Thank you very much, Madam Chair. It's a pleasure to be here this afternoon.
Thank you for the opportunity to provide some remarks on the build back better legislation and the potential impact it could have on Canada's electric vehicle industry, and how construction and building trades workers fit into that mix.
My name is Sean Strickland. I'm the executive director of Canada's Building Trades Unions, part of North America's Building Trades Unions. We represent 14 international construction unions, with offices in Washington, D.C., and Ottawa. The combined membership of NABTU and CBTU is over three million unionized construction workers, of which 600,000 are in Canada.
The women and men of the building trades are employed in constructing everything from small projects through to large multi-billion dollar projects right across Canada. The construction and maintenance sector annually represents approximately 6% of Canada's GDP. Skilled trades workers are often later employed in the operation, renovation, maintenance and repurposing of plants, factories and facilities—our members and contractors build it and maintain it.
I want to commend the work of the government on the issue thus far, for speaking up quickly and strongly against the EV credits and the potential harm they will cause.
On behalf of Canada's Building Trades Unions, we recommend that the Canadian government continue to advocate for the removal of electric vehicle tax credits that incentivize U.S.-made vehicles to the detriment of the Canadian automobile manufacturing industry; that we also develop a made-in-Canada supply chain, from mining to the manufacturing floor, for EV battery production to support our transition to net zero; and, that the Canadian government continue to ensure the U.S. upholds their commitment to our existing trade agreements, including CUSMA, the “Roadmap for a Renewed U.S.-Canada Partnership” that was signed last year by President Biden and Prime Minister Trudeau, and the U.S.-Canada critical minerals action plan.
Unfortunately, as we all know, and as you've heard from previous speakers, President Biden and the U.S. administration have committed to protectionist measures like buy America and, more recently, build back better. These protectionist measures aren't new. Throughout our long history and relationship, Canada and the U.S. have been dealing with trade matters and irritants despite agreements that have been signed by both countries. For Canadians, this is particularly frustrating.
Yes, we are two countries, but for the automotive industry, we are one supply chain that's mostly seamlessly integrated across both borders, and thousands of building trades skilled trades workers are employed on both sides of the border, keeping the industry rolling. As an example, as a small sample size, in Canada, on average, building trades members work between 170,000 and 200,000 people hours at the Toyota plants in Cambridge and Woodstock, Ontario. This represents approximately $170 million to $200 million in wages and benefits. There are another 55,000 people-hours at the GM plant in St. Catharines, in addition to thousands more man-hours in the automotive industry right across Ontario, Quebec and the rest of Canada.
The United States-Canada auto industry, as we know, is one of the most integrated industries in the world. In border areas such as Michigan and Ontario, a vehicle's auto parts routinely cross the border six times before final assembly, in a business that is worth at least $100 billion a year in trade between both nations.
For these reasons and more, in the view of North America's Building Trades Unions and Canada's Building Trade Unions, and on behalf of our three million strong workforce in both countries, we believe that Canada—and we're working hard—should be exempt from these U.S. EV credit provisions
There are some additional considerations.
Currently in Canada, our tax credit for purchasing electric vehicles applies to U.S.-made cars as well. The U.S. should do the same. Also, the new EV tax credits include an additional credit for $4,500 for vehicles built at unionized plants. Canada's unions are just as strong—in some cases stronger—and labour standards just as equal as they are in the United States, so we're aligned.
Canada has committed to a target of 100% of new automotive sales being zero-emission by 2035. This is also aligned with U.S. climate goals. Interestingly, the American Automobile Labelling Act clearly identifies Canadian auto production as domestic production in the U.S., because of our interconnected relationship.
When we look at these issues more closely, we obviously have more alignment than misalignment between the U.S. and Canada around the ultimate goal in this whole debate and discussion: transitioning to low-emission vehicles and reducing the world's carbon footprint. Surely, both countries can find a way to work more collaboratively on this EV tax credit issue to construct good policy that works for Canada, the U.S. and the environment.
Moving beyond trade and towards the economies of the future, Canada must also develop a made-in-Canada supply chain, from mining to the manufacturing floor, for EV battery production. There is a large economic opportunity to position Canada as a leader in EV manufacturing and production while simultaneously reducing our carbon footprint to net zero. We need to continue to stand up for good Canadian jobs and fight unfair trade practices at every corner.
Thank you.