Canadian Manufacturing

What impact will a Biden presidency have on Canada’s manufacturers?

by CM Staff   

Exporting & Importing Manufacturing Supply Chain

Canadian and American supply chains are integrated and require the two countries to work together to keep the North American market competitive

Joe Biden

OTTAWA — With Joe Biden winning the US presidential election, Canadian Manufacturers & Exporters (CME) has highlighted the role the Canadian federal government can play in defending Canadian manufacturers’ interests.

“Traditionally, Democrats have been more protectionist in their outlook,” said Dennis Darby, President & CEO of CME, in a prepared statement. “Mr. Biden campaigned promising to strengthen the Buy American Acts and Buy America, and these policies may force Canadian companies to invest in or relocate to the United States. To support manufacturing here in Canada, the government will have to offer a competitive business environment that includes important investment tax measures and find ways to ensure Canadian companies have access to the US market in the same way that US companies access ours.”

Strengthening diplomatic relations

CME argues that it will be necessary to reinforce diplomatic relations between Canada and the United States at the state and senatorial levels in order to maintain open market access.

Canadian and American supply chains are highly integrated and require the two countries to work together to keep the North American market competitive. Furthermore, it will be essential to identify key export sectors to promote, and make sure they have access to the necessary tools to increase their exports South of the border in the coming years.


“The past four years have been challenging and unpredictable for Canadian manufacturers doing business in the United States, as witnessed by the renegotiation of NAFTA and the tariffs on steel and aluminum,” said Darby.
“With Mr. Biden, it might be easier for companies to understand how to adjust to the Buy America and Buy America ACT. While these are certainly still protectionist measures, there should be more predictability for our companies.”

A crucial partner

The global rise in protectionism and the drop in demand due to COVID-19 are having a negative impact on Canadian manufacturers. Therefore, government action must be strong and precise.

“The United States will remain a crucial economic partner for Canada. Our ties must remain strong, in that regard the interests of our exporting companies must be heard and taken into consideration. To this end, CME offers its full cooperation to the government of Canada” concludes Dennis Darby.

Finally, it should be noted that manufacturing directly accounts for roughly 11% of Canada’s GDP and over 1.7 million Canadians are employed in this sector. Nearly two-thirds of Canada’s exports are manufactured goods, and more than 80% of these exports go to our CUSMA partners.


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