New Liberal Strategy to Protect Canadians

Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, visited Linamar, a Canadian company and global leader in advanced automotive manufacturing, to highlight the Government of Canada’s new Automotive Strategy. The world is changing rapidly, fundamentally reshaping trade relationships and leaving economies, businesses and workers under a cloud of uncertainty. Canada’s automotive industry is on the front line of this shift, with more than 90% of Canadian-made vehicles and 60% of Canadian-made auto parts currently exported to the U.S. The government is focused on what we can control—implementing a new industrial strategy. Canada is transforming the economy from one that is reliant on a single trade partner to one that is more resilient to global shocks—a stronger, more sustainable, more independent economy built on the solid foundation of strong Canadian industries and bolstered by diverse international trade partners. In parallel, the government is launching a national electricity strategy to leverage our energy advantage to provide clean, affordable and reliable power to Canadians. These shifts present a unique opportunity to transform Canada’s auto industry to be less reliant on the U.S. and gas-powered vehicles. To that end, the government has introduced a new auto strategy that rewards the production of made-in-Canada vehicles and harnesses our world-class capabilities in artificial intelligence and technology expertise to build the cars of the future. This is a strategy that positions Canada to become a global leader in electric vehicle (EV) production. On February 5, Prime Minister Mark Carney announced the following new measures: 1. To accelerate investment in Canada’s auto manufacturing sector, the government will:allocate $3 billion from the Strategic Response Fund and up to $100 million from the Regional Tariff Response Initiative to help the auto industry adapt, grow, and diversify to new markets.harness the Productivity Super-Deduction and reduced corporate tax rates for zero emission‑ technology manufacturers to encourage investment in clean technologies and EVs.2. To rationalise emissions reduction policies to focus on outcomes that matter to Canadians, the government will:introduce stronger greenhouse gas emission standards for model years 2027–32. These standards will put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040—reducing our carbon footprint and securing Canada’s global leadership in clean energy.These more stringent emissions standards will enable the Government of Canada to repeal the Electric Vehicle Availability Standard. This approach will allow manufacturers to use a wide array of technologies to meet the standards and respond to consumer preferences in the near term, while driving EV adoption over time.3. To build up a domestic consumer base and make electric vehicles more affordable and reliable, the government will:launch a five-year EV Affordability Program to lower the cost of EVs for Canadians and create a stronger domestic consumer market.The new $2.3 billion program will offer individuals and businesses purchase or lease incentives of up to $5,000 for battery electric and fuel EVs, and up to $2,500 for plug-in hybrids (PHEV) with a final transaction value up to $50,000 on cars made by countries Canada has free trade agreements with. To support the Canadian automotive industry, this $50,000 cap will not apply to Canadian made‑ EVs and PHEVs.enhance our national EV charging network through investments of $1.5 billion through the Canada Infrastructure Bank’s Charging and Hydrogen Refuelling Infrastructure Initiative, making it easier and more convenient for drivers to charge their EVs across the country.4. To establish a comprehensive trade regime that strengthens the competitiveness of the auto sector, the government will:strengthen Canada’s automotive remission framework to reward companies that produce and invest in Canada.maintain counter-tariffs on auto imports from the United States to ensure a level playing field for Canadian automotive manufacturers in the domestic market.build on its recently strengthened strategic partnership with the Republic of Korea by signing a memorandum of understanding (MOU) to strengthen Canada Korea‑ industrial collaboration for future mobility. This builds on other MOUs that Canada has signed with global automakers to promote cooperation.focus on establishing a new strategic partnership with China, a global leader in EV manufacturing, to further diversify trade and catalyse new investment in the automotive sector. The recently announced partnership will look to drive new Chinese joint venture investment in Canada and allow for a fixed volume of Chinese EV imports into the Canadian market.[KP2]5. To protect Canadian auto workers and businesses from immediate pressures ...