Tories promise to provide $1 billion for auto sector to help cope with TPP - Macleans.ca

Tories promise to provide $1 billion for auto sector to help cope with TPP

The party says the aid program for developing products would take effect in 2017-18

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 ( Jeff Kowalsky/Bloomberg/Getty Images)

( Jeff Kowalsky/Bloomberg/Getty Images)

WHITBY, Ont. — The federal Conservatives are committing to provide the auto industry with more than $1 billion over the next decade to help it cope with the elimination of tariffs as a result of the Trans-Pacific Partnership.

The party says the aid program for developing products would take effect in 2017-18, when an existing subsidy program ends.

The Tories say they would also start to include the infrastructure, land and buildings needed for assembly plants under the current subsidy program.

Conservative Leader Stephen Harper says a Tory government would also offer non-repayable grants to companies that make firm commitments to build new auto assembly plants.

Under the TPP, a 6.1-per-cent levy on auto imports will be phased out over five years if it is ratified.

Cars would be allowed into Canada without tariffs as long as they have 45 per cent content from the TPP, lower than the 62.5 per cent threshold under NAFTA.