WASHINGTON: Leaders of the United States, Canada and Mexico will meet together for the first time in five years on Thursday to promote the North American economic integration, but the dispute filed tax credits EV and the policy of “Buy American” supported by President Joe Biden could dominate , Biden has revived the so-called Three Amigos peak which will be held at the White House on Thursday afternoon for the first time since 2016.
Former President Donald Trump throw it in 2017.
Bi-lateral meeting will be held on the previous day.
Three-way meeting is about advancing the North American economic cooperation, but both Canada and Mexico are worried about the provisions Biden ‘Buy American’ and electric vehicles that the proposed tax credit would prefer the union, American-based manufacturers.
The United States is the largest trading partner for both Mexico and Canada, and cars and trucks are manufactured commodities most traded among the three countries, said Colin Robertson, a former Canadian diplomat who is now in Global Affairs Canada Institute think tank.
“North American automotive industry is highly integrated and competitive as a bloc in the manufacture of world-class industry and the e-vehicle battery is good economic sense for all three countries,” said Robertson.
Canada and Mexico want a level playing field as they compete to attract companies to set up factories for EV supply chain in their country.
And the United States was looking for an alternative supplier to China an important mineral used in batteries, which Canada can provide.
Social spending and climate bill being considered in Congress includes up to $ 12,500 in tax credits for EVs US-made, including a $ 4,500 credit for union-made vehicle.
The bill is a major pillar of the domestic agenda of Biden.
Additional tax credit union to union-made vehicles faced opposition from US Senator Joe Manchin, a Democrat from West Virginia.
With the evenly divided Senate, Manchin has the power to block the proposal.
Biden will visit an electric vehicle assembly plant of General Motors Co.
in Detroit on Wednesday to show support for a switch to the production of electric cars.
In the tri-lateral meetings sweep, the White House said it aims to create a “regional vision for migration”.
other subjects including the fight against COVID-19 and climate change together.
However, bilateral meetings where the discussion tends to be more pointed held.
In addition to EV tax credit, the Prime Minister of Canada Justin Trudeau, the possibility to open the Line 5 pipeline Enbridge Inc., the state of Michigan wants to close on environmental grounds.
For Mexican President Andrés Manuel López Obrador, bilateral meetings could be where Biden brings a controversial plan to change the constitution to give priority to Mexico’s state-owned power company in the electricity market at the expense of private investment, particularly in renewable energy.
Lopez Obrador believes this step is necessary because the past government rigged the market in favor of private interests, but the legislation has drawn fire from the US government and business groups, concerned it might not be inconsistent with the obligations of Mexico under USMCA.
Federico Pena, former US energy secretary, told Reuters that he hoped Mexico would try to resolve its differences not to create precedents that sully their good name.
“For Mexico is still revered as a country for investment, it should be very conscious about radically changing the contract to the detriment of companies that rely on the good faith of negotiations from the previous administration,” he said.
The leaders began holding the Three Amigos summit in 2005 and met most of the year until 2016.