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Trade

Friday March 25, 2022

March 25, 2022 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 25, 2022

Ottawa and Ontario to invest in electric vehicle battery plant

October 16, 2020

Ontario’s auto industry is getting a much-needed jolt.

The provincial and federal governments are plugging hundreds of millions of dollars into a new electric vehicle battery plant in Windsor in an attempt to offset a much larger flow of EV investments to the United States under President Joe Biden’s “Buy America” push.

The $4 billion factory — to be announced Wednesday by automaker Stellantis (formerly Fiat Chrysler) and its battery partner LG Energy — will see contributions larger than the $132 million each level of government gave Honda last week to expand its plant in Alliston, sources told the Star.

Locating the plant in Ontario raises the odds of building more electric vehicles in the province as car companies speed their transition from internal combustion engines, said Flavio Volpe of the Automotive Parts Manufacturers’ Association.

“We’ve landed a big one. This is major investors doing a generational investment on this side of the Detroit River,” Volpe added.

Posted in: Canada Tagged: 2022-10, Buy America, China, diplomacy, Doug Ford, electric vehicles, EV, Joe Biden, manufacturing, monsters, Ontario, Trade, USA

Tuesday December 14, 2021

December 15, 2021 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday December 14, 2021

Canada threatens U.S. with tariffs, partial suspension of CUSMA over electric vehicle tax credit

November 18, 2021

Deputy Prime Minister Chrystia Freeland has written to top U.S. senators threatening to suspend parts of the CUSMA trade agreement and impose tariffs on American goods unless U.S. officials back away from a proposed tax credit for American-built electric vehicles.

“We are deeply concerned that certain provisions of the electric vehicle tax credits as proposed in the Build Back Better Act violate the United States’ obligations under the United States-Mexico-Canada Agreement,” Freeland and International Trade Minister Mary Ng say in the letter.

“The proposal is equivalent to a 34 per cent tariff on Canadian-assembled electric vehicles,” the letter says. “The proposal is a significant threat to the Canadian automotive industry and is a de facto abrogation of the USMCA.”

November 19, 2019

The Canada-U.S.-Mexico Agreement (CUSMA) is known as the United States-Mexico-Canada Agreement (USMCA) in the United States.

Congress is proposing sizeable tax credits worth up to $12,500 US to buyers of new electric vehicles — as long as those cars are manufactured by union workers in the U.S.

Experts agree the tax measure would deal a major blow to the Canadian automotive sector, which is trying to attract new investment as the industry transitions away from internal combustion engines.

Freeland and Ng also say in the letter that they will “consider the possible suspension of USMCA concessions of importance to the U.S.” They specifically mention the possible suspension of “USMCA dairy tariff-rate quotas” and the possibility of delaying implementation of CUSMA copyright changes.

December 11, 2019

“To be clear, we do not wish to go down a path of confrontation,” the letter says. “That has not been the history of the relationship between our two countries – nor should it be the future.

“There is an opportunity to work together to resolve this issue by ensuring Canadian-assembled vehicles and batteries are eligible for the same credit as U.S.-assembled vehicles and batteries.”

Ng said the letter is Canada’s way of indicating that it’s prepared to play hardball on the trade file, although she would prefer to come to a compromise that avoids trade actions. (CBC) 

 

Posted in: Canada, International, USA Tagged: 2021-41, Canada, Chrystia Freeland, diplomacy, Donald Trump, Mary Ng, monster, shadow, Trade, USA

Thursday November 18, 2021

November 18, 2021 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday November 18, 2021

Now it’s Biden, not Trump, giving Trudeau grief

The political bromance that was supposed to blossom between Justin Trudeau and Joe Biden has so far been a bust.

November 3, 2020

When Americans turfed Donald Trump in last November’s presidential election and sent Biden to the White House, you could almost hear a collective sigh of relief across Canada. A dark, dangerous cloud that had hovered over this country for four years had been blown away. With two progressive, seemingly compatible leaders at the helm of the North American neighbours a new era of amiable bilateral relations seemed guaranteed.

But that hasn’t come to pass. And so Prime Minister Trudeau will have his work cut out for him when he heads to Washington for Thursday’s summit with President Biden and Mexican President Andres Manuel Lopez Obrador.

Despite all his friendly smiles, Biden has yet to prove he’s a real friend to this country. Relations are strained and he’s making them worse. There’s an infrastructure bill packed with Buy American provisions that could bar Canadian businesses from bidding on billions of dollars worth of projects in the U.S. Biden loves it.

July 22, 2021

Another bill would offer huge incentives for American consumers to purchase made-in-the-U.S. electric vehicles instead of buying Canadian-manufactured models. Biden is all for it. If Congress passes the bill, car makers would obviously be more inclined to invest in American electric vehicle plants than Canadian ones. Then what will happen to all those dreams of a bright new Canadian electric-vehicle sector?

No wonder Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, says the proposed incentives are “a bigger threat than anything pointed at us by Donald Trump” — including all the tariffs he imposed and the disruptive free-trade battle he engineered.

Meanwhile, the State of Michigan is still trying to shut down Enbridge’s Line 5 pipeline which transports vital supplies of Western Canadian petroleum to Ontario and Quebec. If this threat to Canada has caught Biden’s eye, he’s done nothing about it. And if the list of bilateral sore-points isn’t long enough already, the American government moved this spring to double tariffs on Canadian lumber.

April 30, 2021

Clearly American protectionism has again reared its ugly head. And this despite the years of struggles during the Trump era to reach the United States-Mexico-Canada Agreement which, by the way, does not permit those American electric-vehicle incentives.

It should be a given that Trudeau will raise these issues with Biden this week. But the president will be more preoccupied with pressures coming from within his own deeply divided country. After just 10 months in office, his approval ratings have plummeted. The control his Democrats have over Congress is precarious and could be lost after next year’s mid-term elections. And those Buy American incentives are widely popular south of the border with progressive Democrats, unions, consumers and, when it comes to electric vehicles, environmentalists.

February 23, 2021

Trudeau will be swimming upstream against powerful currents to alter these trends. He does, however, have leverage. With an increasingly assertive China responsible for Biden’s biggest international headache, Trudeau should remind him Canada and Mexico can help build a “Fortress North America” as an economic and political counterweight to that rising superpower. With Canadian and Mexican co-operation, Biden could also have a better chance of successfully fighting climate change, which would thrill much of his voter base.

Beyond these measures, Trudeau should adopt a strategy that worked with Trump: start sending his federal cabinet ministers and Canadian business leaders to meet with and lobby their American counterparts.

Considering all the differences between them, it may be too much to hope for another “Three Amigos Summit” this week. We’d settle for a co-operative, congenial neighbourly get-together. (Hamilton Spectator Editorial) 

 

Posted in: Canada, International, USA Tagged: 2021-38, amigos, Andrés Manuel López Obrador, Buy American, Canada, diplomacy, Joe Biden, Justin Trudeau, mariachi, Mexico, protectionism, sombrero, Trade, USA

Friday April 30, 2021

May 7, 2021 by Graeme MacKay

April 30, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 30, 2021

Cabinet’s ability to award Buy American exemptions ‘strenuously limited,’ Biden says

President Joe Biden set some Canadian pulses racing again Wednesday with more tough Buy American talk, telling Congress he has “strenuously limited” cabinet members from granting exemptions to the 88-year-old protectionist doctrine. 

February 23, 2021

In the same breath, however, the speech marking Biden’s first 100 days as commander-in-chief offered a measure of comfort by suggesting Buy American would not offend the terms of trade deals like the U.S.-Mexico-Canada Agreement. 

“American tax dollars are going to be used to buy American products, made in America, to create American jobs. That’s the way it’s supposed to be, and it will be in this administration,” Biden declared. 

The notion of keeping U.S. government spending on American soil, a philosophy that dates back to 1933, will be the “one principle” guiding the $2.2-trillion infrastructure package dubbed the American Jobs Plan, he added. 

“I might note, parenthetically, that does not violate any trade agreement. It’s been the law since the ’30s,” Biden said through sustained applause in the House chamber, where COVID-19 allowed only a relative handful of lawmakers to attend. 

September 17, 2020

“I’ve made it clear to all my cabinet people: their ability to give exemptions has been strenuously limited. It will be American products.”

Much of what Biden said on the subject, including mention of trade agreements and cabinet members, did not appear in the prepared version of his remarks distributed to reporters before the speech. 

And it offered little solace or clarity for Canadian stakeholders still smarting from the punishing steel and aluminum tariffs imposed by Biden’s stridently protectionist predecessor, Donald Trump. 

“Those policies continue to concern us — ‘Made in America’ failed to embrace the integrated nature that we have in the steel business,” said Catherine Cobden, head of the Canadian Steel Producers Association. 

“Protectionism between neighbours and allies hurts everyone. We’re really hopeful that that’s not the way this plays out.”

The picture is likely to become more clear by midsummer, when an internal review of the existing rules — including how domestic content is defined and whether information and communication technology should be covered — is due. (Canadian Press) 

 

Posted in: Canada, USA Tagged: 2021-15, Border, bumper stickers, Buy American, Canada, customs, Economy, slogan, Trade, truck, United States, USA

Friday March 12, 2021

March 19, 2021 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 12, 2021

Summer Dreaming

New variants of the coronavirus are spreading rapidly in Ontario and unless they are better controlled, the province risks facing a third wave of the COVID-19 pandemic, an expert panel advising the province’s government said on Thursday.

February 17, 2021

It warned that the next few weeks are critical as the progress made in bringing the coronavirus under control in the province has stalled.

“Variants of concern continue to spread across Ontario. Our ability to control the rate of spread will determine whether we return to normal or face a third wave of infection,” the panel said in briefing material.

While mutations in viruses are inevitable, strains identified as “variants of concern” have worrisome changes that may give the virus advantages, increasing transmissibility or reducing the effectiveness of vaccines, according to the briefing materials released by the province’s science advisory and modeling consensus tables.

Graphs published online ahead of the briefing showed cases of the new variants in Ontario have jumped from below 5 per 100,000 residents each week in early February to nearly 20 per 100,000 residents each week in early March.

That increase has been balanced to some extent by a decline in cases of earlier variants of the virus. (Reuters) https://www.reuters.com/article/us-health-coronavirus-canada-ontario/coronavirus-variants-could-cause-third-wave-in-ontario-expert-panel-idUSKBN2B32WV

April 18 2020

Meanwhile, as vaccine rollout continues to ramp up in Canada and the United States, some American politicians are calling on the Biden administration to reopen the Canada-U.S. land border by this summer.

In a letter addressed to U.S. President Joe Biden, Rep. Brian Higgins of New York asked that Biden work with Prime Minister Justin Trudeau for “a partial re-opening of the Northern Border by Memorial Day of this year with a full re-opening by July 4.”

Higgins, who also chairs the congressional Northern Border Caucus, wrote that the current border restriction between the two countries “tears at the fabric of our community and is a critical problem for individuals, families, and businesses.” (CTV) 

 

Posted in: Canada, Ontario, USA Tagged: 2021-10, Border, covid-19, Doug Ford, map, maps, Ontario, pandemic, reopening, Trade, variant, virus
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This website contains satirical commentaries of current events going back several decades. Some readers may not share this sense of humour nor the opinions expressed by the artist. To understand editorial cartoons it is important to understand their effectiveness as a counterweight to power. It is presumed readers approach satire with a broad minded foundation and healthy knowledge of objective facts of the subjects depicted.

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