:
Mr. Speaker, it is an honour for me to rise in my place today to participate in the debate on our opposition motion, which calls on the federal government to support the Conservative plan to double automotive production through a tariff-free auto pact. This bold new policy offers a fresh take on a similar policy, embodied by the old auto pact rules that resulted in Canada's auto manufacturing growing from 700,000 units a year to three million by 1999.
This Conservative plan makes our goal clear. We seek to double auto production to two million vehicles a year, which are the same levels we had before the Liberal government took office 10 years ago. The viewers at home heard that right. Since the Liberals took office in 2015, auto production in Canada has been halved. In 2016, Canada built 2.3 million vehicles. Last year, that auto production was only 1.2 million. In only one year since the took office, Canada has lost 7.8% of its auto production. As output falls, jobs vanish.
In 2015, Canada's passenger vehicle and light truck assembly plants employed 32,700 people. By 2024, that number had dropped to 23,732. In the last year alone, since the took office, Canadians have watched in utter disbelief as 5,000 great-paying auto jobs disappeared and moved to the United States.
Under the federal Liberal government, Canada's auto industry has been in decline for 10 years and it is slipping away, with potentially irreparable damage being done to Canada's economy if no immediate federal action is taken.
We are seeing this decline in the Niagara region as the local GM powertrain facility in St. Catharines faces great uncertainty because it produces only one line of engines in a facility that is almost two million square feet in size. I am GM proud. I drive a GM vehicle, whose very engine was made in St. Catharines by Canadian GM workers. GM has been in business in St. Catharines since 1929. That is close to 100 years. I also worked at our local GM plant as a student during my university years. At that time, GM in St. Catharines had three plants, employing close to 10,000 workers with great-paying jobs.
Today, our local GM footprint has been reduced to just one plant and a much smaller workforce of Unifor Local 199 members. There are roughly 450 active workers at the plant, with 200 laid off. As a Niagara area MP and as the member of Parliament for Niagara Falls—Niagara-on-the-Lake, I have a responsibility to represent the current and former GM workers who reside in the communities in my riding.
Last April, the ran a campaign promising an elbows-up approach to Canada-U.S. trade relations. He promised to protect the auto sector. He committed to tabling a plan that would persuade the Americans to remove tariffs on Canadian goods. He promised to get tariffs removed by July 21, 2025, but this was all an illusion, as 246 days after July 21, 2025, American tariffs remain and Canada's auto manufacturers have been forced to pay Donald Trump close to $2 billion. One year since the Liberals' election promises were made, they have been broken, while Canadian auto production continues its decline and Canadian auto job losses are piling up.
Rather than doing what he said he was going to do, the Liberal has decided to accept that American tariffs are permanent and he has declared a deep rupture with our largest trading partner, neighbour and ally. Worse, he has introduced a new EV policy and rebate that use Canadian tax dollars to subsidize the purchase of foreign-made automobiles. He is also allowing the import of 49,000 Chinese EV spy cars into this country after declaring a new world order with countries like China, the nation he said was our biggest security threat during the last federal election.
Canadian auto workers deserve stronger federal leadership. The last thing they want is imported Chinese EVs taking their jobs away even faster, or the federal government doubling down on a fantasy EV industry that does not exist without the demand, affordability or sufficient charging infrastructure in place. That is why our Conservative is stepping up to take initiative and demonstrate leadership.
While the Liberals have decided to accept that American tariffs are permanent and declare a deep rupture with our largest trading partner, Conservatives are proposing policy ideas to make it easier to build and buy Canadian by:
...removing the GST on all Canadian-made vehicles, ending counterproductive Liberal EV mandates and [subsidies], and harmonizing tailpipe emissions reductions with our North American partners;
...bringing home production...by implementing a rule where for every car produced in Canada, the same manufacturer would get to sell a car in Canada, duty-free, from a CUSMA partner, on a dollar-for-dollar basis, similar to the 1965 Canada-US Auto Pact; [and]
...protecting North American supply chains by maintaining the minimum 75% North American content and existing CUSMA rules on origin....
Conservatives believe it is possible to get a North American free trade agreement for the auto sector. The Liberals have given up and think that somehow, when it has never happened before, European and Asian EV sales will materialize and make up for the decline that will happen because of the U.S. tariffs. What the Liberal government is proposing is a fallacy. The Liberals' plan includes exporting EVs to Europe. Simply put, more vehicles were stolen in Canada last year, including the the justice minister's vehicle, than were exported to countries in Europe.
We have a plan to get tariff-free access to the United States. It would boost auto production. It is supported by Unifor Local 222, which said, “Finally, a common sense plan” to restore auto production. Why can the Liberal government not get on board with us and support our common-sense proposals?
Our policy approach would restore manufacturing balance for both Canada and the U.S., thus making a duty-free agreement not only possible, but also beneficial for both countries. For Canada, that would mean increased production of 500,000 to 800,000 units to get North American duty-free access. In addition to this, removal of the GST, a 5% pricing cut, adds up to $30,000 new sales a year, which increases demand and production by the same amount. We forecast that the current production will rise from 1.2 million to two million within a decade.
Just today, I met with Unifor representatives who told me that buying Canadian, along with sell here, build here policies, are very important to them. That is what this policy encourages. It is a common-sense plan to protect the livelihoods of thousands of hard-working Ontario auto workers. The Canadian Vehicle Manufacturers' Association saw the benefit of our policy proposal when it stated, “North American integration has underpinned Canada’s auto industry for over 60 years”. This plan recognizes that reality.
Conservatives will not sit idly by as our proud Canadian auto industry is hollowed out and lost due to Liberal inaction. We are stepping up, demonstrating federal leadership and offering real solutions to save the jobs of our great Canadian auto workers. They deserve it.
:
Mr. Speaker, it is great to rise today to debate the opposition day motion in relation a really important subject, the Canadian auto industry.
I will be sharing my time this afternoon with the hon. member for .
As I was saying, I think it is important that we have this conversation. I welcome it, and the government certainly welcomes it, because we have been deeply focused on what comes next and how we can support the workers, industry and communities that are impacted by the auto sector.
I know a lot of the debate in the chamber today will be about communities in Ontario, southwestern Ontario in particular, and perhaps communities in Quebec, but the auto industry touches all elements of our country. I think about my own communities in , where Michelin manufactures component parts of vehicles. I believe it employs close to 3,500 workers in Nova Scotia. The supply chain for the auto sector exists all across this country, but it, of course, is heavily concentrated in Ontario and Quebec.
I am going to start by highlighting a few things. I was surprised that the opposition took this amount of time to give, to call them compelling would be too generous but, some thoughts on the auto industry. I will point to elements that I think are not bad public policy, and elements that I think are so unrealistic they are not worth the paper they are written on. It is surprising that it took the Conservatives this long to be able to get to this point. It has been noted in debate, and it was noted in question period, that the Conservatives seemingly did not do much engagement with unionized labour in this country about their vision and how their plan would connect and support workers, or not support workers.
We heard the during question period talk about how there is deep concern within Unifor and some of the major unionized workforce in the country that the Conservative plan would actually inadvertently impact and hurt workers in what is already a difficult and delicate time. The government is working to be able to address that.
I thought one of the most compelling things the Minister of Industry said in question period was that there is nothing in the opposition day motion, or the proposed plan, about the auto parts sector. Assembly is important and that matters, but as the minister highlighted, Linamar, Magna and Martin are three major auto parts producers in the country. There is no mention in the Conservative strategy about what we are doing to support that element of the supply chain, which also has extremely important jobs.
I do want to take a moment, and if Canadians at home have not necessarily heard from the government already on this, they deserve to hear exactly what the five pillars are, which the government launched well over a month ago now. The government has actually put in place a Canadian auto strategy, recognizing the moment that we are in, recognizing that we have to both protect Canadian jobs and protect and incentivize the industrial build-out. Those would certainly be some areas of principle in which I think we could find agreement with the opposition.
I want to start by saying that the first pillar is exactly that. It is to boost domestic manufacturing. That is somewhat tied to the strategic response fund. It is $3 billion to incentivize and draw investment into the country. There is a number of tax incentives. Also, what the Conservatives have not mentioned today in debate is the remission order. The way in which the government is using the remission order for companies that are continuing to produce in Canada, signalling future investment and continuing the cross-border collaboration that has existed for quite some time, is that the remission order is functioning, in some way, on the principles of what they are talking about vis-à-vis the 1965 auto pact, which not enough people in this debate today have highlighted.
The auto pact was built in an environment where there was no foreign importation of vehicles whatsoever. It was a true closed-loop system. That no longer exists. There are 500,000 foreign-produced vehicles imported into Canada every single year. We can close our eyes and pretend it is 1965. It feels like it was a golden era. We should continue to make the case, and we should continue to work through CUSMA and our North American trading partners, to continue to promote an auto industry that has been mutually beneficial for communities in all three countries, frankly, Canada, Mexico and the United States.
Therefore, yes, in that way we agree, but the idea that we are going to have a tit-for-tat auto policy is probably even against the provisions of the existing trade agreement we are in.
It is a great idea in principle to remove the GST on Canadian-built vehicles. However, we are going to have something to answer for vis-a-vis the conversation right now with the United States around that: about whether this could be seen as reciprocity in terms of some of the measures the U.S. has put in place and whether it could actually exacerbate the problem as we try to make a case to the U.S. administration that the tariffs it has unjustly imposed on the Canadian industry are counterintuitive not only to the benefit of American communities but also to Canadian communities and to the close integration we have enjoyed. There is no level of nuance from the opposition benches about whether removing that GST would even be compliant.
The government of course has said we should boost domestic manufacturing and focus on reworking environmental policy, while at the same time putting incentives to encourage the uptake of plug-in hybrids and electric vehicles.
The hon. member who spoke before me talked about keeping the auto industry in his communities. I know how important that is, but he must recognize that globally right now, EV sales are doubling year over year. There is a massive uptake in countries like Norway, a Scandinavian country with a similar climate to Canada's. Almost 99% of new vehicles are EVs. The global industry is going in this direction, and we have a decision to make about whether or not we are going to get serious about trying to meet that need.
I represent a rural constituency. For my constituents, battery electric vehicles are probably quite unrealistic for many of them in the short term. Plug-in hybrids are a much more reasonable pathway. They make sense because they can lower gas bills. In an environment where we are seeing the fallout from the war in the Middle East right now, that is important. Obviously they have some environmental benefit as well, and they are also convenient for consumers.
This is the direction in which we are going. The government is walking a line through its remission order to say to companies selling and importing cars into Canada that if they choose to import a higher volume than their historical average, they are going to face the remission penalty and the countertariffs that Canada has put in place on the United States.
That is functioning as an incentive to continue production and enhance production where companies are selling brands of vehicles that are doing well in this country. In that North American context, there are principles within the quasi-Conservative plan that are already being met by the remission order, principles that the government has laid out. I have heard nothing from the opposition benches to at least acknowledge that point.
I think it is also interesting that we heard the last member talk about spy cars. The geopolitics of the world are such right now that when I was in the United Kingdom recently, I saw Chinese EVs on the road. When I was in Europe, what did I see? I saw Chinese EVs on the road. I was just in the Caribbean with my wife, and the EVs are there. I guess the hon. member is making the assertion that our allied countries within NATO and within the G7, like London and Europe, are letting spy cars drive around their communities. Is that the assertion the Conservative Party makes?
An hon. member: Oh, oh!
Hon. Kody Blois: Mr. Speaker, I look forward to taking the member's question. Maybe the hon. member can rise in his place and tell me if he thinks that London, Europe and our other allies have no measures to be able to do it. We actually have a solution. It is QNX in this country. We have an ability to manage this as it relates to the 49,000 EVs from China on the import.
Having been on the front lines of that negotiation, I can say that it is a small, managed amount. It is working to lead to a joint venture investment. Companies are already investing in the member's home province. I guess he should rise and tell us if he believes that a joint venture format with a majority Canadian-owned pathway is bad for the country. We have seen other examples where it has worked. At the end of the day, that is the pathway that we think we can continue to work on within the North American context.
At the same time, we have to be able to look at what other opportunities are available. The member should go have a chat with all his prairie colleagues on the other side, because I guess he is suggesting that we ought to not do anything on agriculture for our farmers in this country. How about the seafood harvesters from Atlantic Canada? Should we just tell them that they ought to not have market access to the largest consumer market in the world? The opposition day motion would say that.
I think the Conservatives from Saskatchewan should have something to say to their colleagues who are suggesting that this would be bad public policy. The Premier of Saskatchewan does not agree, the Premier of Alberta does not agree and farmers across this country do not agree.
:
Mr. Speaker, I rise today to discuss the future of Canada's automotive industry and how the government is working to protect the industry and Canadian workers.
Canada's automotive sector has long been and remains a cornerstone of our economy. It has defined communities, strengthened our middle class and anchored Canada as a trusted partner in global manufacturing, while supporting hundreds of thousands of additional jobs across supply chains right across the country, including in my riding of Mississauga—Lakeshore.
I am proud to represent many hard-working members of Unifor Local 707 from the Ford assembly complex. Safeguarding local economies like mine is exactly why the Government of Canada has reacted quickly in the face of unjustified U.S. tariffs on vehicles.
Moreover, we have demonstrated that we are here to protect Canadian workers. When Stellantis and GM announced that they were moving some of their production to the United States, we immediately took action to hold both companies accountable. The Government of Canada has made clear that these decisions are unacceptable and that Canada expects the company to honour the commitments it made to Canada, Ontario and the union.
However, it appears that the Conservatives could not care less about working with labour unions. Their 's proposal was developed without input from auto workers, and it lacks a single measure to support auto workers. How can Conservatives claim to protect Canadian workers when they do not even listen to them? Unifor has been clear that the Conservatives' so-called policy would jeopardize long-term stability and the future of the Brampton and Ingersoll assembly plants. Members heard that right. The Conservatives want us to adopt a policy that would discourage manufacturers from allocating new work to these Ontario plants.
Unlike the Conservatives, our government worked hand-in-hand with labour unions, with industry experts and with other levels of government to develop an auto strategy that is focused on the future of our auto industry, not one that is stuck in the past. Canadians were clear last April that we need to work urgently to pursue new trade deals, diversify our economy, protect industry and stand up to unjust and illegal tariffs. To that end, on February 5, 2026, we announced Canada's new automotive strategy to secure domestic manufacturing, support innovation, and position Canada to become a leader in electric vehicle production.
The strategy includes a commitment to allocate $3 billion from the strategic response fund and another $100 million from the regional tariff response initiative to help the industry adapt, grow and diversify. We will also establish a comprehensive trade regime to drive the competitiveness of the auto sector. This will be achieved in part by strengthening Canada's automotive duty remissions framework to more strategically reinforce domestic production and attract new investment.
Some people may know that I am familiar with Ontario's economy. Throughout my career, I have been privileged to meet Ontarians from every corner of the province. I have worked with many proud Windsorites who were champions for Windsor's auto sector, including Ford's engine manufacturing plants. What does Windsor get in exchange for two Conservative MPs? It gets an auto proposal that does not even recognize engine manufacturing. GM workers in Cambridge, Magna workers in Aurora, Honda workers in Alliston and Martinrea workers in Vaughan are all parts manufacturers, all left behind by their Conservative MPs.
I agree with Unifor Local 200's leadership, who said that the did not bother to do his homework.
We all recognize that the automotive sector has been built on nation-to-nation collaboration. I was in D.C. recently, and I heard from both Democrats and Republicans that the North American auto industry succeeds when our integrated supply chains are strong and when we compete globally. Canada has maintained a long and successful history of partnership with the U.S. and Mexico, as well as with Japan, to establish its automotive manufacturing footprint, but these are not conventional times. Canada must seize this generational opportunity to transform our auto sector from one that is reliant on a single trading partner to one that is a global leader in the vehicles of the future.
Recently, Canada has signed new agreements with Japan, Germany and South Korea to bolster auto manufacturing in Canada, including electric vehicles and a battery supply chain, and Canada has what the world wants. From China and the Indo-Pacific to the G7, Canada has entered a new era of global auto partnerships. This means new markets, new business and new jobs for Canadians, all grounded in building our economy and delivering affordable options for Canadian consumers.
Canada is well positioned to attract new investments and diversify export markets by leveraging its free trade agreements, which span 51 countries and provide access to more than 1.5 billion consumers. Priority will be given to attracting new entrants that are leaders in EV manufacturing and connected vehicle technologies to strengthen the sector's resilience. Through the strategic response fund, we are supporting car companies to export more Canadian-made cars to non-U.S. markets like Europe and the Middle East. We are also securing key investments that will drive new opportunities in Canadian auto manufacturing and create new resilient jobs in the auto and battery sector.
Unlike the , this side of the House does not ignore foreign threats to dismantle Canadian auto manufacturing. During a rupture in the global trading system, Canadians know that nostalgia is not a strategy. While the Leader of the Opposition is banking on wishes and prayers to get Washington to reverse tariffs, we are focused on real action to build a better future to secure and grow the industry that supports 500,000 Canadian jobs.
The actions we take now will have a lasting impact on Canada's auto industry. By safeguarding the industry and incentivizing vehicle manufacturers to build here, we are helping to enhance our productivity and transform Canada's automotive industry to compete and win in a world where the future of autos is electric, connected and globally diversified.
I want to reiterate that the Conservative proposal was developed without input from auto workers, lacks a single measure to support auto workers and would disincentivize new work going to the Brampton and Ingersoll plants. That is not smart policy-making. It is political posturing. Our government will continue to focus on investing in those who invest in Canada and building Canada strong with Canadian auto workers.
:
Mr. Speaker, I am happy to be back home here in Canada. I just got back from touring some of the great U.S. states and metropolises where our American partners buy our goods and services and where we trade for the benefit of both our peoples.
Before I left, I gave a speech in Toronto in which I laid out a detailed plan for restoring tariff-free free trade with our largest international market. My goal is one shared by all Conservatives: a Canada that is affordable and strong, where we are the master of our own house.
[English]
I have to say it is good to be home after a 12-day journey across the United States, visiting some of the great metropolises and states south of the border, pitching Canada, fighting for tariff-free trade, arguing on behalf of our workers and restoring our long-standing partnership with our greatest trade partner.
That journey took me to Detroit, where I championed auto workers, coming back with a clear proposal for a tariff-free auto pact. Then it was on to Houston, where I championed our energy sector. Then I went on to meet with Governor Abbott in the great capital of Austin, where I found a wonderful friend of Canada who wants to buy even more of our energy if we can get it out of the ground and down. Of course, I was very pleased to speak to Americans to fight for tariff-free trade and to defend Canadian sovereignty on the biggest podcast in the world with the great Joe Rogan. Then, of course, it was on to New York, where I championed our overall economy with some of the greatest leaders in finance.
In all of those places, I am happy to report that I found friends among Americans, people who want to reopen trade across tariff-free borders along the longest undefended border in the history of the world. I found that the American people love Canada and know that trade with us is in their national interest. They understand that buying Canadian goods lowers Americans' cost of living and feeds their supply chains. It adds paycheques to their pockets while enriching us both.
They understand that Canada has leverage, like being the second-biggest customer to the United States, having 10 of the 12 NATO-defined national defence critical minerals and having the biggest land mass, biggest seas and biggest airspace in the entire hemisphere, all essential to American security. Americans understand that it is in our interest as a continent for our two separate countries, while they maintain their sovereignty, to work collaboratively to make us both richer, stronger and safer.
I shall say that I kept the well informed of all these developments while I was abroad. I look forward to meeting with him to report on my findings, to compare notes and to offer recommendations on how Canada can become stronger at home and more affordable at home, so that we have the leverage abroad to achieve tariff-free trade with our American partners. Though I made a point of not criticizing the Prime Minister on foreign soil, I return here where it is precisely my constitutional obligation to do just that, not out of any partisan interest but out of an interest in pursuing the truth.
Now, after a year of the 's being in office on the promise that he would negotiate a win with the United States, it is a good time to take an inventory of where we are. A year into the Liberal Prime Minister's term, after he won on his famous promise to negotiate a win, much has been said but not much has been done. There have been many fine speeches and signing ceremonies of so-called MOUs, which are, in effect, unenforceable documents that commit bureaucrats to form committees and hold international meetings to discuss future plans that may or may not one day be materialized. There have been handshakes and press conferences, announcements of grand goals and of things that will happen somewhere, someplace down the road, but nothing tangible.
As Shakespeare said, “All the world's a stage”, and the has been great at the stagecraft, but what about the statecraft? He promised he would give us the fastest-growing economy in the G7. We now have the only shrinking economy in the G7. He promised affordable food. We have the most food inflation in the G7. He promised that we would have a solid economy. We now have the worst housing costs and the highest household debt in the G7, and the second-highest unemployment in that group. He said he would negotiate a win with the President. Here we are today, a year later, with no win and no deal. Tariffs on aluminum and steel have doubled, and on Canadian lumber they have tripled.
He promised that he would build projects with record speed, yet his Major Projects Office, which the House rushed into existence in five days back in June because the said it was an emergency, has still not approved a single project of any kind almost a year later. Not a single pipeline has been approved. When it comes to building homes, he promised he would double homebuilding. His own housing agency projects that will drop by 15%. There has been no serious tax reform other than to rename the carbon tax to the so-called clean fuel standard, which applies to more goods and will rise to the same level. Of course, there remain interprovincial trade barriers, despite the fact the Prime Minister promised that we would have one unified Canadian economy by Canada Day of last year.
Speaking of free trade, he has not concluded a single free trade agreement since taking office, trying only to take credit for a small deal that his predecessor, Justin Trudeau, signed with Indonesia, an agreement that will amount to about three hours of Canada's GDP.
[Translation]
It has now been a year since this Liberal took office. Reality has collided with illusion. The deficit has doubled, and our economy is the only one in the G7 to have contracted. We have the worst food inflation, the highest housing costs, the worst household debt and the second-worst unemployment rate in the G7, plus a 15% decline in housing construction. Not a single pipeline has been approved. No projects have been approved by his new office, which wields exceptional and unprecedented powers. Despite his promise to negotiate a victory and reach an agreement by July 21, 2025, there is still no victory or agreement, and U.S. tariffs have doubled on Canadian products and tripled on softwood lumber.
[English]
For all the illusions about the 's negotiating skills and statecraft, what really do we have to show a year after? What we are increasingly seeing is that American tariffs have doubled on Canadian steel and aluminum and tripled on Canadian lumber since the Prime Minister promised he would get rid of them. Credentials are not competence. Stagecraft is not statecraft. Illusions are not reality.
Speaking of trade with the United States, Canadians know a lot more about my approach than they do about the 's. I want everyone to stop and think about this for a second. I laid out a very detailed plan of both my demands, eliminating all tariffs on Canadian goods, and the leverage I would use to get those demands. I would like to give the House of Commons a pop quiz. What do we really know about the Prime Minister's plan to get tariffs lifted with the U.S.? What do we really know? We know nothing. Is he even determined to get those tariffs lifted? In fact, Liberal ministers have suggested it might now be impossible to do that. Is it still his negotiating bottom line to have those tariffs removed, and if so, what is he planning to offer in exchange for getting them lifted? We do not know.
Does his proposed rupture with the U.S. mean he does not want a renewed CUSMA? We do not know. If he does intend to renew CUSMA, does he intend to try to get it renewed exactly as it is, with small changes, or a complete overhaul? Has anybody heard him answer that question? I am not aware of him telling anyone that. When was the last serious negotiation? We know the Mexicans are negotiating. They are at the table. Has he or anyone in his cabinet actually been at the negotiating table in the last four months?
I do not mean friendly handshakes, introductions and an exchange of jokes and pleasantries with the responsible for Canada-U.S. affairs, who is a man with a great, gregarious personality indeed. I mean actual negotiations. Are they even happening? Has anyone in the press actually asked the if we are even negotiating, given that we are literally days away from the renewal date of our single biggest trade agreement? Nobody knows. He said, “Who cares?”
Indeed, I think Canadians care.
Does he accept that U.S. tariffs on aluminum, steel, autos and lumber are permanent? We do not know. We have no idea when the talks will start or when they will end. We have heard him use some very interesting rhetoric, colourful rhetoric, such as that he wants to have a rupture with our single biggest customer, on whom 2.3 million Canadian jobs depend. If he is going to rupture 2.3 million jobs, how is he going to replace them? How will those workers pay their bills? How will we replace those jobs?
These are the types of questions that slogans like “rupture”, “elbows up” and “Canada strong” do not answer. While the gives wonderful speeches that make for very interesting listening, and we can admire him as a wordsmith, those speeches do not pay mortgages or put food on the table for 2.3 million people.
Meanwhile, the Prime Minister cannot seem to make up his mind about how things are going. On the one hand, he says the reason we have the only shrinking economy in the G7 is that the tariffs are so bad. On the other, he says there is no need to rush into solving this problem, because the deal is so good. Which is it? He cannot, on the one hand, say that he has gotten us an excellent deal on tariffs and then, on the other, say that the tariffs are so horrendous that it is the very reason why we have the worst economy in the G7. It cannot be both. He has to make up his mind.
Meanwhile, his ministers make patently ridiculous excuses about foreign matters to defend their domestic failures, like the claiming that the war in Iran had caused housing costs to double over the last decade. I will give members a spoiler alert. We do not import houses or land from Iran. We never have. The housing bubble inflated well before this war even started, which makes all of us wonder if the Liberal and his government are simply using these foreign problems as excuses for his very real domestic failures, given that everything was bad under his predecessor, Justin Trudeau, and has gotten much worse since he became Prime Minister, promising to fix it all.
We all have to ask: How long will the use the trade dispute and other foreign matters as a convenient all-purpose excuse for causing inflation, debt and joblessness here at home?
What about his auto plan? Canada needs a strong auto sector. We need a strong auto sector that, according to the Canadian Vehicle Manufacturers' Association, is responsible for 105,000 direct jobs and a total of 600,000 jobs when we include indirect ones at places like the 700 auto parts suppliers, the 400 connected autonomous and smart vehicle firms, and the 500 tool and die and mould companies that feed into the supply chain.
Since the Liberals took office, auto production in Canada has fallen by half. Since the was elected a year ago, promising he would protect the auto sector, it has fallen another 7.3%. The Prime Minister promised before the election that he would protect the sector. It was another illusion. He has since waved the white flag. He even considered signing a sectoral deal in the fall that would have made the tariffs permanent and shut down our sector altogether.
He seems to think that he can carry out a permanent rupture with the United States market in favour of other markets. That is a dangerous illusion. In fact, if we look at the numbers, it verges on a hallucination. The reality is that we sell about 95 times more automobiles to the United States than we sell to the rest of the world combined. That is the reality. We cannot simply imagine up new markets to sell cars that we do not make in places that will not buy them from us.
The reality is that this approach of relying on imaginary plans has led to the following layoffs: 175 at Paccar in Quebec, 49 at Magna in London, 3,000 at Brampton Stellantis, 300 at Paccar in Sainte-Thérèse, Quebec, 118 at Autoneum in London, 245 at TFT Global in Oshawa, and 700 at GM in Oshawa. Of course, there are the lockouts at the Brampton Stellantis plant I visited.
A permanent rupture with the United States would be the end of the Canadian auto sector, period. It might not be enjoyable or exciting to say it, and it might be more fun to scream “elbows up”, but the jobs that the people in those plants rely on are more important than the 's endless slogans. A permanent rupture to their paycheques is not acceptable; nor is it possible to simply say we will replace the Detroit three automakers with Japanese automakers.
The Japanese ambassador made it clear that having Toyota and Honda invest in Canada depends on unfettered access to the U.S. market, so even the 75% of the automobiles we make in Canada through the Asian automakers would not survive a permanent wall of tariffs from the United States. We absolutely must regain access to the U.S. market. In essence, losing U.S. access would likely decimate the Japanese-led portion of Canada's auto industry, which is three-quarters of our production. This would lead to a sharp long-term contraction of national production and an economic fallout across Ontario. Canada's auto sector must stay part of the North American supply chain.
We need a plan for jobs, not a plan to rupture jobs. We need a Canada that builds up its auto sector so that we can be strong at home and have more leverage abroad. We, as the Conservatives, are the only ones who have that plan. After months of consultation, led by the chair and the two co-chairs of the Conservative economic council, the member for , the member for and the great Rick Perkins, we have put together a plan that has the backing of the industry and the workers.
The Conservative plan would make it more affordable to buy Canadian vehicles by removing the GST on all Canadian-made automobiles. We would pay for it by getting rid of the $2.3-billion Liberal subsidy for foreign-made electric vehicles. We would cut taxes on vehicles made in Canada. The Liberals want to use tax dollars for vehicles made abroad. People who want a job in this country know what plan is going to work.
We would bring home production through performance by implementing a rule where for every car an automaker produces in Canada, it would have the right to import one tariff-free from a CUSMA partner. We would do that on a dollar-for-dollar basis, exactly as we used to do through the auto pact. This is important, because many people would ask if the President would ever accept it. This plan would increase American and Canadian production. American production would increase by about two million automobiles, or about a 17% increase in production, reversing its decline, and Canadian production would double, going up to two million vehicles every single year. It would ensure we build as many vehicles as we sell. This would be a much better deal for our American friends than they have right now and a significantly better deal for Canada. Because it aligns with the stated objective of the United States to produce more vehicles at home, it is one it would realistically sign.
We have developed an automotive security and technology policy by harmonizing our regulations to keep dangerous technology from Russia and China off our roads. We would stand firm against unfair trade practices by China and align the policies with those of the United States.
We would also get rid of the EV mandate the is trying to keep in place through the back channel of emissions standards that cannot be met by any other vehicle than an EV. We would ensure that the vehicles Canadians buy and that are on our streets are made in our country and ultimately affordable to the Canadian people.
This is a detailed plan to reverse the 10-year-long decline in automotive production that would allow North America to once again become the global powerhouse in producing automobiles. It would knock down the barriers and restore tariff-free trade across the border with our single biggest market by far anywhere in the world. This is a realistic plan, one that takes seriously the livelihoods of the hard-working people who rely on this sector for their jobs.
We are not interested in temporary slogans or political gratification. We are interested in protecting the jobs of our people and the strength of our country. We will be strong and affordable at home and have leverage abroad.
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Mr. Speaker, I do not blame them. That is the only quote they have been using today.
Having said that, here is another quote, from the Unifor president, Lana Payne: “the CPC plan...may instead create the conditions on which auto sector investment and growth in Canada is constrained—permanently threatening the future of both Brampton and Ingersoll assembly plants.” That is another quote.
Let us not stop there. There are actually many quotes. The Unifor auto council chair, John D'Agnolo, said, “The problem is that he went ahead and did not consult with Unifor, and it was very, very frustrating to see the things that he put in place knowing we would be in big trouble”. He is talking about the . He also said, “He didn’t recognize engines. There’s a prime example. He didn’t recognize imports. He didn’t recognize exports of parts that we make, which is discouraging.... He didn’t recognize the fact that the one-for-one would mean they wouldn’t need to put a product in Brampton”.
It is as if the Conservatives have given up on some of our important communities in Ontario when it comes to the auto industry. Those are three examples that I cite. If there are any eager Conservatives over there who have another quote that they want to share with me, they can come on over and share it, but just make sure it is a different quote from the one the provided me.
Let me provide a different quote in terms of the Liberal action plan, what the Government of Canada is doing. Allow me to quote a Progressive Conservative, as opposed to the far-right Conservative Party that we have on the other side of the House. This is someone who is fairly well known. I am sure he understands the automobile industry in Ontario.
An hon. member: Doug Ford.
Hon. Kevin Lamoureux: The member is correct, Mr. Speaker. It is Ontario Premier Doug Ford. What does he have to say about the plan that we have? He said, “I'm pleased to see the federal government take the important step of ending its mandate, helping our auto sector compete and protect auto jobs.” He also said, “New federal funding for investments in auto and parts companies, job training and charging infrastructure will complement and enhance Ontario investments and supports.” That is what the Progressive Conservative Premier of Ontario is saying.
I say shame on those MPs, in Ontario particularly, who are not standing up for the workers in the automobile industry, to the degree that they did not feel it was necessary for their very own to work and consult with the unions. At the very least, I would think that it would have been a natural starting point.
However, it does not end there. Again, continuing on with quotes, we can talk about the Unifor auto council chair, who said he was “ecstatic” over auto measures, saying they are “so important to our community”. He also said, “It's important as time goes by and the market starts to turn.... We have to give Canadians the option, and it's important we always do that, and [referring to the federal government] they've done this through this policy”.
There is Clean Energy Canada. Also, Oakville Mayor Rob Burton, chair of the auto mayors caucus, stated, “The new strategy is a significant step forward for Canada’s auto sector. It shows that the voices of mayors and our Caucus are being heard in shaping national auto policy”. Those are the types of responses that we have been receiving in regard to the plan that the government has actually put forward.
What do we hear from the Conservatives? Today, I asked specific questions.
One of the initiatives by the government in terms of the auto plan is to accelerate investment in Canada's auto-manufacturing industry or that whole sector. We are talking about $3 billion in order to accelerate that. We are providing and protecting jobs, recognizing that the national government does need to get engaged. We can talk about levelling the playing field. I asked questions about maintaining countertariffs on auto imports that come from the U.S.A. where it is necessary. On those two initiatives, when I asked members of the Conservative Party whether or not they support that, it was deafening in terms of their response as they sidestepped the issue.
These are two initiatives that are actually going to help our industry today, and what are the Conservatives doing? They are stepping back. It is the standard policy of the far-right Conservative Party today: Just get out of the way. We often hear them say that in their speeches. They just want to get out of the way and let the automobile industry take what ultimately comes upon it, as opposed to trying to protect that sector of our economy, a part of the economy in which we are focused on doing whatever we can.
It is interesting that the member for said that I said we are just going to wait, even though I just made two very clear pronouncements in terms of what the government is actually doing today, which is having a very real impact. However, he said that that was what I said, but it was taken out of context.
The today talked about overall trade here in Canada. One would think that he is jealous of the of Canada and that he does not really support what the Prime Minister is actually doing, when he talks about trade. Can the Conservatives tell me of another prime minister who, within one year, has visited so many countries to talk about trade, to enhance trade opportunities and to enhance export opportunities for our manufacturers here in Canada? Can they tell me of another prime minister who, in less than a year, has brought in billions of dollars of future investments for Canada? The Conservatives cannot do that.
Our has been diligent in making sure that we are getting as much as we can with the type of trade diversification that is absolutely critical to the future of Canada, to providing the jobs of the future and to protecting the industries that are here today. Yet, the Conservatives seem to be focused on saying that they are going to have no tariffs between Canada and the United States. Do they really think they know Donald Trump so well that they are just going to pull up to the table, shake hands and say, “We don't want any tariffs”, when the President is putting on tariffs around the world? Oh, what a wonderland they live in to honestly believe that that could be the case, that we do not have to do anything and we will just wait until the President of the United States changes his mind and says that he will not apply tariffs and that we will go back to the 1960s.
It was Lester Pearson who brought forward the auto pact in the 1960s. He was a prime minister who did the right thing at the right time to ensure that Canada's industry would be protected. At that time, we had American Motors, Chrysler, GM and Ford, and that was it. That was all that was there. The idea was to integrate completely, as much as possible, that particular industry, and that is what the auto pact did. It served its purpose. However, American Motors and Chrysler do not exist any more. Now it is Stellantis.
I am very familiar with the automobile industry. My father worked in it for 40 years. We have had dealerships, including an American Motors dealership, I must say. I am very familiar with the industry. I know the importance of these jobs.
An hon. member: Oh, oh!
Hon. Kevin Lamoureux: Mr. Speaker, the member says we should stop losing jobs. Do my colleagues know that the worst year we had for the loss of manufacturing jobs was under Stephen Harper? The of the Conservative Party sat around that caucus. That was the worst loss we ever had in the manufacturing industry, so when they start talking about the loss of jobs, they need to take a look at who their leader was in the caucus during the Harper government years.
However, let us continue to look forward, as opposed to backwards with the 1965 auto pact, because it matters. Members can think of the communities of Oshawa, Brampton, Oakville, Cambridge, Woodstock, Ingersoll, Windsor, Alliston and St. Thomas. They are the communities in Ontario that are looking for a government that will provide leadership on the issue.
Thank goodness that, much like we had Lester Pearson during the sixties, we now have a who understands the economy and how the economy works. He is in a good position to be able to negotiate a trade agreement with the President of the United States. He is the right Prime Minister for the right time in Canada's history to ensure that we have an industry that is able to not only survive, but also prosper into the future. That is something, I believe, that is shown by the actions we have taken, whether looking for those trade opportunities in South Korea, Japan, China or other allied countries in Europe. It might take some real effort going forward to foster those relationships, to build and to court some of those manufacturing companies to come to Canada.
No one is saying it is going to be easy, but as a government, we are not, like the Conservatives, giving up on workers or giving up on bringing forward a plan. I can tell the House that, after listening to the speeches of the vast majority, more than 90%, of the Conservative caucus, we would think that they do not want an EV industry. That is the reality, because they are constantly being critical of the government for anything that we do to promote EV purchases, as an example. Show me one Conservative member who will actually put up their hand and say, yes, it is a good thing to be able to encourage Canadians to purchase an EV vehicle through a subsidy of some form.
I have a news flash. The federal government is not the only government that has actually provided subsidies for EV vehicles. One of the provinces that has led the way is the province of Quebec. Quebec has provided opportunities and incentives for consumers to purchase EV vehicles. Quebec is not the only province. Colleagues can do their Google searches or whatever types of searches they want and they will find different political parties and different levels of government that have actually had incentives to try to provide encouragement for people to actually purchase EV vehicles.
The United States produces a lot of electric vehicles, but Canada cannot produce every model of car throughout the world. We cannot do that.
As much as I might like to see something of that nature take place, I think we need to recognize that Canada's automobile industry, what we currently have, has fantastic potential and there is room for growth. If anyone wants a good example of that, look at the Charger. It is an electric vehicle. Are you trying to minimize that now? Are you trying to minimize the Chrysler Stellantis plant by—
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Mr. Speaker, as always, it is such an honour to be in the House to serve the amazing residents of Essex, and quite frankly, the region and the country. I have a couple of quick notes before I get into this very important conversation.
I just want to thank the people who put on the National Prayer Breakfast today. In my speeches, I always thank my Lord and Saviour, Jesus Christ. This morning, everybody at the breakfast came together and truly gave all grace and glory back to him.
I want to say happy birthday to my daughter, Faith. It is coming up here very shortly, but we will not be here next week, so it is important that I say happy birthday, sweetheart. She is daddy's little girl who is not so little anymore.
My heart is with the two pilots, their family at Air Canada, and all the victims. It is ironic that the very people who get so many of us back and forth to Ottawa to do the people's work are the ones who were injured. My heart is equally with the firefighters.
Lastly, I just want to say hello to the students who got a virtual tour of the House of Commons. Thanks so much for coming on a virtual tour.
There is a reason that we have a great big windshield on a vehicle and a small rearview mirror. The small rearview mirror is so we never forget where we came from. It is vitally important to know where we came from. The reason for the big windshield in the front is not just to clean bugs off it. It is to know where we are going, and that is the plan. When people jump in their vehicles, they have a plan. They are going to the hockey rink, to the grocery store or perhaps to an Easter party.
I am so thankful to be able to stand in this place today. I will not yell, scream or get really crazy about this, because it is somewhat of a sombre moment. When I think about the assembly plant workers at Stellantis in Windsor, I also think about the tool and die makers, the mould makers, the tier twos and tier threes, and all of those who deserve nothing less than complete support and a plan to ensure that food is on their table.
I do not want to speak only about the workers. I want to talk about the businesses: the blood, sweat and tears, all the money invested, all the risks that they have taken, and all the chances to ensure that there is food on the table for those workers. It is why I am very proud to stand here, in the people's chair of Essex, to speak about the Conservatives' opposition motion to introduce a tariff-free auto pact.
I will be splitting my time, whatever is remaining, with the great member for .
I had the great opportunity to be with the last Friday. We started out in Windsor with an announcement, and then we crossed the border. It is the busiest international border crossing in North America. Quite frankly, it is a border that sees a vehicle's parts cross it six to seven times before the vehicle is actually assembled.
When we went across the border, our first stop was at General Motors' headquarters in Detroit. We had a great discussion, a very in-depth discussion. Basically, all the managers could say was they absolutely adored our plan, they think it is bang on, and they are dead against tariffs as well. This was from the very senior managers of General Motors in downtown Detroit, right in the middle of the big three, in the heart of the big three. That is what they said.
We then went a bit outside of Detroit to Dearborn, Michigan, to a brand new, beautiful, gorgeous Ford Motor Company facility. They basically gave us the exact same message, in that they need our plan and they like our plan. They are going to invest in Canada, and they hope that our plan helps invest even more into Canada. It truly was an honour.
I am a co-chair of the Conservative auto caucus and have been for about six years now. I have had numerous opportunities, in the past and again this year, to visit the auto show in Toronto. It is an amazing auto show, by the way. I met with so many industry leaders about the beginning of our plan and what our thoughts were, to get their feedback and to understand more about what industry needs and what we can do communally to ensure that our auto sector is absolutely strong like it used to be, so that we are not down to 1.2 million vehicles built in Canada from the two million we used to build. Let us double that.
I have built some pretty strong relationships over six years. I will even go as far as to say that, and I am going to preempt the strike during questions, I have spent a lot of time speaking to labour as well, specifically with Unifor. As a matter of fact, I had them in my office this afternoon.
I want to point out a couple of folks here.
Somebody who has become a great friend of mine is Brian Kingston, and I also admire him because he works so tirelessly. He is the President of the Canadian Vehicle Manufacturers' Association, and he said, “North American integration has underpinned Canada's auto industry for over 60 years. Diversification is not an option.” Mr. Kingston goes on to say, “The policies outlined in the Conservative...plan recognize this reality and aim to make it more attractive to build cars in Canada.”
Further, Mr. Jeff Gray from Unifor Local 222 came out and said, “Finally, a common sense plan to protect the livelihood of thousands of Ontario Auto sector workers. A plan that restores past production levels and secures a long-term future”.
Those are not my words. They are from industry and labour.
I touched on tier twos and tier threes, and I will say that they truly are the backbone of the assembly plants. Without them, quite frankly, nothing gets assembled. I have visited so many mould shops and tool and die shops throughout the Windsor-Essex region, each with their own story and each with their own fastball that they can throw.
Equally, I was down in Mexico about six weeks ago on a trade with other members of the House from both sides of the aisle. We had the opportunity to meet with the Senate of Mexico, with the senators, and in a private meeting I asked what we can do to support them, but equally, how they can support us. A senator said that it is ironic that we have what they need and they have what we need. I said that what is really ironic is that when I fly from Windsor to Ottawa, there is a Mexican plane sitting on the tarmac with parts from Mexico. My point is that it is so wildly integrated that all of us must jointly work together.
I know that my time is running short. I could talk for hours on this, but obviously I do not have the time.
We have a plan to make it more affordable to buy Canadian by removing the GST on all Canadian-made vehicles, to bring home production through performance by implementing a rule that for every car produced in Canada, the same manufacturer would get to sell a car in Canada duty-free, to protect North American supply chains by maintaining the minimum 75% North American content and existing CUSMA rules of origin, and to develop automotive security and technology by creating a harmonized North American cybersecurity and data standard.
It is an honour to stand on behalf of the hard-working folks from Essex and Windsor, and I will close with this: I am here today to say no more job losses, empty promises or sacrifices from our auto workers. That is why I support the Conservative plan for a tariff-free auto pact. Essex-Windsor auto workers are among the best in the world, and their jobs deserve to be protected.