Canadian-based automotive manufacturers can take a deep breath after a revision to a previous U.S. bill.
Unifor welcomes a revised United States Senate proposal that aims to expand tax credits to Canadian-built electric vehicles.
The previous bill, called 'Build Back Better', from United States President Joe Biden's administration included tax credits that would have favoured American-based manufacturers.
In November 2021, Canadian Prime Minister Justin Trudeau spoke to Biden directly to scrap the tax credits that benefited only American manufacturers.
Announced on Thursday, U-S Democrats Senator Chuck Schumer, and Senator Joe Manchin unveiled that there will be no more Buy American tax credits for electric vehicles.
With thousands of Canadian autoworkers gearing up to build electric vehicles, including new EV battery plants coming to the Windsor-Essex region, expanding eligibility of U.S. consumer credits to electric vehicles built across North America will ease uncertainties that Canadian factories are facing.
Speaking on AM800's The Shift, Flavio Volpe, Chief of APMA Canada, says he's pleased with the revision.
He says Canada makes 2 million vehicles a year, and Canada purchases 2 million vehicles a year, but a large percentage of those vehicles are sold across the border.
"85 percent of those vehicles are sold in the U.S. The vehicles we buy are from other places, that the most important market for our manufacturers, Stellantis, for Ford down in Windsor and all the suppliers, the future for this Stellantis LG joint venture, is in the U.S. market."
He says what was written in the 'Build Back Better' bill last year.
"Inside it has this new EV tax credit that said, 'American consumers can access up to $12,500 for the purchase of a new EV, as long as it was made in the U.S. and in the union shop."
He adds that this is a huge win for Canada and Mexico, but hopes other regions of the world will continue to fight for the same thing.
"It's a good one for us. If you're a Japanese importer, Korean importer, a European importer into the U.S. market, you still haven't been addressed. I imagine that they'll continue to fight Washington on this and they'll site their own trade agreements, and WTO, and try to get the same result that Canada and Mexico did."
The legislation is still a long way from passing.
The bill is expected to reach the Senate floor by next week, and will still need another 60 votes.