On July 2, 2024, Canada launched a 30-day consultation on potential policy responses to protect Canada’s auto workers and its growing EV industry from unfair trade practices, and prevent trade diversion resulting from recent action taken by Canadian trading partners.
The Canadian Tooling & Machining Association (CTMA) has put a great deal of effort working with the APMA to submit a proposal to the Department of Finance—International Trade Policy Division—EV Consultation, which is something that the government has called for.
“We are hoping that this proposal gets us in the door to meet in-person, for it is not only Chinese EVs we should be worrying about, but the amount of low-priced, subsidized tooling components and full builds that flow from China,” said Robert Cattle, CTMA’s executive director.
CTMA member companies currently face unfair competition from China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards. Chinese producers are generating a global oversupply that will erode the profit incentives of EV producers around the world, including in Canada.
“This is a huge problem that has been decades in the making and our Federal Government seems to have no idea about how dire this issue is to our members and the Canadian tooling industry as a whole,” said Cattle.
Additionally, Robert Cattle and CTMA’s president, Louis Jahn, met with federal and provincial government officials on July 31st.
“We are taking them to three locations in Oldcastle where they can see firsthand the effects that Chinese components and tooling is having on our industry,” said Cattle.
The consultations will seek views on potential policy responses, including a surtax under section 53 of the Customs Tariff, and possible additional measures such as adjustments to the federal Incentives for Zero-Emission Vehicles (iZEV) program and investment restrictions. The consultations will seek comments on cyber and data security related to protecting Canadians’ privacy and Canada’s national security interests. The government will also consider perspectives on policies driving China’s overcapacity and surging exports of EVs, including labour and environmental standards, and unfair and non-market practices.
Action is necessary to level the playing field for Canadian toolmakers and for Canada’s EV industry to compete in domestic, North American, and global markets. Action will also guard against unfair competition from a potential surge of Chinese imports resulting from the diversion of Chinese EVs from markets that have recently announced increased trade protections on Chinese EVs, including the United States and the European Union.
The CTMA will continue to provide updates as they become available.
Check out CTMA’s article “Competing with China: The future of Canadian.