We need government EV policies aligned with those in the U.S. to support consumer transition and to maintain Canada’s share of North American automotive investment.
President Biden’s EV ambitions create huge opportunities for positive change and given the fully integrated nature of the North American auto sector since the 1960s, Canada needs to keep up and stay aligned with the U.S. This is essential if we expect Canadian drivers to confidently switch to electric vehicles and are to continue enjoying the economic benefits that come from the tremendous auto footprint in Canada.
According to the International Monetary Fund, Canada’s long list of regulatory distortions hinders labour mobility, limits choice for consumers, fragments markets, stifles competition, and limits the effective scale of production. Removing internal trade barriers would increase per-capita GDP by almost four per cent and make Canada more attractive for new manufacturing investments.