Prime Minister Mark Carney鈥檚 move to help the western Canadian canola industry fell flat on Thursday as for Ontario鈥檚 auto industry but little in the way of relief for canola farmers.
And no doubt it fell flat with cost conscious Canadians who want EVs at reasonable prices. We could have had those from China but Carney kept the door closed.
鈥淭he Canadian canola industry is disappointed with the support measures announced today by the federal government in response to the closure of the Chinese market to Canadian canola seed, oil and meal. The announced measures fall short of what is required to support the industry during this unprecedented trade disruption,鈥 the Canadian Canola Council .
Canola farmers face a 76 per cent Chinese tariff on canola seed and a 100 per cent tariff on canola oil and meal. China is their second largest market after the United States with exports worth $4.6 billion.聽Canola and EVs get the cold shoulder from Mark Carney
Instead, Carney dropped the EV mandate adopted by the Trudeau government, which the auto industry had demanded, and offered $5 billion for worker retraining, extended Employment Insurance benefits and business loans, most of which is intended for the auto industry.聽
The canola industry was offered $355 million to incentivize producers to switch to selling canola for biofuels and build up the Canadian renewable fuel sector. They also promised to revise the Clean Fuel Regulations, but how exactly was not clear.
鈥淲e are discouraged with the government鈥檚 support package for the industry. The measures announced today do not reflect the seriousness of the challenge facing the value chain,鈥 says Chris Davison, president and CEO of the Canola Council of Canada. 鈥淲e have communicated the need for appropriate financial and policy supports, and the federal government has missed the mark.鈥
The premiers of Alberta, Saskatchewan and Manitoba had asked the federal government to drop the tariff on Chinese EVs so canola farmers could regain their Chinese market. Saskatchewan premier Scott Moe travelled to China on Saturday to consult with government officials there about the tariffs. But it is Carney who will have to give the final word.
I wouldn鈥檛 bet on him changing his mind since the Canadian auto industry certainly had his attention this time around. The prime minister鈥檚 announcement was made in Mississauga, which needless to say told us a lot about what he was going to deliver.
Getting inexpensive EVs into Canada is obviously not a priority for the Carney government, even though our auto industry has yet to produce its own EV. By all means, we should offer some financial support to the Canadian auto industry. But where is the harm in dropping the tariff on Chinese EVs? It鈥檚 not as though they are going to flood the country overnight. Does it have more to do with copying the 100 per cent U.S tariff on Chinese EVs? Are we simply afraid to offend the unhinged president to the south?
And why drop the EV mandate, which would have seen Canada adopt EVs as 20 per cent of new car sales by 2026? Could it not have been extended for a year? When Canadians are burdened with cost of living increases EVs that are within their price range would be a welcome relief. But no, the Carney government opted to keep Chinese EVs out of Canada lest they threaten our own industry.
The Canola Council was ignored, even though it represents 40,000 canola farmers across Canada. And so were Canadians anxious to get inexpensive EVs so they could save money on gasoline and upkeep. The rest of the world is adopting EVs faster than most people can say EV.
In 2024, 20 per cent of were electric. Pity, it isn鈥檛 happening in Canada.
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