Translate

September 22, 2017

CANADA ECONOMICS



72ª UNGA



Global Affairs. September 21, 2017. Prime Minister concludes successful week at the United Nations General Assembly

New York, New York - The Prime Minister, Justin Trudeau, today concluded a successful week in New York, where he participated in the opening of the 72nd Session of the United Nations General Assembly (UNGA).

The Government of Canada is committed to strengthening multilateralism and the rules-based international order, championing diversity and inclusion, and advancing human rights, including gender equality, women’s empowerment, and reconciliation with Indigenous Peoples.

At UNGA, the Prime Minister reiterated Canada’s pledge to deliver true, meaningful, and lasting reconciliation between Canada and First Nations, Inuit, and Métis peoples. He outlined Canada’s efforts on climate change, and the importance of forging progressive trade agreements that emphasize fairness and real benefits for everyone. He also stressed that gender equality and the empowerment of women and girls grow stronger economies and communities.

On the margins of UNGA, the Prime Minister met with many of his counterparts to discuss issues of mutual interest, including climate change, security, and gender equality, as well as ways to resolve the crises in Myanmar and Venezuela.

Earlier in the week, the Prime Minister joined the UN Secretary-General António Guterres’ Circle of Leadership on the prevention of and response to sexual exploitation and abuse in United Nations operations. Canada has contributed $600,000 to the UN Trust Fund on Sexual Exploitation and Abuse, in addition to supporting the Special Coordinator on Sexual Exploitation and Abuse.

On September 19, Prime Minister Trudeau was honoured by the Atlantic Council with the Global Citizen Award for his work on inclusiveness, diversity, and economic growth that works for everyone. At the event, he underscored the importance of fundamental democratic principles for global peace and security, and reiterated that there has never been a greater need for vigilance in the post-war era given the various and complex challenges the world is facing.

The following day, Prime Minister Trudeau spoke to thousands of young people at WE Day UN to mobilize youth action on the UN’s Sustainable Development Goals, which strive to end poverty, protect the planet, and ensure prosperity for all. At the Bloomberg Global Business Forum, he discussed how leaders can create a more transparent, equitable, and sustainable global economy and pointed to the free trade agreement between Canada and Chile – the first among G7 countries to include a gender section – as a model for others to follow.

At Bill and Melinda Gates’ inaugural Goalkeepers event, Prime Minister Trudeau discussed the importance of Canada’s Feminist International Assistance Policy. He welcomed Melinda Gates’ announcement that the Gates Foundation will provide $20 million to strengthen women’s groups worldwide. In June, Canada announced $150 million in funding over five years to support grassroots women’s organizations – which are leading gender equality campaigns around the world, yet remain unrecognized and underfunded. Canada will continue to use its voice to encourage other donors to support grassroots women’s organizations.

Quote

“In the face of complex global challenges, Canada will continue to champion diversity, acceptance, and compassion on the world stage. We cannot build a better world unless we work together, respect our differences, protect the vulnerable, and put people at the heart of the decisions we make.”
—Rt. Hon. Justin Trudeau, Prime Minister of Canada

Quick Facts
  • Canada is the fifth largest donor to the UN system.


Global Affairs Canada. September 17, 2017. Minister of Foreign Affairs and Minister of International Development and La Francophonie to attend United Nations General Assembly in New York

Ottawa, Ontario - To advance the interests of Canadians at home and abroad, the Honourable Chrystia Freeland, Minister of Foreign Affairs, and the Honourable Marie-Claude Bibeau, Minister of International Development and La Francophonie, today announced that they will join Prime Minister Justin Trudeau at the 72nd session of the United Nations General Assembly (UNGA) in New York.

Minister Freeland will attend the UNGA from September 19 to 22 and Minister Bibeau from September 18 to 20. Along with the entire Canadian delegation, the ministers will advocate for human rights, advancing gender equality and women’s empowerment, promoting peace and security, and leading the global fight against terrorism.

Minister Freeland’s program at the UNGA will cover a wide array of current international issues, including the deteriorating situation in Venezuela and the ongoing and unacceptable violence in Myanmar, particularly the situation in Rakhine State for Rohingya Muslims and other ethnic minorities.

Minister Bibeau’s UNGA program will focus on engaging youth and her counterparts to empower women and girls and accelerate the financing and implementation of the UN’s sustainable development goals.

Canada’s participation at UNGA will seek to promote a rules-based international order, strengthen multilateral institutions, champion diversity and inclusion, and expand Canada’s leadership on global issues, including gender equality, climate change, refugees and migration, health and open government.

Quotes

“We are working hard to strengthen all the international bodies to which Canada belongs, to make them more responsive to the needs of the middle class, not just in Canada but worldwide. ‎Working through the UN allows us to have a greater impact and to amplify our voice by shaping international programs, policies and practices on a range of issues, from security and trade to climate change and human rights.”

- Hon. Chrystia Freeland, P.C., M.P., Minister of Foreign Affairs

“Our government has a clear vision on how best to tackle poverty and inequality. We firmly believe that women and girls must be empowered as they are true agents of change. This feminist vision for Canada’s international assistance has been welcomed by the international community, and I look forward to continuing to present it during this year’s General Assembly.”

- Hon. Marie-Claude Bibeau, P.C., M.P., Minister of International Development and La Francophonie

Quick Facts

  • The annual week-long high-level opening of the UNGA is the largest leader-level and ministerial gathering of the UN’s 193 member states.
  • This will be the first UNGA opening for newly appointed UN Secretary-General António Guterres.
  • Canada is currently the fifth-largest donor to the UN system.

The Globe and Mail. 22 Sep 2017. Opinion: PM’s speech from global pulpit was a coup. Internationally, this admission of wrongs still not righted was surprisingly relevant, and for a Prime Minister campaigning for a seat on the UN Security Council, it was also shrewd, Campbell Clark writes. Trudeau tells United Nations General Assembly that working to rectify ‘Canada’s shame’ can act as a lesson for the rest of the world
MICHELLE ZILIO, NEW YORK
WENDY STUECK

Prime Minister Justin Trudeau exits a news briefing during the United Nations General Assembly in New York on Thursday. His UN address focused on concerns Indigenous people face in Canada.
Prime Minister Justin Trudeau used his address at the UN General Assembly Thursday to shine a light on a dark aspect of Canada: the story of this country’s Indigenous peoples and their challenging relationship with the government.
In his second-ever address to the United Nations body, Mr. Trudeau said that “Canada remains a work in progress,” pointing to the struggles Indigenous peoples have faced from the times of colonialism through today. He emphasized the government’s responsibility to improve that relationship, saying the world has a similar duty to respond to global challenges, such as inequality.
“For First Nations, Métis Nation and Inuit peoples in Canada, those early colonial relationships were not about strength through diversity or a celebration of differences,” Mr. Trudeau said.
“For Indigenous peoples in Canada, the experience was mostly one of humiliation, neglect and abuse.”
Mr. Trudeau used his star power to draw attention to what he called “Canada’s shame” on the global stage. He said the government’s attempt to seek reconciliation with Indigenous peoples can act as a lesson for the world, positioning Canada’s bid for one of the 10 rotating, non-permanent seats on the UN Security Council in 2021-22.
“We can’t build a better world unless we work together, respect our differences, protect the vulnerable and stand up for the things that matter most,” Mr. Trudeau said. “But I remain confident – for Canada’s experience shows this to be true – that any challenge can be met if we meet it together.”
Speaking to reporters at the UN after his speech, Mr. Trudeau said he chose to focus on Canada’s relationship with Indigenous peoples because he wanted to show the world the government can take responsibility for the “terrible mistakes” it made in the past.
“A number of times in conversations over the years, when I have suggested that certain countries need to do better on their own human rights, on their own internal challenges, the response has been, ‘Well tell me about the plight of Indigenous people in Canada.’ ”
Mr. Trudeau spoke about the “legacy of colonialism in Canada” in his address. He highlighted the lack of safe drinking and bathing water in Indigenous communities across Canada and then pointed to the government’s elimination of more than two-dozen boilwater advisories and its plans to end those that remain.
He spoke about the youth suicide epidemics on some reserves.
“There are Indigenous parents in Canada who say goodnight to their children, and have to cross their fingers in the hopes that their kids won’t run away, or take their own lives in the night.”
Citing what Amnesty International has called “a human-rights crisis,” the Prime Minister described the violence “far too many” Indigenous woman and girls face in Canada. And while the residential-school system is “a thing of the past,” Mr. Trudeau said many Indigenous youth are still forced to move far away from their families for a basic education.
Indigenous leaders said Mr. Trudeau needs to match the words in his UN speech with action.
“There’s been a lot of public platitudes and eloquent statements about the need to move forward – but aside from the sizzle, there’s not a great degree of substance,” said Grand Chief Stewart Phillip, president of the Union of BC Indian Chiefs.
Mr. Phillip also referred to recent submissions to the UN Committee on the Elimination of Racial Discrimination, in which groups expressed concerns about Indigenous people in Canada. Ottawa is a signatory to the convention and must report to the committee every two years.
The UBCIC submission said, “we are presently witnessing a great divide between the worlds of the Canadian government and its actions on the ground,” citing concerns including land title, housing and energy and mines in relation to Indigenous people.
Cindy Blackstock, executive director of the First Nations Child and Family Caring Society, sounded the alarm about discrimination against Indigenous children.
“My ongoing concern is that that language doesn’t translate into real changes in the way the Government of Canada conducts its relationships with First Nations children,” she said.
Ms. Blackstock launched a human-rights action against the federal government over its funding of child-welfare services. In its 2016 decision on that challenge, the Canadian Human Rights Tribunal found Ottawa racially discriminated against youth in its delivery of child-welfare services on reserves. Negotiations on how to address that gap are continuing.
“We are still at a point where Canada is out of compliance with four legal orders to end discrimination on First Nations child welfare,” Ms. Blackstock said, referring to orders from the humanrights tribunal.
During his speech, Mr. Trudeau linked the challenge Indigenous peoples are facing – especially in Northern Canada – to climate change. He said Canada remains committed to its international commitments on this front.

The Globe and Mail. 22 Sep 2017. Opinion. Trudeau draws attention to Indigenous on UN stage. Trudeau gets something right by admitting Canada’s wrongs
CAMPBELL CLARK

Few platforms on the international stage are as much like church pulpits as the United Nations General Assembly. Leaders go to preach to the world and Canadian leaders can be as preachy as any. Give Justin Trudeau credit for giving that a twist.
He went to the UN and spoke of Canada’s historic and continuing failure in dealing with Indigenous peoples, about breached treaties and boil-water advisories, displaying past and present shames.
There is already, quite rightly, debate about whether Mr. Trudeau’s government at home is living up to the Prime Minister’s words in New York. There will be people who think he talked Canada down on the world stage or skipped serious international issues.
As a speech from the global pulpit, however, it was a coup. Preaching sounds different when you talk about your own sins.
Canada’s colonial past, he told the UN, was for its Indigenous people mostly an experience of “humiliation, neglect and abuse.” Today, he said, there are children living on reserve “who cannot safely drink, or bathe in, or even play in the water that comes out of their taps.” He said there’s now an opportunity for reconciliation: “In partnership with Indigenous peoples, we’re moving ahead with a through review of federal laws, policies and operational practices, to get our house in order.”
Domestically, he made a vast promise and Mr. Trudeau rightly called it uncharted territory. Making it in a highly visible moment on the world stage means he will face repeated pressure to account for it. It amplifies the broad, unfulfilled platform promises he made in the 2015 election campaign, rather than minimizing them.
Internationally, this admission of wrongs still not righted was surprisingly relevant to a long list of global issues. And this was, let’s be clear, a Prime Minister campaigning for a seat on the UN Security Council, and on that score, it was also shrewd.
It was not the kind of homily world leaders typically use when they go to the UN. There’s often bluster and calls for others to change. Leaders tout their own country’s greatness and demand others do better. Delegates from the UN’s 193 members, including presidents and prime ministers in New York for the annual event, have been focused on Donald Trump’s warning that North Korea could be destroyed, and his demand that Iran renegotiate a nuclear deal. Along comes Mr. Trudeau saying, “Canada is not a wonderland,” and he will probably get kudos for tone alone. To reporters after the speech, Mr. Trudeau even cited the Sermon on the Mount in describing why he chose this particular homily, saying he wanted to address how Canada will “take care of the beam in our eyes as we engage with others’ motes.”
Admitting historical wrongs is itself a decent display for a world with lingering conflicts, and admitting continuing ones is obviously relevant as Myanmar’s Rohingya flee. The UN membership has no shortage of countries with marginalized minorities and Indigenous peoples. Mr. Trudeau linked the need to improve clean water, education and decent work for Canada’s Indigenous people with the UN’s Sustainable Development Goals, normally applied to poorer countries of the developing world.
Admission aids credibility, too: It will be that much harder for Iranian and Chinese officials to avoid addressing concerns about human rights in their countries by pointing to the lot of Canada’s Indigenous people.
Of course, you can criticize Mr. Trudeau’s speech for being a way to dodge important international questions, which, by definition, it was. He didn’t call out Aung San Suu Kyi and Myanmar’s government for failing to protect the Rohingya minority. He didn’t address North Korea and invite comparisons to Mr. Trump. He avoided talking about his unfulfilled promise to return Canada to UN peacekeeping.
And, of course, UN speeches by Canadian prime ministers don’t shake the world. But it’s a safe bet this one will filter into the global narrative about Canada. Let’s hope it’s more than a humble-brag in a UN campaign. The test will come in follow-up Indigenous issues at home, of course. In a week when leaders preach, however, he found a novel way to speak to the world by making the sermon about home.



VENEZUELA



Global Affairs Canada. September 22, 2017. Canada imposes sanctions on Maduro regime in Venezuela

Ottawa, Ontario - In support of the people of Venezuela, Canada has announced sanctions on key figures in the Maduro regime to send a clear message that their anti-democratic behaviour has consequences.

The Honourable Chrystia Freeland, Minister of Foreign Affairs, today announced sanctions against the people responsible for the deterioration of democracy in Venezuela. The measures are consistent with Canadian principles and values and aim to maintain pressure on the Government of Venezuela to restore constitutional order and respect the democratic rights of its people.

Under the Special Economic Measures Act, Canada is imposing targeted sanctions against 40 Venezuelan officials and individuals who have played a key role in undermining the security, stability and integrity of democratic institutions of Venezuela.

These decisive actions are in response to the Government of Venezuela’s deepening descent into dictatorship. By imposing sanctions on the Maduro regime, Canada demonstrates its strong commitment to the return of democracy in Venezuela.

Quotes

“Canada will not stand by silently as the Government of Venezuela robs its people of their fundamental democratic rights. Today’s announcement of sanctions against the Maduro regime underscores our commitment to defending democracy and human rights around the world. Canada stands in solidarity with the people of Venezuela as they struggle to restore democracy in their country.”

- Hon. Chrystia Freeland, P.C., M.P., Minister of Foreign Affairs





CETA



TCS. 21/September/2017. CANADEXPORT - The official magazine of the Canadian Trade Commissioner Service (TCS). Doing Business in Europe. CETA: Canada and the European Union Usher In a New Era of Trade

The Canada-European Union (EU) Comprehensive Economic and Trade Agreement (CETA) was implemented September 21, bringing tangible and significant benefits for Canadian companies that include unprecedented duty-free access to a market of some 500 million consumers and GDP of more than $22 trillion.


The agreement, which covers virtually all sectors and aspects of Canada-EU trade, promises to strengthen economic relations and promote new opportunities for Canadian and European businesses, says Caroline Charette, director of the CETA Secretariat within the Trade Policy Branch of Global Affairs Canada (GAC).

“CETA is a major landmark in the establishment of Canada’s progressive trade agenda,” she says, commenting that not only will the agreement improve trade between the EU and Canada, but it also includes high standards for consumers, workers and the environment in virtually all aspects of modern commerce. “Everything from trade in goods and services, business mobility and investment to government procurement and technical barriers to trade is addressed.”

Prior to heading the CETA Secretariat Charette served with GAC’s Canadian Trade Commissioner Service (TCS), most recently in Paris, helping Canadian companies succeed abroad and supporting them in their efforts. She notes that with the provisional application of CETA, 98 percent of EU tariff lines are now duty-free for Canadian goods.

All of the economically significant benefits of the agreement will also be implemented, including services commitments, temporary-entry commitments and government procurement obligations.

The EU is the second-largest export market for Canada, right behind the United States, with more than $94 billion in bilateral trade in goods and nearly $42 billion in two-way trade in services last year, Charette points out. With CETA in effect, Canada will be one of only a handful of countries with guaranteed preferential access to both the EU and the U. S., which together account for nearly half of the world’s economic output.

“All sectors of the Canadian economy will benefit from this forward-looking and ambitious deal we have carefully designed with our European partners,” she says, noting that before CETA’s provisional implementation only 25 percent of EU tariff lines on Canadian goods were duty-free. Tariff elimination will provide enhanced export opportunities into the EU market for Canadian producers, processors and manufacturers, as well as for agricultural and agri-food products, fish and seafood, forestry products and a full range of industrial goods.

Some EU tariffs on fish and seafood as well as many agricultural goods were up to 20 percent in some cases, making it unprofitable for Canadian businesses to export these products. “That's going to change with the tariff elimination under CETA,” she notes. “Even the end of relatively low tariffs could make certain Canadian exports more competitive relative to competitor products, and open up new export opportunities in the EU.”

Stewart Lamont, managing director of the Tangier Lobster Company on the eastern shore of Nova Scotia, which sells quality hard-shell Canadian lobsters to importers, wholesalers and distributors in 21 countries around the world, eight of them in Europe, says that CETA brings “tremendous potential,” especially with the immediate elimination of the eight percent duty on lobsters levied by the EU.

“We are now in the front row to build some new business,” he says, while the agreement will help the company “reset” relationships with existing customers and revisit some previous European clients in markets where it has not been as competitive. “We see CETA as a chance to focus on some opportunities that we have not considered for a while,” Lamont says.

“The Government of Canada has negotiated a favourable trade agreement on behalf of Canadian exporters, and shame on us if we don’t take advantage of it,” he comments, noting that the agreement is a sharp contrast to “protectionist mode” in which competitors in other countries increasingly operate.

“We are extreme believers in the benefits of international trade,” Lamont remarks. “The fact that at the highest government levels they are encouraging us to do business free of tariffs makes a timely statement.”

Charette notes that the agreement also establishes some mechanisms to ensure enhanced cooperation toward addressing technical barriers to trade, including product standards and regulations that make it more difficult for products to enter a market. “CETA provides ways to address and prevent problems in this area, including a chapter on regulatory cooperation and a protocol on conformity assessment.”

For example, the provisions of the protocol on conformity assessment are expected to help reduce costs and marketing delays for Canadian exporters, over time.

Among the benefits of the agreement beyond tariff elimination, she says, CETA makes it easier for highly skilled professionals and businesspeople—to conduct business or work temporarily in the EU.

CETA’s temporary-entry provisions expand on existing World Trade Organization (WTO) access, by setting a framework to facilitate temporary travel or relocation for selected categories of business persons, including short-term business visitors, investors, intra-company transferees, professionals and technologists.

“As a result of CETA, Canadian firms and independent professionals have greater certainty when establishing branches in the EU, bidding on EU service contracts and providing installation and maintenance services for goods sold in the EU market,” Charette says.

Mario Rousseau, president of Intellinox Technologies, a company in Quebec City that provides energy-saving solutions for commercial kitchens, looks forward to the opportunities presented by CETA, including the fact that it will immediately eliminate tariffs on Intellinox’s Canadian products such as its variable ventilation control systems, which currently face EU tariffs of up to 2.8 percent.

“It’s always good to have lower tariffs, or none at all; it helps, that’s for sure,” Rousseau says, noting that Canadian companies are known for being open, innovative and responsive in the growing EU market, with a reputation for listening to customers’ needs. “We have a warm welcome with people in Europe. They say, ‘Yes, we want to do business with you.’”

For Développement Effenco, a Montreal company that makes systems that reduce fuel costs and greenhouse gas emissions on heavy-duty vocational vehicles, for example on garbage trucks and construction equipment, the elimination of the 2.5 percent EU tariff on its products “is very good news,” says Dany Fouquet, the firm’s vice-president of operations. “We’ve been waiting for a long time to see this in place.”

Beyond the tariff measures, the agreement will guarantee access for Effenco to provide engineering and related technical consulting services in the EU. CETA will make it easier for Effenco to send its employees to conduct business and work temporarily in the EU, for example to negotiate sales, attend consultations, participate in trade fairs and provide engineering services. Effenco will also benefit from more transparent access and flexibility for its intra-corporate transferees, and, above certain thresholds, it will be able to access procurement opportunities at all levels of EU government, including by public utilities and thousands of municipal and regional government entities.

Fouquet says that Effenco hopes to have half of its sales in Europe, through strategies that include partnering directly with original equipment manufacturers such as major trucking and machinery companies, given growing concerns in the EU about the environment and support for green technologies there.

“A lot of cities in Europe are searching for solutions; it’s good timing,” he comments. CETA also provides a secure and predictable environment for any investment the company may make in Europe, such as the fact that it intends to establish a subsidiary there.

Charette notes that the agreement provides Canadian companies with a “first-mover advantage” over competitors from markets like the U.S. that do not have a trade agreement in place with the EU. “It allows Canada to establish customer relationships, networks and joint projects first.”

She points out that the EU has more Fortune 500 companies than anywhere else in the world, including the U.S., and therefore CETA can be a springboard for other markets beyond the EU, offering Canadian businesses an opportunity to be part of broader global supply chains.

“Preferential access to the second-largest market in the world offers real opportunity for diversification from and over-reliance on the U.S. market, and allows Canada to take real steps outside of North America,” Charette adds.

Lamont says that relationships between Canadians and Europeans tend to be more intense and long-lasting, with fewer cultural and language differences than with other foreign markets. Europe is also closer to Canada than some of Tangier Lobster’s customers in places such as Asia, which means lower-cost freight arrangements, and EU buyers are “extremely familiar with Canada generally,” he comments. “Our company has a good reputation in Europe.”

The TCS offers “great referrals” to Canadian companies such as his in Europe and “we should be able to leverage the CETA provisions,” he adds. “The agreement gives us a platform on which we can actually expand and diversify our business going forward.”

Doing Business in Europe. CETA: Canadian Companies Stand to Benefit

Canadian Companies doing business in Europe may want to become familiar with how they stand to benefit from Canada-European Union Comprehensive Economic and Trade Agreement (CETA). Businesses entering the EU for the first time should take a close look at the resources that have been put in place to help companies succeed under CETA.

The EU represents an important market—the second-largest in the world—although it’s important to also recognize that each country in the EU is a different market, with its own particularities.

Helping companies take advantage of CETA is a priority for the Canadian Trade Commissioner Service (TCS), which is an ideal position to help Canadian businesses navigate the complexities of EU markets. Trade commissioners across Canada and in various locations throughout Europe can assist businesses with their initial evaluation of EU market prospects, as well as providing market intelligence and introductions to potential partners.

Global Affairs Canada has developed a CETA promotion strategy, which is being executed in partnership with Crown agencies including Export Development Canada, the Business Development Bank of Canada, regional economic agencies and other government departments such as Agriculture and Agri-Food Canada, along with the provinces and territories.

There are seminars, webinars and special events across Canada to carry the CETA message forward. Digital tools and resources, including a dedicated CETA website, offer overviews of EU markets, a set of guides, a link to the Canada Tariff Finder, CETA-related events at home and abroad and information on special funding programs for exporters.


The Globe and Mail. REUTERS. 22 Sep 2017. Britain sees trade ‘gold standard’ in CETA
PHILIP BLENKINSOP

The European Union and Canada have begun cutting import duties on thousands of products and services in a reminder to Britain of the work it will take to replace the trade alliances it will give up when it leaves the EU.
The Comprehensive Economic and Trade Agreement (CETA) entered force on Thursday, eight years after negotiations begun.
It is the EU’s first major trade deal since it began implementing its South Korea agreement in 2011 and the first with a Group of Seven country, marking a success after its credibility took a beating from Britain’s 2016 vote to leave the bloc.
It has since struck a deal with Japan and hopes for further agreements with Mexico and the Mercosur countries of South America by the end of this year.
British Conservatives in the European Parliament said this week that the EU-Canada deal would bring £1.3-billion ($2.18billion) in benefits to Britain and said they hoped CETA’s benefits would continue after Brexit.
“I believe CETA will become the gold standard of agreements and one we can tailor to suit the priorities of the British and Canadian economies post-Brexit,” lawmaker Emma McClarkin said in a statement.
British Prime Minister Theresa May said in Ottawa on Monday that she and Prime Minister Justin Trudeau had agreed that CETA should be “swiftly transitioned” into a new Britain-Canada deal after Brexit.
How fast that transition occurs will depend on how much postBrexit Britain wants to tailor the deal, perhaps by including closer convergence on financial services, rather than largely copying what is in place.
CETA will abolish 98 per cent of customs duties, open up public tenders to companies and allow the EU to export more cheese and wine and Canada more pork and beef in quotas that expand over the next six years.
The 1,598-page CETA text is full of negotiated details, including the right of European companies to ship up to 537,000 knitted jerseys to Canada and Canadian companies’ ability to send up to 196,000 square metres of carpet to Europe.

Britain and Canada will still have to create their own free trade agreement, which took Brussels and Ottawa five years to negotiate.

The Globe and Mail. 22 Sep 2017. Canada’s privacy watchdog seeks stronger enforcement powers
SUSAN KRASHINSKY ROBERTSON

Czar calls for update to federal laws as well as ability to issue binding orders and hand down fines Canada’s privacy watchdog is transforming the way it has pursued protective measures for more than 15 years, planning to more actively go after companies and other organizations for privacy concerns. And it has renewed calls for an update to the country’s privacy laws, saying the current system of enforcement “has no teeth.” Privacy Commissioner Daniel Therrien, who released his report in Ottawa on Thursday, said government needs to demand that organizations show they are protecting people’s privacy.

Since the enforcement of the Personal Information Protection and Electronic Documents Act (PIPEDA) in 2001, the Office of the Privacy Commissioner of Canada has acted as an ombudsman, opening investigations into privacy concerns primarily when it received complaints from Canadians – although it does occasionally launch investigations on its own.
In his annual report to Parliament on Thursday, Commissioner Daniel Therrien said that the OPC would expand its approach, pursuing “a pro-active enforcement and compliance model … because the OPC may be better placed than individuals to identify privacy problems related to complex new technologies.” The office will still look into complaints from individuals, in addition to the new approach. It will ask government for a “modest” increase in its budget to fund that expanded enforcement.
Mr. Therrien also repeated a call for changes to federal law that would give his office the ability to issue binding orders and hand down fines where necessary, saying that the current system is insufficient to ensure compliance. The OPC has been asking for such legislative reform for years.
“The model of laws where you have regulators with order-making authority, and the authority to impose fines, is being adopted more and more across the world,” Mr. Therrien said in an interview Thursday. » The report comes as some industry observers have raised concerns that Canada is not keeping up with global peers. Next May, the European Union will enact broad changes to how it pursues privacy protection when the new General Data Protection Regulation (GDPR) comes into force.
Some have suggested that if Canada’s laws are not updated, it could lose “adequacy status” with the EU – which allows for the free flow of data with other jurisdictions it feels have adequate privacy protections in place, and which is crucial for cross-border trade – the next time that status is reviewed in the coming years. Mr. Therrien also raised that concern on Thursday.
Government needs to demand that organizations show they are protecting people’s privacy, Mr. Therrien said.
“Companies don’t have a legally imposed obligation to demonstrate that they’re accountable,” he said. “… We would do audits, essentially, of the measures taken by companies to demonstrate that they are truly compliant.”
The commissioner’s report also noted that the current state of play in the digital sphere – where consumers are asked to agree to arcane privacy policies swamped in legalese that most don’t read – is “broken.” The OPC is pushing for more understandable privacy agreements: Companies should tell people what personal information about them is being collected, how and why it is shared, and what risk there is to them as a result. Children also need to be better informed, the report stated, recommending that privacy education be introduced into school curricula.
But it also noted that it is not always possible for people to give meaningful consent, particularly in cases of large-scale data analysts where information is “commodified and may be processed by multiple players totally unbeknownst to the individual to whom the data belongs.” Such broad uses of people’s data are also an argument for a more aggressive enforcement approach by the OPC, the report added, since people cannot lodge complaints about privacy concerns if they aren’t aware of them.
“Individual consumers will notice some problems but they are unaware of the vast majority of concerns with privacy because of the complexity of the beast,” Mr. Therrien said.
Since earlier this year, the House of Commons’ standing committee on access to information, privacy and ethics has been holding meetings to review PIPEDA and will make recommendations on potential changes.
“Governments understand that for the digital economy to flourish, consumers need to have confidence that their data will be protected adequately,” Mr. Therrien said. “There is a direct link between consumer trust and growth in the digital economy.”



NAFTA



The Globe and Mail. 22 Sep 2017. U.S. says it will lay all demands on table in next round of NAFTA talks
ADRIAN MORROW, WASHINGTON
STEVEN CHASE, OTTAWA
GREG KEENAN, TORONTO

U.S. negotiators have told Canada and Mexico they expect to table full details of the Trump administration’s demanded changes to the North American free-trade agreement during talks starting this weekend – in a bid to cut a deal by year end, The Globe and Mail has learned.
American officials served notice to their counterparts during the second round of talks earlier this month in Mexico City that they would present text of all their proposals by the third round, said people with knowledge of the negotiations who spoke on condition of anonymity to reveal confidential details of the discussions.
So far, the United States has presented few details on its most controversial demands at the table, the sources said. These include a toughening of the rules of origin that govern content in cars, trucks and other manufactured goods, including a possible U.S. content requirement; a proposal to allow Buy American provisions on U.S. public procurement while fully opening Canadian and Mexican government contracts to American firms; a loosening of Canada’s supply-management system for dairy, eggs and poultry; and cutting the U.S.’s trade deficit. »
Canada is preparing for the third round as the talks move to Ottawa. Foreign Minister Chrystia Freeland will spend Friday in an intensive series of consultations in Toronto ahead of the negotiations.
Ms. Freeland will first meet with the NAFTA council, a group of business, labour and political leaders that provides advice to the government on the negotiations. She will then host a lunch with former prime minister and NAFTA architect Brian Mulroney, as well as his original group of negotiators and three former Canadian ambassadors to the United States. Finally, she will meet with members of Canada’s autoparts industry, which depends heavily on cross-border trade.
Economic Development Minister Navdeep Bains will also take part in these meetings. Environment Minister Catherine McKenna will be in on the first two meetings, then sit down separately in Ottawa with the government’s environmental advisory council on NAFTA.
The three countries are renegotiating NAFTA at the behest of U.S. President Donald Trump, who blames the 23-year-old pact for moving jobs out of the United States and allowing Canada and Mexico to take advantage of his country. Mr. Trump wants a deal by the end of the year to deliver on a key election promise, while Mexico wants to get the talks out of the way before its presidential election campaign next year.
While the United States has repeatedly signalled it will demand major concessions from the deal’s junior partners, it has provided negotiators with few details.
At the opening of talks in Washington last month, for instance, U.S. Trade Representative Robert Lighthizer announced that the United States would demand more stringent rules of origin, which specify the amount of NAFTA zone content that manufactured goods must contain to be traded between the three countries without paying tariffs. He signalled he would also seek to add a U.S. content requirement. But Washington has not given Ottawa and Mexico City any specifics of this proposal, such as what percentage of North American or U.S. content it wants to see.
And there is some skepticism the United States will actually present such details in Ottawa. Sources said the Americans have previously made such promises and not followed through. At one point, for instance, Washington told its negotiating partners it would have all the details on the table in Mexico City, one source said.
Some sources said the United States does not appear to have even decided what exactly it wants to ask for. Tightening rules of origin, for instance, could backfire if companies decide to pay tariffs rather than conforming to stricter rules. One source said the United States appears to be aware of this and is trying to sort out how to make the rules tougher without inadvertently driving business away. The Trump administration’s central goal, the source said, is to help the U.S. steel industry.
Flavio Volpe, president of the Automotive Parts Manufacturers’ Association of Canada, said he does not expect the United States to present a number for rules of origin or a figure for the amount of U.S. content it wants mandated in vehicles. What American negotiators could do, he said, is outline concepts describing how U.S. content requirements might work.
“I think we’re ready to react to a number, but we should listen carefully to hear whether there are new concepts,” he told The Globe on Thursday.
A report by Bank of Nova Scotia also called into question the point of toughening the rules. The bank found that vehicles in the three NAFTA countries already contain 75-per-cent North American content – far above the 62.5 per cent currently required to qualify for tariff-free trade.
“There is no need to tighten further NAFTA’s rules of origin for the auto sector,” wrote Carlos Gomes, a Scotiabank economist who specializes in the auto industry.
Daniel Ujczo, an Ohio-based trade lawyer who works with agricultural and automotive interests with a stake in NAFTA, said the hold-up for the Americans in presenting details largely has to do with the complicated consultation procedure in the United States’ trade-negotiating system. Mr. Lighthizer’s proposals are all circulated to various government departments, members of the U.S. Congress and stakeholders before they are brought to the negotiating table.
Mr. Ujczo said he did not believe all the text would be tabled in Ottawa.
“I don’t think we’ll see ultimately 30 chapters of text. There have been rumblings out of USTR that they won’t be ready,” he said in an interview, referring to the Office of the U.S. Trade Representative.
And if the partners want to finish by the end of the year, they will have to make progress soon.
“This is a seven-game World Series. We’re going into Games 3, 4 and 5. This is where we have to start making ground,” he said.

THE GLOBE AND MAIL. SEPTEMBER 21, 2017. NAFTA. U.S. bid to tighten NAFTA origin rules for auto sector needless: report
CHRIS HELGREN, REUTERS
GREG KEENAN, AUTO INDUSTRY REPORTER

Vehicles assembled in the three NAFTA countries already contain 75-per-cent North American content, so changing the rules of origin in a new deal to higher than the existing requirement of 62.5 per cent makes little sense, the Bank of Nova Scotia says.

Auto-parts sourcing within the North American free-trade agreement has remained stable despite the emergence of Asia as a large exporter of auto components, providing one example of how the trade deal has benefited the region and should remain in place when it comes to the auto sector, Carlos Gomes, a Bank of Nova Scotia economist who specializes in the auto industry, said in a report.

"There is no need to tighten further NAFTA's rules of origin for the auto sector," Mr. Gomes wrote.

The United States announced as negotiations began on a new NAFTA deal last month that one of its key objectives is to obtain stronger rules of origin for duty-free shipment of vehicles and parts within North America and put in place a minimum amount of U.S. content for all vehicles assembled in the three countries.

So far, U.S. negotiators have not specified the changes they are seeking to the rules of origin or notified Canada and Mexico of their specific demand for U.S. content in vehicles.

Vehicles made in Mexico contain about 40-per-cent U.S. content, he said. Industry estimates show that U.S. content in Canadian assembled vehicles could exceed 55 per cent.

Mr. Gomes said Chinese auto-parts exports to North America have grown at a slower pace than that country's shipments to the European Union.

Auto-parts exports from North America have outpaced overall global auto-parts exports over the past decade, he noted.

He also pointed to the growth of electronics in vehicles in recent years, about 40 per cent of which are imported from outside North America.

"Tightening NAFTA's rules of origin on automobiles, either by raising the NAFTA-wide threshold or by introducing a U.S.-specific content requirement, wouldn't bring the production of these components back," he said.

REUTERS. SEPTEMBER 22, 2017. U.S. Commerce study argues for tougher NAFTA origin rules
David Lawder

WASHINGTON (Reuters) - Seeking to bolster its case for tougher rules of origin in the North American Free Trade Agreement, the Trump administration released a new study on Friday that shows U.S. value-added content is declining for manufactured goods imported from Mexico and Canada.

The Commerce Department analysis of recently released OECD trade in value-added data found that U.S. content in automotive imports from Mexico declined to 18.1 percent in 2011 from 26.5 percent in 1995. U.S. content in automotive imports from Canada declined to 26.4 percent from 34.9 percent over the same period.

At the same time, automotive value added content from non-NAFTA countries in Mexican auto imports rose to 29.5 percent from 13.2 percent. China has seen the fastest growth in that component, to 5.8 percent in 2011 from a scant 0.3 percent in 1995.

U.S. Commerce Secretary Wilbur Ross has frequently criticized NAFTA’s rules of origin as a “back door” for Chinese auto parts to enter the United States through Mexico and Canada and that the trade pact’s benefits needed to be restricted to its members.

The report comes as chief U.S. negotiator John Melle prepares to present new text proposals at the third round of NAFTA talks in Ottawa starting on Saturday, where he said “more challenging issues will start taking center stage.”

These are expected to include rules of origin, a chapter in which the Trump administration wants more substantial U.S. content in autos, the main source of the $64-billion trade deficit with Mexico and the $11-billion deficit with Canada.

“If we don’t fix the rules of origin, negotiations on the rest of the agreement will fail to meaningfully shift the trade imbalance,” Ross said in an opinion piece about the study published in the Washington Post.

The administration has not yet revealed its rules of origin targets, but some auto industry lobbyists and executives expect the Trump administration to seek a regional automotive content requirement of 70 percent or more, and a U.S.-specific content requirement of at least 35 percent.

Overall, the study found that the U.S. content of manufactured goods from Canada dropped to 15 percent in 2011 from 21 percent in 1995, a year after NAFTA went into effect. The U.S. content in Mexican manufactured goods fell by more, to 16 percent from 21 percent.

At the same time, Ross said the study shows content from non-NAFTA countries was rising over the same period, suggesting the origin rules needed to more tightly restrict NAFTA access benefits.

Mexican officials have said that Mexican imports into the United States contain an average of 40 percent U.S. content, arguing that the United States benefits from stronger economic integration with Mexico.

“These data debunk the claim that U.S. content in the form of parts is so high that we shouldn’t worry about headline gross-deficit figures,” Ross said in his op-ed.

The study also singled out rising non-NAFTA content in basic metals imports from Mexico and Canada, pointing to possible demands for tighter origin rules governing these products.

Reporting by David Lawder; Editing by Shri Navaratnam and Nick Zieminski

REUTERS. SEPTEMBER 21, 2017. U.S. Commerce chief: U.S. content falling in Mexican, Canadian imports

WASHINGTON (Reuters) - U.S. Commerce Secretary Wilbur Ross said on Thursday a new study by his department shows that U.S. value-added content is declining for manufactured goods imported from Mexico and Canada, arguing that this required tougher rules of origin in the North American Free Trade Agreement.

In a Washington Post opinion piece preview of the report to be released on Friday, Ross said the analysis of recently released OECD trade in value-added data shows a marked decline in U.S. content in automotive imports from Canada and Mexico from 1995 through 2011.

The report comes as chief U.S. negotiator John Melle prepares to present new text proposals at the third round of NAFTA talks in Ottawa, where he said “more challenging issues will start taking center stage.”.

Among these are rules of origin, a chapter in which the Trump administration wants more substantial U.S. content in autos, the main source of trade deficits with Canada and Mexico.

“If we don’t fix the rules of origin, negotiations on the rest of the agreement will fail to meaningfully shift the trade imbalance,” Ross said in the op-ed.

He said the U.S. content of manufactured goods from Canada dropped to 15 percent in 2011 from 21 percent in 1995, a year after NAFTA went into effect. The U.S. content in Mexican manufactured goods fell by more, to 16 percent from 21 percent.

At the same time, Ross said the study shows content from non- NAFTA countries was rising over the same period, suggesting the origin rules needed to more tightly restrict NAFTA access benefits.

Mexican officials have said that Mexican imports into the United States contain about 40 percent U.S. content.

“These data debunk the claim that U.S. content in the form of parts is so high that we shouldn’t worry about headline gross-deficit figures,” Ross said.

Reporting by David Lawder; Editing by Shri Navaratnam

BLOOMBERG. 22 September 2017. Nafta Countries Gather With ‘Narrow Path’ to Getting Quick Deal
By Josh Wingrove, Andrew Mayeda and Eric Martin

  • Talks will focus mostly on where countries agree, Canada says
  • Mexico says certain subjects remain elephants in the room

North American trading partners are downplaying expectations for major progress from talks to update the free-trade agreement that resume in Ottawa on Saturday, even as the clock runs down on their goal of getting a quick deal.

Talks to rewrite the 1994 trade accord were spurred in August by U.S. President Donald Trump, who has regularly threatened to withdraw if he can’t wring out better terms for American workers and industries. While complex negotiations for a pact that underpins more than $1.2 trillion in annual trade typically could take years, the countries are pushing to wrap up talks on modernizing the North American Free Trade Agreement by December.

“We are focusing for a start on identifying the areas where we have some agreement,” Canadian Foreign Minister Chrystia Freeland said on Sept. 12, when asked about expectations for the Ottawa talks. “I think the situation is as it was when we left Mexico City” at the last round three weeks ago.

A series of major barriers remain. They include a U.S. push to shrink its $63 billion trade deficit in goods with Mexico and do away with dispute panels favored by Canada; Canada’s drive to add “progressive” elements on gender, environment and labor rights; and Mexico and Canada’s opposition to a U.S. idea for a five-year sunset clause to renew or terminate the accord.

U.S. Trade Representative Robert Lighthizer on Sept. 18 said the parties are moving at “warp speed, but we don’t know whether we’re going to get to a conclusion, that’s the problem.”

‘Narrow Path’

“They have a narrow path and a narrow window to get it right,” Philip English, a former Republican lawmaker who is now co-chair of government relations at law firm Arent Fox in Washington, said by phone. “This will be very hard to do.”

The U.S. proposal to ditch the Chapter 19 tool -- which allows binational panels to hear subsidies and dumping cases -- and to tighten rules of origin determining what share of a product must be Nafta-produced to receive its tariff-free benefits, are particularly thorny, English said. “Whatever we do will involve some pain,” he said. “I see a minefield ahead that’s mind-numbing in its complexity.”

Freeland, Lighthizer and Mexican Economy Minister Ildefonso Guajardo on Sept. 5 wrapped up the second round of talks in Mexico City by expressing optimism that things were proceeding as fast as possible, and portraying the mood as cordial despite Trump’s repeated withdrawal threats.

Guajardo said this week that three or four out of seven Nafta chapters have large areas of agreement. Another dozen or so chapters will be more difficult to deal with, including any changes to provisions on Chapter 11 investor-state disputes. In addition, there are other “elephants in the room,” such as auto-content rules, and a U.S. push to cut its trade deficit, he said.

Big Balance

“This challenge of balancing two or three non-traditional issues within the negotiations is what will define if at the end of the day we will have an agreement or we will not have an agreement,” Guajardo said in Mexico City.

One government official from the Nafta region, speaking on the condition of anonymity, acknowledged there’s little hope of a major breakthrough in Ottawa and said most discussions will focus on finding areas of agreement, rather than working through disagreements.

Progress was made in the second round on provisions related to telecommunications, the digital economy and small business, the official said.

The biggest points of contention are expected to only surface near the end of overall Nafta negotiations and at a high level, the official said.


As the talks progress, “things will either really get moving or come to a halt,” said Nate Herman, who oversees government relations at the American Apparel and Footwear Association, which represents companies including Levi Strauss & Co. and Asics America Corp., in an interview. “We think at the very least you should do no harm. We’ve set up supply chains over the last 20 plus years that use this yarn forward rule.”

— With assistance by Greg Quinn

DoC. 09/22/2017. Trade In Value Added: Declining U.S.-Produced Content in U.S. Imports from NAFTA

It has been widely assumed that American-made parts and components constitute a substantial percentage of the products that are manufactured in Mexico and Canada and imported by the United States.

But that is increasingly not the case.

Analysis of newly released “value-added” data from the Organization of Economic Cooperation and Development (OECD) shows that the share of U.S.-produced content in manufactured imports from Mexico and Canada has eroded significantly since the mid-1990s.

The share of U.S.-produced content incorporated in manufactured goods imported by the United States from Mexico was only 16 percent in 2011, down from 26 percent in 1995, the first year for which the data are available.

Meanwhile, the share of Chinese content in Mexican products imported by the United States increased from 0.3 percent in 1995 to 6 percent in 2011, and the share of content from all non-NAFTA sources increased from 14 percent to 27 percent.

The same holds true with Canada: The share of U.S. parts and components in imports from Canada fell from 21 percent in 1995 to 15 percent in 2011, while the share of Chinese content increased from 0.3 percent to 3 percent, and the share of content from all non-NAFTA sources increased from 12 percent to 21 percent.

“The declining share of American parts and components in imports from Mexico and Canada is all the more reason for us to take a fresh look at NAFTA,” said Commerce Secretary Wilbur Ross. “The assumption was that American manufacturers of intermediate goods were big beneficiaries from trade with NAFTA, but with their share declining, American companies are not benefiting nearly as much as once believed. Even more alarming is the fact that the most recent data available on value-added in trade is only through the year 2011. The trend of Mexico and Canada using more non-U.S.-made parts and components may mean even more bad news for American producers.”



INFLATION - Consumer Price Index



StatCan. 2017-09-22. Consumer Price Index, August 2017

Consumer Price Index, August 2017: 1.4% increase (12-month change)
Source(s): CANSIM table 326-0020.

The Consumer Price Index (CPI) rose 1.4% on a year-over-year basis in August, following a 1.2% gain in July.

Chart 1   Chart 1: The 12-month change in the Consumer Price Index
The 12-month change in the Consumer Price Index

Chart 1: The 12-month change in the Consumer Price Index

12-month change in the major components

Prices were up in six of the eight major CPI components in the 12 months to August, with the transportation and shelter indexes contributing the most to the year-over-year rise. The clothing and footwear index and the household operations, furnishings and equipment index declined on a year-over-year basis.

Chart 2   Chart 2: Consumer prices increase in six of the eight major components 
Consumer prices increase in six of the eight major components

Chart 2: Consumer prices increase in six of the eight major components

Transportation costs rose 2.8% on a year-over-year basis in August, following a 1.9% increase the previous month. As in July, gasoline prices contributed the most to the gain in transportation prices and to their acceleration. The gasoline index rose 8.6% in the 12 months to August, following a 4.6% increase in July. Air transportation costs grew at a greater rate on a year-over-year basis in August than in July. In contrast, the rail, highway bus and other inter-city transportation index rose less on a year-over-year basis in August.

The shelter index increased 1.3% year over year in August, matching the gain in July. Homeowners' replacement costs contributed the most to the increase in prices, rising 4.2% in the 12 months to August. Prices for natural gas (+8.6%) increased at a slower year-over-year rate in August than in July. The electricity index was down 8.9% year over year in August, partly reflecting provincially legislated price reductions in Ontario earlier in 2017.

Consumer prices for food rose 0.9% on a year-over-year basis in August, after increasing 0.6% in July. Prices for food purchased from stores grew 0.3% year over year in August, following a 0.1% decline in July. Meat (+1.1%) and fresh fruit (+5.6%) prices grew at greater rates in August than in July. Prices for food purchased from restaurants rose 2.6% in August, matching the year-over-year gain in July.

In August, the household operations, furnishings and equipment index (-0.2%) was down on a year-over-year basis for the second consecutive month. The furniture index contributed the most to this decline, down 2.7% in the 12 months to August. Prices for household appliances declined 3.0% year over year in August, following a 2.0% decrease in July. Meanwhile, the tools and other household equipment index (+0.9%) rose less on a year-over-year basis in August than in July.

12-month change in the provinces

Consumer prices rose more on a year-over-year basis in nine provinces in August than in July, while the CPI in Manitoba registered the same increase as the previous month.

Saskatchewan posted the largest acceleration in consumer prices among the provinces, partly attributable to further changes in the province's Provincial Sales Tax (PST), effective in August.

Chart 3   Chart 3: Consumer prices rise at a faster rate in nine provinces
Consumer prices rise at a faster rate in nine provinces

Chart 3: Consumer prices rise at a faster rate in nine provinces

In Saskatchewan, the CPI increased 1.7% on a year-over-year basis in August, after rising 0.8% in July. This acceleration was partly attributable to the application of PST to insurance services in Saskatchewan that became effective in August. Month-over-month increases were recorded in the passenger vehicle insurance premiums index (+5.9%), homeowners' home and mortgage insurance index (+6.3%), insurance, licences and other services for recreational vehicles index (+3.2%), and tenants' insurance premiums index (+6.3%). Year over year, prices for food purchased from restaurants rose 8.7%, largely attributable to PST changes from the spring. Homeowners' replacement costs fell 0.7% in the 12-month period ending in August, while they rose 4.2% at the national level.

Consumer prices in Prince Edward Island rose 2.3% year over year in August, after increasing 1.8% in July. The large growth rate in consumer prices, relative to the other provinces, remains partly attributable to an increase in the Harmonized Sales Tax (HST) in Prince Edward Island that took effect in October 2016. The traveller accommodation index also contributed to the 12-month increase in the CPI, rising 23.0% on a year-over-year basis in August, following a 19.1% increase in July. Prices for fresh fruit fell 9.3% in the 12-month period ending in August, while they rose 5.6% at the national level.

The CPI in Manitoba increased 0.9% year-over-year in August, matching the gain in July. Consumers paid 12.8% more for fresh vegetables in the 12 months to August. At the same time, the natural gas index declined more in Manitoba than in any other province.

Seasonally adjusted monthly Consumer Price Index

On a seasonally adjusted monthly basis, the CPI increased 0.2% in August, matching the gain in July.

Chart 4   Chart 4: Seasonally adjusted monthly Consumer Price Index
Seasonally adjusted monthly Consumer Price Index

Chart 4: Seasonally adjusted monthly Consumer Price Index

Chart 5   Chart 5: Fresh or frozen beef index, annual average, Canada, 1971 to 2016
Fresh or frozen beef index, annual average, Canada, 1971 to 2016

Chart 5: Fresh or frozen beef index, annual average, Canada, 1971 to 2016

FULL DOCUMENT: http://www.statcan.gc.ca/daily-quotidien/170922/dq170922a-eng.pdf

BLOOMBERG. 22 September 2017. Canadian Inflation Accelerates to 1.4% on Gasoline
By Theophilos Argitis

Canadian consumer prices continued to show some signs of pick up last month, Statistics Canada said Friday in a report that could bolster policy makers’ confidence inflation is trending higher from extremely low levels.

Highlights of August CPI Report

  • Annual inflation accelerated to 1.4 percent, largely due to higher gasoline prices
  • The rate came in slightly below economist expectations for a 1.5 percent increase in August
  • The average of the Bank of Canada’s three key core inflation measures were 1.53 percent, versus 1.47 percent in July

Key Takeaways

After two rate hikes since July, investors are anticipating as many as three more increases from the Bank of Canada by the end of next year on the expectation the central bank will act to quash any inflation pressures.

While the inflation rate remains below the central bank’s target, the Bank of Canada has justified the rate hikes by citing quickly vanishing excess capacity in the economy and by claiming the forces keeping inflation subdued are temporary.

The clearest sign the recent weakness in prices has at least bottomed out are signs of rising key core inflation readings. The 1.53 percent reading is the highest since February.

Sluggish inflation has primarily been a goods phenomenon. The prices for goods have actually been deflating on a year-over- year basis in recent months, but showed some pick-up in August with a 0.4 percent reading. Service price inflation has been at or above the central bank’s 2 percent target for 10 months, and posted a 2.2 percent gain in August.



Other Details

  • For the three so-called core measures, the ‘common’ core rate was 1.5 percent, the ‘median’ core rate was 1.7 percent and the ‘trim’ measure was 1.4 percent
  • On the month, consumer prices were up 0.1 percent, versus a forecast for a 0.2 percent increase. On a seasonally adjusted basis, the price index rose 0.2 percent on the month.
  • Major contributors. Higher gasoline prices -- which were up 8.6 percent over the 12-month period -- were the major factor behind the rise in overall inflation.
  • Excluding gasoline, headline inflation was 1.1 percent from a year earlier, unchanged from July. Inflation would have been down 0.1 percent on a monthly basis excluding gasoline.



RETAIL



StatCan. 2017-09-22. Retail trade, July 2017

Retail sales — Canada: $49.1 billion, July 2017
0.4% increase (monthly change)
Source(s): CANSIM table 080-0020.

Retail sales rose 0.4% to $49.1 billion in July. Higher sales at motor vehicle and parts dealers and food and beverage stores were the main contributors to the gain.

Sales were up in 6 of 11 subsectors, representing 75% of total retail trade.

After removing the effects of price changes, retail sales in volume terms decreased 0.2%.

Chart 1   Chart 1: Retail sales increase in July
Retail sales increase in July

Chart 1: Retail sales increase in July

Higher sales at motor vehicle and parts dealers and food and beverage stores

Sales at motor vehicle and parts dealers were up 0.8% in July. Higher sales at new car dealers (+1.4%) accounted for the increase at the subsector level, more than offsetting declines at the other store types. Following gains in June, sales declined at used car dealers (-2.4%), other motor vehicle dealers (-2.7%) and automotive parts, accessories and tire stores (-0.2%).

Receipts at food and beverage stores were up 0.9%, rising for the fourth consecutive month. Higher sales were reported at all store types within the subsector. Sales at supermarkets and other grocery stores (+0.7%) and beer, wine and liquor stores (+1.8%) were the main contributors to the increase.

Health and personal care stores (+0.7%) reported higher sales for the sixth time in seven months.

Sales at miscellaneous store retailers advanced 0.9%, rising for the fourth consecutive month. Stores in this subsector include used merchandise stores, office supplies and stationery stores, and pet and pet supplies stores.

Sales at gasoline stations (-0.3%) were down for the third consecutive month in July.

Following a 1.9% gain in June, building material and garden equipment and supplies dealers (-0.2%) posted their first decline in five months.

Sales up in eight provinces

Retail sales were up in eight provinces in July.

Quebec (+1.0%) reported the largest increase in dollar terms, led by higher sales at new car dealers. Excluding sales at new car dealers, retail sales in Quebec decreased.

British Columbia (+0.7%) posted higher sales for the fifth consecutive month.

Sales in Ontario (+0.2%) increased for the fourth time in five months. Higher sales at food and beverage stores and health and personal care stores more than offset lower sales at motor vehicle and parts dealers.

Following three consecutive months of growth, retail sales in Alberta declined 0.6% in July. Lower sales were reported at motor vehicle and parts dealers.

Sales in Newfoundland and Labrador (-1.6%) decreased for the fifth time in six months.

Retail sales increase in two of three census metropolitan areas measured

Nearly 30% of total retail sales take place in Canada's three largest census metropolitan areas (CMAs): Toronto, Montréal and Vancouver. Historically, only unadjusted data series were available for these CMAs, but starting with the June 2017 release, seasonally adjusted series are now available.

In July, seasonally adjusted retail sales rose in two of the three CMAs measured. Retail sales in Vancouver (+1.3%) and Montréal (+0.9%) increased, while Toronto reported a 0.5% decline.

E-commerce sales by Canadian retailers

The figures in this section are based on unadjusted (that is, not seasonally adjusted) estimates.

On an unadjusted basis, retail e-commerce sales were $1.2 billion in July, accounting for 2.3% of total retail trade. On a year-over-year basis, retail e-commerce increased 46.8%, while total unadjusted retail sales rose 6.7%.

FULL DOCUMENT: http://www.statcan.gc.ca/daily-quotidien/170922/dq170922b-eng.pdf

StatCan. REUTERS. SEPTEMBER 22, 2017. Mixed bag of Canada economic data leaves room for more rate hikes
Leah Schnurr

OTTAWA (Reuters) - Canadian retail sales volumes declined in July, pointing to a slower pace of growth at the start of the third quarter, though a pick-up in inflation in August still left the central bank with room to raise interest rates again.

A moderation in growth heading into the third quarter is expected after a strong first half of the year made Canada a Group of Seven leader.

That solid performance prompted the Bank of Canada to raise interest rates twice so far in 2017. Economists are trying to gauge whether the central bank will raise rates once more by the end of the year or wait until 2018 to tighten.

Data released on Friday showed overall retail sales rose 0.4 percent. While that topped expectations, economists focused on a 0.2 percent decline in volumes, which suggested economic growth was likely flat in July.

Economists said Friday’s mixed data was not definitive either way and suggested the bank could take its time raising rates if it wants to.

“The bank is going to be looking at the retail data as maybe an indication that they don’t need to go on an exceptionally quick path toward normalization, but it’s not so weak a print that it’s going to preclude further tightening this year,” said Andrew Kelvin, senior rates strategist at TD Securities.

The annual inflation rate rose to 1.4 percent in August from 1.2 percent in July, slightly short of forecasts for 1.5 percent.

Two out of three of the central bank’s core measures also rose, suggesting inflation was stabilizing after recent weakness, economists said.

“It still implies the bank will at some point tighten further,” said Paul Farley, assistant chief economist at Royal Bank of Canada.

“However, the inflation is still below mid-range target, and does give them scope to undertake the tightening very gradually.”

The Canadian dollar pared gains against the greenback following the data. [CAD/]

Market odds of an increase in October declined to 37.7 percent from 41.6 percent just before the data, though traders still see 83 percent odds of a hike in December.

Higher gasoline prices helped drive total inflation higher, as did more expensive shelter and food.

The Bank of Canada’s CPI common measure rose to 1.5 percent, while CPI trim edged up to 1.4 percent. CPI median held steady at 1.7 percent.

A 0.8 percent increase in sales at motor vehicle and parts dealers helped drive overall retail sales higher, while sales at food and beverage stores rose 0.9 percent.

Graphic - Canada economic snapshot: tmsnrt.rs/2e8hNWV

Additional reporting by Fergal Smith and Solarina Ho in Toronto; Editing by Andrea Ricci



INTERNATIONAL TRADE



The Globe and Mail. 22 Sep 2017. TPP. A TPP without the United States would be a better deal for Canada
MARTHA HALL FINDLAY, President and CEO of the Canada West Foundation

NAFTA is becoming allconsuming. It is, without question, important for Canada.
But let’s be realistic. A bestcase outcome for the North American free-trade agreement is that we don’t lose what we already have with the United States, not about actually expanding our trade. For that, we must look elsewhere. The good news is that “elsewhere” is right under our noses: the Trans-Pacific Partnership (TPP), or more precisely, without the United States, the TPP11.
Losing sight of this opportunity would be a big mistake.
U.S. President Donald Trump hated the TPP even more than NAFTA. So much so that he signed an executive order removing the United States from the 12-country deal immediately on taking office. But like many other things he does, this may come back to haunt him.
Not only would the TPP have benefited the U.S. economy (as many frustrated U.S. companies well know), the remaining signatories are going ahead without the Americans – they have realized that, despite the attraction of the large U.S. market, they are still better off together, without the United States, than not at all. In some ways, the United States will be left behind.
For us, the time is now. Not only is the original promise of the TPP still valid; according to a recent report by Carlo Dade and Dan Ciuriak, both Canada and Mexico stand to do even better without the United States under a TPP11.
The report shows how Canada and other TPP signatories would fare under a TPP11; what the United States stands to lose; and how the agreement would affect different sectors of our economy.
Unfortunately, when Mr. Trump exited the TPP, our own minister responsible, Chrystia Freeland, said the deal could not proceed without the United States. As it turns out, this was premature, but it is taking time to get the TPP back into the Canadian mindset.
For Canada, the original TPP promised an opportunity to close the trade-agreement gap with its major Asia-Pacific competitors. Other countries had been signing agreements with some of the rapidly growing Asian countries and quickly taking market share in both goods and services. Canada was being left even further behind. Despite a lukewarm start politically at home, it became clear Canada stood to gain significantly from the trade expansion held out by the TPP. We joined the effort, ultimately signing on with the other 11.
So how would TPP11 be even better for Canada?
The detailed modelling and analysis shows that Canada’s welfare gains would improve to $3.4-billion under TPP11, compared with $2.8-billion under the original. Real GDP gains would improve to 0.082 per cent from 0.068 per cent. Big winners would be Canadian agriculture and agri-food, as these sectors would no longer be competing with their U.S. counterparts in the TPP11 markets.
Beef, in particular, would benefit through access to the Japanese market without having to share with the Americans. Canola, too, would benefit because of the elimination of Japan’s tariffescalating policy in the oilseed sector.
Canada is a trading country. We are far more dependent on trade, relatively speaking, than most countries, including the United States. Because the United States is our largest (and easiest) market, the NAFTA negotiations are very important, and the major focus and effort are appropriate.
We should be proud both of the multipartisan efforts by our elected officials, not only in Ottawa and Washington but across the country, as well as of the talent we have at the negotiating table.
But not only must we not lose sight of the opportunities of TPP11, businesses of all kinds – including manufacturers, resource firms, farmers, agrifood processors, professional service providers (pretty much anyone in Canada who works in an industry that benefits from trade, which in Canada means most of us) – should be encouraging these efforts and planning for the results.
And our government must commit some of our trade-negotiating talent for the TPP11 discussions under way. The deal is essentially done, save for revisions necessitated by the U.S. exit.
Not only should we be pursuing a TPP11 vigorously in its own right; doing so provides some leverage with respect to our NAFTA negotiations – the less dependent we are on the U.S. economy for our trade, the better. And particularly with NAFTA’s uncertainties, we do not want to be left behind in Asia again.

REUTERS. SEPTEMBER 22, 2017. Without U.S., 11 nations in TPP inch closer to a deal
Reuters Staff

TOKYO (Reuters) - The 11 nations remaining in the Trans-Pacific Partnership after the United States withdrew have inched closer to a comprehensive deal, offering hope that major countries can maintain free trade in the face of U.S. protectionism, a negotiator said on Friday.

The original 12-member TPP, which aimed to cut trade barriers in some of Asia’s fastest-growing economies, was thrown into limbo in January when U.S. President Donald Trump withdrew from the agreement to prioritize protecting U.S. jobs.

Negotiators met for two days in the Japanese capital, Tokyo, to discuss what parts of the original deal they wished to shelve, in a bid to salvage an ambitious vision for a free-trade bloc that originally included the United States.

The 11 TPP members agreed to meet again in Japan next month and aim to reach a broad agreement in November at an Asia-Pacific Economic Cooperation meeting set to be held in Vietnam’s central city of Danang.

“We made meaningful progress,” Japan’s chief TPP negotiator Kazuyoshi Umemoto, who chaired the two-day meeting, told reporters.

“A TPP ministerial meeting is likely to be held on the sidelines of an APEC summit in Danang. Everyone has shown they are working hard to make sure we can achieve the best result possible.”

Japan wants to promote free trade by continuing with the TPP 11 deal to counter U.S. protectionism and hopes Washington eventually rethinks Trump’s “America Frist” trade policy.

“The basic idea is that we would like the United States to come back as soon as possible, which would mean the original TPP would have to be ratified,” Umemoto said.

“We are discussing which parts are to be frozen for an early ratification of TPP 11 until then.”

Although the remaining members have voiced continued commitment to the deal, adoption of the pact linking 11 countries with a combined GDP of $12.4 trillion has stalled at times, raising fears that other countries may follow the United States.

At the previous meeting in Sydney late in August, Vietnam raised the prospect of changes to labor rights and intellectual property (IP) provisions in the original pact.

Vietnam’s desire to shelve the IP provisions around pharmaceutical data is likely to win broad support, as Japanese and New Zealand officials have indicated they back the change.

Negotiators also need to decide how to ratify the deal. The original pact required ratification by at least six countries accounting for 85 percent of the combined gross domestic product of members.

That condition cannot be fulfilled after the U.S. withdrew and would need to be changed.

A free trade deal Japan struck with the European Union in July, after four years of talks, offers hope for eventual resolution of the technical difficulties around TPP 11.

Reporting by Kaori Kaneko and Stanley White; Editing by Clarence Fernandez

Innovation, Science and Economic Development Canada. September 21, 2017.  CANADA-CHINA. Minister Chagger addresses Canada China Business Council annual general meeting. Strong people-to-people ties will be the foundation for mutual prosperity and growth, especially during the Canada-China Year of Tourism in 2018

Toronto, Ontario – Canada has strong ties with China, and the Government of Canada is committed to building on this strength to develop business and tourism connections that help grow trade and support the middle class in both countries. This is the message that the Honourable Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism, delivered at the Canada China Business Council annual general meeting in Toronto.

Minister Chagger talked about the importance of the Canada-China trade relationship and highlighted the Canada-China Year of Tourism in 2018 as an excellent opportunity to further expand people-to-people ties through tourism. The Minister also spoke about the strong business ties between Canada and China and how Canada’s New Tourism Vision and the Government’s Innovation and Skills Plan will help create new opportunities for Canadian companies to expand to, and grow in, the Chinese market.

Quotes
“Canada and China have a long and deep relationship. The many Canadians who have Chinese heritage—more than 1.5 million—tie our countries together. This deep personal connection also helps to strengthen our two countries’ commercial ties, with the ultimate goal of creating jobs, strengthening the middle class and building up our economies. With the Canada-China Year of Tourism coming in 2018, and our mutual commitment to double bilateral trade by 2025, I am confident that that our relationship will only continue to get stronger. I very much look forward to working with my Chinese colleagues as we approach 2018, and I welcome the great progress that we will achieve.”

– The Honourable Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism

Quick Facts

  • China is Canada’s second-largest single-nation trading partner. Two-way merchandise trade between Canada and China totalled almost $86 billion in 2016.
  • Canadians of Chinese descent account for roughly 4.5 percent of Canada’s population.
  • China is one of Canada’s fastest-growing tourism markets and is now our third-largest tourism source market. In 2016, more than 610,000 Chinese nationals visited Canada and spent an estimated $1.25 billion.

Canada China Business Council: https://www.ccbc.com/



AVIATION



BOEING. REUTERS. SEPTEMBER 21, 2017. Boeing boosts Southeast Asia order forecast on strong demand
Jamie Freed

SINGAPORE (Reuters) - Boeing Co (BA.N) said on Friday it had increased its 20-year forecast for Southeast Asian demand by 460 aircraft, the largest jump of any global region, as low-cost carriers make travel more accessible.

Boeing sees demand for 4,210 new airplanes worth $650 billion in Southeast Asia over the next two decades, based on an estimate of annual traffic growth of 6.2 percent. That is up from last year’s forecast of 3,750 aircraft valued at $550 billion.

“Look at countries like Vietnam, Thailand and Indonesia - that infrastructure has to grow and will grow,” said Dinesh Keskar, Boeing’s vice president for Asia-Pacific and India sales. “Aviation is the biggest source of tourism for the countries, it is the biggest source of moving people and moving cargo.”

Southeast Asia, home to rapidly growing low-cost carriers like Indonesia’s Lion Air, Vietnam’s Vietjet and Malaysia’s AirAsia Bhd (AIRA.KL), is taking on greater importance for Boeing and Airbus SE (AIR.PA) as North American and European markets are more mature with far lower growth rates.

Keskar said single-aisle airplanes like the 737 MAX and Airbus SE A320 were set to account for more than 70 percent of new deliveries as most travel in the region is expected to be short-haul.

China is also trying to compete in this market. The C919 narrowbody, which took its first test flight in May, has received 730 orders to date.

“Certainly we watch that, we watch our competition,” Keskar said of the C919. “We try to bring products which are superior with lower seat mile cost, better fuel burn and a better passenger experience.”

The Boeing forecast does not include any deliveries to Myanmar, Cambodia or Laos, which have less developed aviation sectors than neighboring countries like Thailand and Vietnam.

Airbus has not released a specific order forecast for Southeast Asia but a spokesman said the European manufacturer expected annual passenger growth of 7 percent a year over the next 20 years.

Boeing sees worldwide demand at 41,030 new airplanes over the next two decades. While it sees demand jumping the most in Southeast Asia, it has not yet given breakdowns for each global region.

Reporting by Jamie Freed in Singapore and Kanishka Singh in Bengaluru; Editing by Edwina Gibbs



COMPANIES



VOTORANTIM. REUTERS. SEPTEMBER 21, 2017. Brazil's Votorantim Metais files for New York, Toronto IPO

SAO PAULO/TORONTO (Reuters) - Brazil-based mining company Votorantim Metais Holding SA filed on Thursday for an initial public offering in New York and Toronto, to tap into a wide base of investors betting on a long-term recovery in zinc, copper, lead and silver prices.

Parent holding company Votorantim SA, Brazil’s largest diversified industrial group, is selling an undisclosed stake in the cross-border listing of VM Holding SA, according to a filing with the U.S. Securities and Exchange Commission. VM Holding will be renamed as Nexa Resources SA and be domiciled in Luxembourg, the filing said.

Other terms of the IPO, including size or a suggested price tag range, were not unveiled in the filing.

Reuters first reported the plan on April 10, and said on July 12 that the base metals producer - which mines for zinc, copper and lead in Brazil and Peru - was planning a $750 million offering valuing the company at $4 billion.

People familiar with the transaction told Reuters at the time that parent holding company Votorantim will use proceeds from the miner known as VMH to invest in other, high-return business areas. The IPO could take place between September and December, the people said at the time.

The IPO should help Votorantim Chief Executive Officer João Miranda, who has spearheaded rapid growth in VMH despite volatility in metal prices, to cut the group’s debt of about 15 billion reais ($4.8 billion).

Votorantim and VMH hired the investment-banking units of JPMorgan Chase & Co (JPM.N), Morgan Stanley (MS.N), Credit Suisse Group AG (CSGN.S), BMO Financial Group, Bank of America Corp (BAC.N), Citigroup Inc (C.N), Bank of Nova Scotia (BNS.TO), Banco Bradesco SA (BBDC4.SA) and Credicorp Ltd (BAP.LM).

With a presence in Brazil and Peru, where it holds a majority stake in Cia Minera Milpo SA MIL.LM, VMH operates five industrial compounds in Brazil’s state of Minas Gerais, and in Cajamarquilla in Peru. VMH also has sales offices in Houston and Luxembourg.

Reporting by Tatiana Bautzer in Sao Paulo and John Tilak in Toronto; Editing by Guillermo Parra-Bernal and Lisa Shumaker

________________

LGCJ.:
Elaborado e postado por: