Forgot your account information?  |  Create a CME account

Canadian Manufacturers & Exporters calls for a permanent extension of EDC's domestic financing powers

Published by Steve Coleman on August 26, 2011

OTTAWA, August 26, 2011 - In a new report published today Canadian Manufacturers & Exporters (CME) called for the federal government to make Export Development Canada's domestic financing powers permanent.

In the 2009 Federal Budget, the Government of Canada reacted quickly to the international financial crisis by launching the Extraordinary Financing Framework (EFF), aimed at providing up to $200 billion to backstop credit for Canadian businesses. As part of that framework, EDC's mandate was broadened to provide support to meet the working capital and domestic financing needs of Canadian companies involved in trade-related sectors of the economy.

CME's report, EDC domestic financing powers: a pillar for integrative trade, assesses the significance of EDC's domestic financing powers for the Canadian economy and recommends that the program be made a permanent part of EDC's remit.

"During very difficult economic conditions, Export Development Canada played a crucial role in helping Canadian companies weather the credit storm," said CME President & CEO Jayson Myers. "Giving EDC the ability to help Canadian manufacturers and exporters with their domestic financing needs on a permanent basis will help the overall competitiveness of Canadian companies, especially during this period of continued economic uncertainty."

"Following extensive consultations with our members, I can tell you that EDC's domestic financing role remains highly valued across Canada's manufacturing and exporting sectors," Myers has written to Finance Minister Jim Flaherty and Minister for International Trade Ed Fast. "With the current degree of instability and uncertainty affecting global financial markets, a domestic financing role may be more important than ever in ensuring companies access to credit in the event of another financial crisis."

The 2011 Federal Budget extended EDC's delegated powers for domestic financing until March 2012. CME members are concerned that if the temporary powers for EDC's domestic support are not renewed or made permanent, credit constraints will have a negative impact on the Canadian economy.

The report makes three important recommendations to the federal government:

1. EDC support for domestic transactions should complement financing capacity from existing private financial institutions;
2. Canadian companies require a level playing field to compete globally; and
3. Ministerial authority from Finance and International Trade to approve domestic financing transactions should no longer be required.

A copy of the letter can be found at: http://www.cme-mec.ca/_uploads/_media/grth2ecu.pdf.

A full copy of EDC domestic financing powers: a pillar for integrative trade is available at:
http://www.cme-mec.ca/_uploads/_media/grth1mim.pdf

Canadian Manufacturers & Exporters (CME) is Canada's leading trade and industry association and the voice of manufacturing and global business in Canada. The association directly represents more than 10,000 leading companies nationwide. More than 85% of CME's members are small and medium-sized enterprises. As Canada's leading business network, CME, through various initiatives including the establishment of the Canadian Manufacturing Coalition, touches more than 100,000 companies from coast to coast, engaged in manufacturing, global business and service-related industries.

CME's membership network accounts for an estimated 82% of total manufacturing production and 90% of Canada's exports.

Found in: news

National Office

Alberta British Columbia
Manitoba New Brunswick
Newfoundland & Labrador Nova Scotia
Ontario Québec
Prince Edward Island Saskatchewan