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Canada’s Trudeau comes up short on U.S. EV tax credits, says will keep pushing

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Canada's Trudeau comes up short on U.S. EV tax credits, says will keep pushing
© Reuters. FILE PHOTO: U.S. President Joe Biden, Canada’s Prime Minister Justin Trudeau, and Mexico’s President Andres Manuel Lopez Obrador meet for the North American Leaders’ Summit (NALS) at the White House in Washington, U.S. November 18, 2021. REUTERS/Jonathan

By Steve Scherer

WASHINGTON (Reuters) -Canadian Prime Minister Justin Trudeau returned to Ottawa on Friday after failing to convince U.S. President Joe Biden to scrap proposed electric-vehicle tax credits that would favor American-based manufacturers, but said he would keep seeking a solution.

Democrats in the U.S. House of Representatives on Friday passed https://www.reuters.com/markets/us/us-house-vote-bidens-175-trillion-bill-after-hours-long-delay-2021-11-19 the $1.75 trillion domestic investment bill that includes the tax credits, sending it to the Senate where negotiations will continue.

Canada fears the credits will undermine its own efforts to produce electric vehicles (EVs) in Ontario – the country’s industrial heartland – where General Motors Co (NYSE:), Ford Motor (NYSE:) Co and Stellantis NV already assemble cars and trucks and plan a pivot to electric.

“The Americans are very aware of Canada’s position on this, and our concerns around it, and quite frankly, the threats it poses to over 50 years of integrated automaking in our two countries,” Trudeau told reporters late on Thursday after meeting Biden at the White House.

“There are a number of ways to look at solving this,” Trudeau said without elaborating, adding that Canada would continue to push to “find solutions”.

Trudeau – who was in Washington to attend the first meeting https://www.reuters.com/world/us-canada-mexico-set-donate-vaccines-unveil-new-methane-curbs-2021-11-18 between the leaders of the United States, Canada and Mexico in five years – also met with Congressional leaders.

On Friday, Brian Nichols, the U.S. Assistant Secretary of State for Western Hemisphere Affairs, kept the door open to a compromise.

“Obviously we have some differences of opinion on these issues,” he said. “But we have a great relationship… and we’re going to work through all the issues that we have.”

The tax credit issue was the first Trudeau brought up in his one-on-one meeting with Biden on Thursday, a government source said, and Canadian Finance Minister Chrystia Freeland on Wednesday warned the tax credits risk becoming the dominant bilateral issue between the two countries.

Canada says they would violate rules of the new North American trade treat, or USMCA (United States-Mexico-Canada Agreement). The White House insisted on Thursday that they do not. Canada has indicated it would respond https://www.reuters.com/business/autos-transportation/exclusive-canada-would-respond-us-tax-credits-american-built-evs-minister-2021-11-04 if the tax credits are passed.

Trudeau said he discussed other contentious issues with Biden, such as his “Buy American” provisions and Michigan’s push to shut down Enbridge (NYSE:) Inc’s Line 5 oil pipeline, but found no solutions.

There was “no definitive win for Canada,” said the Canadian Chamber of Commerce, and the Conservative Party opposition said the failure showed “Canada’s relationship with the United States has declined under Mr. Trudeau”.

Trudeau had a rocky relationship with former President Donald Trump, who once called him “dishonest and weak”, and he was the first world leaders to congratulate Biden after he was declared the winner of the 2020 election.

But Biden https://www.reuters.com/article/canada-usa-trade-idAFL2N2O02V2 canceled an oil pipeline from Canada to the U.S. that Trudeau supported on his first day in office, and Washington has announced plans to double duties on imports of Canadian lumber and requested a dispute panel on Canada’s dairy import quotas.

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Economy

South Korean exports dropped 14% in November, the highest in 2.5 years

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exports South Korea

South Korea’s exports fell 14 percent year-on-year to $51.91 billion in November, preliminary data from the Ministry of Commerce, Industry and Energy showed. The November drop was the biggest in 2.5 years since May 2020 and was caused both by the deteriorating global economy, which even a Google price chart showed, and a truckers’ strike in the country.

South Korea exports 2022 – reasons for the drop

Exports fell for the second month in a row. Analysts on average expected an 11% decline, according to Trading Economics. Respondents to MarketWatch predicted a 10.5% decline.

Shipments of semiconductor products overseas, the country’s top export item, fell 29.8%; petrochemicals fell 26.5% and steel exports fell 10.6%. Meanwhile, exports of automobiles jumped 31% and petroleum products 26%.

Exports to China, South Korea’s largest trading partner, fell by 25.5%, and to Asian countries – by 13.9%. Below, supplies to the USA grew by 8% and to the European Union – by 0.1%.

In January-November exports rose by 7.8% on the same period last year and reached a record $629.1 billion.

South Korean imports rose 2.7% to $59.2 billion in November, marking the 23rd consecutive month of gains, but the current rate of growth is the lowest since November 2020. Experts had predicted an increase of only 0.2%.

South Korea’s trade deficit last month was $7.01 billion, compared with a surplus of $2,973 billion a year earlier.

The negative balance was recorded for the eighth month in a row. As a result, by the end of 2022, the country may record a foreign trade deficit for the first time since the financial crisis in 2008.

Earlier we reported that the UN estimates the cost of humanitarian aid in 2023 at a record $51 billion.

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Economy

The UN estimates humanitarian aid costs in 2023 at a record $51 billion because of an impending humanitarian crisis

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a humanitarian crisis

Joint humanitarian operations will require a record $51.5 billion in 2023 to address urgent problems.

The UN Office for the OCHA estimates that 339 million people will need urgent aid in 2023. At the same time, OCHA called on donor countries to provide funds for assistance in 2023 to the 230 million people most in need, living in 68 countries.

Griffiths explained that aid is needed not only for people experiencing conflicts and disease outbreaks. but also for those suffering the effects of climate change, such as people in peninsular Somalia facing drought and those in Pakistan experiencing severe flooding. For the first time, the growing humanitarian crisis has brought the number of displaced people worldwide to the 100 million mark. Also worsening an already bad situation is the worldwide coronavirus pandemic, which affects the poor. Note that the general economic crisis has begun to negatively affect even the Netflix price chart.

Earlier we reported that house prices in the UK fell by 1.4% in November.

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Economy

Average house prices in the UK fell 1.4% in November

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average house prices in the uk

Average house prices in the UK fell 1.4% in the previous month in November to 263,788 thousand pounds (about $319,000), according to the British mortgage company Nationwide Building Society.

The decline was recorded at the end of the second consecutive month and was the most significant in almost 2.5 years – since June 2020. Analysts on average had forecast a decline of only 0.3%, according to Trading Economics.

Are house prices in the UK going to fall even more?

Residential real estate prices in November compared to the same month last year increased by 4.4%. At the same time, experts expected a larger increase of 5.8%. The growth rate slowed down significantly compared with 7.2% in October. Because of the difficult economic situation, British investors are investing in other instruments. The Microsoft price chart, for example, is showing potential for growth, so many are interested in the U.S. stock market. 

“The market looks set to remain under pressure in the coming quarters. Inflation will remain high for some time, and interest rates are likely to continue to rise,” believes Nationwide Senior Economist Robert Gardner. – The outlook is unclear, and much will depend on how the overall economy behaves, but a relatively soft landing is still possible.”

Earlier we reported that Sanctions Circumvention was included in the EU’s list of criminal offenses.

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