CME calls on feds to close gap on US’ Inflation Reduction Act
by CM Staff
CME raised concerns over the amount of money the U.S. is "pouring" into its manufacturing companies as this could trigger a flight of capital investment out of Canada and into the U.S.
OTTAWA — Canadian Manufacturers & Exporters appeared before the Standing Committee on International Trade as part of the committee’s investigation into the impacts of the United States Inflation Reduction Act on Canadian businesses and trade.
CME urged the government to quickly close the gaps with the IRA’s new incentives or risk losing crucial manufacturing investment to the United States.
In its opening remarks, CME stated that colleagues from many of the country’s key manufacturing industrial sectors and organized labour were present and united in their concern for the impacts of the IRA.
Specifically, the organization expressed its concern for the amount of money the United States government is “pouring” into its manufacturing companies, and that this could trigger a flight of capital investment out of Canada and into the U.S.
CME went on to urge the committee and the government to quickly narrow the incentive gap between the U.S. and Canada, to redouble diplomatic efforts to combat Buy-America polices, to extend and enhance Canada’s Accelerated Investment Incentive, and to grow trade and exports by growing manufacturing capacity.
According to stats from the CME, the manufacturing sector accounts for nearly 10 per cent of Canada’s real gross domestic product. Manufacturers employ 1.7 million people in Canada. The total manufacturing sales hit a record high of $718.4 billion in 2021.
