The Conservative MP for Essex is raising concerns over a new trade deal that will allow Chinese electric vehicles into Canada.
Chris Lewis told AM800's Mornings with Mike and Meg that in an auto sector that's already devastated, this announcement is going to further hemorrhage jobs but also the manufacturing sector in Canada.
When Mark Carney came out during the election and said that China is Canada's biggest security threat and then just a few months later allows 49,000 electric vehicles. What use to be 100 per cent tariff is now down to 6.1 per cent and came back to Canada, quite frankly, with no deal," said Lewis.
Prime Minister Carney and Chinese President Xi Jinping signed an agreement January 16 that will see Canada allow Chinese electric vehicles into the country at a 6.1 per cent tariff rate.
The deal includes an annual import quota of up to 49,000 Chinese EVs, and 50 per cent must have an import price of under $35,000 by 2030.
In return for reducing auto tariffs, China plans to cut its tariff rate on canola seed from 84 per cent to 15 per cent March 1 and drop tariffs on canola meal, lobster, peas, and crabs until at least the end of 2026.
However, there was no mention of canola oil, which is subject to a 100 per cent tariff, and no change was made to the 25 per cent tariff on Canadian pork.
Lewis said these are real jobs, Essex jobs, and Oshawa jobs at risk.
"This year it's 49,000 vehicles; what is China going to say next year? They're going to say they want 150,000 so they continue to low the tariffs on canola, pork, and seafood," he said.
Ottawa does not see granting Chinese electric vehicles favourable tariffs under a new quota scheme as an economic threat to the domestic auto sector because it plays into a larger strategy of eventually making Chinese EVs domestically -- maybe even the first to do so in North America.
That's according to a senior government source who briefed reporters on the plan during the prime minister's flight from Beijing to Doha and was granted anonymity to speak frankly about the decision.
Lewis said "there's no ink on paper" when it comes to making Chinese EVs here in Canada.
"He speaks about Chinese investment into Canada but there's no deals, no statement release, there's nothing," he said. "We see this trend over and over again where there's nothing brought to the table. Therefore, how can I make a statement, how can I make a decision on something that, quite frankly, is pie in the sky. It's up in the air."
Canada joined the U.S. in putting a 100 per cent tariff on Chinese electric vehicles in 2024, with accusations of unfair subsidies and dumping vehicles in the North American market.
With files from the Canadian Press