Mr. Speaker, I would like to start by saying that the Bloc Québécois does not support the Conservative Party's motion. In fact, by moving yet another motion on the auto sector, the Conservatives are unfortunately confusing the interests of Ontarians with the interests of Quebeckers. They are also protecting the interests of Canadian auto manufacturers, which are lagging behind internationally compared to electric vehicle manufacturers. Once again, they are protecting the interests of oil companies.
What the Conservatives are doing is trying to bring Canada in line with Donald Trump's policies. The Conservatives are proposing an alignment with U.S. positions, including positions on tariffs that target Chinese vehicles, emissions standards and rules of origin, before trade agreement negotiations even begin.
Obviously, we are skeptical about the Conservative proposal to resurrect the 1965 Auto Pact. This pact was not free trade. It was a managed trade agreement essentially designed to protect Ontario's auto industry. Quebec was never afforded such protection. Rejecting the Canada-United States-Mexico Agreement, or CUSMA, in favour of a measure like this would essentially mean reverting to a model that systematically favoured Ontario at Quebec's expense.
The second part of the motion asks several things of the government, including ending the EV subsidy and removing the GST on Canadian-made vehicles. Removing the GST on vehicles in the current context would be terribly counterproductive. With regard to his tariffs, Donald Trump has largely spared the sectors that are currently covered by CUSMA. If Ottawa begins to tax foreign vehicles through the GST and other means, but not vehicles produced here, Donald Trump will inevitably interpret that as a tariff on American vehicles. In short, while the Conservatives want to favour local production, this measure will very certainly have the opposite effect and will provide Donald Trump with the perfect pretext to impose new tariffs, or even to repudiate CUSMA and tax the entire Canadian economy, including the Quebec economy.
Regarding EV subsidies, this is yet another proposal by the Conservatives to oppose the reinstatement of subsidies for the purchase of electric vehicles. This measure has proven effective in stimulating the EV market since it was introduced in 2019 here in Canada. We are talking about new subsidies that have been implemented after a one-year suspension that led to a major decline in electric vehicle sales. This decline was the result of the government suspending these subsidies overnight. Yes, we need a short-term subsidy. What is interesting, however, is that this subsidy is capped for vehicles with a price tag under $50,000.
Obviously, Quebeckers have everything to gain, because Quebec is where the most electric vehicles are sold in the country. When we look at the impact of subsidies, we see that a subsidy of $1,000 leads to roughly a 10% increase in electric vehicle sales, according to the Canadian Climate Institute. The International Energy Agency has confirmed that the global EV market is booming despite economic uncertainties caused, among other things, by U.S. tariffs. In 2025, 25% of new light-duty vehicles sold worldwide were electric. There is even talk of two out of five vehicles by the end of the decade, if not more. Currently, China is continuing its conquest of this market, which is literally growing everywhere on the planet except here in Canada.
Let us take a look at China. People always say that China needs to step up its efforts. Right now, it is leading the transition to electric vehicles, including with very competitive tariffs, high-performance vehicles and more affordable models. As we speak, 50% of new vehicles sold in China are electric, and that figure is likely to rise to 80% by 2030, if not sooner.
Therefore, the Conservatives are mistaken. EV subsidies must not be eliminated, but the supply side needs to be addressed as well. That is what Canada had with the electric vehicle availability standard, which the government abolished. However, a number of studies suggest that relying solely on purchase incentives is not the best way to boost sales. More is required. What happened with the EV availability standard is another step backward by the government, which a year ago had a far more ambitious standard than what has been proposed.
We do not know how what was proposed in January will translate into regulations. The government has once again lowered the bar, and it is far from certain that it will meet even this new low bar. Whereas it previously aimed for 100% of new light-duty vehicles sold by 2035 to be electric, it is now aiming for only 75%, and the regulations are still not in place. It is reasonable to believe that the reason Ontario manufacturers and Doug Ford are applauding the government's backtracking is that it is moving backward and risks retreating even further.
The purpose of targeted subsidies is to make vehicles more affordable from the get-go. Right now they are still needed to close the remaining gap between electric vehicles and other vehicles, while the development of charging infrastructure boosts market confidence and consumer confidence while fostering this future-oriented economy that needs to be developed.
There are other key measures that concern us at this time. One of our concerns is the fact that electric vehicles manufactured in Europe do not have access to the Canadian market because the safety standards are not recognized as being equivalent. Our point is that if we want to diversify the market, then we need to facilitate access to these high-performance, lower-cost vehicles, which are currently being blocked by absolutely useless government measures. Mexico, for example, allows these vehicles into the country, but Canada does not, even though they are the same vehicles. If we were to let these vehicles into the country, it would help to bring down the cost and give people access to a wider variety of models, including smaller models that are virtually non-existent in Canada. The same goes for Chinese vehicles. However, there are issues related to the production of Chinese vehicles. It is important to be vigilant, particularly regarding espionage, forced labour and Chinese interference in Canada.
As for Canada, there has been a drop of nearly 50% in EV sales across the country. We are, I believe, the only country where sales have fallen, dropping from 18% to 9% of total vehicle sales last year. In Norway, the Netherlands, Scandinavian countries in particular, Europe in general and in China, electric vehicle sales account for over 50% of new vehicles sold. We are lagging behind here in Canada. The Conservatives are essentially proposing we slow that pace even further in order to protect the Canadian automotive industry, which has failed to adapt to the new global reality of climate change and the performance and efficiency of EVs. That is why they want to block new vehicles from entering the market and do not want to force manufacturers to produce more vehicles. Clearly, the industry is completely behind the times and is in cahoots with the oil companies, which have every interest in ensuring that more oil is sold. Obviously, the electrification of transport threatens oil company profits.
When the Conservatives propose ending EV mandates and rebates, they are also proposing to align vehicle emission reductions with those of our North American partner, the United States. In other words, they are asking for permission to pollute without limit, like Donald Trump's United States. President Trump announced the repeal of vehicle efficiency standards that extended over time the driving range of vehicles per gallon of gas. Under the current administration's plan, that amounts to 34.5 miles per gallon, compared to 50.4 miles per gallon under the Biden administration.
Obviously, this standard has an impact on production lines. If it is removed, manufacturers will no longer be forced to produce higher-efficiency vehicles, including electric vehicles. In the United States, this measure is estimated to save $23 billion in gas costs. These gas costs go straight into people's pockets. If manufacturers are under no obligation, we know they will not comply. We know that vehicles will use more gas and cost more. We know that households will have fewer options when it comes to small, fuel-efficient vehicles and electric vehicles.
Unfortunately, once again, our Conservative friends are essentially suggesting that we go back to the Stone Age. They want to go backward at a time when the entire world is moving forward with the electrification of transportation and is taking the fight against climate change seriously. Obviously, we believe that aligning ourselves with the Trump administration is completely unacceptable. The government has already backed down on the electrification of transportation and related measures. What it should do is improve its auto strategy by setting more ambitious targets and taking action to ensure that we have more EVs from regions like Europe, not by doing less, as the Conservatives are proposing.