The Canadian government has launched its 30-day Chinese electric vehicle policy consultation period Tuesday, July 2.

The government said it is seeking responses on potential policy responses to protect Canada’s autoworkers and the country’s growing EV industry.

“Canada is home to the talented workers, raw materials, clean electricity, and specialized production capabilities needed to build electric vehicles, and that has meant our EV supply chain potential is ranked first in the world,” said Deputy Prime Minister and Minister of Finance Chrystia Freeland in a news release. “However, Canadian workers and the auto sector are facing an intentional, state-directed policy of overcapacity, undermining the Canadian EV sector’s ability to compete in domestic and global markets. This consultation will consider what action we can take to protect our workers, level the playing field, and prevent transshipment or oversupply from China’s anti-competitive practices.”

The consultation is being conducted by the Department of Finance Canada, which says Canada’s auto manufacturing sector supports more than 125,000 direct jobs. It adds that Chinese producers are generating a global oversupply that will erode the profit incentives of the EV producers around the world, including in Canada.

The consultations are seeking views on potential policy responses, such as a surtax under Section 53 of the Customs Tariff, and possible additional measures such as adjustments to the federal Incentives for Zero-Emission Vehicles (iZEV) program and investment restrictions. The consultations also seek comments on cyber and data security related to protecting Canadians’ privacy and Canada’s national security interests.

The government added it will also consider perspectives on policies driving China’s overcapacity and surging exports of EVs, including labour and environmental standards, and unfair and non-market practices.

Mary Ng, the minister of export promotion, international trade and economic development, said Canada is committed to safeguarding its auto sector, jobs, protecting rules-based trade and promoting a competitive EV sector alongside a robust integrated supply chain.

“Canada is committed to protecting and promoting fair trade to ensure there is a level playing field for Canadian industries and workers. Collaborating with partners to respect our international trade commitments, we will not stand by while our workers are disadvantaged by non-market practices and a failure to abide by labour and environmental standards,” Ng said in the release.

The federal government says China’s EV exports totalled $47.2 billion in 2023. In 2018, it was just $200 million.

The United States intends to increase tariffs on Chinese EVs and certain hybrids to 100 per cent starting Aug. 1, while the European Commission announced its own preliminary measures while it finalizes protective measures this fall.

The Government of Canada’s consultations on potential policy responses are open until Aug. 1. Information on the consultations and how to provide feedback is available on the Canadian government’s website.