Government of Canada

Government of Canada

March 19, 2009 18:49 ET

Ministers Clement and Day Welcome U.S. Government Support Program for Auto Suppliers

OTTAWA, ONTARIO--(Marketwire - March 19, 2009) - Today, the Honourable Tony Clement, Minister of Industry, and the Honourable Stockwell Day, Minister of International Trade, welcomed the creation of the Auto Supplier Support Program, announced by the U.S. Department of the Treasury.

Similar to the U.S. Auto Supplier Support Program, Canada already has an Accounts Receivable Insurance (ARI) program, provided by Export Development Canada (EDC), which may be used by parts suppliers to the domestic auto industry.

"Through EDC, I am proud to say that we addressed this concern early and continue to be there for auto suppliers across the country," said Minister Clement. "As the fortunes of the Canadian auto industry are linked to the recovery of the U.S. economy, we see today's announcement as a positive step toward restoring confidence in the supplier base at a critical time for the industry."

In 2008, EDC provided a total of $4.2 billion in commercial facilitation to 595 Canadian companies in the auto industry through its financing and insurance products and services. Of this amount, $3.2 billion was in the form of ARI.

"The Government of Canada recognizes that access to financing has been a major challenge for the auto industry in Canada and around the world," said Minister Day. "Over the past few months, Industry Canada and EDC have shared information with the U.S. Department of the Treasury about our receivables insurance. It is good to see the U.S. develop a similar program."

In 2009, EDC provided an additional $70 million in new ARI coverage, which could support up to $280 million in new sales this year.

EDC is a Crown corporation that operates on commercial principles, and works in partnership with other government agencies and the private sector to increase the competitiveness and success of Canadian companies abroad. EDC continuously reviews its financing mechanisms to make sure that they are well positioned to meet the needs of Canada's business community.

For more information on EDC and the ARI program, please visit www.edc.ca/english/insurance_accounts_receivable.htm

Contact Information

  • Office of the Honourable Tony Clement
    Minister of Industry
    Pema Lhalungpa - Press Secretary
    613-995-9001
    or
    Industry Canada
    Media Relations
    613-943-2502