Latest / Kvetch & Release / China retaliates over EV tariffs with anti-dumping probe into Canadian canola imports

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China retaliates over EV tariffs with anti-dumping probe into Canadian canola imports · Kvetch & Release

• 0:00
  Speaker 1: We have received word of retaliation over those electric vehicle tariffs.
• 0:06
  Speaker 1: China has announced an anti dumping investigation into Canadian canola
• 0:10
  Speaker 1: imports and response to our planning to impose tariffs on
• 0:14
  Speaker 1: Chinese made electric vehicles, steel and aluminum. The Chinese Ministry
• 0:19
  Speaker 1: of Commerce said that it was launching an anti discrimination
• 0:22
  Speaker 1: investigation into the tariffs and an anti dumping probe into
• 0:26
  Speaker 1: Canadian canola imports as well as certain chemical products. Justin Trudeau,
• 0:30
  Speaker 1: Prime Minister, announced on the twenty sixth of August that
• 0:32
  Speaker 1: we're imposing this one hundred percent tariff on Chinese evs
• 0:36
  Speaker 1: and a twenty five percent tariff on steel and aluminum
• 0:38
  Speaker 1: that comes into effect for Chinese evs on October the first,
• 0:42
  Speaker 1: while steel and aluminum tariffs come into effect on October
• 0:45
  Speaker 1: the fifteenth.
• 0:46
  Speaker 2: This it's going to be.
• 0:48
  Speaker 1: Interesting to see how this all unfolds. Joining me to
• 0:50
  Speaker 1: discuss and what some of the very real risks are
• 0:52
  Speaker 1: related to this is our Member of Parliament for Windsor West,
• 0:56
  Speaker 1: Brian MASSI joins me. Right now, Hey, Brian, how you
• 0:58
  Speaker 1: doing good?
• 0:58
  Speaker 3: Thanks? John, how are you doing well?
• 1:00
  Speaker 1: Thanks? I presume you know this is another reason why
• 1:03
  Speaker 1: you would say we need an auto strategy.
• 1:05
  Speaker 3: Absolutely. Again, this is the freefall that we're in and
• 1:08
  Speaker 3: it's unfortunate because we do know that tariff and retaliations
• 1:13
  Speaker 3: are going to take place. But we should have been
• 1:16
  Speaker 3: out in front of this, if we could have been
• 1:18
  Speaker 3: much better with a planned auto strategy that really you know,
• 1:22
  Speaker 3: speaks to dealing with the domestic industry we have, and
• 1:25
  Speaker 3: one way to point towards that is that we are
• 1:27
  Speaker 3: phasing out the ZEV incentives for medium and heavy vehicles
• 1:33
  Speaker 3: in that program, and so what we need to do
• 1:35
  Speaker 3: is continue those and that's what Uniforms proposed. I've been
• 1:37
  Speaker 3: proposing it for a long time. So we still need
• 1:40
  Speaker 3: more to do. But it's not surprising that China is
• 1:43
  Speaker 3: going to retaliate. That should have been in the expectation box.
• 1:46
  Speaker 1: So what does an anti dumping probe mean? Like, what
• 1:48
  Speaker 1: does this actually look like in terms of how it's
• 1:51
  Speaker 1: going to impact our canola industry?
• 1:53
  Speaker 3: Yeah, so what they'll do is they'll look for other
• 1:56
  Speaker 3: suppliers on the market. So they'll maybe go to Austria
• 2:00
  Speaker 3: is one of the suggestions, but they've had some issues
• 2:02
  Speaker 3: with their canola. There's the European canola as well too.
• 2:06
  Speaker 3: So they will distance themselves from the Canadian supply chain.
• 2:10
  Speaker 3: And then they're also going to contest the Canada's position
• 2:13
  Speaker 3: to the WTO which we're part of with regards to
• 2:16
  Speaker 3: the electric vehicles and the centives. But you know, we
• 2:19
  Speaker 3: know that they've used labor in human rights and as
• 2:23
  Speaker 3: well as the environment as basically ways to subsidize. And
• 2:26
  Speaker 3: then if they are looking to enter into the market,
• 2:28
  Speaker 3: we're going to have to look at two different things.
• 2:30
  Speaker 3: The first is whether or not they're going to dump
• 2:33
  Speaker 3: electric vehicles in droves, especially since the if we didn't
• 2:37
  Speaker 3: do this, they would be going from you know, into
• 2:39
  Speaker 3: the United States. They're actually be coming into Canada because
• 2:41
  Speaker 3: their market is going to have the tariff, and so
• 2:43
  Speaker 3: we get extra vehicles from there dumped in. And then
• 2:45
  Speaker 3: second to that is we have the potential of some
• 2:47
  Speaker 3: of the assembly taking place in Mexico trying to use
• 2:50
  Speaker 3: a backdoor to our North America system. So we're going
• 2:53
  Speaker 3: to have to do some research and work on that.
• 2:55
  Speaker 1: You know, when we look to these lower cost electric
• 2:59
  Speaker 1: vahicles that are going to be coming in if they
• 3:01
  Speaker 1: get approved, and we know that BYD for example, has
• 3:05
  Speaker 1: informed Ottawa of their intention to start bringing some of
• 3:08
  Speaker 1: these into the country. They're going for eleven thousand dollars US. Brian,
• 3:12
  Speaker 1: and I wonder if a one hundred percent tariff is
• 3:15
  Speaker 1: even enough in your perspective, because twenty two thousand dollars
• 3:18
  Speaker 1: for a vehicle is still a lot cheaper than what
• 3:21
  Speaker 1: our market is producing.
• 3:22
  Speaker 3: Well, I think you make a great point, to be
• 3:24
  Speaker 3: quite frank. I mean, there's going to be an issue
• 3:26
  Speaker 3: with regards to the vehicle coming in, and you know,
• 3:30
  Speaker 3: obviously safety is going to have to be looked at.
• 3:33
  Speaker 3: They have had some production issues, but at the same
• 3:35
  Speaker 3: time they are meeting some standards, so that will be
• 3:38
  Speaker 3: an oversight thing for Transport Canada to look at. You're
• 3:42
  Speaker 3: correct on the price point with a tariff, just being
• 3:44
  Speaker 3: that is something that we still have to look at though,
• 3:48
  Speaker 3: because if they're using like cool powered plants for example,
• 3:51
  Speaker 3: to make electric vehicles, which we know is taking place,
• 3:53
  Speaker 3: then there could be additional barriers that we might want
• 3:56
  Speaker 3: to look at for some of those vehicles coming in
• 3:59
  Speaker 3: because if we're really using again this it comes back
• 4:01
  Speaker 3: to actually a philosophy of when we do our trade
• 4:03
  Speaker 3: agreements and when we actually do trading partner elements is
• 4:07
  Speaker 3: keeping labor and environment in working conditions as part of agreement.
• 4:10
  Speaker 3: That's actually part of the new Canada US Mexico agreement
• 4:14
  Speaker 3: that is actually has a chapter. It's the first time
• 4:17
  Speaker 3: that we've got that in there, and that has to
• 4:18
  Speaker 3: be looked at other nations. We've been doing that to ourselves,
• 4:20
  Speaker 3: undermining ourselves and then underminds workers in their places. So
• 4:24
  Speaker 3: in the short term it's very attractive. Long term, not
• 4:26
  Speaker 3: so much so.
• 4:27
  Speaker 1: When we talk about the investments that we've made here,
• 4:30
  Speaker 1: whether it be from the Province of Ontario and the
• 4:32
  Speaker 1: federal government and the Quebec governments of course, into the
• 4:35
  Speaker 1: total ev industry, we're looking at about fifty two billion
• 4:38
  Speaker 1: dollars in the subsidies if everything goes out exactly as
• 4:42
  Speaker 1: it's supposed to. I came across an article Brian that's
• 4:45
  Speaker 1: talking about Chinese ev makers subsidies over the last fifteen
• 4:49
  Speaker 1: years two hundred and thirty one billion dollars according to Bloomberg,
• 4:53
  Speaker 1: so about fifteen point five million billion billion per year
• 4:58
  Speaker 1: at our fifty two billion in total pales in comparison.
• 5:02
  Speaker 3: It does, and you have to be in the game.
• 5:04
  Speaker 3: There's some degree on this, but this has been a
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  Speaker 3: longstanding position to subsidize the market on their point, but
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  Speaker 3: also to to do it in a way to flood
• 5:14
  Speaker 3: the market. So there's also the second point of that
• 5:16
  Speaker 3: is the production amounts in the volume of it. What's
• 5:19
  Speaker 3: good about our incentive program, and I do give the
• 5:22
  Speaker 3: government credit for this. I don't want to be always
• 5:24
  Speaker 3: negative on things, and I'm not when it's fair. Is
• 5:27
  Speaker 3: that those incentives that we have and some of those
• 5:30
  Speaker 3: costs are tied to production. So there are some outright
• 5:33
  Speaker 3: helps and assistants to build the facilities. But as batteries
• 5:37
  Speaker 3: are manufactured and produced and go out the door, that's
• 5:40
  Speaker 3: when they'll get some of the assistance from the public
• 5:43
  Speaker 3: system right at that point. So we have the jobs
• 5:45
  Speaker 3: connected for the first time, which is terrific because we've
• 5:48
  Speaker 3: seen disasters in the past on that. But the China
• 5:52
  Speaker 3: situation is the blank that you've mentioned of the subsidies
• 5:56
  Speaker 3: in terms of the duration of time, but also too
• 5:58
  Speaker 3: is the production volumes just imments, and so that's why
• 6:02
  Speaker 3: you know, flooding the market can be such a bad thing.
• 6:05
  Speaker 1: Hidden away in this as well is that the federal
• 6:07
  Speaker 1: government has announced a thirty day consultation period to consider
• 6:10
  Speaker 1: the threat of Chinese imports and other sectors including batteries,
• 6:13
  Speaker 1: battery parts, semiconductors, solar products, and critical minerals. It sounds
• 6:18
  Speaker 1: like the FEDS. Are you guys are taking this really seriously.
• 6:21
  Speaker 3: Yeah, there's a change of philosophy. When I first got
• 6:24
  Speaker 3: elected back in two thousand and two, a little bone
• 6:26
  Speaker 3: case caught China min Metals was at the table and
• 6:30
  Speaker 3: I fought for that to be stopped. It was the
• 6:32
  Speaker 3: first time because ironically we were selling Petro Canada shares.
• 6:36
  Speaker 3: We used to own that and it was okay for
• 6:38
  Speaker 3: the Chinese communistate government to own Canadian natural resources, but
• 6:43
  Speaker 3: it wasn't good for Canadians to own our own natural resources.
• 6:46
  Speaker 3: So Paul Martin sold those if you were out of the shares,
• 6:48
  Speaker 3: and so we got out of Petro Canada. And we've
• 6:50
  Speaker 3: actually then enticed the Chinese and with Harper and so forth.
• 6:54
  Speaker 3: They actually commissioned it allowed several companies to be bought
• 6:56
  Speaker 3: by the Chinese state government. And so, you know, changing
• 7:00
  Speaker 3: because of technology and all kinds of innovation taking place,
• 7:04
  Speaker 3: and now it's crossing over because of privacy and platforms,
• 7:07
  Speaker 3: and we need to keep doing that evaluation because it
• 7:11
  Speaker 3: doesn't make any sense that you know, other countries can
• 7:13
  Speaker 3: purchase Canadian natural resources, but Canadian can own it. And
• 7:16
  Speaker 3: so I think that's kind of changed. That's that's you know,
• 7:19
  Speaker 3: something I was after for a long time, and it
• 7:21
  Speaker 3: was seen as basically anti competitive practices to allow you know,
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  Speaker 3: private equity firms where you don't know the owners come from,
• 7:28
  Speaker 3: or Chinese or other non democratic governments to own Canadian
• 7:31
  Speaker 3: natural resources. But it wasn't good for Canadians own it.
• 7:33
  Speaker 3: I've never bought into that.
• 7:34
  Speaker 1: Yeah, I mean, and like, let's just let's be honest
• 7:36
  Speaker 1: about this. China is a national security threat, not just
• 7:39
  Speaker 1: you know, militarily, but of course you know, through this
• 7:41
  Speaker 1: trade and through these dumping practices, and we know that
• 7:43
  Speaker 1: these cars are like computers that are grabbing up as
• 7:46
  Speaker 1: much data as possible. But you know, the real national
• 7:49
  Speaker 1: security threat that I see is the collapse of the
• 7:51
  Speaker 1: automotive industry and that would be a shock to the
• 7:54
  Speaker 1: country that I don't see how we'd get through without
• 7:57
  Speaker 1: you know, decades of reverberations.
• 8:00
  Speaker 3: No, and absolutely, and we have to remember as well,
• 8:02
  Speaker 3: that industry connects to so many other industries as well,
• 8:05
  Speaker 3: so there's not only just the supply system for the
• 8:08
  Speaker 3: auto industry, it's also the other types of reciprocal industries
• 8:12
  Speaker 3: that get involved with the auto industry too, and die
• 8:14
  Speaker 3: mold making, and then they also bring that innovation to
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  Speaker 3: other types of medical devices and to aerospace and to
• 8:21
  Speaker 3: you know, other equipment and manufacturing. And we've we've you know,
• 8:25
  Speaker 3: I remember the days when they used to say, oh,
• 8:27
  Speaker 3: we have always going to have a service economy. And
• 8:29
  Speaker 3: like you know, anybody that had you know, any type
• 8:31
  Speaker 3: of a background knew that that's not going to be
• 8:33
  Speaker 3: a successful economy. You need value added work. This is
• 8:36
  Speaker 3: part of it. So that's why we have to protect
• 8:38
  Speaker 3: the auto industry in many respects because it's not just
• 8:40
  Speaker 3: about it. It's about the rest of the parts of
• 8:42
  Speaker 3: the economy.
• 8:43
  Speaker 1: Absolutely, it's all interconnected. We do know that. Hey, Brian,
• 8:46
  Speaker 1: thank you so much for your time. I really do
• 8:47
  Speaker 1: appreciate it.
• 8:48
  Speaker 3: Thanks ver having me. We'll see what happens next.
• 8:50
  Speaker 1: As we will. We'll keep our eyes on this all
• 8:52
  Speaker 1: the best. Brian Massey is our Member of Parliament for
• 8:55
  Speaker 1: Windsor West. Let us know your thoughts about this. Five
• 8:59
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  Speaker 1: Just about four to twenty eight here in the afternoon.
• 11:06
  Speaker 1: It was good to speak with our Member of Parliament
• 11:09
  Speaker 1: for Windsor West, Brian Massey about this issue of China
• 11:14
  Speaker 1: hitting Canada with an investigation into anti dumping of canola imports.
• 11:22
  Speaker 1: This is of course, in response to the ev tariffs
• 11:25
  Speaker 1: that we've put into place that will be coming into
• 11:28
  Speaker 1: effect starting on October the first on Chinese evs, then
• 11:31
  Speaker 1: steal in aluminum tariffs coming into effect on October the fifteenth.
• 11:35
  Speaker 1: You know, we talk about the automotive industry often here
• 11:37
  Speaker 1: on AM eight hundred. How could we not, of course,
• 11:39
  Speaker 1: living in you know, Canada's motor city quite frankly, and
• 11:45
  Speaker 1: it's a real issue. We talk about the national security
• 11:48
  Speaker 1: threat that's posed by these vehicles. One not just the
• 11:51
  Speaker 1: fact that they're spying on people because they are computers
• 11:55
  Speaker 1: on wheels, but also if you're bringing in those vehicles
• 11:59
  Speaker 1: at such cheap price, you could be looking at the
• 12:01
  Speaker 1: hollowing out of our automotive industry. Why are the prices
• 12:03
  Speaker 1: so cheap because they they subsidize their industry way more
• 12:09
  Speaker 1: than we do. Over the last fifteen years, two hundred
• 12:12
  Speaker 1: and thirty one billion dollars invested into the Chinese evs
• 12:17
  Speaker 1: in one form or another of subsidies. That's about fifteen
• 12:20
  Speaker 1: and a half billion dollars. And that number, I can
• 12:24
  Speaker 1: tell you that two hundred and thirty one billion is
• 12:27
  Speaker 1: a lot more than what it is that we are
• 12:30
  Speaker 1: looking to subsidize here of about a total of fifty
• 12:33
  Speaker 1: two billion from our provinces and the federal government.