Canada Launches Consultation on Trade Measures Against Chinese Practices

Canada is launching a second 30-day consultation from September 10, 2024, to October 10, 2024, regarding potential surtaxes aimed at addressing what the government describes as unfair trade practices by Chinese producers in critical manufacturing sectors. This initiative follows a previous consultation that concluded on August 26, 2024, during which the government announced a 100% surtax on all Chinese-made electric vehicles (EVs) effective October 1, 2024, and a 25% surtax on imports of steel and aluminum products from China effective October 15, 2024.

The current consultation seeks input on the possible application of surtaxes on critical mineral products, batteries and parts, solar products, and semiconductors. The government is also interested in feedback regarding the timing for implementing any new measures.

The government claims that Chinese producers benefit from state-directed policies that create overcapacity and lack rigorous labor and environmental standards, which they argue threatens Canadian workers and businesses. The measures are part of Canada's broader strategy to strengthen domestic supply chains and ensure competitiveness in both North American and global markets.

Key points from the announcement include:

• The consultations are intended to gather views on potential surtaxes related to critical manufacturing sectors.
• The government aims to protect Canadian workers and industries from unfair competition.
• The initiative is part of Canada's commitment to achieving net-zero emissions by 2050, with investments in critical manufacturing sectors deemed essential for this transition.

The government has emphasized the importance of fair competition in global markets for the growth of the Canadian economy and the prosperity of its workers.