{"id":13147,"date":"2022-12-03T10:21:29","date_gmt":"2022-12-03T10:21:29","guid":{"rendered":"https:\/\/ambassadornews.org\/?p=13147"},"modified":"2022-12-03T10:21:34","modified_gmt":"2022-12-03T10:21:34","slug":"remember-that-electric-vehicle-spat-with-the-u-s-the-europeans-are-still-steaming%ef%bf%bc%ef%bf%bc","status":"publish","type":"post","link":"https:\/\/ambassadornews.org\/en\/remember-that-electric-vehicle-spat-with-the-u-s-the-europeans-are-still-steaming%ef%bf%bc%ef%bf%bc\/","title":{"rendered":"Remember that electric-vehicle spat with the U.S.? The Europeans are still steaming\ufffc\ufffc"},"content":{"rendered":"\n

French president’s visit to Washington highlights tensions at perilous trans-Atlantic moment<\/p>\n\n\n\n

For Canada, it’s the old irritant that cooled off months ago. For Europe, it’s still burning hot and causing sweats in its relations with the U.S<\/p>\n\n\n\n

Remember that electric-vehicle dispute with the U.S<\/p>\n\n\n\n

France sure does. As does the rest of Europe, and Asia. President Emmanuel Macron’s state visit to Washington this week emphasized this big-money brouhaha remains very much alive<\/p>\n\n\n\n

At issue is the unprecedented sums\u00a0Washington has pumped into\u00a0clean-energy production under the new Inflation Reduction Act, lavishing hundreds of billions to turbocharge\u00a0the transition to zero-emissions technology<\/p>\n\n\n\n

Canada and Mexico escaped one of its most worrisome\u00a0provisions: A stipulation that only vehicles assembled in the U.S.\u00a0qualified for certain tax credits<\/p>\n\n\n\n

It caused cross-border palpitations for a few months. Policy-makers to the U.S.’s north and south contemplated the potential wipeout of next-generation manufacturing\u00a0jobs<\/p>\n\n\n\n

We caught a break in\u00a0the final version of the bill. It granted preferential treatment to all North American vehicles\u00a0<\/p>\n\n\n\n

That fortuitous news came\u00a0amid a hot streak for Canadian auto-manufacturing, with billions in new auto-plant investments, and Canada\u00a0zooming\u00a0to No. 2 in Bloomberg’s\u00a0worldwide rankings\u00a0(new window)<\/a>\u00a0for electric battery supply chains<\/p>\n\n\n\n

The last 18 months have been unprecedented. There hasn’t been another stretch like that, even a 10-year stretch like that, in the history of the Canadian auto sector,<\/q>\u00a0said Flavio Volpe, head of Canada’s auto-parts lobby<\/p>\n\n\n\n

A year ago we were faced with the prospect of exclusion from the U.S. market \u2013 from the market that pays our bills.\u2026 It’s a real table flip<\/q><\/p>\n\n\n\n

Canada and Mexico, he said, are the only two jurisdictions inside the U.S. tent<\/p>\n\n\n\n

And countries outside the tent, like France, are steaming<\/p>\n\n\n\n

That’s because only North American-made cars are eligible for the full $7,500 tax credit; U.S. consumers get a smaller refund for buying cars from other countries<\/p>\n\n\n\n

U.S. EV TAX CREDIT CHANGES A RELIEF FOR CANADA\u2019S AUTO SECTOR<\/h3>\n\n\n\n

4 months agoDuration2:06Canadian automakers breathed a sigh of relief after a U.S. climate bill that would have seen consumer tax credits for American-made electric vehicles expanded to include North American-produced EVs, batteries and critical minerals<\/p>\n\n\n\n

Macron to U.S.: ‘Put yourself in my shoes’<\/h2>\n\n\n\n

That frustration was emphasized during Macron’s state visit, the first of Joe Biden’s presidency\u00a0<\/p>\n\n\n\n

In various stops during his visit, Macron called U.S. subsidies\u00a0super aggressive;<\/q>\u00a0he lamented that they could\u00a0destroy<\/q>\u00a0numerous clean-energy jobs in Europe<\/p>\n\n\n\n

He repeated his complaints while meeting with the president, with U.S. lawmakers, and with French citizens in Washington<\/p>\n\n\n\n

Put yourself in my shoes,<\/q>\u00a0Macron said on Capitol Hill.\u00a0Nobody contacted me when the [Inflation Reduction Act] was being discussed<\/q>\u00a0<\/p>\n\n\n\n

He shared a fear with a gathering of French expats: that as America prepares for a long-term rivalry with China\u00a0and frantically re-engineers its trade routes, it might forget old allies<\/p>\n\n\n\n

Let’s not kid ourselves: There’s a risk here,<\/q>\u00a0Macron said, speaking in French<\/p>\n\n\n\n

[That], in a way, Europe, and France, become collateral damage<\/q><\/p>\n\n\n\n

\"Justin
Prime Minister Justin Trudeau expressed alarm about the U.S. electric-vehicle credit, here, during a 2021 trip to Washington. Months later, the policy was softened to the benefit of Canada and Mexico.PHOTO: ASSOCIATED PRESS \/ EVAN VUCCI<\/figcaption><\/figure>\n\n\n\n

Europe has problems, well beyond Washington<\/h2>\n\n\n\n

Those worry lines are etched everywhere<\/p>\n\n\n\n

From the European Union\u00a0surveying\u00a0(new window)<\/a>\u00a0car companies to find out who might be relocating operations to the U.S., to Volkswagen officials\u00a0suggesting\u00a0(new window)<\/a>\u00a0North America is a more attractive investment destination<\/p>\n\n\n\n

U.S. trade policy is just one problem with Europe’s automotive sector. High\u00a0energy\u00a0(new window)<\/a>\u00a0prices in Europe are another. As are\u00a0other\u00a0(new window)<\/a>\u00a0factors, including Brexit, that date back years<\/p>\n\n\n\n

One\u00a0Politico piece from Berlin\u00a0(new window)<\/a>\u00a0suggested European politicians are just looking to use the U.S. as an easy scapegoat<\/p>\n\n\n\n

It’s a particularly fraught moment in trans-Atlantic affairs as the European economy suffers the brunt of the war in Ukraine and officials there say U.S. subsidies are\u00a0weakening\u00a0(new window)<\/a>\u00a0trans-Atlantic unity at this perilous period<\/p>\n\n\n\n

The Europeans are hoping for an amicable resolution through a U.S.-EU\u00a0body\u00a0(new window)<\/a>\u00a0that holds a ministerial meeting in several days<\/p>\n\n\n\n

Their options are limited, though<\/p>\n\n\n\n

\"Joe
Joe Manchin, the West Virginia Democratic senator, is the one who torpedoed the original Build Back Better bill last year. The legislation was reborn months later as the Inflation Reduction Act, with modifications that brought relief to Canadian manufacturing.PHOTO: (ANDREW HARNIK\/AP)<\/figcaption><\/figure>\n\n\n\n

Final details of U.S. rules expected imminently <\/h2>\n\n\n\n

The uncomfortable truth is that taking the complaint to the World Trade Organization is a slow process at the best of times and it’s perhaps downright pointless now; the WTO dispute process\u00a0no longer works properly\u00a0(new window)<\/a><\/p>\n\n\n\n

The U.S. has boycotted the organization’s appellate body after its longstanding complaints about the organization went unresolved<\/p>\n\n\n\n

It’s way too early to assess the international impact of the Inflation Reduction Act, said one prominent auto-industry analyst<\/p>\n\n\n\n

We haven’t even seen the fine-print details for the electric vehicle credit: they’re still being drafted, though they’re supposed to take effect in weeks<\/p>\n\n\n\n

U.S.\u00a0regulators are gathering input\u00a0(new window)<\/a>\u00a0as they draft the regulations. Unsurprisingly, the Europeans are submitting\u00a0alarmed comments\u00a0(new window)<\/a>, casting the vehicle credits as discriminatory and illegal; the\u00a0Canadian government\u00a0(new window)<\/a>\u00a0submission is, equally unsurprisingly, more sanguine<\/p>\n\n\n\n

All the devil in the details is happening right now [with the writing of those regulations],<\/q>\u00a0said Kristin Dziczek, an auto-industry analyst at the U.S. Federal Reserve Bank in Chicago<\/p>\n\n\n\n

We don’t know yet how that plays out<\/q><\/p>\n\n\n\n

Canada worries about some parts of U.S. law <\/h2>\n\n\n\n

She also cautioned that certain parts of the Inflation Reduction Act might also hurt Canada: for example, there’s a\u00a0credit\u00a0(new window)<\/a>\u00a0for companies building\u00a0clean-energy\u00a0(new window)<\/a>\u00a0projects, worth an estimated\u00a0$31 billion\u00a0(new window)<\/a>\u00a0over a decade, and it goes only to U.S. companies<\/p>\n\n\n\n

She said that could be worth thousands per vehicle and pull investments from other countries, including Canada and MexicoThat’s difficult to compete with<\/q><\/p>\n\n\n\n

Acknowledging that potential pressure, Canada has\u00a0just responded with\u00a0(new window)<\/a>\u00a0its own tax credit for manufacturers, worth up to 30 percent<\/p>\n\n\n\n

Some in the auto sector aren’t even certain the consumer credit that attracted so much relief in Canada will actually amount to much, based on their read of the language in the law<\/p>\n\n\n\n

They say it’s possible\u00a0no cars\u00a0(new window)<\/a>\u00a0will benefit from the credit, at least not for now; they say it requires North American battery content that\u00a0simply doesn’t exist yet\u00a0(new window)<\/a><\/p>\n\n\n\n

1ST ALL-CANADIAN ELECTRIC VEHICLE PARTIALLY UNVEILED AT WINDSOR PARTS SHOW<\/h3>\n\n\n\n

1 month agoDuration1:55Automotive Parts Manufacturers\u2019 Association president Flavio Volpe teases the Project Arrow vehicle in Windsor<\/p>\n\n\n\n

Still, Volpe said, there’s a bigger-picture story here<\/p>\n\n\n\n

And that is that car companies are making long-term decisions about where to build electric vehicles and they’ve just been told, in U.S. law, that if they build cars in Canada and Mexico, they will qualify for consumer credits in the colossal U.S. market.<\/p>\n\n\n\n

Companies are in the business of making bets many years in advance. It takes that long to develop a product,<\/q>\u00a0Volpe said<\/p>\n\n\n\n

If you’re going to make a bet, as a carmaker, Volpe said, you’re going to bet that preferential treatment for North American cars will last<\/p>\n\n\n\n

Both he and Dziczek concurred that Canada’s proximity to battery-making minerals worked in its favour: the domestic industry is still in its infancy but the\u00a0Canadian\u00a0(new window)<\/a>\u00a0and\u00a0American\u00a0(new window)<\/a>\u00a0governments are both looking to fund its development<\/p>\n\n\n\n

Volpe said it’s simply easier to build near raw materials. Dziczek, of the Federal Reserve, saidCanada has a natural endowment that should be an advantage<\/q><\/p>\n\n\n\n

CBC News\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

French president’s visit to Washington highlights tensions at perilous trans-Atlantic moment For Canada, it’s the old irritant that cooled off months ago. For Europe, it’s still burning hot and causing sweats in its relations with the U.S Remember that electric-vehicle dispute with the U.S France sure does. As does the rest of Europe, and Asia. […]<\/p>\n","protected":false},"author":9,"featured_media":13148,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"topbottom","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"0","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"1","show_post_related":"0","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"jnews_post_split":{"enable_post_split":"0","post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[47],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"\nRemember that electric-vehicle spat with the U.S.? 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