(Washington) Canadian International Trade Minister Mary Ng has spoken with the United States Ambassador to Ottawa, who this week accused Canada of “making a big deal” out of tax credits offered to US electric vehicle buyers.
David Cohen made the comments on Wednesday during a speech at the Canada Institute at the Wilson Center in Washington, which was aimed at dispelling concerns in Canada that the policies of the Joe Biden administration were rooted in protectionist breeding grounds.
Shanti Cosentino, spokesperson for Canada’s Minister of International Trade, said Ms.me Ng had discussed his comments with Mr. Cohen, but did not provide further details.
She simply indicated that the minister had reiterated Canada’s commitment to work with the United States to strengthen North American competitiveness.
PHOTO DAVID KAWAI, THE CANADIAN PRESS ARCHIVES
United States Ambassador to Ottawa David Cohen
Cohen’s comments came after his speech during a question-and-answer session with Canada Institute director Chris Sands.
He was pushing back against the perception in Canada that initiatives in U.S. legislation like those on infrastructure and the Biden administration’s inflation reduction are too focused on U.S. suppliers.
Mr. Cohen arrived in Ottawa in December 2021, at the height of criticism in Canada over President Biden’s plan to offer tax credits for the purchase of electric vehicles. This tax incentive at the time was intended only for purchasers of vehicles built in the United States by unionized workers.
Industry stakeholders and the federal government in Ottawa have called the policy an “existential threat” to a Canadian auto sector that has worked hand-in-hand with its American counterpart for more than half a century.
“Canada, using a technical term, made a big deal out of it,” Cohen said, adding that he recommended a more nuanced and “less jazzy” argument that ultimately won out and led to integrate Canadian vehicles into the plan.
“All of this is just evidence that there is no intention here to harm Canada,” said Cohen. The intention here is to build a resilient, strong and prosperous North American economy. »
That was, in short, the stated purpose of Mr. Cohen’s intervention, and he is not alone in doing so lately.
A “new consensus”
In a speech last week at the Brookings Institution, White House National Security Adviser Jake Sullivan laid out a vision for foreign and economic policy clearly aimed at allaying the concerns of allies everywhere. in the world.
He cited a long list of events that have shaken the world in recent years, from the evolution of the global economy, which has failed middle-class workers, to the financial crisis , which has shattered any sense of economic security, climate change, the COVID-19 pandemic or Russia’s year-long invasion of Ukraine.
“This moment demands that we forge a new consensus,” Sullivan said, a consensus based on diverse and resilient supply chains, strong labor and environmental standards, and capital-backed public services.
“The idea that a ‘New Washington Consensus,’ as some have called it, is somehow America alone, or America and the West to the exclusion of others, is simply wrong” , argued Mr. Sullivan.
“This strategy will build a fairer and more sustainable global economic order for us and for people around the world. »
He acknowledged that the sheer scale of spending in the Cut Inflation Act, which contains the revised North American electric vehicle tax credit measures, has been a “source of friction” with other countries, especially in Europe.
He mentioned Joe Biden’s visit to Canada, which spawned a new task force on critical minerals, as well as discussions with European Commission President Ursula von der Leyen on building industrial capacity for the ongoing energy transition.
“We are leveraging the Cut Inflation Act to build a clean energy manufacturing ecosystem rooted in supply chains here in North America and expanding to Europe, Japan and beyond” , said Mr. Sullivan.
Growing tensions with China
According to Emily Benson, an expert on transatlantic trade and technology at the Center for Strategic and International Studies in Washington, the reason this discourse is only being spoken now comes down to two things: electoral politics and interstate relations. United and China.
Domestically, Joe Biden has confirmed his intention to seek re-election, and prevailing political winds currently suggest he could face the “America First” approach of his former rival, Donald Trump.
The most complex common thread concerns the growing tensions with China.
Concern turned to alarm in February after the United States shot down a Chinese spy balloon that had drifted in Canadian and American airspace. Defense Secretary Lloyd Austin could not reach his Chinese counterpart by phone.
And just this week, officials in Manila last month reported aggressive Chinese behavior in the South China Sea, including by a Chinese warship that nearly collided with a Philippine Coast Guard patrol.
“That sums up the evolution of the relationship, and the Chinese are not really willing to set up a hotline with the Americans,” Mr.me Benson.
She pointed to another high-profile political speech delivered last month, that of US Treasury Secretary Janet Yellen, who adopted a nuanced tone.
“The president and I believe that China and the United States can manage our economic relationship responsibly,” Mr.me Yellen in a speech at the Johns Hopkins School of Advanced International Studies.
“We can work toward a future in which both countries share and drive global economic progress. Achieving this vision largely depends on what the two countries do over the next few years,” she added.
Speeches by Mr. Sullivan and Mr.me Yellen “were meant to say, ‘We’re trying to bring the temperature down, we’re rethinking things, we have a new vision for the world order,'” Ms.me Benson.
“If you look inward, this speaks to the electorate for the cycle ahead. And if we look outwards, it is really oriented towards the search for an encounter with the Chinese. »