The US Trade Representative’s office said on Friday it was committed to legislation strengthening the domestic electric vehicle (EV) industry despite objections from Mexico and Canada over a proposed tax credit for electric vehicles built by US union workers. The proposed $12,500 electric vehicle tax credit would include $4,500 for electric vehicles built in the United States by union workers, effective after 2027. It is included in the Biden administration’s sweeping climate and social spending legislation now under consideration by Congress. Canadian Trade Minister Mary Ng told Reuters on Friday that Canada still had some room to maneuver to persuade US senators to block the US Senate from approving the specific US union-made electric vehicle provision passed by the House of Representatives. She said Canada “will respond accordingly” if it is enacted, but did not specify details. She added that the proposed credit violates the US-Mexico-Canada trade agreement and would undermine Canada’s efforts to produce electric vehicles. 

Published in The Express Tribune, December 5th, 2021.

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