Auto Business in Canada Essay Example | Topics and Well Written Essays - 1750 words

Auto Business in Canada - Essay Example There are concerns about the pace of progress towards increased regulatory cooperation across North America, the implications of a possible Canada-Korea free trade agreement, the proposal by the federal government to regulate fuel consumption, and the approach to consumer incentives and levies announced in the last federal budget. There is concern about the plans of several provinces to establish their own regulations on fuel emissions. There is concern about the accelerated Capital Cost Allowance announced in the recent federal budget and the Ontario government's commitment to support environmental R&D as examples of government actions in support of certain strategies to attract investment and ensure the Canadian auto sector remains strong and internationally competitive. ("Canadian Automotive Partnership Council Discusses Competitiveness Issues," 2007) There is increased cooperation across governments and closer cooperation with the US in addressing the key issues raised with regard to auto industry. The governments should ensure a competitive tax regime and business environment, a greater degree of harmonization with the US in setting safety and environmental regulations, as well as a fair international trade regime. The assessment of the required level of assistance will take into consideration the total assistance from all levels of government (e.g., federal, provincial and municipal assistance). This includes assistance such as all Grants and Contributions being considered, implicit subsidies, forgivable loans, investment tax credits and any other grant or contribution. All recipients of financial assistance will be required to disclose any other government financial assistance received or requested for this prior to the approval of the contributions. Budget2007 demonstrates the government's commitment to addressing automotive sector interests, in providing generous capital cost allowances, significant investments in gateway and transportation infrastructure and measures to foster innovation and green technologies. Through the auto strategy, the government has leveraged more than $7billion in new investments that will create thousands of jobs and help position Ontario's auto industry for long-term competitiveness. Focus is given on how to build on this success while helping the industry meet the near-term challenges of a major global restructuring and the need for improved