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The following is being distributed at the request of the Conference of Atlantic Premiers:

Canada's Shipbuilding Policy

Atlantic premiers, meeting today in St. John's, Newfoundland, called upon the Shipbuilding Association of Canada to draft a Canadian shipbuilding policy to promote this vital sector of the Canadian economy. The draft policy would be reviewed by premiers and brought forward to the Annual Premiers' Conference in August 1997.

Supportive policies in place in other shipbuilding nations negatively impact on this region and the premiers strongly encourage the development of policies to counteract this inequity. "Within Atlantic Canada, shipbuilding is part of our heritage and continues to be an important part of our economy," stated Premier McKenna.

Further, due to the U.S. Merchant Marine Act of 1920, foreign owned/built/flagged ships are prohibited from participating in US domestic trade routes. Basically, Canadian shipbuilders, other than builders of fishing boats, have no access to the United States market. On the other hand, with the removal of tariffs under the Free Trade Agreement, US shipbuilders have almost free access to the Canadian commercial market. Long-term industrial and trade policies are required to solve market access and government subsidy problems.

For further information please contact:

• Kim Thomson
  Information Officer
  Conference of Atlantic Premiers
  P.O. Box 2044
  Halifax, NS B3J 2Z1
  Tel: 902-424-7590