US Trade Representative ‘committed’ to support transition to electric vehicle production
The Office of the United States Trade Representative said on Friday that it was committed to strengthening domestic legislation tram industry despite objections from Mexico and Canada over a proposed tax credit for electric vehicles built by U.S. union workers.
The proposed $12,500 electric vehicle tax credit would include $4,500 on union-built electric vehicles in the United States, effective after 2027. It is included in social spending legislation and The far-reaching environment of the Biden administration is currently under review by Congress.
Canada’s Commerce Minister Mary Ng told Reuters on Friday that Canada still has some room to convince US senators to block the US Senate from approving a specific EV clause passed by a US union without The House of Representatives passed.
She said Canada “will respond accordingly” if it is enacted, but did not elaborate. She added that the proposed credit violates the US-Mexico-Canada trade agreement and would undermine Canada’s efforts to produce electric vehicles.
Her comments echoed those of Mexico’s Economy Minister Tatiana Clouthier, who said the tax credit was “discriminatory” and that Mexico was analyzing a range of legal options for possible response. including tariffs.
“We have imposed tariffs in the past and we would have to do or propose something very important and strategic on those products, where it hurts them… to can feel the consequences,” Clouthier told a news conference.
She added that it was “the complete opposite of free trade” and had previously rebuked the US for pursuing what she described as potentially protectionist policies that backfire and promote Many people migrate to the US border.
U.S. Trade Representative Katherine Tai said she was aware of objections from trading partners and was discussing the matter with them, but did not specify whether she supported the proposed EV tax credit due to the association. the United States does or not.
“The Biden-Harris Administration Is Committed To Addressing The Threat From climate change by supporting the transition to electric vehicle production,” USTR spokesman Adam Hodge said in a statement.
“We will continue to engage a range of stakeholders, including our close trading partners, as Congress considers legislation to strengthen U.S. leadership in the United States,” he added. this field.
At the end of October, Mexico, along with the European Union, Germany, Canada, Japan, French, Korean, Italy and other countries wrote US lawmakers say the proposed electric vehicle tax credit violates international trade rules.
The proposal was supported by the United States President Joe Biden, NS United Auto worker (UAW) coalition and many Democrats in Congress, but was opposed by major international automakers, including Toyota, Volkswagen, Daimler, Honda’s motobike, Hyundai and BMW car.
