TORONTO - Ontario's battered economy will benefit from Barack Obama's ascent to the White House as the Democrat's presidency will likely mean more government aid for the struggling U.S. auto industry, provincial ministers predicted Wednesday.

Increased support for the U.S. sector can only help automakers and manufacturers in Ontario, said International Trade Minister Sandra Pupatello.

"I'm looking forward to some very good things to come in terms of support for the economy, in particular for manufacturing, and that is going to bode very well," she said.

Obama has promised to help Ford Motor Co., General Motors Corp., and Chrysler LLC by doubling a recently approved loan program to $50 billion to help the U.S. auto industry develop more fuel-efficient cars.

Ontario needs the American economy to recover because the province's fortunes are inextricably tied to the U.S. -- its largest trading partner, said Pupatello.

Most of the finished vehicles and automotive parts manufactured in Canada are exported to the U.S., which experts say is facing the worst economic downturn in about 50 years.

"We need them to do well," said Pupatello. "And I think (Tuesday) night really gave them that shot in the arm where they feel good and will be back in their fighting form."

But her cabinet colleagues were more cautious in divining the province's future under the Obama administration.

"What the prognosis is for us, I'm not 100 per cent certain," said Deputy Premier George Smitherman, who manages the massive energy and infrastructure portfolio.

"But we obviously hope that (the new) U.S. presidency can help to establish some traction for the economy in the United States, which is very interrelated with our own. I think we're going to have to watch and see."

Economic Development Minister Michael Bryant said he's confident Obama will make "responsible" decisions, despite his earlier hints about renegotiating the North American Free Trade Agreement.

"We want to ensure that whatever the United States does, that there is an agreement and an understanding that the footprint that we have of the Big Three (automakers) in Ontario remains," he said.

Some economists are worried that Obama's protectionist attitude will harm manufacturers, but many predict his administration will provide more direct help to the industry.

"I do not believe that he will renegotiate NAFTA to an extent that will impact us, and he's also supportive of helping the Big Three auto manufacturers, which is great for Ontario," said Sherry Cooper, chief economist at the Bank of Montreal.

Once the country's economic powerhouse, Ontario has fallen from grace in recent weeks.

Shortly after announcing plans to run a $500-million deficit this year, the governing Liberals acknowledged Ontario would fall into "have-not" status next year when it starts to collect equalization payments for the first time in its history.

The province's economy has been hard hit by job losses in the manufacturing and auto sectors and there's faint hope the industry will recover any time soon.

GM, Ford and Chrysler have cut tens of thousands of jobs from their North American operations and have shut down plants to deal with a big drop in sales caused by high gasoline prices and a slumping economy.

GM plans to close a truck plant in Oshawa, Ont., next fall with the loss of 2,600 jobs, and a transmission plant in Windsor in 2010, cutting another 1,400 jobs.

Meanwhile, Ford has cut production at plants in Oakville and St. Thomas, Ont., while Chrysler is paring output and about 1,600 jobs at plants in Windsor, Toronto and nearby Brampton.

Auto parts suppliers have also shed jobs as slumping demand and the global credit crisis continues to pummel the industry.

Obama will be under pressure to sustain jobs, which could lead to policies that Ontario won't like, said NDP Leader Howard Hampton.

"American legislators will only contribute money to a General Motors-Chrysler restructuring if there's some guarantee that American jobs and American plants will stay open," he said.

"Which then opens up the question: which plants will close? The ones in Ontario?"

As for NAFTA, Opposition Leader Bob Runciman said he doesn't see anything wrong in re-opening and discussing the free trade pact.

"I wouldn't be overly concerned," he said.

"We've been their best friends. I think they'll continue to be ours."