Canada's auto industry breathes sigh of relief as U.S. rewrites protectionist EV policy

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ICYMI - Canada's auto industry breathes sigh of relief as U.S. rewrites protectionist EV policy

At issue was a plan supported by some Democratic lawmakers to attach generous tax credits to the purchase of American-made electric vehicles. Canadian politicians and advocates for the country’s auto industry said the subsidies would violate the North American trade agreement. Following months of furious lobbying, an amendment to the proposal extends tax credits to electric vehicles purchased from all of North America.

The new proposal also states that EVs eligible for tax credits should include batteries that contain a percentage of critical minerals that were either extracted or processed in countries with which the U.S. has a free-trade agreement or recycled in North America.Brian Kingston Schumer and Manchin hope to pass the bill through a legislative procedure called reconciliation that will allow them to approve it with only Democratic votes or a simple majority, instead of the normal rule that requires 60 out of the 100 senators to agree. Whether the bill qualifies for reconciliation will be known in the coming weeks.

“Since the prime minister’s first meeting with president Biden last year, we have been relentless in underscoring that the original proposal would be harmful to both Canada and the U.S., so we’re glad to see that recognized in the new version of the bill,” Trade Minister Mary Ng said in a statement.Article content

 

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