Ottawa, Nov. 23, 2018 – A number of measures announced in the 2018 Fall Economic Statement delivered yesterday demonstrate the federal government’s commitment to support competitiveness and new investment in Canada’s food and beverage processing sector, according to Food and Beverage Canada (FBC-ABC).
Announcements in the 2018 Fall Economic Statement that support the food and beverage processing sector include:
- Accelerated Capital Cost Allowance
- Additional export supports for small and mid-sized businesses
- A commitment to work with the provinces and territories to remove internal barriers to trade
- Significant measures to modernize regulations, including measures to examine the impact proposed regulations have on industry competitiveness
“These measures are a positive development, demonstrating the federal government’s commitment to Canadian food and beverage processing and in enhancing the sector’s competitiveness and capacity to grow both domestic and export sales,” says Michael Burrows, co-chair of FBC-ABC and chief executive officer of Maple Lodge Farms.
FBC-ABC is pleased that the federal government is building on several recommendations in the recent report of the Agri-Food Economic Strategy Table, particularly in the areas of regulatory modernization and support for export diversification.
Specific measures in the Fall Economic Statement impacting the food and beverage processing industry include those that will accelerate capital cost depreciation to counteract competitiveness pressures arising from U.S. tax reform implemented earlier this year. To assist in accessing new markets for Canadian exports, a $1.1 billion investment has been made to a new Export Diversification Strategy that has a goal of increasing Canada’s overseas exports by 50% by 2025.
More remains to be done to maximize competitiveness for the sector, according to FBC-ABC. The association notes that the Fall Economic Statement does not include commitments to address labour issues, as was recommended in the Agri-Food Economic Strategy Table report.
“The federal government’s goal of increasing exports by 50% is ambitious and will require an ongoing commitment to remove barriers to industry competitiveness,” says Daniel Vielfaure, co-chair fbc-abc and chief executive officer of Bondeulle Americas. “These measures will help improve the competitive environment for our industry. There is more to do, and we are committed to working with the federal government to achieve this goal.”
Food & Beverage Canada has been an active participant in the government’s budgeting process, advocating for the recommendations developed by the Economic Strategy Tables in 2017, providing pre-budget consultation testimony to the Standing Committee on Finance, and participating in the Fall Economic Statement ‘lock up’.
About Food & Beverage Canada
Food & Beverage Canada is an association of Canadian manufacturers and seven regional food and beverage processor associations from coast to coast representing over 1,500 businesses. Food & Beverage Canada is committed to collaborative relationships and constructive communications with federal and provincial governments. The organization is located in Ottawa. Visit Food & Beverage Canada for industry stats, issues and priorities, and more information on the organization.
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Food & Beverage Canada