United States President Joe Biden met his Canadian counterpart Justin Trudeau in the White House on Thursday afternoon and said that the electric vehicle dispute will be included in the executive discussions. The world leaders will also be meeting Mexcian President Lopez Obrador.
“We are going to talk about that. It hasn’t even passed yet in the House”, Biden said when asked about his stance on the differences shared by him and Trudeau. The proposed electric vehicle tax incentives, which are part of Biden’s social services and climate bill, have been causing concern in Ottawa.
The social spending plan, in order to promote the usage of electric vehicles in the United States, offers tax credits worth $7,500 to those who purchase such a vehicle by 2026. The next year, the criteria would be slimmed down to those who purchased electric vehicles made in the United States.
The base credit would go up by $4,500 if the vehicle was made at a United States plant that operates under a union-negotiated collective bargaining agreement, according to reports from Associated Press.
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Canadian government officials, including Deputy Prime Minister Chrystia Freeland, have argued that the initiative stands in violation of a trade agreement between the United States, Canada and Mexico.
In a statement, Freeland said, “Job one here in the US this week is to really make our American counterparts aware of the extent to which their current approach to this issue is a problem for Canada and to really explain to them that the way they have formulated this incentive really, really has the potential to become the dominant issue in our bilateral relationship”, according to reports from Associated Press.
A trilateral meet between Biden, Trudeau and Obrador is also scheduled for Thursday afternoon. The world leaders will also be meeting United States Vice President Kamala Harris at a separate event.