The Canadian government has announced a new ship-building policy aimed at subsidizing buyers of new ships.
An estimated $150 million will be invested over the next five years in the form of loan guarantees and interest-rate reductions for foreign and domestic buyers of Canadian ships.
An industry committee had recommended, among other things, tax breaks and new tariffs, but government officials say such measures would violate international trade rules.
The new measures include access to research funds under the Technology Partnerships program, and will eliminate a competitive advantage enjoyed by American ship builders.
Buyers of American vessels can get 25-year financing that covers 87 per cent of their costs. Under the new Canadian program, buyers could get even better terms.
