Science and Research Committee on April 16th, 2026

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Clearly, though, would they not own the intellectual property to unearth the minerals?

[Guy Saint-Jacques]

I think we set the rules, and we could manage that.

[The Chair, Liberal, Salma Zahid]

Thank you. The time is up.

We will now end this panel with two minutes with MP Rana.

[Aslam Rana, Liberal, Hamilton Centre, ON]

[Technical difficulty—Editor] ties well also with growing Canada's domestic EV sector. In your assessment, what does Canada need to get right to make that work?

[Michael Kovrig]

First of all, Canada needs to keep that arrangement as constrained as possible. Treat it as an experiment that needs to be ring-fenced from the rest of the economy and industry. See how it goes. Make sure it is reversible if it begins to have obvious negative effects, which, frankly, I think it's likely to. I don't think this strategy has the potential to drive investment or much technological innovation in the sector because it will deter companies in other countries from entering.

Most likely, what we're going to see with Chinese EV companies is them setting up knock-down kits, where all they're really doing is circumventing trade barriers. Unless you have an integrated North American market, I doubt very much that they're going to be seriously interested in building proper, full plants that would sustain a technological ecosystem and help us build that whole supply chain locally. The Chinese government is on record as wanting to restrict its EV companies from transferring technology and process knowledge. If you look at the limited examples in Europe or other...it's usually knock-down kit plants, or they are importing their own workers and not transferring any technology.

I don't see how Canada is going to have the leverage to do that. The only scenario where that might be possible is if you have an integrated North American market under CUSMA, in which the U.S., Canada and Mexico all impose the same standards and are then able to use that massive leverage to potentially oblige Chinese companies to come in and actually contribute in a way that is positive but carefully restricted and managed. Alone, I don't see how Canada can do that.

[Aslam Rana, Liberal, Hamilton Centre, ON]

Where does—

[The Chair, Liberal, Salma Zahid]

Thank you. The time is up.

With that, this panel comes to an end. I want to thank both witnesses for appearing before the committee and for providing their important testimony.

We will suspend the meeting for a few minutes so the witnesses for the second panel can come in.

Thank you once again.

The meeting is suspended.

[The Chair, Liberal, Salma Zahid]

I call this meeting to order. Welcome back.

I would like to make a few comments for the benefit of witnesses and members.

Please wait until I recognize you by name before speaking. Those participating by video conference can click on the microphone icon to activate your mic, and please mute yourself when you are not speaking. For those on Zoom, at the bottom of your screen, you can select the appropriate channel for interpretation—floor, English or French. I remind you that all comments should be addressed through the chair.

With that, I would like to welcome our witnesses for this panel.

We are joined, via video conference, by Ms. Joanna Kyriazis, director, policy and strategy, Clean Energy Canada. We are joined in person by the Privacy Commissioner of Canada, Mr. Philippe Dufresne. We are also joined by Lara Ives, director, policy, research and parliamentary affairs directorate, Office of the Privacy Commissioner of Canada.

The witnesses will have five minutes for opening remarks. Then we will go to our rounds of questioning.

I request Ms. Kyriazis to please go ahead.

You will have five minutes for your opening remarks. Thank you.

[Joanna Kyriazis, Director of Policy & Strategy, Clean Energy Canada]

Thanks so much.

Good afternoon, Madam Chair and members of the committee.

Clean Energy Canada is a national think tank at Simon Fraser University focused on advancing the country's energy transition.

The global auto sector is undergoing a rapid transformation. Driven by China's EV dominance, EVs are expected to make up 30% of new car sales worldwide this year and 40% by 2030. At the same time, the U.S., under President Trump, has destabilized the historically integrated North American auto market. In this new reality, Clean Energy Canada has consistently called for a nuanced approach to Chinese EVs that balances consumer affordability with industrial competitiveness. In our view, the recent Canada-China EV deal strikes that balance.

As gas prices rise above two dollars per litre in many parts of Canada, Canadians are rediscovering their interest in EVs as a way to save money on fuel. A typical Canadian driver can save between $23,000 and $32,000 over 10 years of ownership by choosing an EV over a comparable gas vehicle, according to new analysis released by my organization last week.

However, in 2025, Canada was one of the only markets in the world to see EV sales decline. A number of policy choices—imposing a 100% tariff on Chinese EVs in late 2024, but also pausing rebates and the EV availability standard—caused Canada to fall out of step with the global trend towards EVs, but 2026 is set to be a comeback year for Canada. The return of the $5,000 federal EV rebate, combined with higher war-driven gas prices, has improved the cost calculus for EVs by a further $12,000 almost overnight.

In short, Canadians are keen on EVs, but they're looking for models within their budgets. The Canada-China deal is one part of the broader package of policies that can help Canadians access affordable EVs. By allowing in a limited quota of EVs at a lower tariff rate focused on more affordable models, Canada is directly creating an affordable EV segment that we've been missing.

It will also have indirect benefits as a result of increased competition. In the EU, for instance, where lower tariffs are applied to Chinese EVs, consumers now have access to over 20 EV models under the price point of $40,000 Canadian. Half of those are offered by domestic EU carmaker brands and only seven are offered by Chinese automakers. The EU is now the fastest-growing EV market in the world, with nearly 30% of new car sales last year being electric.

What's more, Canadians are enthusiastic about this change. According to our 2026 poll, among the 50% of Canadians who are open to buying an EV, 70% presented some level of interest in getting a Chinese one.

The Canada-China agreement also presents opportunities to ensure Canada's auto sector can remain competitive in this changing world. A strategy of relying on outdated partnerships with the U.S., where Trump is undertaking an assault on his own auto sector—pulling the rug out from under their EV plans, raising manufacturing costs with tariffs and now driving up gas prices, all while pushing consumers worldwide towards the EVs that he does not want to be making—will not set Canada up for success.

Canada needs to hedge, and this means placing bets on new partners who are positioning themselves strategically in the present, versus looking at what we did in the past. A two-pronged approach of selective exposure to Chinese EVs, plus preferential market access for domestic producers, is a better path.

Together, these measures could help Canada enhance its industrial competitiveness by incentivizing Chinese, Korean and German firms to build here, employing Canadian workers, using upstream Canadian inputs like critical minerals and engaging in technology and skills transfer to help Canadian companies catch up to their lead. We also have massive economic opportunities in producing the critical minerals, battery materials and other components that go into EVs, all of which go hand in hand with higher EV uptake.

This is not about being pro-China. It's clear that this will be a delicate and sometimes difficult relationship to manage, with risks and opportunities that must be carefully weighed, as we heard from the earlier witnesses today. This is about being pro-Canada, realizing that setting Canada up to compete in the auto market of the future no longer means betting it all on America. Survival will necessarily mean building something new.

Thank you for the opportunity to contribute today. I look forward to your questions.

[The Chair, Liberal, Salma Zahid]

Thank you.

With that, we will go to Mr. Dufresne for five minutes.

Please go ahead. You can do your opening remarks for five minutes.

[Philippe Dufresne, Privacy Commissioner of Canada, Offices of the Information and Privacy Commissioners of Canada]

Madam Chair, members of the committee, thank you for the invitation to appear as part of your study on the implications of the Canada-China preliminary joint arrangement on Canada's electric vehicle sector.

As Privacy Commissioner of Canada, my mission is to protect and promote Canadians' fundamental right to privacy. My mandate is to oversee compliance with Canada's federal public and private-sector privacy laws, which set the ground rules for how federal government institutions and businesses handle personal information.

Many of the vehicles that Canadians now drive are connected to the Internet. This can offer significant convenience, such as real-time navigation, facilitated roadside assistance and seamless integration with mobile devices.

These connected features also raise important privacy considerations. Modern vehicles collect and transmit large volumes of personal data, including location history, driving behaviour and personal preferences, which also raises the issue of how this information is stored, shared and protected. In some cases, the data may potentially be transferred or stored in foreign jurisdictions, where different legal frameworks and data protection standards can increase the risk of access or use of personal information, including access by foreign courts, law enforcement and national security authorities.

Data flows underpinning the connected vehicle ecosystem can be complex and opaque. This is why my office has supported research into connected vehicles through our contributions program.

This year, my office has funded two related research projects. One is evaluating the privacy permissions and releases that automakers are requiring of their Canadian customers in return for access to on-board features and connected applications in new cars. Another is examining how privacy by design can be used to improve privacy protection when companies access identifiable information from connected vehicles. I expect that the results of this work will be published in the next few months.

The Personal Information Protection and Electronic Documents Act, or PIPEDA, does not contain separate and explicit rules governing trans-border data flows.

PIPEDA currently requires organizations to be transparent about their personal information handling practices, including when personal information is transferred to a third party or a foreign jurisdiction, and to make data available to the government, law enforcement agencies or the courts.

The legislation also clarifies that organizations remain responsible for personal information that is transferred to a third party for processing and must ensure, through contractual or other means, that a comparable level of protection is provided.

I've recommended that PIPEDA be amended to specifically address transborder data flows to ensure that Canadians' personal information is appropriately protected prior to leaving the country. This could include requiring privacy impact assessments before data moves beyond Canada's borders and providing for specific tools to ensure that data is afforded a comparable level of protection when it travels outside the country. This could be accomplished through, for example, standard contractual clauses, codes of practice and certification programs.

My office also works closely with our international counterparts to help advance trusted, safe and secure cross-border flows of personal information.

This is one of my priorities as the newly elected chair of the Global Privacy Assembly. It is also a pillar of my work with my counterparts in the G7 Data Protection and Privacy Authorities Roundtable. Last December, the round table released a position paper on developing a strategic approach to the concept of data free flow with trust, and I look forward to continuing this important work under the French G7 presidency this year.

My office also supports the exploration of data transfer mechanisms that can provide businesses with regulatory certainty and that Canadians can trust, such as the Global Cross-Border Privacy Rules Forum certifications.

Privacy is, and must remain, a priority as we explore the implications of technology. This is to ensure that appropriate safeguards are in place to enable responsible innovation and protect Canadians' personal information.

I would be happy to answer your questions.

[The Chair, Liberal, Salma Zahid]

Thank you.

We will start our first round of questioning with MP DeRidder for six minutes.

MP DeRidder, please go ahead.

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Thank you, Chair.

Ms. Kyriazis, thank you for being here today.

I'm going to talk about the comments on having a more competitive option. Forced labour is part of the problem. It's why this is a more competitive option. Every aspect of the supply chain, through credible sources, is a contributing factor as to why these Chinese Communist Party EVs are more competitive here in Canada. Not only that, they're also being highly subsidized by the Chinese Communist Party in order to make them more economic.

How can you state that it is a pro-Canada choice to bring them into Canada when we're going against our own Canadian values by bringing them here?

[Joanna Kyriazis]

Thanks so much for your question.

Chinese EVs are so much lower in cost partly because China has had a two-decade head start on legacy carmakers transitioning to electric vehicles. Hundreds of Chinese EV companies started in the ecosystem and have been engaged in a very competitive price war to get down to the lowest-cost technologies. They have also been able to build out an entire battery supply chain in China that those companies have access to, so they are now able to produce batteries for under $100 per kilowatt hour, which is a very important tipping point.

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Can you state with certainty that forced labour is not part of that competitiveness or an aspect of what is going on?

[Joanna Kyriazis]

I want to be clear. Clean Energy Canada unequivocally opposes any form of forced labour. Canada has a legal framework in place. Canada has the Fighting Against Forced Labour and Child Labour in Supply Chains Act, plus we have measures under CUSMA specifically meant to address these issues.

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

How can we fight against it if we're allowing these vehicles to come into Canada because it's an economic option, when that's part of the economic option?

[Joanna Kyriazis]

I'm not a labour or human rights expert, but my understanding is that those legal frameworks would not allow products made with forced labour to come into Canada. We should be implementing and enforcing those requirements diligently, as well as strengthening them if necessary.

I also want to make clear that this is not an EV-specific issue. Our efforts to combat forced labour should apply to all goods coming into Canada from China and beyond, whether it's electric vehicles, iPhones, clothing or gas-powered vehicles. I think Canada should be taking a consistent approach to—

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Do you not think a good first step in this EV agreement would be ensuring that there's no forced labour?

[Joanna Kyriazis]

Absolutely. If that's not already integrated through our laws in place, we can restate it as part of the agreement. Forced labour should not be part of—

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Would you then go against allowing them into Canada if it was found? Would you state, as part of Clean Energy Canada, that it's not a good idea to bring them into Canada if they are part of a forced labour problem in China?

[Joanna Kyriazis]

Clean Energy Canada doesn't want goods coming in that have been made with forced labour. Banning all Chinese-made EVs from all companies coming from any part of China is not a targeted approach that specifically addresses forced labour issues. I think we need a more targeted approach to address the issue we're concerned about without depriving Canadians of the low-cost EVs available in almost all other parts of the world.

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Thank you.

Commissioner, I want to ask you a quick question before I'm out of time.

The United States is currently restricting CCP-linked EV technology over national security and data concerns. Do you think a potential consequence of this could be that a Canadian owning a CCP vehicle might not be able to drive across the border?

[Philippe Dufresne]

I would hesitate to comment on how the U.S. would interpret their practices in terms of border crossings.

What I can say is that data crosses borders all the time. That's why I'm flagging the importance of making sure Canadian privacy law takes this into consideration. It does to some extent, as I highlighted in my statement. Organizations have to ensure comparable treatment, but it's through contracts or other means. The problem with contracts or other means is that they are not going to bind the governments of other countries.

This is why one of my key recommendations for privacy law reform in Canada is that we should put in place transborder transfer rules that would require a more stringent consideration in these cases.

[Kelly DeRidder, Conservative, Kitchener Centre, ON]

Thank you for that, Commissioner.

Have you received any assurances by the Government of Canada that there are safeguards in place to protect Canadian data from being collected and transmitted back to the CCP?