IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Jan 2015 | Removal date: open ended
Still in force

State loan

On January 12, 2015, Transport Minister Lisa Raitt announced a repayable contribution of up to $50.7 million through the Automotive Innovation Fund (AIF) to Linamar Corporation, a major manufacturer of automotive components. The funding will support a project bringing new technologies to Canada and creating jobs in southwestern Ontario. Linamar is investing in a project to produce fuel-efficient powertrain components for next-generation transmissions. The firm will invest over $500 million. The original authorization for the AIF dates back to the Canadian federal budget for 2008, which provided $250 million over five years to support automotive firms' strategic, large-scale research and development (R&D) projects. The original authorization for the program thus predated the mandate of the Global Trade Alert, but it was then renewed on January 4, 2013 with an additional $250 million over the next five years. On February 11, 2014, the Government of Canada announced a further $500 million over two years. Under the AIF, Innovation, Science and Economic Development Canada considers funding proposals that provide for private sector investment in Canada of more than $75 million over five years. Eligible projects include vehicle and powertrain assembly operations associated with significant automotive innovation and R&D initiatives. Among the criteria on which proposals are assessed are their contribution to the long-term economic benefit to Canada, including significant job creation/retention and their potential to attract further investments to foster Canadian competitiveness.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870810 Bumpers and parts thereof
870830 Brakes and servobrakes; parts thereof
870840 Gear boxes and parts thereof
870850 Driveaxles with differential, whether or not provided with other transmission components, and nondriving axles; parts thereof
870870 Road wheels and parts and accessories thereof
870880 Suspension systems and parts thereof (including shock absorbers)
870891 Radiators and parts thereof
870892 Silencers (mufflers) and exhaust pipes; parts thereof
870893 Clutches and parts thereof
870894 Steering wheels, steering columns and steering boxes; parts thereof
870895 Safety airbags with inflater system; parts thereof
870899 Other
492 Motor vehicle bodies; trailers & parts thereof
8708 Parts and accessories of the motor vehicles of headings 87.01 to 87.05.
870821 Safety seat belts
870829 Other

Please report this page in case you detect an inaccuracy in its content.