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Canada’s new rail-only freight subsidy sparks controversy over fair competition and transport equity.
The Canadian federal government is under scrutiny for a new subsidy program that cuts freight rates for steel and lumber by half, but only for rail carriers CN and CPKC, excluding maritime shippers despite their role in serving remote areas like Nunavut.
Critics, including politicians and industry leaders, argue the move favors rail over maritime transport, undermines fair competition, and may violate the Transportation Act’s requirement for balanced support across shipping modes.
While the government says the initiative strengthens supply chains amid high U.S. tariffs, opponents say transport choices should be based on cost and service, not government preference.
The final decision reportedly came from the Prime Minister’s Office, which has not responded to requests for comment.
La nueva subvención canadiense al transporte de mercancías por ferrocarril despierta controversia sobre la competencia leal y la equidad en el transporte.