CHINESE electric carmaker BYD is looking to enter the Canadian market just as Prime Minister Justin Trudeau’s government works to clamp down on imports of vehicles from the Asian powerhouse.
Lobbyists for the company, which sells its electric vehicles (EVs) for less than US$10,000 in China, filed notice with Canada’s federal registry that they plan to approach officials and lawmakers to advocate for BYD’s anticipated entry.
The lobbyists aim to “advise the government of Canada on matters related to the expected market entry of BYD into Canada for the sale of passenger EVs, and the establishment of a new business, and the application of tariffs on EVs,” the filing said.
Canada is set to wrap on Thursday (Aug 1) a 30-day consultation on measures to restrict Chinese EV imports – including higher tariffs to align with the United States and European Union. It’s also mulling blocking Chinese investment in new Canadian factories.
The government firmly believes that action is necessary to level the playing field for Canadian auto workers and for Canada’s EV industry to compete, a spokesperson for Finance Minister Chrystia Freeland said on Wednesday.
“All options – including restricting transactions and investment from Chinese sources in the Canadian EV supply chain – are on the table to ensure Canadian workers and EV supply chains are protected from unfair competition from China’s intentional, state-directed policy of overcapacity and lack of rigorous labour and environmental standards,” Katherine Cuplinskas said.
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Separately on Wednesday, BYD announced a partnership with Uber Technologies to put 100,000 EVs onto the ride-hailing company’s platform. The multi-year plan is to start in Europe and Latin America before expanding to other countries including Canada.
Some Canadian government officials and industry representatives said Canada will need to impose tariffs on Chinese EVs close to the US’s 102.5 per cent rate, as opposed to the much lower tariffs the EU is considering. The sources spoke to Bloomberg on condition they not be identified because no final decisions have been made.
Canada’s auto supply chain is highly integrated with that of the US, giving the Trudeau government little choice but to align its auto policy with its largest trading partner. It has also pledged billions of US dollars in government money to automakers such as Volkswagen to build parts of their EV supply chains in Ontario and Quebec.
Labour groups such as the Automotive Parts Manufacturers’ Association support steep tariffs on Chinese EVs as they argue Beijing’s heavy industry subsidies pose an unfair advantage. But climate groups such as Clean Energy Canada said more affordable EVs are needed to speed up consumer adoption.
BYD did not immediately respond to a request for comment. The news that the company hired the lobbyists was first reported by Autonews.com.
The lobbying notice was posted on the website of the Office of the Commissioner of Lobbying for Canada and activities started Jul 24. Crestview Strategy’s Christine McMillan, Cameron Doherty and Bridget Howe are representing BYD Canada.
Freeland hinted earlier this month with Bloomberg that the government may take broader trade action against China. She met with aluminium and steel producers last week. In the past, China has not shied away from trade retaliation against the country. BLOOMBERG
