Thank you, Madam Chair.
Members, I stand here today representing a vital industry that produces 80% of North America's primary aluminium, a cornerstone of Canada's pivotal role in the North American economy. However, despite this advantageous position, the reality facing our industry is clear and alarming to all well-informed Canadians: We are under a growing threat. It is a threat that wears the mask of short-term bargains offering the appeal of low-priced products, but these prices are artificially low as a direct result of a non-market-based system distorted by China's state-sponsored overcapacity in aluminium.
As our CUSMA partners, the U.S. and Mexico, take necessary steps to protect their markets by imposing tariffs on Chinese aluminium and aluminium-intensive electric vehicles, the risk of this excess capacity's being diverted to Canada grows significantly. Without decisive action, Canada could become the back door for these unfairly traded high-carbon products, undermining the integrity of our industry and the stability of North American markets. The path ahead for Canada will be challenging, but the steps we take now will be crucial to ensuring the long-term sustainability of our industry and securing our place in a fair and balanced trade environment.
Aluminium is like water: It seeks the path of least resistance to reach the highest price. The possibility of Chinese products flooding our markets is a clear and present danger. It will damage our partners' economies as well as Canada's own economy and industry, but above all, these unfair Chinese practices will hurt Canadian citizens, both consumers and producers. Behind Canada's industrial fabric lie hundreds of thousands of well-paid jobs that enable Canadians to contribute to their regional economies. The risk to these jobs comes in the form of Chinese products. These Canadian workers know that price is what you pay, but value is what you get.
A recent survey by Spark Advocacy reveals that 79% of Canadians support the idea of joining the U.S. and Mexico in imposing tariffs on Chinese products. Even more telling, when presented with the argument that Canadians could benefit from cheaper electric cars if they weren't taxed, 68% rejected this notion, agreeing instead that Canada should prevent cheaper Chinese vehicles from entering our market because they're subsidized by the Chinese government, will undermine our economy and cost Canadian workers their jobs. As a Canadian myself, I can't help but feel a sense of pride when confronted with such conviction. We are in a race, but it won't be a race to the bottom, not with this strong Canadian spirit.
Evidence of China's non-market economic behaviour from 2010 to 2020 is overwhelming, as China propelled its aluminium industry forward with unprecedented state intervention. The western world's smelting capacity in aluminium became a graveyard. Over 40 plants shut down, including many in the U.S., where the number of smelters dropped from 15 to just four. Allowing imported Chinese metal into Canada means importing carbon at no cost while exporting jobs at a high price. It means undermining our hard-earned technology investments, whether in projects like Elysis or in the electric vehicles that rely on aluminium as a core component of all batteries and vehicle bodies.
We are free traders because we believe that rules-based level playing fields are the best way to thrive for the greater good; however, China is anything but a free trader. We must protect our free-trading North American environment, its jobs, its people and its businesses and communities from such harmful behaviour. The primary aluminium industry fully supports the government's use of section 53 of the Customs Tariff to implement these surtaxes. This approach is not only timely but absolutely necessary. By allowing for the flexibility to extend tariffs throughout chapter 76 of the HS code as needed, the government can proactively prevent circumvention and enhance the effectiveness of its measures over time.
We understand that imposing tariffs might have repercussions for some consumers of Chinese goods. It is essential to manage this impact carefully and to ensure a gradual transition that supports the realignment of trade flows in the desired direction. Our goal should be parity with U.S. tariffs to maintain a competitive balance while avoiding undue burdens on Canadian businesses.
Finally, we expect the Canadian government to spare no effort in the coming days and weeks to ensure proper and timely alignment with our U.S. and Mexican CUSMA partners.
By doing so, we can safeguard our economic interests, support the growth and innovation of our domestic aluminium industry and maintain our critical role within the North American trade landscape.
Thank you.