Canada 'committed to remaining competitive' amid U.S. EV subsidies: Ambassador Hillman
Canada鈥檚 ambassador to the United States says the federal government should be watching American investments in electric vehicle manufacturing, but wouldn鈥檛 give specifics on how it plans to compete with the subsidies offered in the Inflation Reduction Act enacted south of the border.
Kirsten Hillman told CTV鈥檚 Question Period host Vassy Kapelos, in an interview airing Sunday, it鈥檚 important Canada remain competitive in the electric vehicle market, an arena in which it already has several advantages, including the workforce, expertise, and critical minerals resources. She said experts are working to ensure Canada is ahead of the curve and encouraging investment in the electric vehicles sector, but she didn鈥檛 specify how.
鈥淚 think we have to be aware of what's happening down here,鈥 Hillman said in the interview from Washington, D.C. 鈥淎nd we have to understand its implications for the Canadian economy.鈥
鈥淥f course responsible policymaking is making sure that we understand what the environment is for Canadians and Canadian investments, and maximizing benefits for us,鈥 Hillman said.
But when pressed, the ambassador didn鈥檛 give specifics on how Canada would counter the United States鈥 Inflation Reduction Act 鈥 passed in August 2022 and aimed at quashing inflation, reducing the deficit, and investing nearly US$400 billion in clean energy 鈥 which offers significant subsidies to electric vehicle battery manufacturers.
鈥淭he Inflation Reduction Act and the investments that it's making in green technology are important, and they are similar to investments that we've been making, issues we've been focusing on, in Canada for a number of years now,鈥 Hillman said.
鈥淭he government has committed to remaining competitive,鈥 she also said, adding Canada saw significant investment specifically in the area of battery technology last year. 鈥淪o we are doing very well in that space, but we can never be complacent.鈥
The ambassador is set to travel to Mexico City this week to attend the North American Leaders鈥 Summit 鈥 the 10th iteration of the trilateral gathering 鈥 despite violence in Mexico following the arrest of one of notorious jailed drug kingpin Joaquin 鈥淓l Chapo鈥 Guzman鈥檚 sons.
Officials from Canada, the United States, and Mexico are expected to discuss, among other topics, climate change and the environment. Electric vehicles are sure to be a talking point.
Before the United States Congress enacted the Inflation Reduction Act in its current form last August, an earlier version targeted the massive subsidies to only American-made electric vehicles and their parts, which worried Canadian manufacturers and could have devastated the Canadian auto industry.
But the legislation was expanded to include vehicles built in Canada and Mexico, not just the U.S., after nearly a year of lobbying by Ottawa and industry.
鈥淚t's important, with our American friends, that we continue to emphasize that we both do better when we're committed to each other's success,鈥 Hillman said, adding of the Inflation Reduction Act: 鈥淲e succeeded in that respect, by getting Canada carved in to the electric vehicle tax subsidy and the electric vehicle battery subsidy.鈥
Meanwhile Deputy Prime Minister and Finance Minister Chrystia Freeland told The Canadian Press in November 2022 that two new federal tax credits for clean technology included in the government鈥檚 fall economic statement are just the "down payment on the work that lies ahead to respond to the Inflation Reduction Act."
Any more significant response or countering of the American legislation will have to wait until this spring, when Freeland is set to table the next federal budget.
鈥淚 think what's important is not necessarily doing exactly what the Americans do, they have their own domestic environment, and they have their own ways in which they are attracting investment, their own value proposition and we have ours,鈥 Hillman said. 鈥淲e have been investing in this space for a long time and we have an ecosystem that is already healthy in this space, the U.S. less so.鈥
She added the Canadian market will benefit from American growth in the electric vehicle market because of the nature of the trade relationship between the two countries.
鈥淪o yes, [the U.S.] is a big country with a lot of money to invest and they are doing that,鈥 she said. 鈥淭hat's a good thing for the environment.鈥
Correction
This story was updated to clarify that聽Finance Minister Chrystia Freeland will not be attending the Leaders' Summit in Mexico.
IN DEPTH
Jagmeet Singh pulls NDP out of deal with Trudeau Liberals, takes aim at Poilievre Conservatives
NDP Leader Jagmeet Singh has pulled his party out of the supply-and-confidence agreement that had been helping keep Prime Minister Justin Trudeau's minority Liberals in power.
'Not the result we wanted': Trudeau responds after surprise Conservative byelection win in Liberal stronghold
Conservative candidate Don Stewart winning the closely-watched Toronto-St. Paul's federal byelection, and delivering a stunning upset to Justin Trudeau's candidate Leslie Church in the long-time Liberal riding, has sent political shockwaves through both parties.
'We will go with the majority': Liberals slammed by opposition over proposal to delay next election
The federal Liberal government learned Friday it might have to retreat on a proposal within its electoral reform legislation to delay the next vote by one week, after all opposition parties came out to say they can't support it.
Budget 2024 prioritizes housing while taxing highest earners, deficit projected at $39.8B
In an effort to level the playing field for young people, in the 2024 federal budget, the government is targeting Canada's highest earners with new taxes in order to help offset billions in new spending to enhance the country's housing supply and social supports.
'One of the greatest': Former prime minister Brian Mulroney commemorated at state funeral
Prominent Canadians, political leaders, and family members remembered former prime minister and Progressive Conservative titan Brian Mulroney as an ambitious and compassionate nation-builder at his state funeral on Saturday.
Opinion
opinion Don Martin: Gusher of Liberal spending won't put out the fire in this dumpster
A Hail Mary rehash of the greatest hits from the Trudeau government鈥檚 three-week travelling pony-show, the 2024 federal budget takes aim at reversing the party鈥檚 popularity plunge in the under-40 set, writes political columnist Don Martin. But will it work before the next election?
opinion Don Martin: The doctor Trudeau dumped has a prescription for better health care
Political columnist Don Martin sat down with former federal health minister Jane Philpott, who's on a crusade to help fix Canada's broken health care system, and who declined to take any shots at the prime minister who dumped her from caucus.
opinion Don Martin: Trudeau's seeking shelter from the housing storm he helped create
While Justin Trudeau's recent housing announcements are generally drawing praise from experts, political columnist Don Martin argues there shouldn鈥檛 be any standing ovations for a prime minister who helped caused the problem in the first place.
opinion Don Martin: Poilievre has the field to himself as he races across the country to big crowds
It came to pass on Thursday evening that the confidentially predictable failure of the Official Opposition non-confidence motion went down with 204 Liberal, BQ and NDP nays to 116 Conservative yeas. But forcing Canada into a federal election campaign was never the point.
opinion Don Martin: How a beer break may have doomed the carbon tax hike
When the Liberal government chopped a planned beer excise tax hike to two per cent from 4.5 per cent and froze future increases until after the next election, says political columnist Don Martin, it almost guaranteed a similar carbon tax move in the offing.
CTVNews.ca Top Stories
Canadians across the country mark Remembrance Day
Today Canadians will remember and honour the sacrifice of men and women in uniform who gave their lives in service of the country's values and principles.
Trump announces Tom Homan, former director of immigration enforcement, will serve as 'border czar'
U.S. President-elect Donald Trump says that Tom Homan, his former acting U.S. Immigration and Customs Enforcement director, will serve as "border czar" in his incoming administration.
Why brain aging can vary dramatically between people
Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.
'I was called;' Murray Sinclair's life and legacy honoured at emotional memorial
Applause erupted over and over at the Canada Life Centre in Winnipeg Sunday as the son of Murray Sinclair, a former judge, senator and chair of the Truth and Reconciliation Commission into residential schools, spoke about his father.
The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.
Children's book by chef Jamie Oliver withdrawn after criticism from Indigenous Australians
A children's book written by British celebrity chef Jamie Oliver has been withdrawn from sale after it was criticized for causing offense to Indigenous Australians.
A man who was critically injured in a police-involved shooting in Hamilton late Sunday afternoon has died in hospital, says the province鈥檚 police watchdog.
opinion How to transition from renting to owning a home in Canada
In his column for CTVNews.ca, personal finance contributor Christopher Liew offers a step-by-step guide on how to make the shift from renting to becoming a homeowner, and what you can start doing today to help the process go smoother.
Trump on Day 1: Begin deportation push, pardon Jan. 6 rioters and make his criminal cases vanish
Donald Trump has said he wouldn't be a dictator 鈥 'except for Day 1.' According to his own statements, he's got a lot to do on that first day in the White House.
Local Spotlight
Should Toronto tear up its bike lanes to improve traffic flow? Critics say it's not so simple
A congestion crisis, a traffic nightmare, or unrelenting gridlock -- whatever you call it, most agree that Toronto has a congestion problem. To alleviate some of the gridlock, the Ontario government has announced it plans to remove bike lanes from three major roadways.
For the second year in a row, the 鈥楪ift-a-Family鈥 campaign is hoping to make the holidays happier for children and families in need throughout Barrie.
Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.
A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.
As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.
A group of women in Chester, N.S., has been busy on the weekends making quilts 鈥 not for themselves, but for those in need.
A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.
Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.
A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.