Leaders of the United States, Canada and Mexico will meet for the first time in five years on Thursday to promote economic integration, but tensions over the auto industry, ‘Buy American’ policies and a Mexican energy bill could weigh on talks.
President Joe Biden has revived the so-called Three Amigos summit – to be held at the White House on Thursday afternoon for the first time since 2016, after it was ditched by former President Donald Trump. Bilateral meetings will be held earlier in the day.
The meeting aims to further joint economic cooperation, but both Canada and Mexico are worried about Biden’s ‘Buy American’ provisions and a proposed electric vehicle tax credit that would favor unionized, U.S.-based manufacturers.
The United States is Mexico’s and Canada’s top trade partner, and cars and trucks are the most-traded manufactured commodity between the three, said Colin Robertson, an ex-Canadian diplomat, now at the Canadian Global Affairs Institute think tank.
“The North American automotive industry is deeply integrated and competing as a bloc in the manufacture of a world-class e-vehicle and battery industry makes good economic sense for all three countries,” Robertson said.
Both Canada and Mexico want a level playing field as they compete to lure companies to set up plants for the EV supply chain.
But Biden’s social spending and climate bill being considered in Congress includes up to $12,500 in tax credits for U.S.-made EVs, including a $4,500 credit for union-made vehicles.
Canada’s Prime Minister Justin Trudeau told an audience of mostly university students in Washington on Wednesday that he was “concerned” about the proposed tax credits “that could have a real negative impact,” saying he would bring them up in meetings with Congressional leaders in the afternoon.
Mexican Economy Minister Tatiana Clouthier this week chided the United States for closing itself off, saying protectionist policies could aggravate problems with mass migration.
In the trilateral meeting, the White House has said it is aiming to create a “regional vision for migration.”
Other subjects to be discussed include fighting COVID-19 and climate change together.
However, the bilateral meetings are likely to be where more pointed discussions are held.
Besides EV tax credits, Trudeau is likely to bring up Enbridge Inc’s Line 5 pipeline, which the state of Michigan wants to close on environmental grounds.
For Mexican President Andres Manuel Lopez Obrador, the meeting could be where Biden addresses Mexico’s contentious bill to change electricity market rules to give Mexico’s state-owned power company priority over private investment.
Lopez Obrador said on Wednesday he would explain the plan to Biden and Trudeau if it came up.
“It’s very simple,” he told a news conference. “We want to keep electricity prices from increasing, and to end abuses by private companies, especially foreign companies.”
Lopez Obrador argues past governments rigged the market in favor of private interests.
But the legislation has drawn fire from the U.S. government and business groups, which are concerned it may not be compliant with Mexico’s North American trade obligations.
Federico Peña, a former U.S. energy secretary, told Reuters that he hoped Mexico would try to iron out its differences lest it create a precedent that sullied its reputation.
“For Mexico to still be respected as a country for investment, it has to be very mindful about changing contracts radically to the detriment of companies that relied on the good faith of negotiations of the previous administration,” he said.
(Reporting by Steve Scherer in Ottawa, Dave Graham in Mexico City and Jarrett Renshaw in Washington, writing by Steve Scherer; editing by Richard Pullin and Rosalba O’Brien)
Russia criticises U.S. over threat of escalation with Iran at IAEA
Russia on Friday chided the United States for threatening a diplomatic escalation with Iran at the U.N. nuclear watchdog next month unless it improves cooperation with the agency, saying it risked harming wider talks on the Iran nuclear deal.
The United States threatened on Thursday to confront Iran at the International Atomic Energy Agency if it does not give way on at least one of several conflicts with the IAEA, especially its refusal to let the IAEA re-install cameras at a workshop after an apparent attack in June.
“I believe that demonstrates that our American counterparts lose patience but I believe all of us need to control our emotions,” Russia’s ambassador to the IAEA Mikhail Ulyanov told a news conference with his Chinese counterpart.
“I don’t welcome this particular statement of the U.S. delegation (at the IAEA). It’s not helpful.”
Indirect talks between the United States and Iran aimed at reviving the battered 2015 nuclear deal between Tehran and major powers are due to resume on Monday after a five-month break that started after the election that brought Iranian hardline President Ebrahim Raisi to power.
The 2015 deal lifted sanctions against Iran in exchange for restrictions on its nuclear activities. Then-President Donald Trump pulled Washington out of the agreement in 2018 and re-imposed sanctions against Tehran.
Iran responded by breaching many of the restrictions, reducing the time it would need to obtain enough fissile material for a nuclear bomb if it wanted to. Tehran denies that it would ever seek atomic weapons.
“The U.S. did not negotiate with the Iranians for a very long time and forgot that Iranians don’t do anything under pressure. If they are under pressure, they resist,” Ulyanov said, apparently referring to the fact that U.S. and Iranian envoys are not meeting directly.
(Reporting by Francois Murphy, Editing by William Maclean)
Extremist Politics Threatens Chile's Economic Miracle – Bloomberg
Chile has for decades been Latin America’s most stable nation and one of its most prosperous. Its pro-business outlook has drawn foreign direct investment and fueled economic growth, and its record in reducing poverty has been impressive. Much of that is now thrown into question. After the recent first round of elections, the two front-runners for the presidency are extremists — an ultraconservative who seems nostalgic for the dictatorial rule of Augusto Pinochet, and a leftist who promises not merely to reform but to dismantle Chile’s economic model. It’s hard to say which of these agendas might prove more toxic.
The candidate of the far right, José Antonio Kast, emerged with a narrow lead heading into the runoff vote on Dec. 19. His platform is thin on economics and heavy on social conservatism and authoritarian messaging. His counterpart on the left, Gabriel Boric, promises radical change to combat inequality, rein in capitalism and dethrone market forces. “If Chile was the birthplace of neoliberalism,” he explains, “it will also be its grave.”
Now, more than ever, the N.W.T. government needs party politics – CBC.ca
In 2019 near the end of my term as an MLA, I proposed implementing a caucus system that, among other things, would allow for political discipline of MLAs. At the time MLAs rejected any changes that would limit their jealously-guarded independence. What they failed to recognize was that this proposal was not about imposing discipline, rather it was about enabling politicians to effectively discipline MLAs when required.
The Norn affair and the pronounced lack of any real accountability in the legislature over the government’s failings are the consequences of being governed by a gang of loosely aligned political independents who lack common vision and leadership.
This point was made by MLA Rylund Johnson who said, “In party systems, the party whip would probably make sure this never happens. Party caucuses would kick members out and make them irrelevant …Those aren’t tools that we have in consensus government.”
The consensus system is based on little more than good intentions and is powerless to address its own failings, with MLAs routinely using their constituents as a convenient smoke screen for their own bad behaviour.
Sound familiar? It should, it happens all the time with the recent example of Steve Norn being the most spectacular failure of political will to date in the 19th Assembly.
Norn’s sustained attacks on his colleagues and the legislature were left virtually unchecked by MLAs, who stood by silently. Public confidence in elected officials has been shaken to the point that two former premiers have taken the extraordinary step of publicly criticizing sitting MLAs. Scandal and policy failures have become the chief commodity of the Legislative Assembly and Caroline Cochrane’s government.
While other provinces acted swiftly with new spending and policies to bolster their economies and attract new health-care workers, the Cochrane government has wrung its hands, paralyzed by bureaucratic inertia. We have watched in real time as our health-care system has buckled and broken under the strain of the pandemic, with no plan yet released for economic recovery after months and months of delay. And despite the outcry from Northerners for their government to act, the “unofficial opposition” of regular MLAs is absent, or at least silent, unable to muster the courage and unify to demand better government from the cabinet.
In the Northwest Territories the people have a choice in who gets to take power but not in how that power is used, nor can they hold the powerful accountable during elections. MLAs appoint the premier and cabinet, who are solely accountable to each other. This means that voters have no say over who forms government or what that government does for its four-year term and cannot hold that government accountable for its decisions. This leaves accountability in the hands of an undisciplined committee of regular MLAs who lack resources, staff, and experience to provide alternatives to cabinet policies. Public policy development and implementation are the sole domain of unelected bureaucrats in the government’s senior management.
Despite the constant mythologizing of consensus government as a superior form of government, founded in the traditions of Indigenous Peoples, the fact is none of the N.W.T.’s self-governing Indigenous nations use consensus systems, nor did Indigenous people design the system when it was first implemented decades ago. That honour falls to federal bureaucrats when they devolved responsible government to our young territory. Despite their frustration, Northerners continue to consent to an undemocratic democracy where their electoral choices have been reduced to little more than an overblown hiring competition.
A culture of silence has taken root in the N.W.T.’s democratic discourse. The fear of reprisal from those in power forces many to whisper in the back of coffee shops and speak anonymously to reporters, when they ought to be able to freely express their own views and see those views transformed into political action.
There was a time that the consensus system served Northerners well. But that time has passed, made clear by persistent scandal and public policy implosions that have not stopped since the last election. We’ve seen devolution create a modern N.W.T. granted nearly full responsibility over its land and resources. It is now time for evolution to transform our political system into a modern multi-party democracy that can provide unity and real action on the most pressing issues.
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