Feds launch $100M steel shipping support program amid U.S. trade squeeze
· Toronto Sun
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OTTAWA — As part of efforts to bolster Canada’s steel industry and promote made-in-Canada projects, the federal government announced a $100-million rebate program to cover shipping costs for Canadian-made steel.
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Announced Monday by Transport Minister Steven MacKinnon, the year-long program will rebate shippers 50% of the cost of shipping steel across Canada.
“Global trade is changing quickly and Canada must adapt,” MacKinnon said in a statement.
“Canadians are looking for more opportunities to buy Canadian products, including Canadian steel. Through this rebate, we’re helping businesses strengthen their presence in the domestic market.”
Program will last one year or until funds run out
In a news release from the federal government, the program — called the Commodities Sectoral Support Program — will rebate half of eligible rail or marine transportation costs for Canadian steel moving between provinces and territories for up to one year or until funds are exhausted.
“Additionally, the government of Canada is advancing support for the forest sector, informed by ongoing engagement with industry,” the release added, hinting at the possibility of support for another troubled Canadian resource sector.
The release said that the program is part of larger efforts to bolster interprovincial trade and reinforce Canadian supply chains — essentially functioning as an price-competitiveness tool meant to offset U.S. tariffs on Canadian steel.
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Move aims to ‘strengthen interprovincial trade’
By lowering the price of shipping, the federal government is lowering the “landed cost” of Canadian steel, making it more attractive than foreign- or U.S.-sourced products.
“This is part of the government of Canada’s broader work to strengthen interprovincial trade, reinforce Canadian supply chains and build a more resilient economy,” the news release said.
“By making it easier and more cost effective to move Canadian products within Canada, the government is helping Canadian businesses compete, grow and create opportunities here at home.”