See the chart below for a summary of the status of major EV and battery production plans in Canada. [...] is the largest exporter to China, totaling $8.07 billion in 2023 and Alberta and Saskatchewan rank second and third, “largely owing to their vast natural resource endowments and the dominance of rawmaterials in Canada’s overall exports to China.”28 If Canada applies tariffs on Chinese-made electric vehicles, our top exports to China could bemain targets of retaliation. [...] Higher tariffs on Chinese EVs can be part of a sound strategy that protects Canadian workers while still allowing innovation and competition to thrive if they are temporary and contingent on actions taken by domestic producers that are in the interest of Canadians.33 The following are the types of commitments the federal government should seek from domestic producers: ➢ Prioritize bringingmore aff. [...] (Notably, the plug-in version of the Chrysler Pacificaminivan, assembled inWindsor, Ontario, is the only Canadian-made vehicle eligible for the iZEV program and it accounted for only about 1% of rebate claims, or roughly 1,500 vehicles, in 2023.) The conditions placed on the U. [...] S.’s consumer EV tax credit is available until 2032 and China just doubled its incentive for consumers who trade in their gas cars for EVs this month—Canada risks falling behind and losing EV inventory to other jurisdictions.46 The program’s popularity continues to grow, with iZEV claims doubling in the first half of 2024 compared to the same time last year.47 The federal government should re-fund.
- Pages
- 15
- Published in
- Canada
Table of Contents
- Date Prepared by 1
- Submission to the Government of Canadas Consultations on potential policy responses to unfair Chinese trade practices in electric vehicles 1
- Summary recommendations 1
- Surtax under Section 53 of the Customs Tariff 1
- Changes to iZEV program eligibility 2
- Surtax 2
- Concerns and expected impacts of a potential surtax 2
- Slow EV uptake and compromise Canadas climate targets by reducing the availability of affordable EVs 3
- Risks violating World Trade Organization rules and will likely draw retaliation from China 8
- Approach 9
- Amount 9
- Timing 9
- Scope 10
- Commitments from domestic producers benefitting from protections 10
- Commitments from the Government of Ontario 10
- Incentive Program Eligibility The Incentives for Zero-Emission Vehicles iZEV Program 11
- Concerns and expected impacts of potential eligibility restrictions under the iZEV program 11
- Recommendations to alleviate concerns 13
- Changes to iZEV eligibility requirements based on lifecycle emissions 13
- Changes to iZEV eligibility requirements to offer a bonus incentive for local assembly 14
- Complement trade measures with an EV affordability package 14
- CONTACT INFORMATION 15
