CANADA ECONOMICS
TOURISM
Government of Canada and Atlantic Provinces. July 11, 2017. Atlantic Canada Opportunities Agency. Canada and Atlantic Provinces Launch New Tourism Partnership. At one-year mark, Atlantic Growth Strategy initiatives on track to help region innovate, grow and overcome obstacles
Humber Valley, Newfoundland and Labrador – An unprecedented level of federal-provincial collaboration through the Atlantic Growth Strategy is putting Atlantic Canada solidly on the path to building a more innovative, diverse and globally competitive economy that creates well-paying middle class jobs for Atlantic Canadians now and in the future.
Federal ministers and Atlantic premiers met in Humber Valley, Newfoundland and Labrador, to review progress on this bold, action-oriented plan. Work is well underway to bring in more newcomers to the region to help fill key labour market shortages. Established industries, like the fishery and agriculture, and emerging industries, like clean technology, are being helped to grow and become global leaders. Favourable conditions are being created for companies to capitalize on new technology, scale up operations, pursue export opportunities and for boosting investment.
To maintain momentum under the Atlantic Growth Strategy, the ministers and premiers announced a joint investment of $24.5 million aimed at positioning Atlantic Canada as a top tourism destination, creating more jobs and giving a boost to small businesses. This new multi-year partnership is designed to expand the promotion of the region’s tourism offerings in key international markets and to help prepare Atlantic tourism operators to offer in-demand products and experiences.
Uptake under the Atlantic Immigration Pilot – which was announced at the July 2016 meeting of federal ministers and Atlantic premiers – has steadily grown since the pilot began accepting permanent residency applications in March 2017. To date, more than 280 candidates have been recruited and have applied for provincial endorsement. Of these candidates, more than 200 have been endorsed and can apply for permanent residence. In addition, 412 Atlantic employers have become eligible to recruit immigrants to fill job vacancies. To support employers in taking advantage of the program, the ministers and Atlantic premiers announced the launch of a one-stop shop of 12 dedicated Government of Canada employees, including some located in each Atlantic province, that will provide hands-on support to employers and recruits, helping them get through the process more easily.
At their meeting, the ministers and premiers also met with Henry Demone, Chair of the Atlantic Growth Advisory Group, and several of the Group’s members, about the early findings from consultations with Indigenous, business, academic and community leaders from the Atlantic region. The Advisory Group will submit proposed actions in the fall of 2017.
As well, the ministers and premiers released an update on what has been achieved under the Atlantic Growth Strategy since its launch 12 months ago. It includes key economic benchmarks as well as summaries on new initiatives that have been launched in areas such as immigration, scaling up of high potential firms, fisheries and acquaculture innovation, industry clusters, business incubators, clean growth, and trade and investment.
Quotes
“Tremendous progress has been made through the Atlantic Growth Strategy in just one year. This shows what can be achieved when the two levels of government work together on a common vision to advance the growth of this vibrant region of Canada. The initiatives developed under the Strategy are paving the way for small- and medium-sized enterprises to innovate, attract and retain skilled workers, and compete in global markets. They are encouraging clean growth, strengthening communities and expanding key sectors, such as tourism, to create the good jobs that will ensure a strong middle class now and in the years to come.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency
“We are making great strides in implementing the Atlantic Immigration Pilot. A wide range of small/medium and large-sized businesses are using it to help meet their labour force needs and grow the Atlantic economy. We will continue to work with our partners, including the four Atlantic provinces, employers and newcomer settlement agencies, to fine-tune the Pilot so that it delivers results for employers and candidates alike.”
– The Honourable Ahmed Hussen, Minister of Immigration, Refugees and Citizenship
“My colleagues and I are very much focused on boosting performance in the core economic sectors of trade, immigration, natural resources and tourism that drive growth and create good paying jobs for the middle class. Our efforts are laying the foundation for that long sought after objective of a better and stronger economy for Atlantic Canada.”
– The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food
“In the past year, we took important steps that will help propel Atlantic Canada’s economy in the long-term and help us to better respond to concerns of Atlantic Canadians. We will continue to take bold and focussed actions that help Atlantic Canada expand its position in the global economy.”
– The Honourable Scott Brison, President of the Treasury Board
“The robust partnership between our federal and provincial governments is key to building a more vibrant economy and better supporting our families and newcomers to Atlantic Canada.”
– The Honourable Dominic LeBlanc, Minister of Fisheries and Oceans and the Canadian Coast Guard
“It was a pleasure to host premiers and ministers at both the federal and provincial level with the goal of fostering new economic activity, supporting new employment opportunities, and attracting and retaining talent for Atlantic Canada. On the first anniversary of the Atlantic Growth Strategy, we have established a solid foundation of work to build on, and I look forward to continuing our collaboration in the future.”
– The Honourable Dwight Ball, Premier of Newfoundland and Labrador
“Working together with our Atlantic and federal colleagues on innovative ways to grow the economy through the Atlantic Growth Strategy is already producing benefits in its first year. We are building on our strengths in areas like tourism and the fishery, and I look forward to more good results in the years ahead as we deliver on our commitment to create jobs for young people and more opportunity for the middle class.”
– The Honourable Stephen McNeil, Premier of Nova Scotia
“New Brunswick is focused on creating jobs, growing our economy and supporting families. By working with our federal and provincial partners, we can achieve these goals and build a better future for New Brunswickers and all Atlantic Canadians.”
– The Honourable Roger Melanson, President of the Treasury Board and Minister responsible for Trade Policy, Government of New Brunswick, on behalf of the Honourable Brian Gallant, Province of New Brunswick
“Cooperation among the Atlantic Provinces and federal government will help create sustained economic prosperity, population growth, and the creation of jobs throughout Prince Edward Island while continuing to demonstrate to the world that we are a mighty Island in everything we offer.”
– The Honourable Wade MacLauchlan, Premier of Prince Edward Island
Atlantic Canada Opportunities Agency. July 11, 2017. ATLANTIC GROWTH STRATEGY – TOURISM. Backgrounder
The Opportunity
In 2016, nearly 20 million international tourists visited Canada, the highest number of travellers to Canada in over a decade. International tourist arrivals grew by over 11 percent in 2016, the largest annual growth Canada has seen in 30 years.
Tourism is of strategic importance to Atlantic Canada. It supports 9,600 businesses, employs 57,000 Atlantic Canadians and contributes nearly $5 billion annually to Atlantic Canada’s Gross Domestic Product (GDP).
In May, Canada’s New Tourism Vision was announced by Small Business and Tourism Minister Bardish Chagger at Rendez-vous Canada. This vision includes investing in Canada’s regionally diverse tourism offerings by supporting the marketing of regional products, investing in tourism businesses, and helping export-ready tourism businesses.
Tourism and the Atlantic Growth Strategy
Growing tourism is part of the Trade and Investment priority of the Atlantic Growth Strategy. The strategy was launched in 2016 by the Government of Canada and the four Atlantic Provinces as a pan-Atlantic, collaborative approach to stimulate the region's economy, support the middle class and address both longstanding and emerging regional challenges. The strategy is driving economic development in Atlantic Canada by delivering concrete and measurable results.
The Government of Canada, through the Atlantic Canada Opportunities Agency (ACOA), Destination Canada, and the four Atlantic provincial governments have worked together over the last year to develop a new, strategic approach to tourism development in the region. They will continue to work together to develop innovative ways to strengthen the tourism sector in the region.
Objectives and Expected Outcomes
This new pan-Atlantic tourism approach will more fully align the region’s marketing, product development, and capacity building initiatives with national and provincial programs and priorities. This will help increase the reach of Atlantic Canada’s tourism industry into international markets and strengthen the industry’s knowledge, professionalism and overall performance.
Investments made through the new tourism strategy are expected to generate $200 million in export revenues for Atlantic tourism businesses over the next three years. It is also expected to grow the region’s tourism sector by 200 small-and medium-sized enterprises for a total of 9,800, and by 6,000 jobs, for a total of 63,000.
Initiatives Stemming from Tourism Strategy
Atlantic Canada Agreement on Tourism (ACAT): ACAT, a new three-year, $19.95 million project, will promote the four Atlantic Provinces as leading vacation destinations in key markets in the United States and the United Kingdom. This federal-provincial-industry marketing partnership will enable the Government of Canada, the four Atlantic Provinces and the tourism industry to pool resources and penetrate markets that are largely inaccessible individually.
During the first year of the ACAT, officials will review the current approach and make adjustments as required over the life of the agreement, to ensure that it is targeting the appropriate markets and seizing the opportunities that will deliver the maximum benefit for the region’s tourism sector.
Funding partners for ACAT include:
ACOA - $9,975,000
- Government of New Brunswick - $2,154,600
- Government of Nova Scotia - $2,154,600
- Government of Newfoundland and Labrador - $1,436,400
- Government of Prince Edward Island – $837,900
- Tourism Industry Associations* $3,390,000
Tourism International Marketing Expansion (TIME): TIME is a new, three-year, $4.5 million project, designed to examine and exploit growth opportunities in developing markets overseas. This federal-provincial partnership will take advantage of growth opportunities arising from emerging and developing markets, beginning with China and Germany.
Funding partners for TIME include:
- Destination Canada (Marketing Program) - $2,250,000
- ACOA - $1,350,000
- Government of New Brunswick - $225,000
- Government of Nova Scotia - $225,000
- Government of Newfoundland and Labrador - $225|,000
- Government of Prince Edward Island - $225,000
Travel Trade Market Readiness (TTMR): TTMR, a $250,000 project, will provide tourism operators with the knowledge and skills required to fully understand the travel trade business model, and an understanding of how to assess and benefit from opportunities in developing markets. This federal-provincial-industry partnership directly supports the Atlantic Growth Strategy’s international tourism marketing efforts in established and developing markets.
Funding partners for TTMR are:
- ACOA - $140,000
- Government of New Brunswick - $20,000
- Government of Nova Scotia - $20,000
- Government of Newfoundland and Labrador - $20,000
- Government of Prince Edward Island - $20,000
- Tourism Industry Associations* - $30,000
* Tourism Industry Association of New Brunswick, Tourism Industry Association of Nova Scotia, Tourism Industry Association of Prince Edward Island, Hospitality Newfoundland & Labrador
QATAR
The Globe and Mail. 11 Jul 2017. The Qatar crisis has serious implications for Canadian companies. How Canadian companies can navigate the Qatar crisis
OMAR ALLAM, Former diplomat and CEO and founder of Allam Advisory Group
Qatar’s diplomatic problems with its Gulf neighbours could not have come at a worse time for Canadian companies looking to diversify into new emerging markets.
Last Thursday, Qatar refused to comply with a list of demands imposed by Saudi Arabia, the United Arab Emirates, Egypt and Bahrain.
Qatar’s future in the Gulf Co-operation Council (GCC) and regional economic unity hangs in the balance. With tough economic, political and legal sanctions on the horizon, Qatar will find itself ostracized by its closest Arab neighbours, making the tiny, energy-rich country very vulnerable to a trade-route shutdown. This situation may also have negative blowback on Qatari allies such as Turkey and Iran.
This could prove challenging for Canada and G7 members such as the United States, France and Britain, which rely on many of these countries, including Qatar, as strategic trading partners and allies in the fight against global terrorism.
For decades, the GCC was regarded as a shining example of regional strength, economic prosperity and unity in the Arabian Gulf and beyond. Qatar has emerged as a hot spot for major infrastructure projects after winning the bid to host soccer’s World Cup in 2022. Saudi Arabia has also made major progress with its Vision 2030 plan to transform its economy, and the UAE remains a hub for companies operating in the region.
Return on investment and financial impacts are primary concerns for companies that are involved in global business. For those who are exposed to Qatar’s economy and GCC countries through exports, global operations or financial markets, the implications may be far reaching:
Qatar is the Canada’s third-largest export market in the GCC, and about 9,000 Canadian expats work in the country. Any blockades would knock the wind out of Canadian exporter and investor confidence.
Many Canadian businesses operate in Qatar. EllisDon’s $200-million contract in Lusail City overseeing a $3-billion real estate development project represents a major win for Canada and strengthens Canada’s brand in the region. Other Canadian organizations with operations in Qatar include Bombardier, SNC Lavalin, Stantec, the College of North Atlantic, University of Calgary and Tim Hortons. Qatar has invested more than $500-million in Canada and the country’s leading private commercial bank, Doha Bank, opened an office in Toronto.
The Qatari government owns 40 per cent of Western Canadian natural-gas assets purchased from Suncor Energy in a Canadian $1-billion deal.
In March, 2017, International Trade Minister François-Philippe Champagne went to Qatar on his first overseas trip, and in April, 2017, Prime Minister Justin Trudeau met with top leaders of the Qatar Investment Authority to attract more investment into Canada.
Qatar’s economy is highly exposed and so are its neighbours and trading partners, in addition to its suppliers. Canadian companies that do business in Qatar and GCC markets are likely to experience a slowdown and potential financial effects – but the full nature and extent of the broader effects is still unknown. Your Canadian-based company is more likely to have exposure if it has sensitivity to the health of the Qatari economy; free movement of people between Qatar and the GCC; how goods and services move between Canada and Qatar, and the GCC; the business, legal and regulatory environment in Qatar.
No one is sure what Canada’s relationship with Qatar or the GCC will look like after the crisis is over. But Saudi Arabia is the region’s X-factor: The more distance Canada puts between itself and Saudi Arabia – the leader of the four countries opposing Qatar and the key economic driver in the region – the more challenging it will be for Canadian businesses to diversify exports, and for Canada to attract foreign investment. With Canada and its closest allies facing challenges throughout the region, including threats posed by the Islamic State, the importance of the CanadaSaudi Arabia relationship should not be understated.
As Ottawa works hard to deliver on its foreign policy and trade agenda, refreshing ties with Riyadh should be a No. 1 priority in the GCC to ensure security and economic co-operation in a region of strategic importance to Canada. This will be of paramount importance to supporting Canadian business interests and creating an international order based on rules in a world riddled with uncertainty and opportunity.
CIB
The Globe and Mail. Jul. 11, 2017. UBS chair says Canada’s infrastructure bank could be global ‘blueprint’
JAMES BRADSHAW - BANKING REPORTER
The chairman of Swiss banking giant UBS AG is throwing his support behind Canada’s plans to create a federal infrastructure bank, saying aspects of the plan could provide a “blueprint” for financing global investments.
Axel Weber, a former central banker in Germany, believes Canada has a promising constellation of factors converging to create the Canada Infrastructure Bank, a $35-billion initiative to attract private investment in new infrastructure projects. He pointed to the country’s robust capital markets and large institutional investors, as well as strong promise in high-tech and clean energy sectors.
Although he is confident Canada can sidestep the mistakes that have plagued past infrastructure investment plans, not everyone in Canada is convinced that the federal proposal strikes the right balance between public good and private support. Details are still scarce and there are lingering questions about the Infrastructure Bank’s independence, as well as concerns about whether the most influential investors will see the appeal of tying their big bets to the public purse.
None of that fazes Mr. Weber. An economist by training, he was president of Germany’s central bank, the Bundesbank, through the global financial crisis before joining the UBS board in 2012. And after encounters with Finance Minister Bill Morneau over the last two years, Mr. Weber is bullish on Canada’s initiative, and believes other jurisdictions would be wise to take notes.
“It probably could serve as a blueprint for how other countries could look into financing sustainable investment,” he said in an interview at The Globe and Mail’s Toronto offices this week.
“There’s some idiosyncrasy around the Canadian project, but there’s some stuff that would really fly globally,” he added. “Probably Canada is ahead of the U.S. in that sense.”
UBS takes a keen interest in infrastructure investing, managing more than $16.5-billion (U.S.) in the infrastructure and private equity asset classes, and has highlighted North American infrastructure needs in recent research. But the bank hasn’t yet committed to taking part in Canada’s plans.
Ottawa plans to spend more than $187-billion (Canadian) on infrastructure over a dozen years, and Prime Minister Justin Trudeau has been encouraging banks, pension funds, insurers and private wealth funds to take equity stakes in Canadian projects.
In the process, his government has sought to reassure detractors who worry the proposed partnerships may surrender too much control of public infrastructure to public interests, or could cost taxpayers more in the long run. Some are concerned the Infrastructure Bank could be vulnerable to political interference, as cabinet can fire its executives at any time.
Governments around the world are evaluating the best models for funding infrastructure projects, and Canada faces competition in trying to attract interest in these types of projects from investors with large pools of private capital. At the same time, U.S. President Donald Trump has promised to lead $1-trillion (U.S.) in infrastructure projects, leaning heavily on private sector funds.
Canada, in turn, took inspiration from Infrastructure Australia, a government agency that has had success, but also backed some controversial projects. Canada’s Infrastructure Minister, Amarjeet Sohi, has said Canada’s approach has key differences, and “is a very innovative undertaking that no other country has done to the extent that we have.”
The new bank should be able to tap a deep well of experienced leadership: Last week, former Royal Bank of Canada chief financial officer Janice Fukakusa was named the first chair of the Infrastructure Bank’s board, and former Ontario Teachers’ Pension Plan chief executive Jim Leech came aboard as a senior adviser earlier this year.
Mr. Weber thinks large institutional and private investors taking a wait-and-see approach to the Infrastructure Bank will eventually come to the table, and that their participation should bring much-needed transparency to the process. The challenge for the bank’s leaders, he said, is to find projects in areas that can drive Canada’s economy forward, such as renewable energy or broadband connectivity, and not to focus solely on upgrading roads and railways.
“You don’t just need an infrastructure investment bank, you need a very good idea on what part of your infrastructure you want to upgrade, and what part you basically put on maintain,” Mr. Weber said.
UBS has committed to raise $5-billion (U.S.) for so-called “impact investments” aimed at sustainable development. It also manages a Swiss clean energy infrastructure fund worth several hundred million Swiss francs with the country’s pension funds as leading investors, designed help the country meet environmental targets.
“I think Canada, given its geographical position, and given its commitment to sustainability, especially under Prime Minister Trudeau, will have a lot of projects where you can find sustainable investments domestically that also will work for the global good,” he said.
EMBRAER
REUTERS. JULY 11, 2017. Embraer deliveries rise, driven by commercial jet segment
SAO PAULO (Reuters) - Embraer SA (EMBR3.SA), the world's No. 1 regional planemaker, delivered 35 commercial jets and 24 executive jets in the second quarter, representing increases on a quarterly and annual basis.
In a Tuesday securities filing, Embraer said commercial plane deliveries rose about 35 percent year on year, while those of large executive jets rose by five units from a year earlier. Embraer's backlog of firm orders fell to $18.5 billion at the end of June from $19.2 billion in March, the filing said.
So far this year, Embraer has delivered 92 planes of which 53 were commercial jets and 39 executive jets.
(This version of the story corrects to add word "large" in paragraph 2)
Reporting by Guillermo Parra-Bernal; Editing by Jason Neely
________________
LGCJ.:
