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China has formally requested consultations with Canada through the World Trade Organization (WTO) in response to Canada’s recent imposition of additional tariffs on Chinese electric vehicles, as well as on steel and aluminum products. This development was announced by China’s Commerce Ministry on Friday.
According to the ministry, the request for consultations was submitted on September 6, contesting the proposed tariffs of 100% on electric vehicles and 25% on steel and aluminum. The ministry’s statement emphasized that Canada is in violation of WTO regulations and its obligations, describing these actions as a disregard for established trade rules.
“China is urging Canada to comply with WTO guidelines and to rectify these actions immediately,” the statement underscored.
WATCH |Â Breaking down the reasoning, and timing, for Canada’s move:
The North American fight against cheap Chinese EVs, explained | About That
Following the lead of the United States, Canada has decided to implement a 100% tariff on all electric vehicles imported from China, citing the need to address what it terms an “unfair advantage” held by Chinese manufacturers in the global market. Producer Lauren Bird discusses the implications of this decision and its potential impact on consumers.
On August 1, Prime Minister Justin Trudeau announced the Canadian government’s intention to impose a 100% surtax on all electric vehicles produced in China, set to take effect on October 1. This tariff will encompass electric vehicles and certain hybrid passenger vehicles, including trucks, buses, and delivery vans.
The rationale provided by the Canadian government, aligned with some of its allies, is that this measure aims to level the playing field against the substantial subsidies offered by China throughout its electric vehicle supply chain. The claim is that many of these vehicles are produced under less strict labor and environmental standards compared to those in Western countries.
In a notable trend, imports of automobiles from China to Vancouver, Canada’s largest port, surged by 460% year-over-year, totaling 44,356 vehicles in 2023. This spike coincided with Tesla’s initiation of shipments of electric vehicles manufactured in Shanghai to Canada.
To bolster domestic production, Ottawa has allocated tens of billions of dollars aimed at supporting the development and manufacture of electric vehicles within Canada.
In parallel, U.S. President Joe Biden announced in May a range of tariffs targeting Chinese imports, including a significant increase in tariffs on electric vehicles to 100%. The European Union has also acted, imposing tariffs on Chinese electric vehicles that can reach up to 36%, depending on the manufacturer.
In an additional move, China recently announced plans to conduct an anti-dumping investigation into canola imports from Canada, as well as certain Canadian chemical products. Notably, over half of Canada’s canola production is exported to China, which stands as the world’s largest oilseed importer.
This scrutiny of canola imports recalls a previous trade dispute that unfolded five years ago, during which China halted canola imports from two Canadian firms. Analysts suggest that this interruption may have resulted in losses of up to $2.4 billion for Canada’s canola industry.
Source
www.cbc.ca