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CME concerned with easing of Canadian content requirement trend in public transit

Published by Stefi Proulx on May 16, 2017

May 16, 2017 (Montreal): Although the Canadian Manufacturers & Exporters cannot question the bidding process, we are disappointed with the recent decision of Montreal's public transit agency, Agence de Transport Metropolitain (AMT), to award a $69 million contract to Chinese Manufacturer, CRRC.

While other countries such as China and the United Stated are implementing tough local content requirements for public transit procurement, Canada and the provinces have been reducing their own local content rules, creating an uneven playing field for Canadians manufacturers.

The recent decision in Quebec to reduce the minimum Canadian content requirement for public transit rolling stock from 25 to 15 per cent means the production of 24 railcars commissioned by AMT will occur principally abroad. This will generate limited benefits for Quebec and Canadian manufacturers and for the overall economy. At the same time, Canadians manufacturers cannot compete freely on Chinese opportunities as they are not currently able to export Canadian railcars to China without a joint-venture with Chinese partners.

CME is asking for provincial and federal governments to provide a fair and level playing field by considering industrial regional benefits and reciprocity in public procurements to ensure the strength and prosperity of communities and the manufacturing sector in Canada.

 

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