📋 Tender Overview
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.
However, Canadian auto workers and the auto sector currently 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 around the world 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 per cent 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 per cent that currently applies to EVs produced in China and imported into Canada.
Second, the federal government intends to apply a 25 per cent 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 that are in transit to Canada on the day on which 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 which have negotiated free trade agreements with Canada.
The federal government intends to review these measures announced today within a period of one year from their entry into force. Today’s actions may be extended for a further period of time and supplemented by additional measures, as appropriate.
Quotes
“Canada is home to the talented workers, raw materials, clean electricity, and specialized production capabilities needed to build electric vehicles, and that is why our EV supply chain potential is ranked first in the world. Canadian workers and critical sectors, including steel and aluminum, however, are facing an intentional, state-directed policy of overcapacity, undermining the Canada’s ability to compete in domestic and global markets. That is why our government is moving forward with decisive action to level the playing field, protect Canadian workers, and match measures taken by key trading partners.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
“Our government is committed to meeting our zero-emission vehicle sales targets and building a green economy that works for every generation. However, the path to net-zero emissions won’t be achieved without Canadian workers. Today’s announcement ensures that our iZEV program protects our workers, critical sectors, and Canada’s economy.”
- The Honourable Pablo Rodriguez, Minister of Transport
“The Government of Canada is committed to levelling the playing field for Canadian workers, businesses and key sectors currently facing unfair competition during this period of significant investment and transformation. The measures announced today are an important step towards ensuring Canadian workers and businesses can compete fairly. Global trade rules are not always adequate to protect against the type of non-market behaviour we have witnessed from China in this sector.”
- The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development
“For Canada to compete in the economy of the future, it needs to provide good jobs, advance clean innovations and be protected from unfair market actions. We have made historic investments to attract and create the well-paying jobs of the future across the EV supply chain, including in steel and aluminum. The auto supply chain in Canada supports nearly 550,000 direct and indirect jobs, and automotive is one of the country’s largest export industries. That is why our government is committed to supporting a competitive and fair industry and to protecting Canadian jobs. This is about securing the fair, prosperous future Canadians deserve.”
- The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
