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Canada may have found an unlikely ally in fight against U.S. auto plan – CBC.ca

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This item is part of Watching Washington, a regular dispatch from CBC News correspondents reporting on U.S. politics and developments that affect Canadians. 

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There’s a glimmer of hope for the Canadians who’ve spent months lobbying U.S. politicians to drop an idea they fear could devastate the auto industry north of the border. 

The source of that hope is from West Virginia, where both state senators — one a Democrat, the other a Republican — have made comments suggesting a controversial electric vehicle tax-credit plan in a key American budget bill could be amended or killed.

Sen. Joe Manchin, the Democrat, had a lengthy conversation this week with Canada’s ambassador to Washington, Kirsten Hillman. 

He holds a crucial vote in the Senate that could decide the fate of a $1.75 trillion budget bill that is the most important legislation of Joe Biden’s presidency.

Manchin, a self-styled centrist, has been using his clout for months to water down the bill and has made it clear he won’t vote for it until he’s satisfied. 

Because the Senate is divided 50-50 between the parties, every Democrat must agree to pass the sprawling budget bill — which affects child-care policy, health care, immigration and climate change.

Enter the vehicle tax credit. 

Manchin has now made clear in public comments that he has problems with the current version of the bill’s vehicles plan.

Legislation introduced by Democrats would benefit unionized electric vehicle assembly plants in the U.S., like this Ford plant in Michigan. It would disadvantage non-U.S. assembly, U.S. parts exporters to foreign plants, and non-unionized plants in the U.S. Canada calls the plan illegal under trade law. (Rebecca Cook/Reuters)

It offers hefty tax credits to Americans who purchase electric vehicles, yet over time it would be exclusively reserved for vehicles assembled in the U.S. by union workers.

That’s caused tremors of concern that assembly plants might move out of Canada and Mexico, and also out of places that don’t have union-run plants, especially in the southern U.S.

Manchin happened to be at one such plant on Thursday: a West Virginia facility where Toyota announced a $240 million investment.

In an interview there with Automotive News, Manchin ripped the idea of a credit that discriminated against his own state, and said he expressed that displeasure to the Michigan Democrat who proposed it, Debbie Stabenow. 

He called the plan wrong and un-American.

“When I heard about this, what they were putting in the bill, I went right to the sponsor [Stabenow] and I said, ‘This is wrong. This can’t happen. It’s not who we are as a country. It’s not how we built this country, and the product should speak for itself,'” Manchin was quoted as saying. 

“We shouldn’t use everyone’s tax dollars to pick winners and losers. If you’re a capitalist economy that we are in society, then you let the product speak for itself, and hopefully, we’ll get that, that’ll be corrected.”

When asked by the auto-industry trade publication how Stabenow responded, Manchin replied: “Not good. I respect that, because she’s fighting for her [constituents] and I’m fighting for mine…. Hopefully, we’ll prevail.”

Manchin has not been explicit, either in conversations with Canadian officials or in his public comments on Thursday, about what exact changes he’ll demand.

The reporter who spoke to Manchin on Thursday said the senator never spelled out the extent of the change he’s seeking — and whether he simply wants to scrap the union part of the plan or also the Buy American part, or the entire thing.

Manchin’s office did not respond to a request for additional comment.

But the office of West Virginia’s other senator did reply, and though she’s a Republican, she often appears with Manchin and is aligned on issues with him. 

The office of West Virginia Republican Shelley Moore Capito said she’s been clear about what changes she’ll try to make to the budget bill, pointing to a media release this week that said she planned to force a vote on three aspects of the bill — including one that would eliminate the vehicle credit.

What’s the context

Canadian officials in Washington and Ottawa have been trying for months to get Democrats to relent on this plan.

They fear the $4,500 credit for U.S.-assembled vehicles, which would grow to $12,500 in 2027, would not only steer investment out of Canada but also play havoc with supply chains across the continent and hurt American companies that sell parts to assembly plants in Canada.

Ottawa has said the idea violates international trade agreements, and there’s talk in the auto industry of launching a trade case.

Canadian officials have been lobbying U.S. politicians to either drop the Buy American component — or at the very least amend it to include other North American-assembled vehicles.  

One example of that lobbying was a long phone call on Tuesday between Manchin and Hillman, Canada’s ambassador to the U.S.

But there’s been no evidence the plan might soften. If anything, the Buy American-style provisions have become even more prominent in the budget bill. 

Prime Minister Justin Trudeau plans to press Biden on the vehicles irritant when they meet in Washington next week. (Kevin Lamarque/Reuters)

After Manchin watered down the bill’s other climate components, the electric-vehicle credit survived as arguably its most important climate provision.  

The plan appears in the latest version of the sprawling bill, just published by Democrats in the House of Representatives.

But the Senate — and Manchin — also get a say. 

Whatever he and Democrats in that chamber agree to is likely to shape any final version of the bill that could pass both houses of Congress and become law. 

What’s next

The autos irritant will be on the agenda next week when Prime Minister Justin Trudeau visits Washington.

He plans to press Canada’s case in a Thursday meeting with Biden.

But if developments in recent days are any indication, his most powerful allies on this issue aren’t in the White House; they’re in West Virginia.

And they include that rarest of senators, Manchin — a Democrat elected in a conservative southern state with non-unionized auto workers and right-to-work laws.

And that Democrat just happens to hold the fate of Biden’s legislative agenda in his hands.

It’ll become clear within the coming weeks whether Manchin intends to help Biden get his budget bill passed — and, if so, what he’ll do to the auto plan that has Ottawa so worried.

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Bad traffic, changed plans: Toronto braces for uncertainty of its Taylor Swift Era

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TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?

It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.

Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.

And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.

Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.

Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.

Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.

“Something as simple as getting together and having dinner is now thrown out the window,” he said.

Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.

“Her coming into town has kind of changed up my social life,” he added.

“We’re pretty much just not doing anything.”

Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.

“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.

“We’re a hybrid company, so we can be flexible. It just makes sense.”

Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.

In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.

“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.

Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.

“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.

Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.

Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.

“There may be some who will say we’re over-preparing, and that’s fair,” Green said.

“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”

Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.

A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.

“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.

Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.

“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.

“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”

This report by The Canadian Press was first published Nov. 13, 2024.



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‘It’s literally incredible’: Swifties line up for merch ahead of Toronto concerts

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TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.

Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.

Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.

Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.

Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.

“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”

The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.

Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.

“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.

Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.

The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.

Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.

Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.

But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.

Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.

“It’s literally incredible.”

This report by The Canadian Press was first published Nov. 13, 2024.

The Canadian Press. All rights reserved.



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Via Rail seeks judicial review on CN’s speed restrictions

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OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.

The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.

It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.

CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.

The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.

Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.

This report by The Canadian Press was first published Nov. 13, 2024.

Companies in this story: (TSX:CN)

The Canadian Press. All rights reserved.



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