In an effort to combat the effect of tariffs imposed by the United States government, Canada has announced it will provide up to $2 billion for its domestic steel, aluminum and manufacturing industries.
The economic measures, announced June 29, include up to $1.7 billion for steel and aluminum industries to access to financial products and services provided by the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
BDC will provide a commercial financing envelope of up to $800 million over two years for eligible steel and aluminum small and medium-sized enterprises.
This support is intended to help steel and aluminum companies with viable business strategies navigate through the market turbulence.
This financing could help companies expand into new markets or purchase new technology and equipment.
EDC will provide up to $900 million over the next two years in commercial financing and insurance to companies in the steel and aluminum sectors and related industries.
EDC can provide companies with access to liquidity, capital and risk mitigation solutions, which are provided on market terms and priced accordingly.
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In order to support investment and expansion of Canadian steel and aluminum producers, the government will make available up to $250 million in new funding for targeted assistance as part of the Strategic Innovation Fund.
These funds would support companies that will choose to make investments in innovation, and capital expenditures including:
- New equipment, production and process technologies,
- Workforce training and upskilling related to these new technologies and processes.
Global Affairs Canada says it is ready to assist entrepreneurs in exploring new and longer-term market diversification opportunities. In addition, $50 million over five years in new support will be provided to help Canadian companies diversify their exports to take advantage of new trade agreements, such as CETA and CPTPP.
The Government invests nearly $3 billion each year in labour market transfer agreements with provinces and territories so they can support Canadians with skills training and employment assistance.
An additional $2.7 billion was provided over six years in the 2017 budget to bolster these investments and help more Canadians access skills training and employment supports. To help workers impacted by the steel and aluminum tariffs, the government will invest an additional $50 million through the Labour Market Development Agreements over the next two years to provide displaced workers with training and employment supports they need to successfully transition to new jobs.