We stand with steel, aluminum industries
Minister outlines steps by Ottawa to help sector hit by tariffs, other challenges
One of my main priorities as Minister of Innovation, Science and Economic Development is to partner with businesses, across all sectors and across the country to help them grow and create jobs for the middle class.
In the case of the steel and aluminum sector, our government has a solid track record of support for the industries and its workers and we will continue to take whatever steps necessary to ensure we continue to have a strong and vibrant steel and aluminum sector in Canada.
In 2017, the Canadian steel and aluminum industry employed more than 34,000 Canadians and contributed $8.9 billion to Canada’s gross domestic product. Our government recognizes that the steel and aluminum industry and its workers are vitally important to the economy of Canada. That is why in response to the tariffs imposed on our steel and aluminum producers, we announced a support package totalling $2 billion to defend and protect the interests of Canadian workers and businesses in the steel, aluminum and manufacturing industries. This package is designed to help impacted businesses deal with increased financial risk, help impacted businesses innovate and grow while keeping a laser focus on protecting and helping workers.
To help businesses deal with increased financial risk, through the Business Development Bank of Canada (BDC), our government will make available a commercial financing envelope of up to $800 million over two years for eligible steel and aluminum small- and medium-sized enterprises (SMEs). This support is intended to help steel and aluminum SMEs, with viable business strategies, navigate through the market turbulence. It will also help companies expand into new markets, increase operational and environmental
efficiency, or purchase new technology and equipment.
Also, through the Export Development Canada (EDC), we will make available 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, including SMEs, all designed to help companies during this period of uncertainty.
To help businesses innovate and grow, our government has created a new funding totalling $250 million for targeted assistance through the Strategic Innovation Fund. This funding builds on a recent $559-million investment made in a joint venture between Canada’s largest aluminum producers, ALCOA and Rio Tinto Canada, that will create more than 1,000 permanent direct jobs and 2,000 indirect supply chain jobs within Canada. These investments will help bolster the competitiveness of Canadian manufacturers and better integrate the Canadian supply chains of steel and aluminum.
To protect and help workers, we
have taken concrete steps working with the provinces, territories and industry. We have extended worksharing agreements from 38 to 76 weeks. We have waved the cooling off period for employers with a recently expired agreement in order to protect more jobs and retain skilled workers. Also, our government added an additional $2.7 billion over six years to help more Canadians access retraining and skills development programs delivered at the provincial level.
In addition to these measures, our government will continue to protect our domestic steel and aluminum markets, by preventing the diversion of foreign steel products into Canada via possible safeguards.
All of these measures are designed to protect and defend our steel and aluminum industries in Canada and its 34,000 workers. I am proud of our government’s role in protecting industry and middle-class jobs.