In arguably biggest test of new NAFTA, Canada and Mexico defeat U.S. in auto rules dispute | Canada News Media
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In arguably biggest test of new NAFTA, Canada and Mexico defeat U.S. in auto rules dispute

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2 years ago

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Canada, Mexico and auto companies have been declared the winners in arguably the most important trade dispute under the new NAFTA, landing the U.S. on the losing side in a case about calculating the origin of auto parts.

The long-expected decision was known for weeks to the parties involved, yet it was withheld from public release until after North American leaders appeared together at a summit this week in Mexico.

It involves small print with big consequences for the industry at the heart of the continental trade agreement: Automobiles.

At its core, the dispute was about how hard to push car companies to use parts from North America, at a time when countries are seeking to pry back manufacturing jobs.

The specific case involved two conflicting methodologies for calculating the origins of a car’s parts: One stricter, one easier.

Americans took a hard line. The U.S. wanted the toughest interpretation of the rules, which would force cars to include more North American parts to avoid a tariff.

Mexico fired off a suit against the U.S., calling its method damaging, costly to companies and counterproductive to the continent’s car industry.

Canada joined the suit. Car companies eagerly supported the suit. And the complainants ultimately won.

Mexico argued automakers don’t need to be brow-beaten when they’re already investing massively in the North American sector, like at this GM plant in Ingersoll, Ont. Critics also suggested the stricter U.S. rules would actually do more harm than good. (Carlos Osorio/Reuters)

Canada, Mexico and the auto industry are now celebrating the ruling from a five-member international panel.

In a decision declared Dec. 14, but only released Wednesday, the panel said that the United States breached the new Canada-U.S.-Mexico agreement (CUSMA) when it tried imposing new rules.

The ruling pointed to a piece of evidence submitted by Canada: an email sent by a U.S. official that supported the complainants’ claim that all three countries originally understood they were agreeing to the simpler formula.

“Today’s decision is a good decision for the industry,” International Trade Minister Mary Ng told reporters in Mexico City. “It’s what we negotiated.… Clarity in the rules — it’s what today’s decision provides.”

It’s the second win for Canada under the new trade agreement; Canada also won a case on solar panels, though it was the main loser in a dairy dispute with the U.S.

The verdict comes as little surprise. The countries have been aware of it for weeks and, while it was still officially confidential, a Mexican cabinet minister blurted it out to a newspaper there late last year.

The trade community is now awaiting U.S. reaction, with its eagerly anticipated response being seen as an early litmus test of the reliability of the CUSMA dispute system.

Early reaction was vague from the Office of the U.S. Trade Representative (USTR): It did not spell out its next move, but called the decision disappointing.

“[This] could result in less North American content in automobiles, less investment across the region and fewer American jobs,” said the U.S. statement.

“We are reviewing the report and considering next steps. We will engage Mexico and Canada on a possible resolution.”

Background of the case

The dispute stemmed from the aftermath of the new NAFTA, originally reached in 2018 under the Trump administration.

The new trade pact requires more parts from North America to avoid a tariff, part of Trump’s protectionist push for more domestic manufacturing.

Yet the U.S. stunned its partners and the car companies after the deal was already signed: It insisted upon an unexpectedly strict interpretation of the terms.

Imagine a car part qualifies as North American because 85 per cent of its sub-components come from this continent. Under the pact, that part faces no tariff.

But then there’s a subsequent, bigger calculation for the entire car: Does the vehicle, as a whole, have enough North American content to avoid a tariff?

Donald Trump’s trade czar, Robert Lighthizer, seen here in 2020, made it his mission to reshore U.S. manufacturing jobs. It was his main goal in negotiating the new NAFTA. But other countries say the U.S. pulled a fast one, after the deal was already signed. (Anna Moneymaker/Reuters)

In making that calculation, when adding up parts of the car, how much does that smaller piece counts toward the car’s total amount of North American content?

The U.S. argued it should be 85 per cent. Others insisted on the so-called roll-up method: if that piece is deemed North American, then it should count fully as 100 per cent North American.

They say they were caught off-guard when, long after the deal was signed, the U.S. suddenly insisted on its tougher formula.

Mexico’s suit complained that this was not part of the agreement and represented an absurdly complicated regulatory burden.

It said car companies don’t need to be brow-beaten into building cars here when they’ve already invested massively in recent years in new North American production: “This development is particularly nonsensical [now].”

Canada: U.S. was trying to sneak in changes

Canada’s submission includes correspondence as evidence that the parties were stunned when the U.S. presented this new formula in 2020, after the pact had already taken effect.

“This reinterpretation came as a surprise to Canada, Mexico and the entire automotive industry,” said the Canadian submission.

The Canadian submission also implies the Americans may have been sneakily, belatedly, trying to tilt the deal in their favour. It argues that making trade more complicated benefits manufacturing in the country with the largest domestic market.

The U.S. response to this case is likely to be seen as an early test of the dispute-resolution system under CUSMA. (Kevin Lamarque/Reuters)

If it becomes more difficult to ship across borders, the Canadian suit argues, that’s an incentive for companies to simply produce in the market with the most customers: in this case, the U.S.

The Americans argued that their formula would help North America’s workers versus those overseas.

The U.S. submission said the stricter formula would result in significantly more North American content per car — anywhere between eight and 33 per cent.

It said the other countries’ looser formula means billions of dollars in lost manufacturing opportunities each year on this continent.

Group blasts Canada, Mexico case as anti-worker

One American-based group that promotes domestic manufacturing expressed frustration that Mexico and Canada launched this case.

Charles Benoit, a Canadian-born trade lawyer with the group Coalition for a Prosperous America, said those two countries sided with multinational companies over workers here.

“It’s disappointing,” Benoit said. “Mexico and Canada’s trade ministries didn’t stop to think about their own supply-chain producers and workers before bringing this case on behalf of global automakers.”

He voiced concern that this means more imports from abroad, including from China, undermining efforts to revive manufacturing.

But it’s complicated.

Industry players warn that making compliance more expensive holds unwanted negative consequences. They say more onerous rules would just force car companies to produce offshore to remain cost-competitive.

At some point, manufacturers would conclude it’s cheaper to bring parts from overseas and pay the tariff, said Flavio Volpe, head of AMPA, Canada’s auto-parts lobby group.

Auto industry: U.S. demands would have driven industry away

The tariff rate for cars is 2.5 per cent in the U.S. and 6.1 per cent in Canada.

The new pact is already a massive win for this continent’s parts manufacturers, said Volpe, as evidenced by the investment spree now happening in North American plants.

The U.S.-imposed requirements could have undermined this, he said, noting the panel’s verdict is good for North America.

“It’s a win for the automotive parts sector in all three countries. And also provides a win for stability in the new USMCA,” Volpe said.

“Instead of saying, ‘Hey, two years into the USMCA, we have the U.S. reinterpreting it and changing the deal.'”

 

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Here is how to prepare your online accounts for when you die

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October 24, 2024

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Police suggest speed a factor in fiery EV crash that killed four in downtown Toronto

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October 24, 2024

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TORONTO – Speed was considered a factor in a fiery overnight crash in downtown Toronto that killed four people and injured one woman, officials said Thursday, underlining the challenges firefighters face when batting electric-vehicle battery fires.

The Tesla car was travelling at a “high rate of speed” when it lost control, slammed into a guard rail and then caught fire along Lake Shore Boulevard east of Cherry Street shortly after midnight, Toronto police Deputy Insp. Phillip Sinclair said Thursday.

“There is some evidence to suggest that speed was a factor,” he said.

Sinclair described the crash as “heartbreaking.” All four people who were killed — three men and one woman — were in their 20s and 30s, he said.

The surviving woman was pulled from the car by a motorist who stopped to help, he said. The woman, in her 20s, was sent to hospital with non-life-threatening injuries.

“Thanks very much to that bystander. We have been speaking to them, and obviously they are also deeply affected by this incident — a very horrific scene for that bystander to step in,” Sinclair told a press conference Thursday morning.

Toronto’s deputy fire chief said the crash underlined the challenge firefighters can face when trying to put out electric-vehicle battery fires.

“The intensity of the fire is directly linked to the battery cells in the Tesla,” said Jim Jessop, speaking alongside Sinclair.

“But I want to be very clear: we have all attended collisions where we’ve had horrible car fires as well that are gasoline powered.”

One of the major risks in electric-vehicle fires, he said, is when the battery gets into an uncontrollable self-heating chain reaction, or what’s called thermal runaway. The battery can sometimes reignite up to weeks later, he said.

Firefighters at the scene put the car’s battery cell in a dumpster and filled it with sand, then moved it from the scene for safe disposal, he said.

“We don’t want to speculate on the intensity of the fire until the investigation is complete, but certainly it did cause extra care and concern in transporting the vehicle and the battery cell that had been ejected (from the vehicle),” Jessop said.

Talk of battery fire risks comes as the city’s transit agency considers a possible ban on e-bikes and e-scooters from its vehicles. A staff report going before the Toronto Transit Commission’s board says the risks are particularly associated with lithium-ion batteries in uncertified or misused devices.

Research findings from EV FireSafe, a group backed by the Australian government, suggest electric-vehicle battery fires are uncommon and happen less often than gas-powered vehicle fires.

Jessop said Toronto Fire is being “very proactive” in preparing for a future where lithium-ion batteries, the type found in everything from cellphones to cars, are even more common.

He said the service has a working group to help inform its response to public messaging about battery fires and tactics for safe disposal by firefighters.

“It’s something that you know we’re going to have to deal with and continue to deal with as this technology expands … and it’s something that, you know, we’re going to continue to work on,” he said.

Lake Shore Boulevard, the major arterial road along the city’s waterfront, was closed in both directions between the Don Valley parkway and Cherry Street for several hours ahead of the morning rush hour. One lane reopened in each direction later in the morning.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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Parents charged after police say malnourished, abused baby taken to Winnipeg hospital

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October 24, 2024

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WINNIPEG – Police in Winnipeg say they have charged the parents of an infant who was brought to hospital with suspicious injuries.

Police were called in late September when a man and a woman arrived at the emergency room with a baby girl who was unresponsive and had multiple injuries.

The child abuse unit investigated and found the injuries were the result of malnutrition and abuse.

The girl’s parents were arrested on Tuesday and are in custody.

Both are charged with failing to provide the necessities of life.

The father also faces a charge of aggravated assault.

This report by The Canadian Press was first published Oct. 24, 2024.

The Canadian Press. All rights reserved.

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