How Mexico plans to team up with Canada to combat U.S. auto irritant
CBC
A senior Mexican cabinet member says she's planning a multi-front effort against what she calls the biggest trade irritant in North America right now.
And she's hoping to team up with Canada.
Mexican Economy Secretary Tatiana Clouthier meets virtually today with Canada's Trade Minister Mary Ng as they campaign against a U.S. electric-vehicle tax credit.
Both countries say the U.S. proposal would destroy jobs and break trade agreements, with Clouthier calling it her country's most pressing economic issue with the U.S.
"This is the main issue," Clouthier said in an interview with CBC News.
The plan's protectionist aims, she said, contradicted all the talk of co-operation at the recent North American Leaders' Summit and the spirit of the new NAFTA.
"This is totally the opposite.… All of a sudden you have a switch that we don't understand."
The good news for Canada and Mexico is they appear to have gained time: the U.S. legislation containing that tax credit appears stalled, at least temporarily.
Democrats have failed to pass their Build Back Better bill as hoped for this year because one Democrat, West Virginia's Joe Manchin, insists the plan is too expensive and is demanding major changes.
Opponents can now spend the coming weeks refining their response.
Canada's push has centred on threatening tariffs and the possible suspension of parts of the new North American trade pact.
Mexico is weighing a series of responses, Clouthier said — legal, political, economic, and on unrelated issues.
For starters, she's flying to Washington on Sunday and plans to meet not just with U.S. decision-makers but with members of the Mexican-American community.
If U.S. Democrats make economic moves that hurt Mexico, they risk a backlash from Mexican-American voters, she warned.
