CANADA ECONOMICS

NAFTA

The Globe and Mail. 20 Dec 2017. U.S. auto-content demands based on faulty data: study. Scotiabank analysis finds North American share of vehicle parts has grown since 2011
GREG KEENAN, AUTO INDUSTRY REPORTER

Demands by the United States for higher levels of North American content in automobiles and 50-per-cent U.S. content in vehicles made in Canada and Mexico are based on faulty data, Bank of Nova Scotia says in a study that bolsters the two countries’ rejection of a key U.S. proposal.

The share of North American parts in vehicles assembled in Canada and Mexico has grown since 2011, an analysis done by the bank says, disputing U.S. assertions that its partners in the North American free-trade agreement provide a back door for lowercost auto parts from China and elsewhere in Asia.

The study, issued Tuesday, provides new support for Canadian and Mexican negotiators, who have rejected outright the 85/50 demand on autos – that 85 per cent of the content of a North American vehicle come from within NAFTA and 50 per cent of the value of vehicles imported into the United States from Canada and Mexico have U.S. parts.

“The U.S. proposal to tighten NAFTA’s rules of origin on vehicles is an ill-conceived solution in search of a problem. It would be an unnecessary restriction on the North American auto sector that would render it less competitive against its global peers,” the study maintains. “Rather than helping the U.S. auto industry, tighter NAFTA rules of origin on autos would likely make the sector more inflexible and less competitive.”

That comment echoes those made by auto makers, Canadian auto parts companies and negotiators from Canada during the fifth round of talks held last month in Mexico City.

Car companies and parts makers have urged the Trump administration to withdraw the demands, pointing out that North America needs a low-cost region within the trading bloc where parts with high-labour content can be manufactured.

That would keep the NAFTA bloc competitive with Asia and Europe, where auto makers benefit from the ability to source components and some vehicles from low-cost countries.

The bank estimates that North American content in vehicles assembled in Canada and Mexico has risen to 70 per cent and 74 per cent, respectively, since 2011.

That conclusion disputes a U.S. Commerce Department study that is believed to underpin the U.S. demands for higher content. That study argued that North American content declined since 2011, although it was based on data for the years before 2011 and Commerce Secretary Wilbur Ross declared there was no reason to believe that post-2011 numbers would show North American content rising. “There is little evidence to support the U.S. view that NAFTA content in Canadian and Mexican-assembled vehicles is declining and that both countries are providing a so-called ‘back door’ for Asian content to enter North American value chains,” the bank said.

The Bank of Nova Scotia numbers for Canadian and Mexican parts content show that vehicles assembled in the two countries are well above the current requirement that they must contain 62.5 per cent content from the three NAFTA countries to qualify for duty-free shipment within the trade zone.

About 80 per cent of vehicle parts sold in North America originate from one of the NAFTA countries, the bank said. It estimates U.S. parts account for 50 per cent of the North American components market over all, hitting that number in Canada, 60 per cent in U.S.-assembled vehicles and 35 per cent in vehicles built in Mexico.

NAFTA content in U.S.-made vehicles is estimated to have declined to 65 per cent from 71 per cent. But that decline can be attributed to a successful U.S. policy that led to Asia and Europe-based auto makers investing billions of dollars in new assembly plants.

Offshore-based auto makers now account for 60 per cent of U.S. vehicle production, compared with 45 per cent in 2011. Those companies may be using more parts from their home countries for design reasons, the report said.

The Globe and Mail. 20 Dec 2017. After struggle with alcoholism, oil patch power broker sues former employer. Softwood: The U.S. lumber industry targeted four mandatory respondents from Canada
JEFFREY JONES, CALGARY

Final countervailing rates are expected to take effect in late December or early January.

A former high-flying stock broker says Richardson GMP’s executives brushed off his warnings that alcoholism was ruining his work and personal life then fired him after a lengthy stay in rehab.

Adam Woodward, the Calgary investment adviser at the centre of mounting legal action stemming from heavy losses among clients, is suing his ex-employer for at least $225,000, claiming he was unfairly dismissed for conduct he says was “systemic within RGMP’s culture.” His downfall was the subject of a Globe and Mail feature in June.

Mr. Woodward alleges the firm discriminated against him on the basis of a disability – in this case, addiction – and made him a scapegoat for a series of alleged code-of-conduct breaches that are now the subject of numerous legal and regulatory actions. None of the allegations has been proved in court.

“RGMP discriminated against Mr. Woodward on the basis of a disability,” says his statement of claim, filed in a Calgary court this month. “Its suspension and general mistreatment of him, and subsequent failure to return him to work, was motivated – or in the alternative, partially motivated – by the fact of his addiction issues. These same addiction issues were outright encouraged and fostered by RGMP when he performed at a high level.”

Mr. Woodward, his former supervisor and Richardson GMP are already co-defendants in a $50-million lawsuit brought by former clients of Mr. Woodward and the in-house team he led known as Woodward Asset Management.

They claim they lost major portions of their retirement savings during the oil-industry downturn, owing to disproportionate investments in small, privately held oil and gas stocks regardless of their personal tolerance for risk.

The Department of Commerce in Washington decided earlier this year to penalize Canadian producers with preliminary tariffs, first with countervailing duties starting on April 28 for what the United States sees as subsidized Canadian lumber and then anti-dumping duties beginning on June 30 for what the Americans deem to be softwood sold below market value.

Michael Burt, the Conference Board’s director of industrial trends, said Canadian producers benefited in

2017 from robust demand and weakened supply for softwood, despite having to pay what will amount to at least $500-million in U.S. duties this year.

“Lumber prices are at their highest levels in over a decade due to a perfect storm of factors, including supply constraints in B.C. from the wildfires this summer, and increased demand from a recovering U.S. housing market and rebuilding efforts in hurricane-affected regions,” Mr. Burt said in a statement.

RBC Dominion Securities Inc. analyst Paul Quinn said new residential construction numbers for November show jumps in American housing starts and permits, especially in the key U.S. South market. “Housing starts in the U.S. South look to have regained some strength after the recent hurricanes,” he said in a research note.

Mr. Quinn added in an e-mail that U.S. lumber duties paid by Canadian producers in 2018 could be roughly double the total amount of tariffs from this year.

The U.S. lumber industry targeted four mandatory respondents from Canada: Resolute Forest Products Inc. of Montreal and three B.C.-based producers – West Fraser Timber Co. Ltd., Canfor Corp. and Tolko Industries Ltd.

The Commerce Department reduced final tariffs slightly for West Fraser and Canfor, imposing a combined duty of 23.56 per cent against West Fraser and 20.52 per cent on Canfor. Tolko faces a final combined duty of 22.07 per cent, Resolute 17.90 per cent and voluntary respondent J.D. Irving Ltd. of New Brunswick 9.92 per cent. Other Canadian producers will pay the weighted average of 20.23 per cent.

New anti-dumping rates kicked in on Nov. 8 while final countervailing rates are expected to take effect in late December or early January.

Canada has filed appeals under the Chapter 19 dispute resolution mechanism of the North American free-trade agreement and also through the World Trade Organization.

“Lumber tariffs on Canadian shipments of softwood lumber to the U.S. have resulted in a sharp decline in sawmill exports, which prior to the duties had been the key driver of the industry’s strong export performance,” according to the Conference Board’s softwood report.

BOMBARDIER

Global Affairs Canada. December 20, 2017. Statement by Minister of Foreign Affairs on U.S. Department of Commerce’s final duty determinations on Bombardier C Series aircraft

Ottawa, Ontario - The Honourable Chrystia Freeland, Minister of Foreign Affairs, today issued the following statement:

“Canada’s innovative aerospace industry supports well-paying middle-class jobs on both sides of the Canada-United States border through a highly integrated production and supply chain that enhances North America’s global competitiveness.

“The high final countervailing and anti-dumping duty rates announced by the U.S. Department of Commerce on imports of Bombardier’s C Series aircraft are highly punitive to aerospace workers on both sides of the border.

“The Government of Canada is deeply troubled by the protectionist nature of Boeing’s allegations, which seek to advance its market dominance by excluding Bombardier’s C Series aircraft from the U.S. market. It is beyond all reason that Boeing could be threatened with injury in a market segment it exited over a decade ago.

“Boeing’s failure to credibly demonstrate that it is being threatened with injury by the C Series was underscored by David MacNaughton, Canada’s Ambassador to the United States, and Sir Kim Darroch, the U.K.’s Ambassador to the United States, during their statements at Monday’s U.S. International Trade Commission hearing.

“We are steadfast in our determination to defend Canadian companies and workers against protectionism. We will review today’s final determinations to consider next steps and our options for appeal. We will continue to raise this issue with the U.S. administration, American elected officials and representatives of Boeing.”

DoC. USITC. December 20, 2017. U.S. Department of Commerce Finds Dumping and Subsidization of Imports of 100- to 150-Seat Large Civil Aircraft from Canada

Today, U.S. Secretary of Commerce Wilbur Ross announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of 100- to 150-seat large civil aircraft from Canada.

“This decision is based on a full and unbiased review of the facts in an open and transparent process.” said Secretary Ross. “The United States is committed to a free, fair, and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports.”

Commerce determined that exporters from Canada sold 100- to 150-seat large civil aircraft in the United States at 79.82 percent less than fair value.  Commerce also determined that Canada is providing unfair subsidies to its producers of 100- to 150-seat large civil aircraft at a rate of 212.39 percent.

As a result of today’s decisions, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of 100- to 150-seat large civil aircraft based on the final rates.

Although Canadian civil aircraft subject to these investigations have not yet been imported into the United States, an April 2016 press release announcing the sale of Canadian civil aircraft to a U.S. airline valued the order to be in excess of $5 billion.

Bombardier, the Government of Canada, and Petitioners agreed that the proposed transaction between Bombardier and Airbus does not impact these investigations.  The proposed transaction has yet to be finalized.

The petitioner is The Boeing Company (IL).

The AD and CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of dumping unfairly priced and unfairly subsidized imports into the United States.

Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through December 18, 2017, Commerce initiated 79 antidumping and countervailing duty investigations – a 52 percent increase from 52 initiations in the previous year.  Commerce currently maintains 412 AD and CVD orders which provide relief to American companies and industries impacted by unfair trade.

If the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD and CVD orders.  If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based solely on factual evidence.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties.  Foreign companies that receive financial assistance from foreign governments that benefits the production of goods from foreign companies and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.

Fact sheet: https://www.commerce.gov/sites/commerce.gov/files/fact_sheet_commerce_finds_dumping_and_subsidization_of_imports_of_100-_to_150-seat_large_civil_aircraft_from_canada.pdf

BOMBARDIER. December 18, 2017. Bombardier Statement on ITC Hearing

Montréal - Mike Nadolski, Vice President Communications and Public Affairs, issued the following statement in response to today’s hearing before the United States International Trade Commission:

“We are very pleased with the evidence presented today by Bombardier, Delta, and others demonstrating that Boeing’s petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry. That has been true since the start of the investigation, and recent developments make it even clearer.

Most significantly, the Bombardier and Airbus C Series partnership will include the construction of a new U.S. manufacturing facility in Alabama. This facility will provide U.S. airlines with a U.S.-built plane thereby eliminating any possibility of Boeing being harmed by imports.

Bombardier estimates that the new Alabama assembly line will add 400 to 500 direct jobs in the United States, along with thousands more indirect and induced U.S. jobs. It will also bring approximately $300 million in new foreign direct investment to the United States. These new U.S. jobs and investment are in addition to the 22,700 jobs already supported by Bombardier’s C Series through its U.S. supply base.

The Commission also heard clear evidence today that the C Series simply does not threaten Boeing. Boeing did not compete in the Delta campaign. It has not made a plane sized to Delta’s needs for many years, since it stopped producing the 717 and 737-600. Moreover, Boeing has acknowledged that it has oversold its 737 production capabilities and has a backlog of more than 4,300 aircraft orders.

Bombardier’s innovative spirit led us to create the C Series, which is more comfortable, reliable, fuel efficient, and environmentally friendly than anything else in the market. The U.S. flying public and U.S. airlines should not be precluded from enjoying these benefits, especially given the tremendous positive impact the C Series brings to the U.S. aerospace industry.”

BOEING. Dec. 18, 2017. Boeing Statement on ITC Hearing RE: Bombardier’s Harm to U.S. Industry

WASHINGTON,  – The Boeing Company released the following statement regarding today’s public hearing at the International Trade Commission (ITC) on Bombardier’s illegal business practices with its C Series aircraft and how those practices have harmed U.S. domestic industry.

“Boeing brought this case seeking enforcement of U.S. trade law, which mirrors the widely-accepted rules of international trade adopted by most WTO member nations, including Canada. The resulting Department of Commerce and ITC investigations are part of a longstanding, transparent, and rigorous fact-based process for resolving precisely these sorts of commercial trade disputes. Today’s hearing was simply the next step in that process, as the ITC considered extensive evidence that underscored the harm Bombardier’s unlawful actions have caused U.S. industry.

“These investigations have already established beyond question that Bombardier has taken billions of dollars in illegal government subsidies to prop up its C Series program. The C Series would not even exist at this point but for those subsidies. The investigations have also left no doubt Bombardier used these government funds to dump aircraft into the U.S. market at absurdly low prices, millions below their cost of production and millions below the price of the same aircraft in Canada. Bombardier’s conduct is flatly inconsistent with U.S. trade law, and it has caused severe harm to Boeing, its employees, and its suppliers.

“Boeing welcomes competition, but it must be competition on a level playing field. Bombardier can sell their aircraft anywhere in the world, so long as they follow the law and comply with the trade rules we have all agreed to.”

REUTERS. DECEMBER 19, 2017. Canada may take Bombardier-Boeing dispute to WTO but no quick fix seen
Leah Schnurr

OTTAWA (Reuters) - Canada may ask the World Trade Organization to intervene in the dispute over a proposed 300 percent duty on U.S. sales of Bombardier’s CSeries jets, but any resolution of the trade spat could still take years, experts said on Tuesday.

The U.S. Commerce Department is due this week to announce a final determination in the dispute between Boeing Co BA.N and Bombardier Inc, which faces the massive duty on sales of the fuel efficient, narrowbody CSeries on the U.S. market.

Boeing says the Canadian company benefited from government subsidies and dumped the planes at below cost. The proposed duties would not take effect unless affirmed by the U.S. International Trade Commission (ITC) in February.

The case has heightened trade tensions between Canada and the United States at a time when the two countries, together with Mexico, have been struggling to renegotiate the North American Free Trade Agreement (NAFTA).

U.S. President Donald Trump, known for his so-called America First strategy to boost U.S. manufacturing, has threatened to withdraw from NAFTA unless he can rework it in favor of the United States.

A spokesman for Foreign Affairs Minister Chrystia Freeland did not immediately respond to questions about what Canada would do next in the Boeing dispute. But it scrapped plans to buy 18 Boeing fighter jets just last week, in a sign of escalating tensions.

Experts said a trade challenge under the WTO or NAFTA’s arbitration system known as Chapter 19 are both good options for Canada, even as the United States seeks to eliminate the latter. U.S. trade envoy Robert Lighthizer has also called the WTO dispute settlement “deficient.”

“I would recommend Canada use all its options,” said international trade strategist Peter Clark.

Canada’s ambassador to the United States, David MacNaughton, made a compelling argument before the ITC on Monday when he said a finding of material harm to Boeing by Bombardier could represent a possible violation of WTO agreements, the experts said.

VARIOUS TOOLS

The WTO already opened a separate dispute settlement panel in September to rule on Brazil’s complaint that Canada has hurt its commercial jet industry by subsidizing Bombardier’s CSeries jets.

“If (the ITC) were to find injury, I think it would be hard at a WTO level to sustain that, because it doesn’t look like the CSeries is really a competitor” to Boeing’s aircraft, said Canadian and U.S. trade lawyer Mark Warner.

Given how quickly the Canadian government filed challenges in a separate trade dispute with the United States over softwood lumber, it would likely take the Bombardier case to the WTO shortly after any adverse ruling by the ITC, said Warner.

“My judgment of the Canadian government is they seem to have a very aggressive approach to both trade negotiations and trade dispute settlements,” said Warner.

Canada opened challenges under both the WTO and NAFTA last month over a recent U.S. Commerce Department decision to impose duties on Canadian lumber exports.

The real purpose of a challenge at the WTO would likely be to gain some leverage in order to come to a negotiated settlement with the United States, said Ian Lee, professor of business at Carleton University.

“If we do go to the WTO, it’s not to get finality and resolution, it’s only to push the Americans back to the negotiating table,” Lee said. “You use whatever tools are in your tool kit.”

But trade challenges can drag on for years, which could pose a problem for Bombardier as it tries to find U.S. buyers for the CSeries.

“The real threat to Bombardier is are they going to be able to sign new contracts with people,” said Warner. “That’s the chilling effect the decision has on Bombardier.”

Reporting by Leah Schnurr; Editing by Tom Brown

G-7

December 20, 2017. Global Affairs Canada. Foreign Affairs Minister to visit Ukraine

Ottawa, Ontario - The Honourable Chrystia Freeland, Minister of Foreign Affairs, today announced that she will travel to Ukraine from December 21 to December 22, 2017—her first visit to Ukraine as Minister of Foreign Affairs.

She will meet with President Petro Poroshenko, Prime Minister Volodymyr Groysman and Foreign Minister Pavlo Klimkin to discuss the current political and security situation in the country and to celebrate the 100th anniversary of the establishment of Ukrainian diplomacy. The Minister will also meet with several Ukrainian ministers leading on the implementation of reforms.

In order to address the most pressing needs of people affected by the conflict in eastern Ukraine, the Minister is today announcing $7.75 million in humanitarian assistance funding for 2017 and 2018. This assistance is being provided to a number of experienced and trusted international humanitarian partners operating in Ukraine.

Quotes

“Canada is among the strongest international supporters of Ukraine. One of the themes that will guide our G7 Presidency in 2018 is how to build a more peaceful and secure world. In that context, I look forward to addressing vital issues, including respect for Ukraine’s sovereignty and territorial integrity, as well as how Canada can support the people of Ukraine in determining their own future.”

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

Quick Facts

• Since 2014, Canada has provided more than $27 million in humanitarian assistance funding to Ukraine.
• As announced by the Prime Minister on December 14, 2017, “Building a More Peaceful and Secure World” will be one of the five themes that will frame the G7 agenda during Canada’s 2018 Presidency.

1. Embassy of Canada to Ukraine: http://canadainternational.gc.ca/ukraine/index.aspx?lang=eng
2. Canada-Ukraine Free Trade Agreement: https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ukraine/index.aspx?lang=eng
3. Canada’s response to the situation in Ukraine: http://www.international.gc.ca/international/ukraine.aspx?lang=eng
4. Canada adds Ukraine to Automatic Firearms Country Control List: https://www.canada.ca/en/global-affairs/news/2017/12/canada_adds_ukrainetoautomaticfirearmscountrycontrollist0.html
5. Operation UNIFIER: http://www.forces.gc.ca/en/operations-abroad/op-unifier.page
6. Government of Canada Signs Defence Cooperation Arrangement With Ukraine: https://www.canada.ca/en/department-national-defence/news/2017/04/government_of_canadasignsdefencecooperationarrangementwithukrain.html
7. Prime Minister Trudeau unveils themes for Canada’s 2018 G7 Presidency: https://pm.gc.ca/eng/news/2017/12/14/prime-minister-unveils-themes-canadas-2018-g7-presidency

WHOLESALE TRADE

StatCan. 2017-12-20. Wholesale trade, October 2017

• Wholesale sales — Canada: $63.0 billion, October 2017, 1.5% increase (monthly change)
• Source(s): CANSIM table 081-0011: http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0810011&&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=

Wholesale sales increased 1.5% to $63.0 billion in October, more than offsetting the 1.1% decline in September. Gains were reported in six of seven subsectors, together representing 81% of total wholesale sales. The machinery, equipment and supplies and the personal and household goods subsectors contributed the most to the increase.

In volume terms, wholesale sales were up 1.2%.

Chart 1: Wholesale sales increase in October

Sales increase in six of seven subsectors, led by the machinery, equipment and supplies subsector

In dollar terms, the machinery, equipment and supplies subsector reported the largest increase in October, as sales rose 5.2% to $12.7 billion. Sales were up in all four industries, led by the farm, lawn and garden machinery and equipment industry (+19.0%) following a 9.7% decline in September.

Sales in the personal and household goods subsector rose 3.4% to $8.9 billion as all industries posted gains in October. Much of October's increase was attributable to higher sales in the textile, clothing and footwear industry, up 10.3% to $1.3 billion. This was the fourth increase in five months for the industry.

Following two months of declines, sales in the food, beverage and tobacco subsector rose 1.8% in October, to $12.0 billion. Higher sales in the subsector were largely attributable to a 1.8% gain in the food industry, mostly offsetting the industry's 2.0% decline in September.

The motor vehicle and parts subsector posted the lone decline in October, decreasing 2.3% to $11.8 billion. The motor vehicle industry accounted for most of the decline as sales fell for the first time in four months, down 3.1% to $9.6 billion.

Sales up in nine provinces, led by Quebec, Saskatchewan and Ontario

Wholesale sales in Quebec rose 3.2% to $11.5 billion in October after a 1.3% decline in September. Sales were up in four of seven subsectors, led by the machinery, equipment and supplies (+19.4%) and the food, beverage and tobacco (+4.8%) subsectors.

In Saskatchewan, wholesale sales were up 10.1% to $2.4 billion, with higher sales in all seven subsectors. The majority of the gain was driven by the machinery, equipment and supplies (+15.1%) and the miscellaneous (+4.9%) subsectors.

Sales in Ontario rose 0.5% to $32.2 billion. The increase was attributable to higher sales in the personal and household goods (+5.4%) and the machinery, equipment and supplies (+3.0%) subsectors.

In Newfoundland and Labrador, wholesale sales were down 2.4% to $392 million. The food, beverage and tobacco (-4.2%) and the motor vehicle and parts subsectors were the main contributors to the decline.

Wholesale inventories increase for the sixth time in seven months

Wholesale inventories increased 0.8% to $82.1 billion in October, the sixth gain in seven months.

Chart 2: Inventories up in October

The machinery, equipment and supplies subsector (+3.5%) led the increases, with higher inventories in all four industries in the subsector. In October, the increase was led by the construction, forestry, mining, and industrial machinery, equipment and supplies industry (+3.5%). The machinery, equipment and supplies subsector has recorded increases in four of the past five months, increasing 7.0% over that period.

The food, beverage and tobacco subsector (+1.9%) rose for the eighth consecutive month, on the strength of the food industry (+2.1%). This was the subsector's largest monthly increase since November 2016.

Higher inventories in the personal and household goods subsector (+1.0%) were led by increased stock levels in the textile, clothing and footwear industry (+4.4%).

Movement in the miscellaneous subsector (-2.0%) was due primarily to a 2.8% decline in the agricultural supplies industry. This was the fourth consecutive decline for the miscellaneous subsector.

The inventory-to-sales ratio decreased from 1.31 in September to 1.30 in October. This ratio is a measure of the time in months required to exhaust inventories if sales were to remain at their current level.

FULL DOCUMENT: http://www.statcan.gc.ca/daily-quotidien/171220/dq171220a-eng.pdf

REUTERS. DECEMBER 20, 2017. Canada wholesale trade jumps in October on machinery, household goods

OTTAWA (Reuters) - The value of Canadian wholesale trade jumped by more than expected in October on increased purchases of machinery and equipment, as well as household goods, data from Statistics Canada showed on Wednesday.

The 1.5 percent increase topped economists’ forecasts for a gain of 0.5 percent and offset September’s 1.1 percent decline. Removing the effects of price changes, volumes were up 1.2 percent in October.

The report boded well for the economy at the start of the fourth quarter. Still, Canada is expected see slower economic growth in the second half of the year after setting a blistering pace in the first half.

Wholesale trade rose in six out of seven sectors, accounting for 81 percent of total sales and led by a 5.2 percent increase in machinery, equipment and supplies.

The personal and household goods sector was up 3.4 percent on higher sales in the textile, clothing and footwear category, which was up for the fourth time in five months.

The motor vehicle and parts sector fell 2.3 percent, the only group to post a decline as vehicle sales fell for the first time in four months. Canadian vehicle sales have been robust this year and could hit 2 million for the first time.

Reporting by Leah Schnurr; Editing by Nick Zieminski

POPULATION

StatCan. 2017-12-20. Canada's population estimates, third quarter 2017

• Quarterly population estimate — Canada: 36,885,049, October 1, 2017, 0.5% increase (quarterly change)
• Source(s): CANSIM table 051-0005: http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=0510005&&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=

Demographic estimates for Canada, the provinces and the territories are now available for the third quarter.

FULL DOCUMENT: http://www.statcan.gc.ca/daily-quotidien/171220/dq171220e-eng.pdf

________________

LGCJ.: