incentive that would apply only to American-made electric vehicles

Nick Boisvert · CBC News · Posted: Nov 18, 2021 4:00 AM ET | Last Updated: 1 hour ago
 
pm-washington-20211117.JPG
Prime Minister Justin Trudeau is expected to raise concerns around trade and pipelines with U.S. President Joe Biden today. (Adrian Wyld/The Canadian Press)
 

Prime Minister Justin Trudeau's brief trip to Washington culminates today with the first Three Amigos summit in more than five years — and signs suggest there could be some tense moments during the long-awaited meeting.  The trilateral meeting between the leaders of Canada, the United States and Mexico — officially known as the North American Leaders' Summit — is scheduled to begin at 4:45 p.m. ET at the White House.

 

Trudeau met with Mexican President Andrés Manuel López Obrador earlier in the day in Washington. Going into that meeting, the prime minister said he was looking forward to talking with Obrador because they "agree and align" on many topics.

 

After that meeting, Mexico's Ambassador to Canada Juan Jose Gomez Camacho said Obrador believes Canada and Mexico can share lessons-learned on reconciliation with Indigenous Peoples because both leaders have made that a priority for their governments.  Summits between the three nations have historically been criticized for favouring symbolism over substance, but this year's edition comes as Canada makes an aggressive push against one of U.S. President Joe Biden's signature protectionist policies.

 

U.S. lawmakers are putting the finishing touches on a nearly $2 trillion US infrastructure bill, which as it stands contains a new electric vehicle incentive that Ottawa says could wreak havoc on Canada's auto sector and violate the new NAFTA.

The proposed incentive would eventually give American buyers a $12,500 US rebate on the purchase of new EVs, but only if the vehicles are produced in the United States.  The Canadian government argues that the incentive threatens decades of co-operation between the two nations in the auto sector and could lead to job losses on both sides of the border. Mexico also opposes the plan.

 

Trudeau and his ministers pressed that point with Biden administration officials, including U.S. cabinet secretaries, during a gathering at the Canadian ambassador's residence in Washington D.C. Wednesday evening, according to sources.

At that gathering, Canadian officials argued that because the rebate favours U.S.-built cars, it's worse for Canada than any trade threat made by the administration of former U.S. president Donald Trump.

EV incentive could become 'dominant' issue: Freeland

During a Wednesday evening news conference in Washington, Deputy Prime Minister Chrystia Freeland indicated that fighting the EV incentive will remain her government's top priority during its time in Washington.

"The way they have formulated this incentive really, really has the potential to become the dominant issue in our bilateral relationship," Freeland said.

"The EV incentives — as they are currently formulated — we are certain are a violation of the new NAFTA agreement."

 
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Prime Minister Justin Trudeau and Mexican President Andres Manuel Lopez Obrador pose for a photo before a meeting on Thursday, November 18, 2021 in Washington, D.C. (Adrian Wyld/The Canadian Press)

In private meetings so far this week, Trudeau has also been working to dissuade lawmakers from adopting the plan.

According to a source with direct knowledge of the situation, Trudeau has noted that Biden's proposal amounts to a greater penalty to the Canadian auto sector than former president Donald Trump's threat of a 25 per cent tax on Canadian cars.

Pipelines and vaccines also on the agenda

Trudeau is also expected to raise concerns about the future of the Line 5 pipeline, which transports oil to Eastern Canada.

Michigan is trying to shut down a portion of the line that runs under the Great Lakes. Canada wants to keep the pipeline flowing and recently invoked a 1977 treaty in its bid to preserve the status quo.

 

A senior U.S administration official declined to discuss details about Line 5 during a call with reporters on Wednesday, citing the recently invoked treaty. 

 

 
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Biden’s EV tax incentive creates tension ahead of North America summit

18 hours ago
1:56

On the eve of a North American Leaders’ Summit, U.S. President Joe Biden’s big tax incentive for U.S.-produced electric vehicles is creating tension, with some saying it’s a job killer for the Canadian auto industry. 1:56

 

"What I will say is the president and the prime minister have an excellent relationship. They've known each other for a very long time, and we're prepared to discuss anything the prime minister is ready to raise," the official said.  There are also expectations that Trudeau and Obrador will make an announcement about sharing COVID-19 vaccine doses that were donated by the United States. They plan to share those doses with other countries in Latin America and the Caribbean, the senior official said.

 

It will be Trudeau's first in-person meeting with López Obrador, who has been Mexico's president since December 2018.

The leaders of North America's largest nations will have gone 1,968 days since their last trilateral meeting. Trump spurned the summit during his presidency.

 

 
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43 minutes ago, bishopshodan said:

Seems like a good thing JT is trying to do.

 

But I know a lot on here will puke a bit in their mouth if they ever had to say he might be doing something that could benefit our country. 

The disappointing fact is, the Americans will do as they like and there's little that JT can do about it. Much like the Softwood lumber dispute from years past.

 

Still, I suppose it's possible to appeal to the current POTUS's sense of fairness.....there wouldn't have been any chance of that at all 2 years ago....

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1 hour ago, RUPERTKBD said:

The disappointing fact is, the Americans will do as they like and there's little that JT can do about it. Much like the Softwood lumber dispute from years past.

 

Still, I suppose it's possible to appeal to the current POTUS's sense of fairness.....there wouldn't have been any chance of that at all 2 years ago....

its going to be a tough issue, and it won't get resolved until after the mid-terms at the earliest. Joe needs every vote he can get, or he's a lame duck next year. 

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3 hours ago, karvalegov said:

Lets Go Brandon.

Lets Go Surfing .

If the EV manufacturing was in BC or Alberta , Turdo wouldn't be doing anything about it.

I heard that lets go Brandon was being used by child abductors on line.  To be scared of it.  There was a meme and everything.

 

Makes me nervous seeing it now

 

Edited by Warhippy
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31 minutes ago, Warhippy said:

I heard that lets go Brandon was being used by child abductors on line.  To be scared of it.  There was a meme and everything.

 

Makes me nervous seeing it now

 

Ya Biden got caught using it . He thought his name was Brandon everyone kept calling him that.

  • Haha 1
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And here is the follow up.

 

Doesn't look so hot for Canada.

 

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Politics

After talks in D.C., Trudeau says he's still concerned about threats to Canada's auto sector

Social Sharing

 

Experts say U.S. tax credit for American-made electric vehicles would devastate Canadian car production

 
john-paul-tasker.JPG
John Paul Tasker · CBC News · Posted: Nov 18, 2021 10:56 PM ET | Last Updated: 2 hours ago
 
TRUDEAUEV_700kbps_1280x720_1975703107900
 

Trudeau expresses concerns over electric vehicle bill

9 hours ago
0:43
During the North American Leaders' Summit, Prime Minister Justin Trudeau says he discussed extensively his concerns with U.S. President Joe Biden about the bill that would provide tax cuts solely for U.S.-made electric vehicles 0:43
 

Prime Minister Justin Trudeau said Thursday he pressed his U.S. counterpart to drop a provision of the pending $1.9-trillion social infrastructure bill which has the potential to devastate the Canadian auto sector.

"We're concerned," Trudeau said in French at a news conference after the North American Leaders' Summit. "This would be quite a problem for vehicle production in Canada. We stressed this with the Americans throughout our conversations. They've heard us loud and clear."

 

At issue is a clause buried in the Build Back Better Act, President Joe Biden's plan to inject hundreds of billions of dollars into social programs and climate initiatives to help juice the country's COVID-19 recovery.

To spur the fledgling electric vehicle (EV) industry, the Democratic-controlled Congress is proposing sizeable tax credits worth up to $12,500 US to buyers of new electric vehicles — as long as those cars are manufactured by union workers in the U.S.

 

Experts agree the tax measure would be a major blow to the Canadian automotive sector, which is trying to attract new investment as the industry transitions away from internal combustion engines. The fear is that manufacturers would shift production from Canada to the U.S. to make cars that qualify for the generous subsidy.

 

The program would privilege cars made in so-called "blue" states where unionized factories prevail, to the detriment of Ontario plants like GM's Oshawa assembly, Ford's factory in Oakville or the sprawling Chrysler operation in Windsor. It would also hit U.S. car factories in "right-to-work" states where the United Auto Workers (UAW) union is a non-factor.

 
biden.jpg
Biden meets with Trudeau in the Oval Office of the White House on Thursday. (Evan Vucci/The Associated Press)

Trudeau vowed to continue the conversation with Biden and American lawmakers and to stress that U.S. EV production depends on critical minerals that Canada has in abundance, like cobalt, nickle and lithium.

Biden was non-committal when asked if his administration would exempt Canada from such a tax plan, given that the North American auto industry is so deeply intertwined.

 

"We're going to talk about that. It hasn't even passed yet through the House … and we don't know what will happen in the Senate. There's a lot of complicating factors," he said. The bill was expected to pass, with the tax credit intact, late Thursday.

 

Michigan Republican Rep. Bill Huizenga — who says he stands with Canada on the EV tax credit — met with Trudeau Wednesday, as part of a bipartisan group of lawmakers which included U.S. House Speaker Nancy Pelosi.

 

He said some were "surprised" by Trudeau's "forceful" reaction to the issue.

"This really was the thing that dominated the conversation and the prime minister really stressed the point," Huizenga told CBC's Power & Politics

"I think it caught them a little flat-footed, to be honest." 

 
Huizenga_2500kbps_1280x720_1975673411634
 

U.S. congressman confirms Trudeau pushed back on EV tax credit in Washington

12 hours ago
6:34
U.S. Congressman Bill Huizenga tells Power & Politics what happened behind closed doors during his meeting with Prime Minister Trudeau yesterday on Capitol Hill. He says Trudeau made it clear that Biden's proposed tax credit for U.S.-built electric vehicles would be 'devastating to Canada.' 6:34

'Stealing jobs'

David MacNaughton, Canada's former ambassador to the U.S., says Biden and congressional leaders may not understand just how harmful this action could be to the Canadian economy. After petroleum products, cars are easily the country's second largest export.

During a stop at a new GM plant in Detroit yesterday, Biden said he wanted cars made in America "not halfway around the world."

 

"But what he's really doing is stealing jobs from across the river," MacNaughton said, referring to Windsor. "Part of the thing I realized when I was in Washington is that the Americans don't think about the interrelationship of our economy and their economy, and the importance of Canada to so many states in the U.S. — we have to constantly remind them."

 
Y_POWER_AND_POLITICS_CLEAN_THURSDAY_PG41
 

Canada expected to take firm stance on U.S. electric vehicle tax credit

12 hours ago
4:35
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, tells Power & Politics meetings at the North American Leaders' Summit made it apparent "how important it is [to Canada] that Americans reverse course on the [electric vehicle] tax credit." 4:35

While the threat of an EV tax credit is concerning, MacNaughton said he's confident there will be some sort of solution. 

MacNaughton said the face time between Trudeau and Biden might help Canada advance its agenda. "There's no substitute for getting together in person to be very frank about these things," he said.

 

Flavio Volpe, the president of the Automotive Parts Manufacturers' Association, says the EV tax credit would cost both Canadian and U.S. jobs.

Volpe said the program, as currently structured, would allow automakers to source more foreign auto parts from Asia for their American-assembled cars and then pass them off as "U.S. made."

 

Volpe said there are seven times more jobs — more than 700,000 people — working in the parts business compared to auto assembly.

As the bill moves to the Senate for further study and debate, Volpe said the Canadians should lobby West Virginia Democratic Sen. Joe Manchin to help strip the bill of the EV provision. Toyota has an engine and transmission factory in his state — a plant that supplies the company's assembly operations in southwestern Ontario. A threat to one is a threat to the other, he said.

In an evenly split Senate where the Democrats and Republicans each hold half the seats, a "no" vote from Manchin would be a deal breaker.

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14 minutes ago, Industrious1 said:

And here is the follow up.

 

Doesn't look so hot for Canada.

 

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

Politics

After talks in D.C., Trudeau says he's still concerned about threats to Canada's auto sector

Social Sharing

 

Experts say U.S. tax credit for American-made electric vehicles would devastate Canadian car production

 
john-paul-tasker.JPG
John Paul Tasker · CBC News · Posted: Nov 18, 2021 10:56 PM ET | Last Updated: 2 hours ago
 
TRUDEAUEV_700kbps_1280x720_1975703107900
 

Trudeau expresses concerns over electric vehicle bill

9 hours ago
0:43
During the North American Leaders' Summit, Prime Minister Justin Trudeau says he discussed extensively his concerns with U.S. President Joe Biden about the bill that would provide tax cuts solely for U.S.-made electric vehicles 0:43
 

Prime Minister Justin Trudeau said Thursday he pressed his U.S. counterpart to drop a provision of the pending $1.9-trillion social infrastructure bill which has the potential to devastate the Canadian auto sector.

"We're concerned," Trudeau said in French at a news conference after the North American Leaders' Summit. "This would be quite a problem for vehicle production in Canada. We stressed this with the Americans throughout our conversations. They've heard us loud and clear."

 

At issue is a clause buried in the Build Back Better Act, President Joe Biden's plan to inject hundreds of billions of dollars into social programs and climate initiatives to help juice the country's COVID-19 recovery.

To spur the fledgling electric vehicle (EV) industry, the Democratic-controlled Congress is proposing sizeable tax credits worth up to $12,500 US to buyers of new electric vehicles — as long as those cars are manufactured by union workers in the U.S.

 

Experts agree the tax measure would be a major blow to the Canadian automotive sector, which is trying to attract new investment as the industry transitions away from internal combustion engines. The fear is that manufacturers would shift production from Canada to the U.S. to make cars that qualify for the generous subsidy.

 

The program would privilege cars made in so-called "blue" states where unionized factories prevail, to the detriment of Ontario plants like GM's Oshawa assembly, Ford's factory in Oakville or the sprawling Chrysler operation in Windsor. It would also hit U.S. car factories in "right-to-work" states where the United Auto Workers (UAW) union is a non-factor.

 
biden.jpg
Biden meets with Trudeau in the Oval Office of the White House on Thursday. (Evan Vucci/The Associated Press)

Trudeau vowed to continue the conversation with Biden and American lawmakers and to stress that U.S. EV production depends on critical minerals that Canada has in abundance, like cobalt, nickle and lithium.

Biden was non-committal when asked if his administration would exempt Canada from such a tax plan, given that the North American auto industry is so deeply intertwined.

 

"We're going to talk about that. It hasn't even passed yet through the House … and we don't know what will happen in the Senate. There's a lot of complicating factors," he said. The bill was expected to pass, with the tax credit intact, late Thursday.

 

Michigan Republican Rep. Bill Huizenga — who says he stands with Canada on the EV tax credit — met with Trudeau Wednesday, as part of a bipartisan group of lawmakers which included U.S. House Speaker Nancy Pelosi.

 

He said some were "surprised" by Trudeau's "forceful" reaction to the issue.

"This really was the thing that dominated the conversation and the prime minister really stressed the point," Huizenga told CBC's Power & Politics

"I think it caught them a little flat-footed, to be honest." 

 
Huizenga_2500kbps_1280x720_1975673411634
 

U.S. congressman confirms Trudeau pushed back on EV tax credit in Washington

12 hours ago
6:34
U.S. Congressman Bill Huizenga tells Power & Politics what happened behind closed doors during his meeting with Prime Minister Trudeau yesterday on Capitol Hill. He says Trudeau made it clear that Biden's proposed tax credit for U.S.-built electric vehicles would be 'devastating to Canada.' 6:34

'Stealing jobs'

David MacNaughton, Canada's former ambassador to the U.S., says Biden and congressional leaders may not understand just how harmful this action could be to the Canadian economy. After petroleum products, cars are easily the country's second largest export.

During a stop at a new GM plant in Detroit yesterday, Biden said he wanted cars made in America "not halfway around the world."

 

"But what he's really doing is stealing jobs from across the river," MacNaughton said, referring to Windsor. "Part of the thing I realized when I was in Washington is that the Americans don't think about the interrelationship of our economy and their economy, and the importance of Canada to so many states in the U.S. — we have to constantly remind them."

 
Y_POWER_AND_POLITICS_CLEAN_THURSDAY_PG41
 

Canada expected to take firm stance on U.S. electric vehicle tax credit

12 hours ago
4:35
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, tells Power & Politics meetings at the North American Leaders' Summit made it apparent "how important it is [to Canada] that Americans reverse course on the [electric vehicle] tax credit." 4:35

While the threat of an EV tax credit is concerning, MacNaughton said he's confident there will be some sort of solution. 

MacNaughton said the face time between Trudeau and Biden might help Canada advance its agenda. "There's no substitute for getting together in person to be very frank about these things," he said.

 

Flavio Volpe, the president of the Automotive Parts Manufacturers' Association, says the EV tax credit would cost both Canadian and U.S. jobs.

Volpe said the program, as currently structured, would allow automakers to source more foreign auto parts from Asia for their American-assembled cars and then pass them off as "U.S. made."

 

Volpe said there are seven times more jobs — more than 700,000 people — working in the parts business compared to auto assembly.

As the bill moves to the Senate for further study and debate, Volpe said the Canadians should lobby West Virginia Democratic Sen. Joe Manchin to help strip the bill of the EV provision. Toyota has an engine and transmission factory in his state — a plant that supplies the company's assembly operations in southwestern Ontario. A threat to one is a threat to the other, he said.

In an evenly split Senate where the Democrats and Republicans each hold half the seats, a "no" vote from Manchin would be a deal breaker.

RPugs and DRats:  two sides of the same coin.  

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I feel one of the best ways to deal with this is the increased mining of cobalt, pegmatite and cesium here in Canada.

 

We stand on some of the largest untapped reserves in the world for rare earth metals.  More so than China by accounts who own the lions share of the developed REM sites being developed now.

 

If the US wants to play hard ball I am sure knowing they can build them but not power them; forcing them to either buy from us; or buy from China would be a fun line in the sand to draw

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1 hour ago, 6of1_halfdozenofother said:

Canada was only relevant to the guys south of the 49th as a "partner" only because of the Cold War/post-Cold War detente, where the former necessitated cooperation for security and production, while the latter allowed for the luxury of mending fences between neighbours as Soviet Bloc entities tried to find stability.  It wasn't that long ago that those buffoons to our south were still thumping their chests and shouting out "manifest destiny".

 

The current geopolitical situation of a re-emergent Bear, a rising Dragon, and the diminished relevance of the Eagle on the world stage has meant that our neighbours are now focussed on grand issues and rebuilding their status (or at least prevent further erosion) as the successor to the Old World colonial powers.  We're still floundering from our years of irrelevance on the world stage, and I think the only way we can make the Americans take note and show respect is by actually taking steps to demonstrate leadership internationally, instead of these half-measures by the current establishment (and definitely not like the previous Tory administration, whose withdrew Canada from the international spotlight in favour of short-term - and short-sighted - financial savings).

 

Having the balls to implement Magnitsky-style sanctions against human rights abusers such as the Kremlin, the ccp, and others of their ilk (even American citizens, if warranted) would be a good start.

Mighty beaver and Majestic Goose commands upvotes! - Album on Imgur

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