Union calls for tough measures on Chinese-made EVs

Unifor is calling for the federal government to implement a series of tough and comprehensive measures as part of ongoing public consultations on protecting Canadian autoworkers from China’s electric vehicle trade practices.

“Canada has everything we need to build the electric vehicles of the future in our own backyard, including a highly skilled workforce, deep roots in auto manufacturing, and the critical minerals needed to supply the industry,” said Lana Payne, nation president of Unifor. “The United States and the European Union have responded proactively to the threat posed by unfair imports and now it’s time for Canada to do the same.”

The Canadian government signaled about a month ago that it is considering imposing a surtax on electric vehicles made in China, which the government says are being overproduced.

Unifor’s recommendations call on the federal government to implement comprehensive rules, surtaxes and enforcement mechanisms that bring Canada into alignment with policies proposed by the United States and sufficiently protect the country’s growing electric vehicle supply chain. The union’s recommended measures include:

• Imposing a surtax above existing tariff rates on Chinese-made electric vehicles of 100 per cent, batteries of 25 per cent and critical minerals of 25 per cent, all of which bring Canada in line with measures proposed by the United States.
• Protecting Canada’s supply chain transition with additional surtaxes on critical component parts from China, including electric motors and battery cell material.
• Extending and expanding EV purchasing incentives for Canadians and disqualifying vehicles that are subject to a surtax under section 53 of the Customs Tariff Act.
• Including “connected vehicle” technology among the list of sensitive areas for foreign investment reviews and monitor the outcomes of an ongoing U.S. investigation into information and communications technology (ICT) in vehicles.
• Equipping Canada’s border services officials with resources and guidance to withhold goods crossing the border suspected of forced labour, including from China.

“Working-class communities all across Canada have been hurt before by governments that have signed unfair trade deals or failed to listen to workers and organized labour,” added Payne. “Canada must implement these recommendations in order to protect good auto jobs and build a more prosperous, fairer, cleaner and resilient economy for all.”