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Ng 'disappointed' in Biden's Buy American tax credit for auto sector

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Ottawa -

Canada鈥檚 international trade minister Mary Ng says she鈥檚 鈥渄isappointed鈥 with U.S. President Joe Biden鈥檚 newly unveiled budget framework that outlines a Buy American strategy for the auto sector.

In an interview on 麻豆影视 Channel鈥檚 Power Play, Ng said what was released doesn鈥檛 reflect the two countries鈥 integrated supply chains.

鈥淧articularly in automobiles. But I would also say that today is a framework and there is legislative work that will continue and I, along with my colleagues, are going to be working with the Americans and we hope to make sure that in legislation that this will be rectified,鈥 she said.

Biden laid out his Build Back Better framework Thursday, a plan he promises will create millions of jobs, with an electric vehicle tax credit on U.S. manufactured cars.

Ng had warned her U.S. counterparts in a letter obtained by Reuters last week that such a provision could harm the North American auto industry and fall foul of trade agreements.

She said this would raise the risk of severe economic harm and tens of thousands of job losses in one of Canada鈥檚 largest manufacturing sectors, adding that U.S. companies and workers would not be immune from the fallout.

The letter also said that the "proposals are inconsistent with U.S. obligations under the United States Mexico-Canada Agreement (USMCA) and the World Trade Organization."

Conservative MP Michael Chong says the move shows the government doesn鈥檛 have a solid relationship with the Biden administration.

鈥淲e鈥檙e now nine months into these Buy American provisions and there鈥檚 no sign that the Trudeau government is getting anywhere in negotiating to lift these Buy American provisions,鈥 he said on a separate interview on 麻豆影视 Channel鈥檚 Power Play on Thursday.

鈥淭his is very, very concerning.鈥

With a file from Reuters.

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