Biden to face rejection of electric car rules at first “Three Friends” summit in 5 years

The leaders of the United States, Canada and Mexico will meet on Thursday for the first time in five years to promote North American economic integration, but the meeting could be dominated by disputes over electric car tax credits and the policies of “Buy american”Supported by President Joe Biden.

The US president has revived the so-called summit of the “Three friends”, Which will be held at the White House on Thursday afternoon for the first time since 2016, after his predecessor, Donald Trump, left it in 2017. There will be bilateral meetings earlier in the day.

The tripartite meeting aims to promote North American economic cooperation, but Canada and Mexico are concerned about Biden’s provisions of “Buy american”And a proposed electric vehicle tax credit that would favor unionized manufacturers based in the United States.

The United States is the largest trading partner of Mexico and Canada, and cars and trucks are the most widely traded manufactured goods among the three countries, said Colin Robertson, a former Canadian diplomat who now works at the think tank Canadian Global Affairs Institute.

“The North American automotive industry is deeply integrated and competing as a building block in the making of a world-class electric vehicle and battery industry that makes good economic sense for all three countries.“, said.

So much Canada What Mexico they want a level playing field as they compete to entice companies to build plants for the electric vehicle supply chain in their countries. And the United States is seeking alternative suppliers to China of critical minerals used in batteries, which Canada could provide.

The social spending and climate bill being studied by Congress includes up to $ 12,500 in tax credits for US-made electric vehicles, including a $ 4,500 for cars made by unions. The project is a key pillar of Biden’s national agenda.

The additional tax credit for union-made vehicles faces opposition from Democratic Senator Joe Manchin, who has the power to block the proposal in the face of divisiveness in the Senate.

Biden will visit a General Motors Co electric vehicle assembly plant in Detroit on Wednesday to show his support for the change in production.

At the broad trilateral meeting, the White House has said it aims to create a “regional vision for migration”. Other issues to be discussed will be the joint fight against the COVID-19 and climate change.

However, they are likely to be the bilateral meetings where more specific issues are discussed.

Prime Minister of Canada, Justin trudeau, could address Enbridge Inc’s Line 5 pipeline, which the state of Michigan wants to close for environmental reasons.

In the case of Mexican President Andrés Manuel López Obrador, their bilateral meeting could be used by Biden to discuss the controversial plan to change the constitution and give priority to the Mexican state power company at the expense of private investment, especially in renewable energy.

López Obrador argues that the step is necessary because previous governments manipulated the market in favor of private interests, but the legislation has drawn criticism from the government and business groups in USA, who are concerned that it does not comply with the obligations of Mexico under the T-MEC.

Federico Pena, a former US Secretary of Energy, stated that he hopes that Mexico try to bridge your differences so as not to create a precedent that tarnishes your reputation.

“For Mexico to continue to be respected as an investment country, it must be very conscious when radically changing contracts to the detriment of companies that relied on the good faith of the previous administration’s negotiations.”, He commented.

The leaders began to celebrate the summit of the “Three friends”In 2005 and met most of the years until 2016.