Here is a look at the aerospace sector for Canada.

1. 2019 Election – Aerospace
Sector – Canada – June 2019
Paul Young CPA CGA
June 18, 2019

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Business Process
Changes
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain
Management
• Academia – Advance
Accounting, Public Finance and
Advanced Management
Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Canada Aerospace Sector Overview
 Exports and Imports
 Manufacturing Sales
 Jean Charest / Aerospace Sector
 Aerospace Subsidies and other issues

4. Canada Aerospace Sector Overview
Source - https://www.ic.gc.ca/eic/site/ad-ad.nsf/eng/h_ad03964.html

5. Merchandise Trade/ Aerospace
Source – Stats Caanda

6. Canadian Manufacturing Sales / Aerospace
Source – Stats Canada

7. Jean Charest and Aerospace Sector
Source - https://www.canadianmanufacturing.com/financing/aerospace-industry-at-risk-of-further-decline-says-report-by-jean-charest-
234443/
The aerospace industry is “at risk” of being overtaken by foreign rivals if government doesn’t treat it as an
“urgent priority” and work with the sector to staunch falling employment and GDP contributions, an industry
report says.
New funding commitments, Canada-first defence procurement and fresh talent amid “a massive labour
crunch” are key to staunching the decline, according to the Aerospace Industries Association of Canada
(AIAC) report, authored by former Quebec premier Jean Charest.
• Canada is lagging competitiveness
• Carbon Tax / Aerospace - https://www.bnnbloomberg.ca/ottawa-to-scale-back-carbon-
tax-amid-competitiveness-worries-1.1117359
• Hikes to payroll taxes
• Hydro rates
• Trade Agreements
• Source - https://www.slideshare.net/paulyoungcga/2019-election-canada-and-
global-competitiveness-may-2019

8. Aerospace Subsidies and purchasing
commitments
 Bombardier vs. Brazil Subsidies https://business.financialpost.com/transportation/airlines/wto-panel-
rules-against-canada-in-preliminary-ruling-in-cseries-dispute
 Government plays a huge role in supporting aerospace and defence -
https://www.ediweekly.com/55399-2/
 Canada has gone back on its military spending - https://www.cbc.ca/news/politics/trump-nato-allies-
delinquent-military-spending-1.4742588
 Aerospace companies need to focus on product quality
 CS series - https://www.fool.ca/2019/02/02/bombardier-inc-tsxbbd-b-is-getting-slammed-by-new-problems/
 Supply management - https://www.aerospace-technology.com/comment/three-reasons-why-airbus-a380-failed/

9. What’s next
 Many countries need to open up their domestic market to new carriers -
https://business.financialpost.com/transportation/airlines/airline-competition-canada
 All companies need to revisit their tax, regulations, trade and other policies to ensure they are
supporting the aerospace sector
 Governments need to resist corporate bail outs.
 WTO needs to be reformed to put more focus on subsidies, environmental and other unfair trade
practices.