Canadian Yards Call For 100% Tariffs On Chinese-Built Ships

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  • Canada has joined a growing chorus of shipyard nations taking aim at the world’s dominant shipbuilder.
  • Canada recently imposed a 100% surtax on Chinese-made electric vehicles, something CMISA would like to see extended to Chinese-built ships

The Canadian Marine Industries and Shipbuilding Association (CMISA) calls for the Canadian government to impose a 100% surtax on all Chinese-built vessels imported into Canada and demand a clear prohibition on any government entity from acquiring or leasing Chinese-built ships.

A strategic and ethical threat

Chinese-built vessels present a strategic and ethical threat to Canada, according to Colin Cooke, President and CEO of CMISA, who sent a clear message to Ottawa. “China’s shipbuilding industry operates under the doctrine of Civil-Military Fusion whereby commercial ship exports are subsidized to strengthen the country’s military capabilities,” he said.

Cooke continued, “The very shipyards that produce ferries and cargo vessels for the global market are also used to construct warships for the Chinese People’s Liberation Army Navy (PLAN), fueling its rapid and aggressive naval expansion. As China’s navy continues to grow, it increasingly uses its fleet to challenge Canadian interests and those of our allies in regions extending even to our own Arctic waters.”

Cooke described the recent leasing agreement between the Canadian government-owned, government-funded Crown corporation Marine Atlantic and the Swedish ship owner Stena for a ferry as “disappointing”, because the ship was built in Weihai, China.

This complex lease structure involving an option for Marine Atlantic to purchase the ship at a later date, appears designed to evade public scrutiny and ethical concerns. Few Western governments would support the construction of a taxpayer-owned ship in China, yet a Canadian Crown corporation has done so indirectly through this lease,” pointed out Cooke.

The Canadian association calls for immediate and decisive action. “It is imperative that the government takes these steps to protect Canadian industries, uphold national security, and ensure that our economic policies are consistent with our commitment to human rights and ethical business practices,” noted CMISA in its statement.

In the meantime, CMISA commended the recent government decision to impose a 100% surtax on Chinese-made electric vehicles, saying the same measures must be extended to Chinese-built ships.

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Source: Container News