Former Conservative leader Erin O’Toole has publicly criticized Canadian Prime Minister Mark Carney’s deal with China this week, stating that Ottawa should not treat Beijing as a replacement for the US.
O’Toole was appointed to Carney’s 24-member Canada-US Advisory Committee, unveiled as the formal review of the trilateral trade deal — the USCMA — with Mexico and the United States approaches.
In an interview with local media outlet CTV News, O’Toole said he supported Carney’s visit to Beijing.
“I have been publicly critical of that part of the prime minister’s trip,” O’Toole stated, adding that he thought “it was good” that the negotiations took place, as they’re “critical for our agricultural exports and Western Canada, and they needed to see that.”
However, he disagreed with the EV arrangement that came out of it.
“The substitute for a great American partner is not China,” he added, arguing Canada should present a unified North American front alongside the US when it comes to Beijing. “We have to be very cautious with China.”
The comments came just days after Carney described Canada’s ties to the US as a “weakness” in a social media video — the latest signal of a broader posture shift that has included deepening relationships with Europe and Asia in the past months.
EV Deal
Carney struck a bilateral trade agreement with Chinese President Xi Jinping during a state visit to Beijing on January 16, allowing up to 49,000 Chinese-built EVs into Canada annually at a 6.1% tariff rate.
The deal replaced the 100% surtax imposed under the Trudeau government in October 2024.
In exchange, China agreed to lower retaliatory tariffs on Canadian canola and other agricultural products — a concession expected to unlock nearly C$3 billion in export orders.
The annual quota is set to rise to 70,000 vehicles by 2030, and the arrangement includes a clause requiring Chinese automakers to pursue joint ventures or local manufacturing in Canada within three years.
Ottawa began issuing import permits on March 1, with the first 24,500 available through August on a first-come, first-served basis.
Chinese automakers are already moving.
Chery has landed its first vehicles in Toronto and flown Canadian dealership representatives to the Beijing Auto Show.
Geely and BYD are also targeting Canadian market entry by year-end, with the latter planning to open its own local operations despite the joint venture push by the Canadian Government.
Two Auto Pacts
O’Toole’s position aligns with that of current Conservative leader Pierre Poilievre, who said in February that China is “no substitute” for the United States.
In March, the Conservatives unveiled a new auto pact proposal that would scrap the Chinese EV quota and align Canada’s tariffs on China with Washington’s, while banning Chinese-connected vehicle software.
The auto pact also responded to the Government’s plans for the auto industry unveiled a month earlier.
The Conservatives planned to introduce a dollar-for-dollar production-to-sales matching rule designed to incentivize domestic manufacturing.
The Canadian Vehicle Manufacturers’ Association — the lobby group representing Detroit automakers Ford, General Motors, and Stellantis in Canada — also endorsed the plan.
It was, however, rejected by all other parties in the House of Commons late last month.
The Carney government has pursued a different strategy when it comes to international partners.
Beyond the China deal, Ottawa has courted South Korean and German automakers — tying a $20 billion submarine procurement contract to demands that bidding nations commit to opening auto assembly plants in Canada.
Trade Minister Maninder Sidhu held meetings with BYD, XPeng, and GAC in Guangzhou earlier this month, and Industry Minister Mélanie Joly has been pushing for Chinese EV joint ventures that would supply global markets from Canadian plants.
Carney has framed the approach as an opportunity to build the cars of the future and sell them to the world.
Industry Pushback
The China EV deal has drawn sustained opposition, with CVMA President Brian Kingston told the House of Commons that the 49,000-vehicle quota is equivalent to 30% of total EVs sold in Canada last year.
He warned that Chinese automakers benefit from labor conditions that distort global competition.
Unifor, Canada’s largest private-sector union, called the agreement a self-inflicted wound and said Ottawa had surrendered leverage in ongoing disputes with Washington over auto tariffs.
Other reactions include Ontario Premier Doug Ford, who called Chinese EVs “spy vehicles” — something that was later echoed by the Conservative Party and security experts heard in the House of Commons.
USMCA Review
O’Toole’s appointment comes with the July 1 deadline for the USMCA review now just over two months away.
Under Article 34.7, the three countries must decide whether to extend the agreement for another 16 years, negotiate revisions, or allow it to enter annual review until its 2036 expiration.
Automotive products account for roughly 22% of total trade under the agreement — the single largest category.
American officials have signaled a confrontational posture heading into the review.
US Trade Representative Jamieson Greer described the China EV deal as “problematic” when it was announced.
Last week, Greet noted that Canadian and American trade systems do not fit together well, while also threatening enforcement action over provincial booze bans.
US Commerce Secretary Howard Lutnick has also stated that Canada treats the US unfairly “at every margin they possibly can.”
The representative previously mocked Carney’s outreach to Beijing.
O’Toole said he had been assured the committee “is a substantive, serious exercise” and that he was committed to bringing a conservative voice so it could be a true “best effort Team Canada.”
The former Conservative leader believes his willingness to push back is “part of the reason” he was asked to join.
