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2mo ago

Ottawa Names U.S. Trade Panel as Kovrig Warns on China EV Deal

Industry and union leaders say the Canada–China EV pact threatens U.S. trade talks.

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FILE - Michael Kovrig speaks at the conference, 'War and Peace in the 21st Century: China and the US: Can Bipolar Confrontation Be Avoided?' at the Barcelona Centre for International Affairs on March 11, 2023.
Prime Minister Mark Carney meets with President of China Xi Jinping at the Great Hall of the People in Beijing, China on Friday, Jan. 16, 2026.

Overview

  • The government appointed an Advisory Committee on Canada–U.S. Economic Relations chaired by Dominic LeBlanc, and members expect the China electric‑vehicle agreement to be a top agenda item.
  • Michael Kovrig, a former Canadian diplomat detained in China from 2018 to 2021, warned the EV pact could create strategic dependency that Beijing could use for pressure.
  • Auto makers and unions told a House committee the deal risks misalignment with Washington and could complicate talks to renew North America’s trade pact and resolve U.S. auto tariffs.
  • Security experts testified that connected Chinese EVs could collect data on drivers and nearby infrastructure, calling the vehicles potential "spy machines on wheels."
  • Carney’s January pact allows up to 49,000 Chinese EVs at a low tariff in exchange for lower Chinese duties on Canadian farm goods, even as U.S. officials including Commerce Secretary Howard Lutnick and President Donald Trump voice concern.