SUPPLY CHAIN CHALLENGES
LOCATION: NATIONAL
Issue/Source: SUPPLY CHAINS
Date: May 26, 2022
Suggested Responses
- Global supply chains continue to be disrupted by the COVID-19 pandemic, growing impacts of climate change, and Russia’s unlawful invasion of Ukraine.
- We are taking a proactive, whole-of-government approach to a National Supply Chain Strategy that is designed to ensure Canadian supply chains are resilient and fluid for today’s economy, and the economy of the future.
- Budget 2022 provided the key investments, and we are working hard with partners from across our transportation system to identify what needs to be done in the near-term, and for the long-term, to strengthen our strategic supply chains.
- We are also working with partners globally to develop a Strategy that responds to Canada’s unique needs as well as global challenges.
- Our Supply Chain Task Force is working to learn more about the shared challenges we have in common with our key trading partners - we recently had a supply chain workshop in the US, and met with key industry players in Washington.
- Canada has long been a global trading partner with a reputation for reliability and resiliency. This is why we are developing a National Supply Chain Strategy that will complement the work of other government organizations in areas like critical minerals, agriculture, and semiconductors.
IF PRESSED
National Supply Chain Strategy
- Globally, the future of supply chain performance and resiliency will depend on strategic, long-term commitments and partnerships between governments and industry.
- The Government of Canada is committed to developing a National Supply Chain Strategy in collaboration with industry, to ensure that we are making smart choices that will benefit Canadians today and our economic prosperity and growth.
- A Supply Chain Task Force has been created to consult with industry experts and make recommendations regarding short and long-term actions to alleviate supply chain congestion.
- Budget 2022 highlighted that the recommendations of the Task Force will help inform the development of a National Supply Chain Strategy.
BACKGROUND INFORMATION
- On January 31, 2022, Minister Alghabra hosted a National Supply Chain Summit (the Summit), with five ministerial colleagues, to initiate a discussion with transportation and other industry stakeholders towards supply chain solutions. Subsequently, three additional sectoral roundtables hosted by Parliamentary Secretaries were held, as well as additional regional roundtables to be co-hosted by the Parliamentary Secretary to the Minister of Transport and responsible Regional Development Agency Ministers are being scheduled.
- Supply Chain Task Force Co-Chairs were announced on March 25 (Louise Yako and Jean Gattuso). They will provide advice to the Minister regarding potential action areas that should be pursued, in both the short- and long-term, to address both chronic and acute supply chain congestion and inefficiency issues. Further Task Force members are being identified and onboarded.
- Budget 2022 announced a commitment of $603.2 million over the next five years to support continued investment in transportation infrastructure to help ensure that Canada’s supply chains can meet the needs of our economy and withstand disruptions caused by climate change and global events. This includes $450 million in new funding for the National Trade Corridors Fund to support supply chain projects that will help ease the movement of goods across Canada’s transportation networks. It also comprises initiatives to create digital-first solutions, with industry, to relieve supply chain congestion, as well as funding for regulatory modernization.
- Since the creation of the National Trade Corridors Fund (NTCF), the Government of Canada has announced over 100 projects and committed more than $2.1 billion, leveraging over $4.4 billion in total investments from public and private partners. The $50 million targeted call for proposals to assist Canadian ports with the acquisition of cargo storage closed on February 25, 2022.
Russia/Ukraine Context
- Conflict between Russia and Ukraine and the involvement of Belarus has disrupted global trade for critical commodities such as fertilizer. Canada is also a major supplier of key impacted goods including potash, grain, and energy.