China’s EVs are coming to Canada. Americans should welcome them, too.

Subscribe to enjoy similar stories. About the author: Clifford Winston is a nonresident senior fellow at the Brookings Institution and author of Market Corrections Not Government Interventions: A Path to Improve the U.S. Economy. In 1977, a swashbuckling British entrepreneur named Freddy Laker launched the Skytrain, a no-frills, low-fare flight between London and New York.

At a time when the trans-Atlantic air market was a cozy cartel of national flag carriers charging exorbitant prices, Laker’s $135 tickets were a jolt to the U.S. It directly inspired Congress’ 1978 Airline Deregulation Act, which ushered in an era of competitive domestic airline markets with lower fares. Experiments in foreign markets are about to provide a similar wake-up call for transportation in the U.S., this time in the automobile market.

Last week, Canadian Prime Minister Mark Carney announced a landmark trade agreement with Beijing that effectively ends the protectionist wall around the North American electric vehicle market. Canada will slash its 100% tariffs on 49,000 Chinese EVs to a mere 6.1%. In exchange, China will reopen its markets to Canadian agriculture.

Both Tesla and General Motors, the two leading sellers of EVs in Canada, should be worried. Tesla’s concern compounds worries after it reported Wednesday a 61% drop in profit last quarter, the largest decline in its history. Its vehicle sales fell 16%, and its market share in Europe slipped as China’s BYD gained traction.

China is the undisputed global EV leader, accounting for 62% of all EV sales. BYD is the world’s largest producer of plug-in vehicles, commanding nearly 20% of the global market. Its bargain brand, Wuling, is the global leader of the EVmicrocar class.