"We don’t want this sector of our industry to be sacrificed at the altar of trade to the benefit of other industries," NDP shipbuilding critic Peter Stoffer said Wednesday.
The U.S. government announced this week it has reach-ed a free-trade deal with South Korea. Canadian officials say this makes it more likely Canada could make its own deal with the Asian country.
The next round of talks between Canada and South Korea is slated for April 23.
The shipbuilding and marine services industry worries Ottawa will negotiate away a 25 per cent tariff on foreign-built vessels that come into Canada.
The tariff issue has been on the negotiating table and, although Ottawa says it has heard the concerns, it has given no guarantee the tariff won’t be dropped, not only in talks with South Korea but also in negotiations with the European Free Trade Association. The United States excludes vessels and maritime transport services from coverage under all trade agreements.
Mary Keith, spokeswoman for Irving Shipbuilding, said if Canada engages in agreements that subsidize foreign shipbuilding industries, Ottawa must try "to level the field to ensure we have a strong industry here at home able to compete."
Although South Korea, whose shipbuilding industry is 2,500 times the size of Canada’s, builds much larger vessels than would be constructed here, there is no reason to believe that in the future it wouldn’t be interested in specialized or niche markets, Ms. Keith said.
Mr. Stoffer, MP for Sackville-Eastern Shore, has called on Ottawa to give shipbuilding a level of support similar to what it has provided the aerospace industry. The government said this week it would invest $900 million in Quebec’s aerospace sector over the next five years.
"The government has just announced a large investment in the aerospace industry and in the past, it has invested in the auto industry," Mr. Stoffer said. "Why can’t the government do the same for Canada’s shipbuilding industry? We have a strong shipbuilding industry but it needs to be strengthened through investment."
Mr. Stoffer recently hosted a round-table discussion with shipbuilding officials, parliamentarians and union leaders to discuss industry concerns. The discussions produced four key recommendations centring on tax and financing policies to help the industry. The recommendations were forwarded to the government for consideration.
Mr. Stoffer said Wednesday that further meetings on the issue are planned following parliament’s Easter break.
