Debates of Dec. 3rd, 2025

Canada's Auto Industry

[Harb Gill, Conservative, Windsor West, ON]

Mr. Chair, U.S. leaders have been crystal clear about their tariff intentions, and they have made those intentions known for several years. For the government to act like this is news to it is absolutely shocking to me.

Can my colleague explain what kind of message it sends to families in Ingersoll or Windsor or Oshawa or St. Catharines when they hear the Prime Minister say, “Who cares?” and that it is not a “burning issue”? The auto sector is burning right now. I do not know what else we can do besides complain.

[Arpan Khanna, Conservative, Oxford, ON]

Mr. Chair, this is an urgent issue. As my colleague said, this is a five-alarm fire. Is it not a burning issue? People's lives are at stake. Christmas is around the corner. People do not know what is going to be there the year after this. The problem we have is that the Prime Minister is going to all these countries, but who is benefiting? Brookfield is benefiting.

If it is for Brookfield contracts, they are getting deals. They are making progress. How come they are not making progress on files that affect the lives of Canadians? If it is their Brookfield buddies, there is no problem. They are getting pipelines. They are getting AI deals in Dubai. It is all open season for them. The Brookfield buddies win. Canadians pay the price. That is the sad reality with the Prime Minister. That has to change and Conservatives will continue to fight and support our auto workers every step of the way.

[Rhonda Kirkland, Conservative, Oshawa, ON]

Mr. Chair, who cares? Can members believe that is what the Prime Minister said when he was asked when he had last spoken to the President of the United States about tariffs like the ones threatening thousands of Canadian jobs? “Who cares?” Well, Oshawa cares. Canadian auto workers care, their families care, Conservatives care, and every community shaped by the sweat and determination of this great industry cares.

I come from a city built by people who always cared. R.S. McLaughlin was one of them, a Canadian auto pioneer who built General Motors of Canada from a patch of dirt in Oshawa and helped turn this country into an auto leader. Colonel Sam believed in Canadian auto workers. He believed in our talent, our grit and our future. It is disappointing that the Prime Minister does not seem to share that belief, because today he appears more committed to protecting American auto jobs than Canadian auto jobs.

Let me speak plainly about what is coming in Oshawa. In January, GM Oshawa's third shift is set to be cut, and nearly 1,000 auto workers stand to lose their jobs. Anyone who knows this industry knows and understands the ripple effect: supplier layoffs and reduced shifts in parts plants. More than 2,000 supplier jobs now sit on the edge. These are parents trying to keep their homes, young people just starting their careers, and families who have given everything to keep this industry alive.

The Prime Minister said there was not a “burning issue”. Nearly 1,000 Oshawa jobs are at risk. Is that not a burning issue? There are 2,000 supplier jobs in jeopardy. Is that not a burning issue? There are entire communities bracing for American tariffs. Is it still not a burning issue?

If the jobs and livelihoods of thousands of Canadian families do not qualify as a burning issue to the Prime Minister, then I do not know what does. Auto workers cannot shrug this off the way the Prime Minister did. Whether they are in Oshawa, Brampton, Windsor, Oakville, Ingersoll or any other auto town, they are living with fear today. Their families are sitting at kitchen tables tonight, uncertain how they will get through the next few months.

The Prime Minister also said he would speak to Trump when it matters. It matters before more pink slips goes out. It matters before more production moves south. It matters before families lose the stability they worked their whole lives for. It matters before another Canadian auto worker is told their job is disposable. It matters right now.

Conservatives believe in our resilient Canadian auto workers. We believe in keeping the auto industry strong here at home in Canada. We believe in fighting for Canadian auto jobs, not watching them disappear without a fight. Auto workers helped build the modern Canadian middle class. They built strong, proud communities like my home town of Oshawa. They built an industry that helped shape this country. Yes, it does matter. It matters to Oshawa; it matters to every auto worker across this country, and it matters to every Canadian who is tired of being told their job does not count.

Here is the truth: If the Prime Minister thinks thousands of Canadian auto jobs are not a burning issue, then he is not paying attention to the country he is supposed to be leading. If the Prime Minister cannot be bothered to fight for Canadian auto workers, then he has no business speaking for them. Canadian auto workers will fight. Oshawa auto workers will fight. Conservatives will fight, because these auto jobs matter, and our auto industry matters. Canada deserves a government that acts like it.

[Harb Gill, Conservative, Windsor West, ON]

Mr. Chair, would my colleague agree that after 10 years of Liberal policies that blocked pipelines, chased away investment and left us dependent on the U.S. market, Canada is now negotiating from a position of weakness, and workers are paying the price for this weakness?

[Rhonda Kirkland, Conservative, Oshawa, ON]

Mr. Chair, yes, I would agree. We are negotiating from a position of weakness. I mean, we were told in the last election that the Prime Minister was the man with the plan and would negotiate a deal by July 21. It is now December. We do not have a deal. Clearly, Canadians were sold a bill of goods and did not get what they supposedly wanted when they elected this minority Liberal government. For 10 years now, the Liberals have known that the auto industry was at risk. This is Trump 2.0, not Trump 1.0, so they might have seen this coming, had they been paying attention a little more closely.

What makes this worse is the fact that we are creating policies at home that are doubling down on the harm to our auto sector, policies like the EV mandate. I do not understand it. The Liberals need to scrap that immediately. If they do not, they should get out of the way. Conservatives will do it.

[Carlos Leitão, Liberal, Parliamentary Secretary to the Minister of Industry]

Mr. Chair, I would like to ask my colleague a very simple question.

Does she think that Canada should sign any agreement with the Americans at any cost just for the sake of having an agreement? Would it not be better to negotiate an agreement that benefits all Canadians, while taking the necessary time to come up with something that makes sense, rather than rushing headlong into an agreement that makes no sense?

[Rhonda Kirkland, Conservative, Oshawa, ON]

It would be great, Mr. Chair, if we could get a good deal. What the Prime Minister told us in April was that he was the guy who could do it. He told Canadians to elect him to be Prime Minister because he knew how to handle Donald Trump and how to negotiate a deal, yet he has failed over and over again. When he is asked to make a call or if has he spoken to the U.S. administration, he says, “Who cares?”

[Harb Gill, Conservative, Windsor West, ON]

Mr. Chair, it is indeed quite troubling that folks across the way are still claiming that they have a deal coming. Meanwhile, they are not even talking.

Does my colleague agree that when the Prime Minister says, “Who cares?”, it sends a dangerous message to auto workers in Windsor, Oshawa, Brampton, London and across Canada that their jobs do not matter to him or his party at all?

[Rhonda Kirkland, Conservative, Oshawa, ON]

Yes, Mr. Chair, it does send a dangerous message, and the message is that their jobs really do not matter. They are scared, worried and uncertain. When we speak to anyone in the auto sector right now, their comments are simply that if we could deal with the uncertainty, we could invest more in Canada. We have bad deals abroad and terrible policy at home, or no deals abroad, with the U.S. or anywhere. No matter where the Prime Minister flies around the world, he does not seem to be getting good deals for Canada, Canadian jobs and Canadian workers. Brookfield is getting some, but I do not know about Canadians.

[Viviane LaPointe, Liberal, Sudbury, ON]

Mr. Chair, I have been listening to my colleague from Oshawa. My riding is Sudbury. It is a mining town and a union town, with good union jobs and union workers. I know that the member would understand that.

When I hear my colleague talk about just getting out of the way, I have to say that union members feel that means you are not supporting them. When you have Unifor that has—

[The Chair, Conservative, Tom Kmiec]

The member has used the word “you” twice, referring to the Chair. I would remind the member to speak through the Chair to the member.

[Viviane LaPointe, Liberal, Sudbury, ON]

Mr. Chair, Unifor has endorsed the budget and the actions of this government in ensuring that we are there for workers. When my colleagues talk about getting out of the way, do they understand the impact that has on workers who then feel they are essentially saying they would not be there for workers?

[Rhonda Kirkland, Conservative, Oshawa, ON]

Mr. Chair, I am not quite sure the member understood what I said. I certainly did not say that we should get out of the way. We are standing for auto workers. We called this debate tonight because we care about what is going on.

If anyone needs to get out of the way, I would say the Liberals should get out of the way so that Conservatives can get the job done.

[Sima Acan, Liberal, Oakville West, ON]

Mr. Chair, I will be sharing my time with the member for Sudbury.

It is a privilege to rise today in the House to speak about Canada's trade and economic relationship with the United States and the implications for a foundational employer in my riding of Oakville West, Canada's automotive industry. I know this because, before my election to this Parliament, I worked in the field of industrial automation for many years. I have visited automotive factories in both Canada and the United States, and I know the value of the Canadian workers.

North America encompasses a $42-trillion regional market of around 500 million consumers, and Canada's economic partnership with the United States is one of the most significant. Today, approximately 75% of Canadian exports are destined for the U.S. market. Canadian companies operating south of the border employ more than 800,000 Americans. This is a relationship built on decades of collaboration, integration, predictability and mutual benefit.

However, we must acknowledge that the foundation of this relationship is shifting. The United States has moved away from its traditional support for multilateralism and open trade toward a more transactional and managed bilateral approach. This shift has real consequences. Tariffs up to 50% on Canadian steel, aluminum, autos, trucks and other critical exports are not only economically harmful; they are destabilizing.

Canada-U.S. trade is, without question, fundamental to Canada's automotive industry, one of the most integrated industries in the world. Our integrated auto sector is the result of generations of co-operation, going back to 1965 with the auto pact and later the Canada-U.S. FTA, followed by NAFTA and then CUSMA. All of these have had numerous benefits for both Canada and the United States, including lower costs, sustained investments and good middle-class jobs on both sides of the border. U.S. tariffs disrupt supply chains, inflate costs and weaken our collective ability to confront global challenges, particularly those posed by non-market economies.

It is because of the importance of the automotive industry that our government is focused on redefining our economic relationship with the U.S., diversifying Canada's exports and building one Canadian economy. Redefining our economic relationship with the United States will have significant implications for both nations' automotive industries, given their deeply integrated nature. At every step, the Prime Minister has been clear: We will defend Canadian workers and businesses. Our goal is a strong and reliable automotive industry that benefits Canadian workers. This sector requires more efficient access to supply chains, resources, critical minerals, skilled workers and innovation, all of which Canada possesses.

Our government also recognizes that the upcoming scheduled review of CUSMA represents an opportunity to review this trade agreement with our North American partners. We are preparing for the review of CUSMA and will work constructively with our American counterparts to restore stability to our auto sector. The government recently concluded a second round of extensive public consultations on CUSMA to ensure that CUSMA continues to reflect Canada's national interests. We will continue to engage with provinces, territories, indigenous communities, industry groups, labour organizations and Canada at large to gather input to prepare for this review.

At the same time, this government understands that the old model can no longer be counted on. We must chart a new path that reflects the realities of today's global economy and the needs of Canadians, one that recognizes the importance of the U.S. market while also seizing trade opportunities with new, reliable partners.

We are committed to defending Canadian workers and industries and our sovereignty. We have passed the One Canadian Economy Act, which will make Canada more competitive by eliminating internal barriers and accelerating nation-building projects.

We recognize that we must go further. That is why the Prime Minister announced that the government will launch a new trade diversification strategy, which will guide our efforts to deepen Canada's trading relationships globally.

We are capitalizing on our existing trade agreements with the EU, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership countries, South Korea, the United Kingdom, and new partners such as Ecuador and Indonesia. We are also negotiating trade agreements with emerging markets like ASEAN, the Philippines, Thailand, India, the U.A.E. and the Mercosur bloc in South America. As we work tirelessly to modernize and expand trade agreements, remove barriers and deepen co-operation with reliable trading partners, we will also continue to engage constructively with the United States and Mexico to advance common interests while safeguarding Canadian sovereignty and prosperity.

In conclusion, our commitment to building a new Canada-U.S. trade and economic relationship is firm. We will continue to advance Canadian interests. We will remain constructive and focused, and we will do what is necessary to support Canadian workers.

[Fred Davies, Conservative, Niagara South, ON]

Mr. Chair, I found it fascinating to listen to the member and her Liberal talking points because she really did not touch much on the crisis we are having in the auto sector today.

In my region of Niagara, the auto sector has played a pivotal role over history. It is literally responsible for the creation of our industrial core in Niagara. I wonder if the hon. member might tell me, given the billions of dollars that the government has risked in the EV sector, what happens if it all falls apart? What is her answer for the billions of dollars that may be lost and the jobs that may be lost? What is the pivot if the EV sector actually fails?

[Sima Acan, Liberal, Oakville West, ON]

Mr. Chair, I share the same concerns for our auto industry as my colleague from the Niagara region. My riding of Oakville West is a place of auto workers. Unlike the member opposite, I have taken the time since I was elected to meet with industrial leaders, visit factories and listen to the workers. They are highly supportive of the EV mandate, which reflects global trends in a field where Canada is a leader.

We will continue supporting our industries, not only the EV mandate, but also expansions of factories, such as the Ford factory in my riding of Oakville.

[Tatiana Auguste, Liberal, Terrebonne, QC]

Mr. Chair, I know that we are debating an issue that is very important to my colleague.

In fact, I would like to know if she would talk to us a little about the generational investments that our government is committed to, specifically the strategic response fund included in budget 2025.

[Sima Acan, Liberal, Oakville West, ON]

Mr. Chair, auto manufacturing contributes over $16 billion to Canada's GDP and employs over 100,000 Canadians.

Through budget 2025, the strategic response fund, which is $5 billion of investment, would support Canadian industries for a stronger and more resilient Canada. This fund would support Canadian businesses exposed to U.S. tariffs, including auto workers across the country and those in my riding of Oakville West. This will also allow our industry to pivot, adapt and diversify as we negotiate a new trade relationship with the U.S.

[Harb Gill, Conservative, Windsor West, ON]

Mr. Chair, the member opposite spoke of supply chains and CUSMA. She may have heard of the Gordie Howe International Bridge and how it is a lifeline for cross-border trade. However, the government keeps pushing deadlines and ignoring emails from local leaders and public servants like me. Can my colleague outline how her party's leadership would restore competence and accountability to this critical project?

[Sima Acan, Liberal, Oakville West, ON]

Mr. Chair, our plan is out there. It is budget 2025, and it is available to the public. Everybody knows our plan, and this is the plan we are behind.

I want to remind my colleague from the Conservative Party that, on April 2, 2025, the Conservative leader called for an accelerated renegotiation of the CUSMA agreement and has stated that he would get a deal with the United States.

I would like to ask my colleague this: Do Conservatives believe that any deal with the United States is better than no deal, even if it means our strategic sectors would have tariffs maintained?

[Dominique O'Rourke, Liberal, Guelph, ON]

Mr. Chair, my colleague from Oakville and I serve on the Liberal auto caucus together. We have visited auto plants together, which I know is really important to her riding and mine.

The member mentioned CUSMA, and the member opposite asked about its pertinence. I would like the member to talk about the pertinence of CUSMA, the actual lifeline. Can she tell the House more about the government's response on tariffs, the importance of ongoing negotiations and the importance of CUSMA?

[Sima Acan, Liberal, Oakville West, ON]

Mr. Chair, my colleague for Guelph and I worked together for seven months on the auto caucus, which she chairs, and we successfully met with leaders of the industry.

I have confidence in our Prime Minister to get our country a good deal. The government wants a good deal. We do not want a rushed deal, which will not work for Canadians. We definitely do not want a bad deal. We currently have the best deal out of all the trading partners of the United States, and we know that the government is working to secure a deal that is suitable for all Canadians and our workers.

[Viviane LaPointe, Liberal, Sudbury, ON]

Mr. Chair, it is my pleasure to participate in the debate to highlight how the government is delivering on our commitment to protect not only Canada's automotive industry but also its workers.

For decades, the Canadian auto industry has created good jobs for the middle class and stimulated economic growth that benefits all Canadians. It is truly a powerful economic engine.

Today's Canadian auto sector, like so many industries, is navigating a highly uncertain stretch of highway. The global trade landscape is rapidly changing as the U.S. fundamentally transforms all of its business relationships.

We can no longer rely on our most important trading relationship like we used to. We need to strengthen our capacity at home. Our government has taken strategic steps to help workers and businesses in the sectors most affected by U.S. tariffs. One of those, of course, is the auto industry.

Before I begin detailing our government's support for the auto sector, I will illustrate how vital it is to Canada. The industry provides approximately 125,000 direct jobs, while it supports more than 500,000 Canadians across the country. It makes up approximately 8% of Canada's manufacturing GDP and 0.7% of the country's overall GDP.

In 2024, Canada produced roughly 1.3 million light vehicles, of which approximately 1.1 million were exported to the United States.

Our government acted quickly to support Canada's auto sector as it is trying to deal with the challenges of the U.S. trade actions. Within days of the tariff imposition, our government implemented an auto remission framework that incentivized production and investment in Canada. It allowed automakers that continue to manufacture vehicles in Canada to import a set quantity of U.S.-assembled, CUSMA-compliant vehicles into our country free of countermeasure tariffs imposed by our government.

However, companies must maintain specific production levels and follow through on their planned investments in Canada. The main objective is to maintain Canada's auto manufacturing footprint and protect Canadian workers.

Our government has also shown it is willing to take decisive action to protect Canadian jobs. Earlier this fall, we announced significant reductions to the import quotas of General Motors and Stellantis. These decisive steps followed the automakers' unacceptable decisions to scale back their manufacturing presence in Canada, a move that directly breached their commitments to the country and Canadian workers.

General Motors' decision to cut production at its Oshawa and Ingersoll facilities and Stellantis' decision to cancel all production plans at its Brampton assembly plant constitute a repudiation of their commitments.

Our government has done even more to support Canada's auto industry. We are transforming our economy to build a more resilient and diversified future. As part of this effort, we are positioning our businesses to thrive. Many businesses that have relied most heavily on trade with the U.S. need temporary immediate relief from liquidity pressures. The auto sector falls into this category.

That is why our government announced last September its intent to make targeted regulatory adjustments to help the automotive sector stay competitive during this period of uncertainty caused by U.S. trade and policy measures. Changing the policy to remove the target for the 2026 model year vehicles will help reduce the economic pressure caused by tariffs.

We are taking a measured approach, supporting our industries today while keeping a clear focus on a sustainable future.

Our government responded quickly, forcefully, and decisively to the unfair tariffs the United States imposed on Canadian products.

[Fred Davies, Conservative, Niagara South, ON]

Mr. Chair, once again, I am listening to a member opposite rifle through all the Liberal talking points. We are here to talk about the auto sector, not about other issues to deflect from the main topic.

My region of Niagara, in the 20th century, was the hub for manufacturing. In 1969, 47% of all jobs in the Niagara area were in the auto sector. In 2008, there were 4,000 direct jobs. In 2014, that number shrunk to 2,900. Today, there are only 1,400 people employed in the auto sector.

Can the hon. member explain how the Liberals' plan for the auto sector has any value? Can they look our auto workers in the eye in Niagara and say they have a plan?

[Viviane LaPointe, Liberal, Sudbury, ON]

Mr. Chair, earlier this evening I talked about being the MP for the riding of Sudbury, which is heavily reliant on mining as its sector, so I understand when a community is very reliant on a particular sector that creates and offers good-paying jobs and the impact it may have in that community when that industry is threatened.

In this case, we have heard our Prime Minister often say that we can only control what we can control, and that is why we have seen our government put in really important measures to protect and support or automotive industry, as well as the workers in that industry.