Premier Mark Carney calls the China electric vehicle deal an “opportunity” for Ontario and auto workers, despite criticism of the deal from Premier Doug Ford and the union representing Canadian auto workers.
Speaking in Doha, Qatar, Carney said Chinese companies are interested in producing affordable electric vehicles in Canada.
“We have had direct conversations with Chinese companies, who have expressed an explicit interest and intention to partner with Canadian companies,” he said during a press conference on Sunday. We’ll see what comes out of it. This is an opportunity for Ontario. This is an opportunity for Ontario workers and for Canada, done in a controlled manner with a modest start. »
The prime minister, however, did not identify the companies with which Canadian officials were in contact.
Mr. Carney and Chinese President Xi Jinping signed an agreement Friday that will allow Canada to import Chinese electric vehicles at a tariff rate of 6.1%.
The agreement provides for an annual import quota of up to 49,000 Chinese electric vehicles by 2030, 50% of which must have an import price below $35,000.
Canada has joined the United States in imposing 100% tariffs on Chinese electric vehicles in 2024, accusing China of unfair subsidies and dumping in the North American market.
Mr. Ford indicated on social networks on Friday that this agreement risked flooding the market with cheap Chinese electric vehicles without guarantee of Canadian investments.
“Worse still, by lowering tariffs on Chinese electric vehicles, this unbalanced agreement risks closing the door to the American market, our largest export destination, for Canadian automakers, which would harm our economy and lead to job losses,” said Mr. Ford.
Lana Payne, president of Unifor, argued in a press release that the agreement was a “self-inflicted wound” to an already struggling Canadian auto industry. She said the UK and Brazil know that once China is allowed to enter an auto market, it quickly grabs market share.
Mr. Carney described the agreement as a trial phase for market entry and said Canada wants to be competitive in tomorrow’s auto market.
“We don’t want to compete in the market of 2000 or 2010, we want to compete in the future. This is what will allow Ontarians to get good jobs in the future,” Carney said Sunday.
The Prime Minister specified that any Chinese automobile production in Canada must respect the labor standards in force in the country.
In exchange for reducing tariffs on automobiles, China plans to reduce its tariffs on canola seeds from 84% to 15% on 1is March and to remove those on canola meal, lobster, crab and peas at least until the end of the year.
However, there was no discussion of canola oil, which is subject to 100% tariffs, and no changes were made to the 25% tariff on Canadian pork.
The Canadian automotive sector has felt the effects of American customs duties. President Donald Trump has claimed that the United States does not need cars made in Canada.
However, Mr Trump praised Mr Carney for striking a deal with China.
“That’s what he has to do. It is a good thing for him to sign a trade agreement. If you can make a deal with China, you should,” President Trump said Friday.
