(Bloomberg) -- Chinese electric carmaker BYD Co. is looking to enter the Canadian market just as Prime Minister Justin Trudeau’s government works to clamp down on imports of vehicles from the Asian powerhouse.
Lobbyists for the company, which sells its electric vehicles for less than $10,000 in China, filed notice with Canada’s federal registry that they plan to approach officials and lawmakers to advocate for BYD’s anticipated entry.
The lobbyists aim to “advise the government of Canada on matters related to the expected market entry of BYD into Canada for the sale of passenger electric vehicles, and the establishment of a new business, and the application of tariffs on EVs,” the filing said.
Canada is set to wrap on Thursday a 30-day consultation on measures to restrict Chinese EV imports — including higher tariffs to align with the US and European Union. It’s also mulling blocking Chinese investment in new Canadian factories.
The government firmly believes that action is necessary to level the playing field for Canadian auto workers and for Canada’s EV industry to compete, a spokeswoman for Finance Minister Chrystia Freeland said in a statement on Wednesday.
“All options – including restricting transactions and investment from Chinese sources in the Canadian EV supply chain – are on the table to ensure Canadian workers and EV supply chains are protected from unfair competition from China’s intentional, state-directed policy of overcapacity and lack of rigorous labor and environmental standards,” Katherine Cuplinskas said.
Separately on Wednesday, BYD announced a partnership with Uber Technologies Inc. to put 100,000 EVs onto the ride-hailing company’s platform. The multiyear plan is to start in Europe and Latin America before expanding to other countries including Canada.
Some Canadian government officials and industry representatives say Canada will need to impose tariffs on Chinese electric vehicles close to the US’s 102.5% rate, as opposed to the much lower tariffs the EU is considering. The people spoke to Bloomberg on condition they not be identified because no final decisions have been made.
Canada’s auto supply chain is highly integrated with that of the US, giving the Trudeau government little choice but to align its auto policy with its largest trading partner. It has also pledged billions of dollars in government money to automakers such as Volkswagen AG to build parts of their EV supply chains in Ontario and Quebec.
Labor groups such as the Automotive Parts Manufacturers’ Association support steep tariffs on Chinese EVs as they argue Beijing’s heavy industry subsidies pose an unfair advantage. But climate groups like Clean Energy Canada say more affordable EVs are needed to speed up consumer adoption.
BYD did not immediately respond to a request for comment. The news that the company hired the lobbyists was first reported by Autonews.com.
The lobbying notice was posted on the website of the Office of the Commissioner of Lobbying for Canada and activities started July 24. Crestview Strategy’s Christine McMillan, Cameron Doherty and Bridget Howe are representing BYD Canada.
Freeland hinted in an interview earlier this month with Bloomberg that the government may take broader trade action against China. She met with aluminum and steel producers last week. In the past, China has not shied away from trade retaliation against the country.
--With assistance from Gabrielle Coppola and Brian Platt.
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