Tesla Canada Exec Says Chinese EV Import Quota Isn't First-Come-First-Served — Government Holds Back Permits

Tesla Canada's public policy executive Iain Myrans has pulled back the curtain on how Ottawa's Chinese EV import quota actually works — and it's not the first-come, first-served system the government's public documentation suggests.

What the program looks like on paper

Under the trade arrangement Prime Minister Mark Carney negotiated with Beijing in January 2026, up to 49,000 Chinese-built EVs per year can enter Canada at a 6.1 percent most-favoured-nation tariff (down from the previous 100 percent surtax). Year one is split into two 24,500-vehicle windows running March–August 2026 and September 2026–February 2027.

Global Affairs Canada's Notice to Importers Serial No. 1162 describes permits as issued first-come, first-served, valid for 60 days. But the lived reality for automakers is different.

What's actually happening

Writing on LinkedIn on October 14, Myrans cited Section 8(1) of the Export and Import Permits Act, under which the minister decides how many permits are issued and on what terms. He noted Global Affairs Canada can hold back permits so newcomers and other automakers get a fair share.

"Global Affairs Canada is providing in advance the maximum number of cars OEMs can expect to bring in for a period," Myrans wrote. "So, while the program outwardly looks like it is a first-come-first-served model, there is a lot more behind it."

The numbers don't add up

Tesla stopped accepting Model 3 Premium orders on October 12, saying its allocation was exhausted. Yet government data from October 9 shows only 328 vehicles had entered against the second window's 33,397 available permits — leaving over 33,000 spots unused.

During the first window (March–August), only 15,603 of 24,500 permits were used. Nearly 9,000 spots went unclaimed.

Global Affairs Canada previously told Drive Tesla Canada it "is consulting with interested companies to optimize remaining quota availability," but has not disclosed individual automaker allocations.

What this means for buyers

With over 33,000 permits sitting idle while Tesla restricts orders, the government's approach to "equitable access" may be limiting EV sales rather than encouraging them. Tesla expects Model 3 Premium orders to resume in March 2027 when the next allocation window opens.

Buyers can still order the Model 3 Performance trim, which is built in the U.S. and not subject to the Chinese import quota.

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