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Canada Offers C$1 Billion in Aid to Local Auto Industry
Prime Minister Stephen Harper promises that Canada will provide at least C$1 billion (US$760 million) in aid to the country's auto industry over the next 10 years.
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Prime Minister Stephen Harper promises that Canada will provide at least C$1 billion (US$760 million) in aid to the country's auto industry over the next 10 years.
Harper and his Conservative party face an Oct. 19 election and strong competition from the more central Liberal party.
The loans and non-repayable grants are intended to help attract auto suppliers, expand existing facilities and lure new assembly plants to the country. The plan's announcement comes one day after negotiators agreed on the 12-nation Trans-Pacific Partnership trade pact, which critics say will hurt the Canadian auto industry.
Harper backs the TPP, which would phase out Canada's 6.1% tax on imported cars over five years. Imported vehicles would avoid the tariff if 45% of their content comes from members of the trade group, whose members include Canada, Japan, Mexico and the U.S. The local content requirement currently is 62.5% under the North American Free Trade Agreement.
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