Canada & Mexico Uniting Against US EV Rebate... Another Trade War?

[Economy 52,844]

https://www.bnnbloomberg.ca/canada-threatens-to-retaliate-against-u-s-over-ev-tax-credit-1.1694267

 

Canada and Mexico have voiced discontent over the the way the EV credit is written in Bidens "Build Back Better" with Canada more advanced in the retallitory language

 

The main issue of the dispute is that extra EV rebates would go to cars manufactured exclusively in America. EV credits themselves arent the issue (Canada has a rebate program for EVs too) but they should be for all EVs not just your own they argue. 

 

Protectionist measures like this they argue go against the spirit of the free trade agreement.

 

Canada is threatning to retaliate with its own tarrifs, undoing concessions it made in its last NAFTA/USMCA talks such as changes to dairy industry in favour of US interests and engaging in its own sibsities

 

Mexico has so far been less vocal over what its response would be

[Kimmo 82,283]

2 minutes ago, Economy said:

Mexico has so far been less vocal over what its response would be

Well what’s new? 

[Economy 52,844]

7 minutes ago, Kimmo said:

Well what’s new? 

Well thats what happened last time too during the trade disputes with Trump. 

 

When Canada and Mexico werent happy Canada was always quicker and more agressive in laying out what its retalitory measures would be. Mexico would show its discontent first then subtly start to insunuate it might take measures then be more vocal

 

Canadas economy is still larger than Mexico despite having only 1/3 the population and exports to the US make up a smaller share of our economy than it does for Mexico meanwhile the US exports more to Canada than it does to Mexico... Basically Canada can damage the US a little bit more than Mexico can...

 

So I guess Canada still feels it has some bargain power, enough to kinda put its foot down even tho realistically if the US really wanted to be a d*ck they could still criple Canada way more than Canada could criple back given its so much larger

[Rahrahbitchson 23,192]

9 minutes ago, Kimmo said:

Well what’s new? 

They would rather know why @Economy has her own tag in the thread section

[AJRocketMan 2,684]

Screw free trade! Taking away manufacturing from the developed nations has created a lot of problems that we’re suffering from today. Every country needs to be much more self-reliant like we were in the past and focus on making our own goods and services, without interfering in one another’s economy. Also free trade leads to more climate change since we’re burning a lot of fossil fuels transporting everything around the world only for these said goods to end up in the trash after X amount of months or years.

The Electric Vehicle rebate is a good start but it’s not enough. If we wanna save the earth we really need to bring back the streetcar and dismantle the highways from the cities, which nobody wants to do.

[Economy 52,844]

4 hours ago, AJRocketMan said:

Screw free trade! Taking away manufacturing from the developed nations has created a lot of problems that we’re suffering from today. Every country needs to be much more self-reliant like we were in the past and focus on making our own goods and services, without interfering in one another’s economy. Also free trade leads to more climate change since we’re burning a lot of fossil fuels transporting everything around the world only for these said goods to end up in the trash after X amount of months or years.

The Electric Vehicle rebate is a good start but it’s not enough. If we wanna save the earth we really need to bring back the streetcar and dismantle the highways from the cities, which nobody wants to do.

This free trade is between Canada, US and Mexico...

 

Canada and US are both highly industrialized and Mexico is quickly rising to a middle income Country... this isnt the type of offshoring to Tawain or China type situation were talking about here

 

Plus either u have free trade or u dont. Dont break the contracts tho if ur gonna keep it. If u say screw free trade then apply it to everything not just whats convinient for u...

 

But excluding economics ur right tho its better for environment. Local manufacturing reduces need for large transportation chains

[Dojo 19,823]

3 minutes ago, Economy said:

Mexico is quickly rising to a middle income Country... 

thank you 

i am positive we are on the right path to 1st world country. 

[OMF 3,649]

8 hours ago, Economy said:

The main issue of the dispute is that extra EV rebates would go to cars manufactured exclusively in America. EV credits themselves arent the issue (Canada has a rebate program for EVs too) but they should be for all EVs not just your own they argue. 

Mexico has so far been less vocal over what its response would be

I’m confused, does Canada have any car manufacturing? I know Mexico does but I’m unsure as to why Canada is taking this stance 🤷🏻‍♂️

[StarstruckIllusion 53,564]

8 minutes ago, Aussie said:

I’m confused, does Canada have any car manufacturing? I know Mexico does but I’m unsure as to why Canada is taking this stance 🤷🏻‍♂️

We do and this Biden move would apparently be a huge L for our economy… slay and yass at Biden making this move for americans but… oof not like this 💀

[Economy 52,844]

53 minutes ago, Aussie said:

I’m confused, does Canada have any car manufacturing? I know Mexico does but I’m unsure as to why Canada is taking this stance 🤷🏻‍♂️

To some extent yes, especially in the Province of Ontario and Quebec... Theres also car parts which have a very interlinked chain on both sides of the border tho im not sure if Bidens credit applies to cars manufactured with US car parts only also which could be part of the issue as well

 

I know having an tax credit for EVs in itself isnt the issue cuz we have one also. What Mexico and Canada dont like is that hes targeting US made specifically which under NAFTA/USMCA ur not suppostu artificially prop up an industry or sector in a protectionist way unless a specific agreement was made to allow it (kinda like how Canada negotiated to still have a somewhat protectionist dairy system and the US is allowed to subsidize some agricultural products etc) 

 

Ur allowed to subsidize a sector. But its not suppostu be in a protectionist way basically

 

I know the US has disputes with Canada rn over lumber cuz we aparently subsidize it but there was some grey area about the details of it that i dont know much about i just know the WTO rulled in Canadas favour more than once about that issue but its an example of how theres rules under trade agreements

[NCgaga 4,345]

Good for the US. Every other Country watches their own back much more than the US- we need to get back to handling our own business. That’s what Canada wants, unless it directly effects Canada, then the US is being a bully. 

[Economy 52,844]

1 hour ago, StarstruckIllusion said:

We do and this Biden move would apparently be a huge L for our economy… slay and yass at Biden making this move for americans but… oof not like this 💀

I do think EV credits are a great idea (just like Canada also has them) but i think its a **** move to add a significant seperate credit that applies only to US Made cars

 

If Canada did the same ud be sure the US would be crying out fowel cuz under USMCA Countries arent allowed to directly subsidize a sector in a protectionist way

[PussOfYonce 3,657]

2 hours ago, dojo said:

thank you 

i am positive we are on the right path to 1st world country. 

we literally are ive seen the americans living worse than some people in the south of mexico 

[StarstruckIllusion 53,564]

1 hour ago, Economy said:

I do think EV credits are a great idea (just like Canada also has them) but i think its a **** move to add a significant seperate credit that applies only to US Made cars

 

If Canada did the same ud be sure the US would be crying out fowel cuz under USMCA Countries arent allowed to directly subsidize a sector in a protectionist way

Spill I’d love to own a hybrid and only use the gas for emergencies. My friend’s uncle ranted about how the GTA is too cold for EVs like Teslas and that they don’t work in the winter… kinda like how iPhones stop working. Soo… beware ig 💀

We still should make them tho 

[Economy 52,844]

20 minutes ago, StarstruckIllusion said:

Spill I’d love to own a hybrid and only use the gas for emergencies. My friend’s uncle ranted about how the GTA is too cold for EVs like Teslas and that they don’t work in the winter… kinda like how iPhones stop working. Soo… beware ig 💀

We still should make them tho 

Thats a half truth lol. Electric cars still work here too and ppl use them...

 

But there is some truth that cold weather does not have a positive impact in the lifespan of a battery.

 

Fortunately higher capacity bateries they make now helps offset that problem

 

If it was a deal breaker for most ppl i dont think Norway would have the biggest percentage of EV fleet in the world lol