By David Ljunggren

OTTAWA (Reuters] – Canada is still able to negotiate before the U.S. Senate votes in favor of an electric-vehicle tax credit that American manufacturers would receive, a measure Ottawa strongly opposes. Trade Minister Mary Ng spoke Friday.

Ng spoke by telephone from Washington, after having spent three days lobbying against these measures. He reiterated his belief that Canada would respond “in accordance” with the credit if it were implemented.

Canada worries that credit could undermine its efforts in Ontario to manufacture electric vehicles – Canada’s industrial heartland. This will also threaten the North American automotive industry.

Ng said, “What I discovered is that we have some runway.” He met many senators and union officials.

She said that Senators had told her to “Let’s look at this further. Let me do some more research.” It is unlikely that this problem will be solved in a day. It is going to take a lot of effort.”

Ng stated that some senators didn’t seem to be aware of the fact that the credit proposed violates the United States Mexico-Canada continental trade agreement. According to the White House, this is false.

Legislators will soon consider a $12,500 new tax credit, which would also include $4500 for electric cars made by union-owned U.S. manufacturers.

Ng stated that she has stressed the dangers of the proposed measure and how it would impact hundreds of thousands more Canadian jobs. She said that if the measure is passed, she would respond in kind, but didn’t give specific details.

Both sides have previously imposed sanctions on a broad range of goods in trade disputes between their close neighbours and trading partners.

Prime Minister Justin Trudeau did not convince Joe Biden, the U.S. president to end the credit earlier in this month. The credit is opposed by many other countries.

The economy minister of Mexico said that Mexico was evaluating a variety of legal options in order to respond to tariffs.