expect accelerated growth and business support
after meetings with parliamentarians and government members in Ottawa on Tuesday.
“I think they all agree on what we are talking about, no one is suggesting anything different,” said
chief executive Jim Jarrell after meeting with federal chiefs of staff, parliamentarians and deputy ministers ahead of the November 4 budget. “I think this is going to be a pro-business and pro-growth budget, I think that’s the way it should be.”
The comments were made during a round table organized by
Equipment Manufacturers Association
(AEM), which represents over 1,000 members in
equipment manufacturing sector
.
AEM members noted that the impact of the trade war with the US and China was “huge”. The manufacturing sector lost a total of 58,000 jobs between January and August, although the sector showed some signs of life in September, adding back 28,000 jobs.
Key items AEM members would like to see in the future budget include tax breaks for bonus amortization and research and development costs. Executives are also looking for additional incentives for businesses to adapt to new export markets.
“To develop something new for a new export market, the European rules may be completely different,” said Charles Vennat, the company's president and chief executive.
,
leading manufacturer of tracked mulching tractors and stump grinders.
“So there are licensing requirements, design changes are needed, I mean our cars can't drive on most European roads.”
Many of these measures are contained in U.S. President Donald Trump's “Big Beautiful Bill,” and equipment executives have said Canada will have to follow suit to compete.
“So, whether it's R&D or lowering the cost of bonuses, all of these provisions that have been extended or made permanent have been a huge boom for the industry in the U.S.,” said Kip Eideberg, senior vice president of government and industry relations at AEM. “So we urge the Canadian government to take notice and do the same.”
Regarding trade uncertainty, AEM remains confident that a deal can be reached during the review process
Canada-United States-Mexico Agreement
(CUSMA), which is scheduled for next year.
“It’s hard to imagine that Canada, the U.S. and Mexico won’t come to some kind of agreement,” Eideberg said.
“Since the creation of NAFTA, we have truly operated as an industry.
as if there were no boundaries
“, he added. “This is what we were taught, we adapted and succeeded in running a business.”
Executives estimate that tariffs on steel and aluminum have increased their costs by five to seven percent and hurt most companies in the manufacturing sector, and note that companies will not absorb these costs for a long time.
“Tariffs will ultimately be inflationary, and inflation could impact the markets we serve, potentially impacting the production of our products,” said Yannick Montanago, the company's president.
.
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