Ottawa (Rajeev Sharma): Prime Minister Mark Carney described the recent agreement with China on electric vehicles as a potential boost for Ontario and Canadian autoworkers, despite concerns from Premier Doug Ford and the Canadian Auto Workers union.
Speaking at a news conference in Doha, Carney said Chinese companies have shown interest in producing “affordable” electric vehicles in Canada, signaling opportunities for local industry.
“We’ve had direct conversations with Chinese companies expressing explicit interest in partnering with Canadian firms,” Carney said. “We’ll see what comes to pass. This is an opportunity for Ontario, for workers, and for Canada, done in a controlled way with a modest start.”
The prime minister did not reveal the names of any specific companies involved.
Under the new agreement signed last Friday between Carney and Chinese President Xi Jinping, Canada will allow Chinese EVs into the country at a reduced 6.1 per cent tariff. The deal sets an annual import quota of 49,000 vehicles, with half required to be priced under $35,000 by 2030.
This marks a shift from Canada’s 2024 policy, which imposed a 100 per cent tariff on Chinese electric vehicles amid allegations of unfair subsidies and dumping. According to government sources, the move is intended to eventually encourage domestic production of Chinese EVs, potentially making Canada a hub for such vehicles in North America.
Premier Ford expressed caution, warning that the deal could flood the Canadian market with cheaper EVs while failing to guarantee domestic investment. “Lowering tariffs on Chinese electric vehicles risks closing the door on Canadian automakers in the U.S., our largest export market, which could hurt jobs and the economy,” Ford said in a statement.
The government maintains that the initiative is a measured step toward integrating Chinese EVs into the Canadian market while promoting local manufacturing opportunities.
