Canadian Shipbuilding Association Calls for Tax on Chinese-Built Ships

The Canadian Marine Industries and Shipbuilding Association (CMISA) is urging the Canadian government to extend its recent 100% tariff on Chinese-made electric vehicles to Chinese-built ships.

The association argues that Chinese-built ships pose a significant strategic and ethical threat to Canadian industries and national security.

CMISA highlights concerns about China’s shipbuilding industry, citing its “Civil-Military Fusion” doctrine, which allegedly subsidizes commercial ship exports to bolster military capabilities. The association claims that Chinese shipyards producing commercial vessels also construct warships for the Chinese Navy, contributing to its expansion and potential challenges to Canadian interests, including in Arctic waters.

The association has expressed disappointment over a recent decision by Marine Atlantic, a Canadian Crown corporation, to lease a ferry built in China for service on Canada’s Atlantic coast. CMISA describes the deal as a “complex lease structure” that “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. On the positive side, Marine Atlantic now has five years to work with the Canadian shipbuilding sector to ensure that we have a made-in-Canada solution ready to sail when the lease is up,” CMISA said.

CMISA is now calling for “immediate and decisive action from the government, including a 100% tax on Chinese-built ships in Canada.

“We recommend the imposition of a 100% surtax on all Chinese-built ships imported into Canada and demand a clear prohibition on any government entity or Crown corporation from acquiring or leasing Chinese-built vessels,” the association’s spokesperson stated.

CMISA argues that these measures are necessary to protect Canadian industries, uphold national security, and ensure consistency with Canada’s commitment to human rights and ethical business practices.

The call comes as lawmakers and industry stakeholders in the U.S. have raised serious concerns regarding alleged unfair trade practices by China in the shipbuilding, maritime, and logistics sectors. The United States Trade Representative (USTR) has even initiated an investigation into the the PRC’s use of unfair, non-market policies and practices in the sectors in response to a petition submitted by U.S. labor unions, including the United Steelworkers (USW). The petition proposes remedies including a fee on vessels constructed in China that dock at U.S. ports.

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