Atlantic Trade Ministers meet to discuss shipbuilding industry

The four Atlantic Ministers responsible for economic development and trade held a teleconference this morning to discuss the next steps to ensure that the federal government does not trade off the current tariff on ships and marine structures so as to conclude an overall free trade agreement with the European Free Trade Association.

The Ministers had planned to meet yesterday in Halifax, but that meeting was postponed due to scheduling conflicts.

"My colleagues and I are united in our view of the significant, negative impact the removal of Canada's 25 per cent tariff on ships and marine structures would have on Atlantic Canada," said Beaton Tulk, Minister of Industry, Trade and Rural Development, Newfoundland and Labrador.

He said the ministers plan to meet with the federal Minister of International Trade, Pierre Pettigrew and the federal Industry Minister, Alan Rock in the very near future "to express our grave concerns on this matter and to ensure that the provinces and industry are fully consulted before negotiations resume." The Atlantic ministers will also invite their colleagues from other concerned provinces to attend this meeting.

The EFTA negotiations that were scheduled to resume in December 2001 have been postponed and no new date has been established for their resumption. In response to concerns raised with Minister Pettigrew and the Prime Minister, the federal government has committed to consult closely with representatives of the ship and industrial marine industry, as well as other sectoral groups, and provinces and territories. "Although no time frame has been placed on these consultations, I along with my Atlantic counterparts will do all we can to have the consultations start sooner rather than later," said Minister Tulk.

"The elimination of the 25 per cent tariff will have a devastating impact on the shipbuilding and marine fabrication industry, especially at a time when our shipbuilding industry is just starting to recover from many difficult years and our offshore oil and gas industry is just starting to emerge in its own right. These industries offer significant economic opportunities to both the province and the country," Minister Tulk said.

Media contact: Josephine Cheeseman, Communications, (709) 729-4570.

2002 02 07                          4:50 p.m.