China has “requested consultations with the Canadian side” to the World Trade Organization (WTO) after Ottawa announced plans to impose 100% surcharges on Chinese imports of electric vehicles, steel and aluminum, the Commerce Ministry said. “Canada is flouting WTO rules and violating its commitments to the organization”a ministry spokesperson explained in an online statement.
He criticized Canadian surtaxes, “a classic unilateral and protectionist measure, which seriously harms the multilateral trading system and disrupts global industrial supply chains for electric vehicles, as well as steel and aluminum products”. “China is totally opposed to this. We urge Canada to respect WTO rules and immediately correct these erroneous measures.”he said.
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Chinese cars in the crosshairs
On Tuesday, China already announced an anti-dumping investigation into Canadian canola, in apparent retaliation for Ottawa’s massive tariffs. Canada is one of the world’s top producers of canola, an oilseed used to make cooking oil, animal feed and biodiesel, and China has historically been a major customer.
The Canadian surcharges target Chinese-made cars, trucks, buses, electric delivery vans and some hybrid models. They are set to take effect Oct. 1, in addition to the existing 6.1% tariff. The only Chinese-made electric vehicles imported into Canada so far are those from the American brand Tesla. The steel and aluminum tariffs will take effect Oct. 15.
“China does not play by the same rules as other countries”said Canadian Prime Minister Justin Trudeau to justify these 100% surcharges announced at the end of August. In recent months, trade conflicts have multiplied between China and Western countries, particularly with the European Union. Beijing launched a procedure targeting the milk sector in Europe and products such as fresh cheese and milk, the day after Brussels announced a 36% surcharge on Chinese electric vehicles. The United States also announced a surcharge, amounting to 100%, as in Canada.
