With tariffs still in place, Ottawa to commit up to $90M for Algoma Steel
<p><br/></p><p>The federal government is to announce up to $90 million in support for Ontario¡¯s Algoma Steel on Thursday in a commitment aimed at helping the producer deal with the American tariffs on steel and aluminum, The Canadian Press has learned.</p><p><br/></p><p>Economic Development Minister Navdeep Bains will make the announcement at Algoma¡¯s plant in Sault Ste. Marie. He¡¯ll be joined by Ontario Northern Development Minister Greg Rickford, who¡¯s expected to announce a separate provincial investment in the company.</p><p><br/></p><p>The government support comes as Canadian steel and aluminum producers continue to face punishing levies imposed last June by U.S. President Donald Trump.</p><p><br/></p><p>Canada has rejected the premise of the American duties ¨C that its metals exports pose a national-security threat to the U.S. ¨C and has been fighting for the removal of the tariffs. Ottawa has implemented tariffs of its own on a long list of U.S. imports in hope of forcing Washington to back down.</p><p><br/></p><p>The U.S. tariffs, however, remain in place.</p><p>The federal Liberals were criticized last fall for signing a new North American trade pact, which includes the U.S., without securing any guarantees from Washington that it would lift the levies.</p><p><br/></p><p>In making the Algoma funding announcement Thursday, the federal government is expected to say the commitment will maintain and create 3,050 Algoma jobs in Sault Ste. Marie, although it¡¯s unclear how many new positions will be added.</p><p><br/></p><p>The investment will include up to $60 million from the Federal Economic Development Agency for Southern Ontario and $30 million from a federal program known as the strategic innovation fund.</p><p><br/></p><p>The government funding is to help support Algoma in its effort to bring in new technologies, improve productivity and stay competitive on international markets.</p><p><br/></p><p>Finance Minister Bill Morneau met with U.S. Treasury Secretary Steven Mnuchin on Wednesday. Morneau has pressed Mnuchin in the past on the tariff issue.</p><p><br/></p><p>Jeni Armstrong, a spokeswoman for Morneau, said in an email that the minister and secretary met in Washington to discuss ¡°the ongoing need to resolve steel and aluminum tariffs¡± as well as the cross-border trading relationship. She said Morneau also thanked Mnuchin for the U.S.¡¯s public statements of support on the two Canadians detained on national-security grounds in China.</p><p><br/></p><p>Earlier this week, Prime Minister Justin Trudeau discussed the tariffs in a phone call with Trump, according to a readout of their conversation.</p><p><br/></p><p>Last June, Ottawa released a financial aid package for industries caught in the crossfire of the tariff dispute.</p><p>Ottawa¡¯s tariff relief package included up to $2 billion in fresh funding and support for the steel, aluminum and manufacturing sectors and their workers. For companies, Ottawa promised up to $1.7 billion worth of financing and services for steel and aluminum industries through the Business Development Bank of Canada and Export Development Canada.</p><p><br/></p><p>As part of the tariff relief, Bains announced a commitment last October of up to $49.9 million through the strategic innovation fund for steel producer ArcelorMittal Canada. Bains said the investment would support up to 4,700 jobs in Hamilton, Ont., and 1,700 more in Contrecoeur, Que.</p><p><br/></p>
14 Apr,2021
