The Government of Canada announced that on July 2, 2024, it will launch a 30-day consultation on potential policy responses to imports of electric vehicles (EV) from China.
The government’s announcement says China has emerged as the largest manufacturer and exporter of EVs in the world, and its capacity continues to grow, as a result of policies such as extensive state subsidies and other non-market practices.
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.
The Government says this action is necessary to level the playing field for Canadian auto workers and for Canada’s EV industry to compete in domestic, North American, and global markets. It 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.
Link: News Release
