![\"Canada](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/04\/2026041711275815.jpg\")
(A BYD EV on display at the Shanghai Auto Show in April 2025. Image credit: CnEVPost)<\/p>\nCanada’s international trade minister engaged with BYD, Xpeng and GAC in Guangzhou to discuss EV market-entry pathways.
\nThe visit builds on a bilateral agreement that allows up to 49,000 Chinese EVs annually to enter Canada at reduced tariffs.<\/p>\n
(A BYD EV on display at the Shanghai Auto Show in April 2025. Image credit: CnEVPost)<\/p>\n
Canadian International Trade Minister Maninder Sidhu engaged with BYD, Xpeng and GAC in Guangzhou during an official visit to South China.<\/p>\n
He held in-depth discussions with these leading Chinese EV makers regarding market-entry pathways under Canada’s newly implemented EV import quota system, according to a statement<\/a> released Thursday on the Canadian government’s website.<\/p>\n Sidhu also highlighted to the automakers Canada’s regulatory supply chain requirements, as well as the prospects for long-term investment and collaboration in the country.<\/p>\n The trip marks the first official visit to South China by a Canadian minister since 2018, underscoring a thaw in bilateral trade relations.<\/p>\n It also builds on Canadian Prime Minister Mark Carney’s historic visit to Beijing earlier this year and the subsequent bilateral trade agreement.<\/p>\n The two nations reached a landmark mutual tariff reduction deal<\/a> in January, which is widely dubbed as the “EVs-for-canola” agreement.<\/p>\n Under the bilateral pact, the Canadian government agreed to exempt up to 49,000 Chinese-made EVs annually from a 100% tariff they previously faced.<\/p>\n These quota-eligible Chinese EVs will only be subject to a 6.1% most-favored-nation tariff rate upon entering the Canadian market.<\/p>\n In exchange, the Chinese government committed to slashing its import tariff on Canadian canola to 15% from a comprehensive level of about 85%.<\/p>\n Top Chinese automakers such as BYD are actively exploring this tariff reduction window to further expand their business footprint in the North American market.<\/p>\n BYD executive vice president Stella Li said in an interview with Bloomberg last month that the company is studying the Canadian market<\/a> for a potential manufacturing facility.<\/p>\n She also said that BYD prefers to fully own and independently operate such a plant, as she does not believe the traditional joint venture model would work.<\/p>\n However, Canadian Industry Minister Melanie Joly has previously insisted that any new auto sector investments must utilize local Canadian labor and parts.<\/p>\n This stance presents a potential conflict with BYD’s business philosophy of establishing wholly owned enterprises rather than forming joint ventures with local Canadian companies.<\/p>\n Furthermore, US government officials have repeatedly warned Canada of severe tariff retaliation risks if it acts as a backdoor for Chinese EVs to enter the US.<\/p>\n
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