Canada considers trade action against China over unfair practices, security concerns – Firstpost

Canadian Finance Minister Chrystia Freeland will meet with business and labour groups next week to discuss potential trade barriers against Chinese-made vehicles and to explore broader trade practices beyond the auto industry.

The move follows the government’s recent public consultation on what to do about “China’s unfair trade practices” in the electric vehicle sector. Canada has been closely monitoring moves by the United States and the EU to impose tariffs on Chinese products. Freeland stressed the need to secure supply chains and take a different approach to Chinese overcapacity.

Canada has no choice but to view its trade relationships through a national security lens, said Freeland, who is also deputy prime minister.

“Geopolitics and geoeconomics are back. That means Western countries, and particularly the United States, are placing a high priority on the security of their supply chains and are taking a different attitude toward Chinese overcapacity,” she said. “And that means Canada is playing an even more important role for the United States.”

Canada’s auto industry supports more than 125,000 well-paying jobs and has the best electric vehicle (EV) supply chain potential in the world. To capitalize on this growth opportunity, the federal government is taking steps to ensure the long-term success of Canadian auto workers, according to reports.

However, the industry faces unfair competition due to China’s deliberate overproduction and lack of strong labour and environmental standards. This has led to an oversupply of electric vehicles globally, threatening the profitability of electric vehicle producers around the world, including those in Canada.

In response, the government launched a 30-day consultation, from July 2 to August 1, 2024, to explore policy measures that protect Canada’s autoworkers and electric vehicle industry from unfair trade practices by China and prevent trade diversion following recent actions by Canada’s trading partners.

The government is facing domestic pressure to protect local auto industry jobs and wages, while promising subsidies to entice global automakers to set up electric vehicle battery production in Ontario.

Freeland criticized China’s economic policies, suggesting the prevailing view that China’s entry into the WTO was a mistake, and stressed the need for Western countries to be “clear-eyed” about China’s intentions.

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