Sask. Premier Moe Softens Push to Remove EV Tariffs on China

Sask. Premier Moe Softens Push to Remove EV Tariffs on China

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Saskatchewan Premier Scott Moe has tempered his call for Ottawa to remove electric vehicle (EV) tariffs on China, saying the issue is “not as simple as that” given the challenge of balancing trade relations with both Beijing and Washington.

Moe, who recently returned from a trade mission to China aimed at addressing the ongoing canola dispute, made the comments on Sept. 16 following a meeting with Prime Minister Mark Carney and leaders from Canada’s canola industry.

He was asked by reporters whether Carney expressed willingness to remove Ottawa’s tariffs on Chinese EVs in exchange for tariff relief on canola, but Moe said the issue is more complex, pointing to the need to balance trade relationships with both China and the United States.

Before his trip to China, Moe said he wanted Ottawa to lift its 100 percent tariff on Chinese EVs, which he has described as a contributing factor in China’s decision to target Canada’s canola industry. He noted at the time that Canada also needed to “balance off” how that might affect its relationship with the United States, Saskatchewan’s biggest canola market. China is the second-largest customer.
“Its not as simple as that,” Moe said on Sept. 16, referring to the idea of lifting the EV tariffs. “Here is the dance that I think all countries are finding themselves in, and it’s a sensitive and... delicate dance; decisions that you make here will have an indirect impact on your relationship with another country.”

Canada introduced its 100 percent tariffs on Chinese-made EVs last year, citing “unfair” competition from Chinese producers and aligning with similar duties imposed earlier by the United States. Shortly afterward, Beijing launched an “anti-dumping” investigation into Canadian canola, which it says led to the latest round of tariffs.

China last month imposed 75.8 percent temporary tariffs on Canadian canola on top of levies it had slapped on canola-related products earlier this year.

Moe remarked that further discussions are needed when asked if he had received any commitments from Chinese officials that eliminating EV tariffs would help ease canola duties.

“I think there is not a lot of confidence in trade certainty moving forward for any country right now,” Moe said.

“That being said, we are going to work alongside our federal government—we are a sub-national government—in ensuring that... all of Canada’s interests are well represented at that table.”

Moe was also questioned about what Beijing wants from Canada to ease trade tensions. The premier said Chinese officials spoke about the need to “not look back, but to look ahead.”

In addition to trade frictions, diplomatic relations between Ottawa and Beijing have been strained in recent months following revelations of China’s interference in Canada’s democracy and Ottawa’s condemnation of Beijing’s escalating transnational repression of dissidents in Canada.

Moe said discussions with Chinese officials also touched on the need to “recalibrate the dialogue and the relationship” between Canada and China, and to move forward in a “pragmatic and constructive manner.”

Conservative Leader Pierre Poilievre has warned against lifting tariffs on Chinese EVs, saying they are necessary due to national security risks.

“Do we want on our streets, in 10 years from now, a million rolling surveillance vehicles that have cameras and chips and other devices that are easy to track and potentially remote-controlled?” he said late last month, noting that “the Chinese government wants to have the ability to track and surveil our people.”

Meanwhile, Carney has said his government will seek to expand trade ties with Beijing, but in a way that is “consistent” with Canadian values.

“We have differences with China, different approaches to a variety of things, but they are our second-largest trading partner, and there are areas where we can cooperate,” Carney said during a Sept. 3 press conference.

International Trade Minister Maninder Sidhu was briefed by Global Affairs on Canada’s efforts to diversify away from China when he assumed the ministerial role in March, according to recently released documents.
The document, which details Sidhu’s mandate and responsibilities, cites Beijing’s “economic coercion” and “pervasive” non-market practices, noting that Canada has been the target of China’s coercion through restrictions on its canola industry during periods of diplomatic tension.

Moe said on Sept. 16 that China’s decision earlier this month to extend its anti-dumping investigation by six months is a positive sign that market access can be restored through engagement. He added that Ottawa has said there may be additional conversations with China in the months ahead.

The Canadian Press contributed to this report.
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