CMISA: Canada should slap 100% surtax on imports of Chinese-built ships

CMISA president and CEO Colin Cooke: “The time to act is now!”

Canada has joined the U.S. in slapping a 100% surcharge on the import of Chinese-made electric vehicles. The Canadian Marine Industries and Shipbuilding Association (CMISA) is calling for the same treatment to be extended to Chinese-built ships.

It says that the action on Chinese made EVs underscores the importance of protecting Canadian industries and national security.

“However, the same decisive measures must be extended to Chinese-built ships, which present an even greater strategic and ethical threat,” says CMISA.

“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,” it says. “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.”

How this use of Civil-Military Fusion has been used to propel China to the front rank of world shipbuilding is something we discuss in the current edition of Marine Log. A lengthy catalog of the non-market measures used by the Chinese Government in pursuit of its naval shipbuilding ambitions is contained in a petition now being investigated by the U.S. Trade Representative.

“Leaving aside the concerns that the working conditions and environmental standards in Chinese shipyards are notoriously poor, I would note that Canada has an exceptional workforce and strong companies who are ready and capable of building high-quality ships for Canadians,” says CMISA president and CEO Colin Cooke. “We owe it to Canadians to ensure that our critical infrastructure is built and maintained domestically, especially in light of the issues that global supply chains have been facing of late.

“Indeed, it is more than disappointing that a Canadian government-owned, government-funded Crown corporation, Marine Atlantic, has leased a ferry from the Swedish shipowner Stena, which they purpose- built in Weihai, China, for service on Canada’s Atlantic coast. This ship has recently been delivered and commenced its five-year lease.

“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. 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. Together, we can make this happen.

“The CMISA calls for immediate and decisive action. 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. 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. The time to act is now.”