The Big Story Canada's trade gamble: Why the latest deal with China may do more harm than good
Jan 19, 2026
Flavio Volpe, President of the Automotive Parts Manufacturers Association and a CUSMA architect, dives into Canada's new trade agreement with China. He discusses how allowing 49,000 Chinese EVs could threaten local manufacturing jobs in Ontario while benefiting prairie agriculture. Volpe raises alarms about weak enforcement and potential U.S. backlash against Canada’s negotiating position. He also highlights national security risks with connected Chinese vehicles and suggests keeping data management local to safeguard Canadian interests.
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Giving Away A Beachhead In EVs
- Canada gave China tariff-free access for 49,000 EVs per year, reducing protection from 100% to 6.1% for that quota.
- Flavio Volpe warns this hands market share to low-cost Chinese producers with no Canadian content or jobs.
Require Local Investment Proof
- Hold China to its promised joint-venture investments and use the three-year review guardrail to exit if they don't deliver.
- Demand evidence of manufacturing and Canadian content before allowing the quota to continue.
Why China Won't Likely Build Here
- Chinese automakers' low costs come from vertical integration, scale and Chinese labor, making Canadian production unlikely.
- Volpe doubts China will build sufficient Canadian plants if the U.S. market remains closed to their cars.