Officials from the governments of Canada and Mexico on Friday discussed a joint plan against incentives announced by the United States to sell electric cars that Ottawa considers harmful and violates a trade agreement between the three countries.
Canada’s International Trade Minister, Marie Ng, and Mexico’s Economy Minister, Tatiana Clouther Carrillo, had a phone conversation in which they discussed the matter, according to a statement from Canada’s Department of International Trade.
During the call, the Canadian minister expressed her “deep concerns” about the proposed policy incentives for the purchase of electric cars in the United States, one of the main points of the administration of President Joe Biden to combat climate change and boost the local economy.
Biden’s proposal, which is included in the “Building Back Better” bill, is to offer US consumers a tax credit of up to $12,500 to purchase electric cars produced in US factories.
Ottawa considers this provision to be in violation of the T-MEC Trade Agreement between Mexico, the United States and Canada.
Speaking with Clouther, Ng noted that “steps Canada has taken to defend the auto sector and its workers, including options for retaliation” in the event “the United States continues its discriminatory measures.”
Minister Clouther told Canadian public broadcaster CBC Friday that Mexico wants to coordinate with Canada to present a joint plan against Biden’s initiative due to concerns that tax incentives will destroy jobs in the auto sector in Canada and Mexico.
Cloutier also said the two countries were analyzing the economic retaliation they could take against the United States, and noted that “there are no consequences in any way” in response to the action.