With the Aug. 19 tariff deadline looming, which would see new 50 per cent tariffs on a wide range of Canadian goods, the Government of Canada announced a new $100-million rebate program for the interprovincial transportation of steel.
The new initiative, called the Commodities Sectoral Support Program, is now active and will rebate 50 per cent of eligible rail or marine transportation costs for Canadian steel moving between provinces and territories for up to one year, or until funds are exhausted.
A government press release states, “Reducing transportation costs can help Canadian businesses succeed, reach new domestic markets, and get more Canadian steel to the projects that need it.”
Any entity that incurs the freight rate cost to transport eligible goods is considered a “shipper” under the program and only eligible Canadian steel or steel products moving with a Canadian origin and destination can receive the rebate.
For rail shipments, the rebate will apply to interprovincial carload movements, while for marine shipping it will apply to non-containerized cargo.
Rail shipments that originate from the Port of Vancouver, Port of Prince Rupert, and Port of Montreal cannot apply for the rebate in order to ensure that imported goods are not being rebated under the program.
A list of eligible products can be found on the Government of Canada website.
The program was announced by federal Minister of Transport Steve MacKinnon at a press conference in Hamilton.
MacKinnon said that steel is a “cornerstone” of Canada’s economy and “economic future.”
“It contributes billions of dollars to our GDP, supports supply chains and our infrastructure from coast to coast to coast, while providing more than tens of thousands of jobs for Canadians,” he continued.
“A strong steel sector is also essential to our national security, supplying the materials needed for defence equipment and critical energy infrastructure.”
MacKinnon added that the government’s new program will strengthen Canada’s competitiveness.
“Lower transportation costs will strengthen the competitiveness of Canadian steel in an evolving global economy and they will support workers, like the ones here in Hamilton and across Canada who produce some of the highest quality steel in the world.”
Ron Bedard, President and CEO of Dofasco and Chair of the Canadian Steel Producers Association also attended the press conference and expressed his strong support for the new government program.
He said that greater access to interprovincial markets for Canadian steel “helps build the infrastructure that we rely on,” supporting the housing construction industry, energy industry, agriculture, and food supply chains.
“The measures announced today, alongside the existing measures of enhanced import protections through tariff rate quotas, actions to address unfairly traded steel, and a greater focus on Canadian steel in federal procurement will help enhance the resilience and long-term competitiveness of Canada’s steel industry,” Bedard concluded.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
