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previous version of the bill presented by President Joe Biden's
administration included tax credits that would have favored
American-based manufacturers, sparking furious Canadian lobbying
in Washington to get it changed.
The bill had been blocked until Wednesday, when Senate Majority
Leader Chuck Schumer and Democratic Senator Joe Manchin reached
agreement on a revamped version that instead foresees tax
credits for "North American" EVs.
"This is good news for Canadian workers, jobs and our
manufacturing industry," Canada's International Trade Minister
Mary Ng said in a statement.
"As the bill moves through Congress, we will continue to
advocate for the importance of maintaining these integrated
supply chains and growing a greener and more prosperous future
for North America," she added.
Canadian Prime Minister Justin Trudeau in November lobbied Biden
directly to scrap the tax credits that benefited only American
manufacturers.
The government feared those tax credits would have undermined
Canada's efforts to produce EVs in Ontario - the country's
industrial heartland - where General Motors Co, Ford Motor Co
and Stellantis NV already assemble cars and trucks and plan a
pivot to electric.
Canada's minister of natural resources last month told Reuters
that Manchin would likely block the passage of tax credits that
favor U.S.-manufactured EVs and are opposed by Ottawa.
"Since the Prime Minister's first meeting with President Biden
last year, we have been relentless in underscoring that the
original proposal would be harmful to both Canada and the U.S.,
so we're glad to see that recognized in the new version of the
bill," Ng said.
(Reporting by Steve SchererEditing by Bernadette Baum)
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