Authored by Paul Rowan Brian via The Epoch Times(emphasis ours),

A number of industry leaders and policy experts are warning thatthe government’s permission of importing Chinese-made electric vehicles (EVs) into Canada at low tariff rates will undermine Canada’s auto sector and cause a number of substantial national security risks.

The warnings came intestimonybefore the House Committee on Industry and Technology, where the speakers said that Ottawa’s quota-based access to Chinese EV makers will make Canada vulnerable to unfair trade practices from Beijing, hollow out the country’s already-struggling auto industry, and bring along a host of security risks associated with data collection and surveillance.

“Let’s be clear, this is not the approach Canada wanted,” Michael Kovrig, head of the Global Network for Strategic Effects, said while testifying May 4 before the committee.

The import of Chinese-made EVs comes under the terms of anagreementbetween Ottawa and Beijing signed in January of this year that allows the import of up to 49,000 Chinese-made EVs in the first year at a tariff rate of 6.1 percent, down from 100 percent.

Ottawa has indicated the quota could rise to approximately 70,000 vehicles per year over the next five years.

As part of the agreement, Beijing moved to cut tariffs on Canadian agricultural exports, slashing tariffs from 84–100 percent on Canadian canola products to 15 percent and relaxing restrictions on other products including seafood and peas.

Ottawa also saidit expects China will invest in the Canadian auto sector and possibly set up auto manufacturing inside Canada as part of the wider agreement.

Canadaopened permitsfor Chinese-made EVs on March 1, under which 24,500 will be allowed until August under the 6.1 percent tariff rate. Permits are issued by Global Affairs Canada and last 60 days before expiry. Importers are required to be Canada-based automakers or agents of them, and vehicles must comply with Canadian safety standards.

Ottawa said it plans to review and potentially change how the import system works after the first six months.

Source: ZeroHedge News