CME calls for stabilizing the trade relationship with Biden’s America
Calls for a competitive business environment that includes important investment tax measures.
OTTAWA — With Joe Biden winning the US presidential election, Canadian Manufacturers & Exporters (CME) is calling for stabilization of the trading relationship to be a priority for Canada’s federal government.
CME president and CEO Dennis Darby notes the US Democratic party has a more protectionist outlook.
“Mr. Biden campaigned promising to strengthen the Buy American Act and Buy America, and these policies may force Canadian companies to invest in or relocate to the United States.,” he said in a statement. “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.”
CME stressed the importance of reinforcing diplomatic relations between Canada and the US at the state and senatorial levels to maintain open market access, noting the highly integrated nature of the Canadian and American supply chains. It will also be essential to identify key export sectors to promote, and ensure they have access to tools that will increase exports to the US.
“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.”
Manufacturing directly accounts for roughly 11% of Canada’s GDP and employs more than 1.7 million Canadians. Nearly two-thirds of Canada’s exports are manufactured goods, and more than 80 percent of these exports go to our CUSMA partners.