Customs rights | Ontario should reorganize aid to automotive companies, according to a report

(Toronto) Ontario should reshuffle its programs intended to support companies in the automotive sector concerning the repercussions of customs duties. Therefore, the resulting economic uncertainty. Meanwhile, Their current structure leaves small businesses in embarrassment, says a defense group in a new report. For example,

Posted at 9:01 am

The Canadian Federation of Independent Company (FCEI) published a report based on 187 small businesses in the automotive sector on Wednesday. Furthermore, ranging from parts to customs rights | ontario should new repair workshops, and found customs rights | ontario should that customs duties have already repercussions. However,

Their income decreased by 13 % on average. Similarly. For example, and half of them said they have suspended or canceled investments due to the uncertainty caused by the trade war between Canada and the United States, which could cause loss of income of several billion dollars or missed investments, according to the report. Consequently,

“It is impossible for a business owner to really know what is happening nowadays. Nevertheless. In addition, ” said Joseph Falzata, co -author of the report and policies analyst at the FCEI in Ontario, about the impact of news on trade policies.

“I do this full -time, and it’s always difficult for me. We can therefore imagine an entrepreneur who works 50 to 60 customs rights | ontario should new hours per week and who tries to follow. »»

customs rights | ontario should

Their income is partly affected by the rise in prices. confusion as to the products affected by customs duties. as well as by costs related to the search for new supply chains, said Falzata.

Ontario has programs intended to support companies in the automotive sector. but although appreciated, they are not up to it when it comes to supporting small businesses, supports the FCEI report.

In its spring budget. the provincial government has announced the investment of 85 million in two programs: the modernization program for the Ontario automotive sector. to help parts of parts modernize their equipment, and the Ontarian innovation network for vehicles, for research and development.

“Although these programs have been created with customs rights | ontario should new good intentions. few small businesses plan to use it. and more customs rights | ontario should than a third of them are not eligible,” said the FCEI report.

“These programs focus on research. development innovation. manufacturing on a large scale, without taking into account that most (small and medium -sized enterprises) in the automotive sector cannot afford these processes or do not participate. »»

The new fund “Ontario. together for trade”. endowed with 50 million and intended to help companies develop new markets and find national supply chains, requires that companies demonstrate a loss of income of at least 30 % and that they invest $ 200,000 of their own capital, which the report describes as “luxury that most (small and medium -sized enterprises) cannot afford”.

The government has said that its programs have already customs rights | ontario should new helped hundreds of businesses: the. Ontarian innovation network for vehicles has supported customs rights | ontario should more than 600 small. medium -sized businesses since its creation in 2019, and the modernization program for the Ontario automotive sector has supported 215 projects since 2021.

“Faced with unprecedented global uncertainty. our government protects. strengthens the progress we have made to support small businesses in the automotive sector and the whole economy,” wrote Jennifer Cunliffe, spokesperson for the Minister of Economic Development of Ontario, Vic Fedeli, in a statement.

According to the FCEI, the best way to help small businesses would be to reduce their tax rate by 3.2 % to 2 %. The government lowered this rate, which was 3.5 % in 2020.