'You can’t have both': Economist believes Canada must choose between protecting the auto sector or the environment

Canadians have until midnight Thursday to submit their thoughts on whether or not Canada should impose import tariffs on electric vehicles made in China.

On July 2, the federal government launched a 30-day consultation period in response to “unfair Chinese trade practices in electric vehicles”.

The government accuses China of an “intentional state-directed policy of overcapacity and lack of rigorous labour and environmental standards,” according to the consultation website.

“It's important for us to put up something to hold the Chinese back,” Flavio Volpe, president of the Automotive Parts Manufacturers Association told CTV News this week. “The Chinese are ready to flood our markets at a time when Western companies are worried about profitability.”

Volpe fears if there are no tariffs on Chinese EV imports, Canada will end up like Australia.

“(Australia) had a healthy domestic (auto) market and then decided to open it to the Chinese. And there are no Australian automakers, only automakers in Australia,” said Volpe.

Unifor, Canada’s largest sector union representing thousands of autoworkers released their submission to the government late Thursday.

Unifor is calling for Canada to match the tariffs announced by the United States, including 100 per cent tariffs on vehicles and 25 per cent each on the importation of batteries and materials.

“Working-class communities all across Canada have been hurt before by governments that have signed unfair trade deals or failed to listen to workers and organized labour,” National President Lana Payne wrote in a news release. “Canada must implement these recommendations in order to protect good auto jobs and build a more prosperous, fairer, cleaner and resilient economy for all.”

“You’ve got to make a choice government,” Carleton University economist, Ian Lee argues. “Is it to save the auto industry in this EV segment? Or is it to go 100 per cent clean EV green by 2035? You can't have both.”

Lee said Thursday that Canada is at least 10 to 15 years behind China in EV production.

“They are slick. They are high tech. They are efficient and they're way more competitive on price,” he said.

Even if Canada imposes tariffs on Chinese EV’s, Lee predicts domestic products will not be cheaper.

“We're talking $60, $80, $100 (thousand dollars). The Chinese are building $15,000 to $25,000 mass market, competitive EVs.”

Putting tariffs on Chinese imports, he said, will also make them unaffordable for the middle class.

“You put the tariffs on to drive that $25,000 Chinese EV up to 50 (thousand dollars). And now, you priced out most of the middle class from buying a car,” said Lee “Thereby sabotaging your policy to have everybody buying EVs by 2035.”