Mr. Chair, I thank my colleagues for inviting me to appear before the Standing Committee on Industry and Technology to talk about a sector that means a great deal to me, the automotive sector.
I want to thank Mr. Vincent and Mr. Tessier, who are already familiar to us. These two colleagues have played a key role during this time.
Thank you, Mr. Chair and members of the committee. I'm glad to be here with you. Somehow, I was missing you.
Thank you for welcoming me here to discuss not only the specific situation of the Stellantis assembly plant in Brampton, Ontario, but also the steps that our government is taking to support and defend Canadian auto workers, who are the very backbone of this vitally important industry to Canada.
Last month, as some of you will recall, I had the honour of tabling budget 2025 in the House of Commons. That budget was, more than anything else, a vote of confidence in Canadian industry and Canadian workers, as well as a recognition that our world is fundamentally changing at an unprecedented speed, on an unprecedented scale and with unprecedented scope. Some would have to go back to 1945. Others would say it's like the fall of the Berlin Wall. It's the trading route of the world economic order. It's supply chains, technology, quantum and AI. Whether you're on the factory floor, at the kitchen table or in the field in Saskatchewan, you just feel that all of this is happening. It's broad, it's coming quickly and it has impact for everyone. That's the scene in which we're operating.
As you all well know—as members of the industry committee—the United States, our largest trading partner, is fundamentally changing its trading relationships. Like I said, the speed and scale of these changes is causing massive uncertainty. As a result, we have to focus on what we can control.
I just want to put that in perspective. We were with the International Monetary Fund a few days ago. There is what they call the world uncertainty index, published by the International Monetary Fund. The world is more uncertain now than it was in 2008—to give you a sense of perspective on what we're going through as a nation and as a world. It's not by a margin. It's almost double what we found in 2008.
That's the state of the world. That's how we operate. That's why we need to chart a course for Canadian industry. That's what we've done and what we're doing, knowing that Canada has what the world wants and what, I would say, it increasingly needs.
As my honourable colleagues know, Canada possesses enviable assets, considering that it borders three oceans. It is the only country that has free trade agreements with every other G7 nation, which gives Canadian industries an incredible comparative advantage. It has preferential access to 1.5 billion consumers and it's an energy superpower, with some of the largest reserves of natural resources in the world. With 85% of its power grid made up of clean electricity, it has strong potential to power the green economy of the future.
Canada has the fiscal capacity to facilitate generational investments and transform its economy. My colleagues will recall that the International Monetary Fund found that two countries in the world stand out. Those two countries, not five, 10 or 20, are Germany and Canada, which truly have the fiscal capacity to invest in adapting to the new global economy.
More than anything, Canada has the best workforce. I can attest to that, since we meet with workers from across the country. Their excellence, their know-how and their vision are the reason that we're able to attract generational investments to this country and, of course, help build the strongest economy in the G7.
This unwavering belief in Canadian industry and Canadian workers informs every decision I make as Minister of Finance and National Revenue, just as it guided every decision I made in my time as the minister of innovation, science and industry, including the deals we signed with Stellantis, which I think is what you want to talk about. I'm glad that we can set the record straight, because we're going to bring facts to Canadians who are watching at home today.
Canada's automotive industry is a cornerstone of our economy. It contributed roughly $16.8 billion in economic activity in 2024. It directly employs more than 125,000 Canadians. This is a great and astonishing number. These are families who depend on the good work that the industry is providing, and it's supporting hundreds of thousands of jobs in indirect industries.
The strength of Canada's auto sector is one of the many reasons that Stellantis chose in 2023 to sign historic agreements with the Government of Ontario and the Government of Canada. It is also why the recent actions taken by Stellantis are unacceptable.
Let me be very clear: We are deeply disappointed by the production changes recently announced by Stellantis. Their decision to cancel production plans for the Brampton assembly plant goes against the commitments they've made to Canada, to Canadian workers and to our government. Working with both our government and Premier Ford's government, as well as the union, Stellantis made clear and also undertook a contractual undertaking to invest in Canada and in the Brampton plant. This is not a commitment that can be casually dismissed, and we are actively working to hold Stellantis to account, as my colleague, the Minister of Industry, explained to this committee recently.
We want to make sure that Stellantis meets all of its commitments to workers, to the industry and to Canada. Rest assured that we will not hesitate to assert all of our rights to hold the company to account, as provided in the contract.
Colleagues, I hope you've read every single page and clause of the contract, because we're going to refer to very specific sections so you can be informed about how the different clauses interact.
As you found out on October 23, my colleague the Minister of Industry and I announced through an order in council that Stellantis' tariff-free import quota had been reduced by 50% following the company's decision to cancel its production plans in Brampton. This decision to reduce Stellantis' tariff quotas clearly demonstrates Canada's willingness to use every means available to protect its interests.
Everyone in this room—every political party—should be acutely aware that we, as a country, are confronting new global realities, which have resulted in domestic challenges. That's why we need to build and take bold steps and actions to defend our industry.
Colleagues, you will recall that we quickly responded to the U.S. tariff on vehicles manufactured in Canada by imposing 25%-tariff countermeasures on passenger vehicles that were imported from the United States. In addition, we introduced a performance-based remission framework that allows automakers maintaining investments and production in Canada to import a set number of U.S.-assembled vehicles tariff-free under CUSMA. In lowering these quotas for Stellantis and GM, we have also shown that this framework will be available only to those who maintain their commitments to Canada and to Canadian workers.
I want to be very clear: Companies that have made commitments to Canada and our workers must honour them—full stop. We remain laser-focused on protecting Canadian jobs and ensuring that workers and their families are supported. We will use any and all tools at our disposal to do so.
In the spring, Canadians gave our government a clear mandate to defend Canada's interests and build a strong and resilient economy. They placed their trust in us because we presented them with a pragmatic approach to addressing the historic challenges facing our economy.
In conclusion, we've always known that changes in our trade relationship with the United States could have very real consequences. We also know that Canada can and will rise to these challenges with determination and confidence. Budget 2025 is an example of that.
In conclusion, we remain as firmly committed to supporting Canada's auto industry and its workers as we did the day these deals were signed, and we will not hesitate to take strong action to protect our industries and our workers. We are investing in Canada strong, and we will ensure that support goes to those who invest in Canada's future.
With that, Mr. Chair, I'll be quite happy to answer questions from my colleagues.
Thank you again for having me at this committee.
Thank you.