The Globe and Mail reports in its Tuesday, Aug. 19, edition that nearly five months after promising a $2-billion fund to support the Canadian auto sector amid a trade war, Prime Minister Mark Carney's government is facing pressure to act. The Globe's Adam Radwanski writes that Unifor president Lana Payne recently discussed the fund with Finance Minister Francois-Philippe Champagne, urging its inclusion in the upcoming federal budget. While Ms. Payne acknowledged the delays due to U.S. tariffs, she warned that further postponement could increase the risk of Canadian auto plants and suppliers closing or relocating. Mr. Champagne's office stated that the government is "developing a comprehensive industrial strategy to help companies retool and reinvest." There are indications that policy development has started. However, creating a policy that effectively allocates limited resources to address immediate needs while enhancing long-term competitiveness will be complex. The speed at which Ottawa can navigate these challenges may reflect its ability to address economic issues that have limited Mr. Carney's government early on. Additionally, Mr. Carney's plans have remained vague from the beginning.
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