The President and CEO of the Canadian Marine Industries and Shipbuilding Association (CMISA) has called on the government of Canada to impose a tariff on ships built in China, claiming that local manufacture can satisfy the requirements of Canadian vessel owners and operators.
In a statement released last week, Colin Cooke commended the recent government decision to impose a 100 per cent surtax on Chinese-made electric vehicles. Cooke said the action "underscores the importance of protecting Canadian industries and national security."
However, Cooke added that "the same decisive measures must be extended to Chinese-built ships, which present an even greater strategic and ethical threat."
Cooke explained that China's shipbuilding industry operates under the doctrine of Civil-Military Fusion whereby commercial ship exports are subsidised to strengthen the country's military capabilities.
He said 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 (PLA-N), thus facilitating Beijing's "rapid and aggressive naval expansion." As China's navy continues to grow, the PLA-N is being used to challenge the interests of Canada and those of its allies in regions extending even to Canada's own Arctic waters.
Cooke added that it is "more than disappointing" that a Canadian government-owned, government-funded Crown corporation, Marine Atlantic, has leased a ferry from Swedish shipowner Stena that was 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," said Cooke. "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.
Cooke remarked that, on the positive side, Marine Atlantic now has five years to work with the Canadian shipbuilding sector to ensure that there is "a made-in-Canada solution ready to sail when the lease is up."
Cooke closed the statement by recommending the imposition of a 100 per cent surtax on all Chinese-built ships imported into Canada. He added that the CMISA demands a clear prohibition on any government entity or Crown corporation from acquiring or leasing Chinese-built vessels.
"I would note that Canada has an exceptional workforce and strong companies who are ready and capable of building high-quality ships for Canadians," said 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."