CME says if swifter action isn't taken to counter the U.S. Inflation Reduction Act incentives, investment will drain out of Canada.
Canadian Manufacturers & Exporters (CME) says it is becoming increasingly concerned the federal government response to the U.S. Inflation Reduction Act (IRA) is moving too slowly and not doing enough to deter the flow of investment into the United States.
Meeting in Winnipeg this week, CME’s board of directors sounded the alarm that if swift action is not taken to stem the drain of investment out of Canada, we will miss an important window to invest in a net zero future that will maintain critical manufacturing operations in Canada.
“Canadian manufacturers were relieved when the Federal Budget announced measures to counteract the lucrative incentives found in the IRA and hoped that it would be enough to keep production in Canada” said Dennis Darby, President and CEO of CME. “But the roll out has been slow, we’re still waiting to see what investments qualify for tax credits, and most concerningly, what’s on offer is too narrow and still not as generous as US incentives.” added Darby.
CME acknowledges that the federal government is currently consulting stakeholders on the structure of Budget 2023’s IRA response measures. While this is an important step, the government could alleviate concerns by signaling its commitment to elements that are critical to maintaining investment here in Canada and that it knows it will eventually formally recognize in final regulations.
“Industry has been providing direct feedback to federal government officials for months. We know what the gaps are by now, and we are calling on the government to move quickly to address all these problems. The economy and the manufacturing industry simply cannot afford to miss the boat on this” concluded Darby.