Canada implementing measures to protect Canadian workers and key economic sectors from unfair Chinese trade practices

Canada’s auto manufacturing industry directly supports over 125,000 good-paying Canadian #jobs, many of which are unionized, and our electric vehicle (EV) supply chain potential is ranked first in the world. Similarly, Canada’s steel and aluminum sectors support over 130,000 jobs across the country.

Canva Photo Stock," Kzenon & Vertigo3d

However, Canadian auto workers and the auto sector face unfair competition from Chinese producers, who benefit from unfair, non-market policies and practices. China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards threaten workers and businesses in the #EV industry worldwide and undermine Canada’s long-term economic prosperity. Recent consultations with stakeholders have confirmed that exceptional measures are required to address this extraordinary threat.

Today in Halifax, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance announced a series of measures to level the playing field for Canadian workers and allow Canada’s EV industry and steel and aluminum producers to compete in domestic, North American, and #global markets.

First, the Government of Canada intends to implement a 100 percent surtax on all Chinese-made EVs, effective October 1, 2024. This includes electric and certain hybrid passenger automobiles, trucks, buses, and delivery vans. This surtax will apply in addition to the Most-Favoured Nation import tariff of 6.1 percent that currently applies to EVs produced in China and imported into Canada.

Second, the federal government intends to apply a 25 percent surtax on imports of steel and aluminum products from China, effective October 15, 2024. This measure aims to protect Canada’s workers from China’s unfair trade policies and to prevent trade diversion resulting from recent actions taken by Canadian trading partners. An initial list of goods is being released today for public comment. The final list of goods subject to the surtaxes will be announced by October 1, 2024, with the surtaxes taking effect on October 15, 2024. The surtaxes will not apply to #Chinese goods in transit to Canada on the day these surtaxes come into force.

Third, the #Government of Canada will launch a second 30-day consultation concerning other sectors critical to Canada’s future prosperity, including batteries and battery parts, semiconductors, solar products, and critical minerals. A consultation notice will be released in the coming days to help inform any further government action.

Fourth, the federal government is announcing its intention to limit eligibility for the Incentives for Zero-Emission #Vehicles (iZEV), the Incentives for Medium and Heavy Duty Zero-Emission Vehicles (iMHZEV), and the Zero Emission Vehicle Infrastructure Program (ZEVIP) to products made in countries that have negotiated free trade agreements with Canada.

The federal government intends to review these measures announced today within one year of their entry into force. Today’s actions may be extended further and supplemented by additional measures as appropriate.

Read more at Article from Canada.ca.

By: Halifax, Nova Scotia - Department of Finance Canada, Canada.ca, August 26, 2024