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flag Canada’s new rail-only freight subsidy sparks controversy over fair competition and transport equity.

flag 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. flag 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. flag 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. flag The final decision reportedly came from the Prime Minister’s Office, which has not responded to requests for comment.

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