Mr. Speaker, I will be sharing my time with the member for Guelph.
It is my pleasure to participate in this debate today. As we all know, times are changing. We are in uncertain times in an uncertain world, but our government is focused on what we can control. As part of Canada’s new industrial strategy, we are transforming our economy from one that is reliant on a single trade partner to one that is diversified with many partnerships and is more resilient to global shocks. Canada is building a more independent and resilient economy, and we are working to catalyze massive new levels of investment.
In that context, I would like to thank the member opposite for raising the government’s new auto strategy. For over 100 years, Canada's automotive industry has been a cornerstone of our economy, underpinning advanced manufacturing, driving innovation and supporting hundreds of thousands of well-paying jobs across the country. However, given the current uncertain trade environment, as well as advancing technology and evolving consumer demand, it is as important as ever that we take action to maintain and improve Canada's auto sector. In fact, it is a unique opportunity for us to do so.
That is why, on February 5, the Prime Minister launched a new strategy to transform Canada's auto industry. Recognizing that the future of the automotive industry is electrified and connected, the government is prioritizing the development of the full value chain of next-generation vehicles. Within five years, electric vehicle sales are projected to reach nearly 40% of global car sales.
It is important that Canada be among those at the forefront of that evolution. Our government will introduce stronger greenhouse gas emissions standards that will put Canada on a path to achieve a goal of 75% EV sales by 2035 and 90% EV sales by 2040. This will also help to reduce Canada's carbon footprint and improve our global leadership in clean energy.
At the same time, repealing the electric vehicle availability standard will allow manufacturers to use new technologies to respond to consumer preferences while driving EV adoption, but to grow domestic demand for EVs, they must become more affordable for working Canadians. That is why the government will launch a five-year EV affordability program to lower the cost of electric vehicles for Canadians and create a strong domestic market. The $2.3-billion program will offer purchase or lease incentives of up to $5,000 for battery electric and fuel cell EVs, and up to $2,500 for plug-in hybrids with a final transaction value of up to $50,000 on cars made by countries that Canada has free trade agreements with.
The Canadian Climate Institute and others have shown with research based on the past that EV incentives have driven the adoption of EVs across this country from the very first one. To support the Canadian automotive industry, the $50,000 cap will not apply to Canadian-made EVs and plug-in hybrids.
Through the auto strategy, the government will also enhance the national EV charging network with investments of $1.5 billion through the charging and hydrogen refuelling infrastructure initiative. We are making it easier and more convenient for drivers to charge their car no matter where they are. EV adoption will become more convenient for local consumers in my riding of Halifax and across this country as more stations are available in parking lots and mixed-use residential buildings. Those stations will need power, so measures announced in budget 2025 aim to ensure that Canada has the clean and affordable energy needed to develop, manufacture and drive the cars of the future.
Underpinning these advances are needed strategic investments, so to accelerate investment in Canada's auto manufacturing sector, the government will allocate $3 billion from the strategic response fund and up to $100 million from the regional tariff response initiative to help the auto industry adapt, grow and diversify to new markets. We will also take advantage of the productivity superdeduction and reduced corporate tax rates for zero-emission technology manufacturers to encourage investment in clean technologies and EVs, as well as strengthen Canada's automotive remission framework to reward companies that produce and invest in Canada.
The government will also establish a comprehensive trade regime that strengthens the competitiveness of the auto sector through new partnerships. For example, Canada recently deepened its strategic partnership with the Republic of Korea by signing a memorandum of understanding to strengthen Canada-Korea industrial collaboration for future mobility. As a port city, Halifax is especially well positioned to support the increased demand for shipping and distribution.
The recently announced partnership with China aims to drive new Chinese joint venture investments in Canada and allow for a fixed volume of Chinese EV imports into the Canadian market. Although countertariffs on auto imports from the United States will be maintained to ensure a level playing field for Canadian automotive manufacturers in the domestic market, the government will continue to advance this auto strategy within an integrated North American automotive industry.
Canada's auto sector is built on nation-to-nation collaboration. The North American auto industry succeeds when our integrated supply chains are strong and when we compete together globally. Canada and the U.S. have built this integrated industry together over decades, and we are stronger together. By making strategic investments and solidifying trade partnerships, Canada is positioning itself as a global leader in vehicle electrification, autonomous and self-driving technologies and the battery supply chains that will power the future of mobility.
I would also like to mention the help we will provide to the auto workers who will build the vehicles amid short-term uncertainty. To protect Canadian auto workers and businesses from immediate pressures while helping bridge them to the future, the government will provide support to employees through a new work-sharing grant, preventing layoffs and supporting worker retention so businesses can plan for the future. In addition, up to 66,000 workers across Canada, including displaced auto workers, will receive employment assistance and re-skilling supports as part of a $750-million investment.
The actions the government is taking will shape the Canadian auto industry for decades to come. These strategic decisions and generational investments aim to build a strong Canadian automotive sector where Canadian workers build the cars of the future. Backed by a world-class workforce, globally recognized part suppliers and leading-edge research and development, Canada's automotive sector is building the vehicles of today, and it will help build the vehicles of tomorrow. By protecting the industry and incentivizing automakers to build here, we can transform Canada's workers and businesses to compete and win in this new global environment.
Our government is focused on working with all our partners here and abroad to find innovative solutions for modernizing our auto industry. We can lead and capitalize on the opportunities we have to pivot and adapt in the face of challenge. Our new auto strategy is economically sound and environmentally sound, and I am very excited to roll it out.