Nova Scotia Journal

How Mexico intends to collaborate with Canada to combat a U.S. auto irritant

U.S. auto irritant

Key Takeaways:

  • A senior Mexican cabinet member says she’s planning a multi-front offensive against what she calls North America’s most significant trade irritant right now.
  • She also hopes to collaborate with Canada.

Mexican Economy Secretary Tatiana Clouthier is meeting virtually today with Canada’s Trade Minister Mary Ng to oppose a U.S. electric-vehicle tax credit.

Both countries claim that the U.S. proposal would destroy jobs and violate trade agreements, with Clouthier describing it as her country’s most pressing economic issue with the U.S.

“This is the main issue,” Clouthier told News in an interview.

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She claimed that the plan’s protectionist goals contradicted all of the cooperation talks at the recent North American Leaders’ Summit and the spirit of the new NAFTA.

The excellent News for Canada and Mexico is that they appear to have gained time: the United States legislation containing that tax credit seems to have stalled, at least temporarily.

Democrats have failed to pass their Build Back Better bill this year as planned because one Democrat. West Virginia’s Joe Manchin, claims the plan is too expensive and is demanding significant changes.

joe biden collaborate with Canada; Image from Bahamas News

Opponents will now be able to spend the coming weeks fine-tuning their responses. Canada’s push has focused on threatening tariffs and possibly suspending parts of the new North American trade agreement.

Clouthier stated that Mexico is considering a variety of responses, including legal, political, economic, and unrelated issues. For starters, she’ll be in Washington soon, where she’ll meet not only with U.S. decision-makers but also with members of the Mexican-American community. In virtual meetings over the next few days and in-person when she visits Washington in the first week of January.

She warned that if U.S. Democrats make economic moves that harm Mexico, they will face a backlash from Mexican-American voters. Clouthier encourages Mexican-Americans to contact their legislators.

She acknowledged that each country must defend its interests. However, she believes the continent will be better off if it thinks and acts as a unit, asking, “How far can we walk together?”

There is already one irritant brewing between Canada and Mexico. It is about energy and proposed Mexican reforms to re-nationalize parts of that sector.

Source: CBC News

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