CANADA ECONOMICS

MERCOSUR - CANADA

Global Affairs Canada. February 23, 2018. Minister Champagne announces positive conclusions of exploratory talks with Mercosur

Ottawa, Ontario - Canada is committed to a progressive and diversified trade agenda that puts the interests of middle-class Canadians front and centre. More trade means growth, and growth means more jobs, which is why the government continues to explore new opportunities to negotiate free trade agreements with fast-growing global markets.

The Honourable François-Philippe Champagne, Minister of International Trade, is pleased to announce the positive conclusion of the exploratory discussions on a comprehensive free trade agreement with Mercosur trade bloc, which consists of Argentina, Brazil, Paraguay and Uruguay.

This outcome builds on the Canada–Mercosur joint statement, which confirmed the intent to deepen the trade relationship, issued on the margins of the World Trade Organization meetings held in Marrakesh, Morocco, in October 2017.

As the world’s fourth-largest trading bloc and with a population of 260 million and a combined GDP of over $3 trillion, Mercosur offers Canadian companies opportunities to access these large fast-growing markets with the potential to increase well-paying, middle-class jobs at home. From auto parts to chemicals to lumber to seafood, this important market is ripe for Canadian products and for the workers who produce them. A comprehensive free trade agreement with Mercosur also has the potential to reduce tariffs on many of Mercosur’s exports to Canada—benefiting Canadian customers looking for more choices at more affordable prices, such as apparel or furniture.

Should Canada and Mercosur launch comprehensive negotiations, the Government of Canada will remain committed to a progressive trade agenda, one that creates more opportunities for everyone, including women and Indigenous peoples.

Quotes

“Canada recognizes the enormous opportunities Mercosur represents to diversify markets, create more jobs at home and pave the way for Canadians to compete and win across the Americas.”

- François-Philippe Champagne, Minister of International Trade

Quick facts

• The South American trade bloc Mercosur is a customs union established by Argentina, Brazil, Paraguay and Uruguay in 1991.
• In 2016, the four members of Mercosur had a combined GDP of $3.2 trillion and a population of 260 million people.
• Mercosur accounts for more than two thirds of the total economic activity in South America.
• In 2016, bilateral merchandise trade between Canada and Mercosur reached a value of $8.9 billion.

Backgrounder

Canada and the Mercosur member states—Argentina, Brazil, Paraguay and Uruguay—have agreed on the strong potential to develop a more ambitious trade relationship by enhancing trade and investment flows through a comprehensive free trade agreement.

In concluding exploratory discussions, Canada and Mercosur concurred that, if they were in agreement to launch comprehensive negotiations, the outcome of negotiations would have to be commercially meaningful, mutually beneficial and balanced.

Both Parties also expressed their interest to include provisions that contribute to broader economic, social and environmental policy priorities, reflecting the objective of allowing for larger participation of civil societies in the shaping of and following up on the agreement.

Canada and Mercosur also agreed on the overall framework of negotiations, such as the timing for a potential first meeting, alternating rounds between Mercosur countries and Canada, and the appointment of spokespersons. The following is the agreed outline for negotiations, with other issues to be added as appropriate:

Trade in goods

Rules of origin

Origin procedures

Trade facilitation and customs cooperation

Trade remedies

Sanitary and phytosanitary measures

Technical barriers to trade

Trade in services

• Cross-border trade in services
• Financial services
• Temporary entry
• Telecommunications

Investment

Intellectual property rights

Competition policy and public and private market participants

Government procurement

Inclusive trade

• Environment
• Labour
• Micro, small and medium-sized enterprises
• Trade and gender
• Electronic commerce

Horizontal, legal and institutional provisions (including dispute settlement)

A broad range of Canadians, including representatives from industry and business organizations, Indigenous groups, labour unions, civil society, environmental groups and Crown corporations, shared their views on entering into free trade agreement negotiations with Mercosur.

The messages received from Canadians indicate general support for the initiative, noting market expansion opportunities for Canadian businesses in this thriving region, as well as opportunities to address existing non-tariff trade barriers.

Canada-Mercosur Free Trade Agreement: https://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/mercosur/index.aspx?lang=eng

CANADA - INDIA

PM. February 23, 2018. Canada announces new partnerships with India

New Delhi, India - Canada and India share a strong relationship, and are working together to create good, middle class jobs and more opportunities for Canadians and Indians alike.

The Prime Minister, Justin Trudeau, today met with the Prime Minister of India, Narendra Modi, and announced a wide range of new initiatives and agreements between both countries that span education, security, sustainable development, trade and investment, and women’s health and empowerment.

Prime Minister Trudeau and Prime Minister Modi also released a Joint Statement that outlines the way forward for the Canada-India relationship and how we will invest in mutual growth, achieve gender equality, and empower women. We will also cooperate to strengthen our cultural and economic ties, build a more peaceful and secure world, and work together on climate change, oceans, space, and clean energy.

This morning, Prime Minister Trudeau laid a wreath at the Raj Ghat – a memorial dedicated to Mahatma Gandhi – to pay his respects to the leader of Indian independence. He also met with the Indian Minister of External Affairs, Sushma Swaraj.

Later today, Prime Minister Trudeau will meet with the President of India, Ram Nath Kovind, and the President of the Indian National Congress Party, Rahul Gandhi.

Quote

“It was a pleasure to meet with Prime Minister Modi again. Canada and India share a special friendship, and the agreements that we reached today will grow our middle class, create new opportunities for Canadians and Indians alike, and deepen the bonds that bring our two countries together.”

—The Rt. Hon. Justin Trudeau, Prime Minister of Canada

Quick Facts

• In expanding the Canada-India relationship, we will focus on the following areas:
• Growth and prosperity, including partnerships to support business development and customs cooperation, and increased partnerships to advance education, research, and innovation;
• Women’s empowerment, specifically women’s social and economic empowerment, gender equality, and health issues such as sexual and reproductive health and rights, water and sanitation, and mental health;
• Security, including increased cooperation in the areas of counter-terrorism and peacekeeping; and
• Sustainable development, specifically increased cooperation in the areas of energy and issues related to the environment and climate change.

Canada-India joint agreements and initiatives

New Delhi, India - February 23, 2018 - Today, Canada announced a wide range of new initiatives and agreements with India that span education, security, sustainable development, trade and investment, and women’s health and empowerment. Increased cooperation in these priority areas will help grow Canada’s economy and strengthen our middle class.

Growth and Prosperity

Canada-India Dialogue on Innovation, Growth, and Prosperity: Canada and India announced the Canada-India Dialogue on Innovation, Growth, and Prosperity, a collaboration between Canada’s Centre for International Governance Innovation and India’s Gateway House. This dialogue will convene subject experts, government officials, and business leaders to promote bilateral economic growth and innovation in today’s digital economy.

Intellectual property: The Canadian Intellectual Property Office and India’s Department of Industrial Policy and Promotionagreed to strengthen their bilateral relationship and are finalizing a Memorandum of Understanding.

Audiovisual co-production agreement: Canada and India commit to further engagement and collaboration to encourage partnerships on film, television, and video projects under the Audiovisual Co-production Agreement.

Higher Education: Canada and India renewed a Memorandum of Understanding on Higher Education and announced that Canada will host the biannual Joint Working Group on Higher Education later in 2018.

50th Anniversary of Academic Cooperation with the Shastri Indo-Canadian Institute: Canada announced a $200,000 contribution to mark the 50th anniversary of the Shastri Indo-Canadian Institute’s collaboration between Canada and India.

Promotion of innovative research: Recognizing the importance of innovation, Canada and India welcomed a call for research proposals amounting to $4 million toward cleaning polluted bodies of water and mitigating fire hazards in buildings. Key partners in this initiative are the India-Canada Centre for Innovative Multidisciplinary Partnerships to Accelerate Community Transformation and Sustainability, India’s Department of Biotechnology, and India’s Department of Science and Technology.

Supporting entrepreneurship: Understanding the importance of commercializing technology and supporting entrepreneurs, Canada and India announced a commitment to connect innovation and entrepreneur hubs. This is an initiative of Mitacs, a Canadian national not-for-profit research and training organization, and India’s Department of Science and Technology.

Research collaboration on agriculture and the environment: The Government of India and Canada’s International Development Research Centre agreed to continue their support of important research in India to address current and future global development challenges in areas including agriculture and environment, inclusive economies, technology, and innovation.

Investment attraction cooperation:Canada and India finalized a Memorandum of Understanding between the Global Affairs Canada’s Investment and Innovation Bureau and Invest India which will enhance two way investment between Canada and India.

Information and communications: Canada and India committed to continued cooperation in the Information and Communications Technologies and Electronics sector, including collaboration on Canada’s Innovation and Skills Plan and the Digital India program. Canada and India agreed to engage policy makers, associations, business leaders, and academics in efforts to support the growth of the innovation ecosystems in both countries.

Women’s empowerment and health

Investing in research and knowledge to empower Indian women: Canada’s International Development Research Centre is supporting action research into the most effective ways to empower women, prevent gender-based violence, and make digital platforms work for inclusive development in India. New investments in 2018 will improve the working conditions of homeworkers and seek to improve business practices in global supply chains.

Innovations to promote women’s health and empowerment: Canada announced
$7.9 million in funding for forty Grand Challenges Canada projects in India to support women’s empowerment, sexual and reproductive health and rights, water and sanitation, and mental health.

Nutrition International: Canada and India welcomed the Asia launch of Nutrition International’s “She’ll Grow Into It” campaign and highlighted Canada’s contribution of
$11.5 million to the Right Start Initiative in India, which works to empower the world’s poorest women, adolescent girls, and children.

Promoting the participation of women in science: Canada and India announced collaboration between Canada’s Natural Sciences and Engineering Research Council and India’s Department of Science and Technology to jointly promote and strengthen the participation of girls and women in science, technology, engineering, and mathematics.

Cooperation in sport: Canada and India signed the Memorandum of Understanding on Cooperation in Sport to address critical ongoing and emerging issues that reduce public confidence in sports and undermine its health, development, cultural, and social benefits.

Healthy Life Trajectories Initiative: The Canadian Institutes of Health Research and India’s Department of Biotechnology are working with the World Health Organization to reduce chronic diseases. The joint $5 million investment in this initiative will support research designed to give children in India the healthiest start to life.

Sustainable Development

Expanding scope of the Canada-India Ministerial Energy Dialogue and 2018 Energy Dialogue Meeting: The Canada-India Ministerial Energy Dialogue is the primary mechanism for advancing cooperation on energy issues between the two governments. The leaders agreed to expand its scope beyond oil and gas and increase the focus on clean energy cooperation in areas such as electricity, renewable energy and energy efficiency. Canada will host the 4th Ministerial Energy Dialogue in 2018, which will allow the two countries to increase their cooperation on sustainable energy and provide the opportunity to establish an Action Plan on shared priorities.

Supporting adaptation to climate change through evidence and innovation:  Canada’s International Development Research Centre is investing in local solutions to problems in India including heat stress, water management, and climate-related migration. Starting in 2018, the Centre will support the development of a new university program in water science and policy, as well as provide new fellowships to emerging women leaders in India.

Progress on enhanced geospatial and remote sensing collaboration: Canada and India agreed to extend an implementing arrangement promoting further cooperation on issues such as landslide monitoring and expanded scientific exchanges. Discussions are underway to enhance geospatial, remote sensing, and other research collaboration.

Supporting research to address current and future global developmental challenges: Canada’s International Development Research Centre and the Government of India signed a Memorandum of Understanding that will enable Canada to continue supporting important research in India addressing current and future global development challenges in areas including agriculture and environment, inclusive economies, and technology and innovation.

Civil nuclear science, technology, and innovation: Natural Resources Canada and the Department of Atomic Energy have concluded a memorandum of understanding on civil nuclear science, technology, and innovation. The agreement builds on the desire to further strengthen co-operation in science, technology and innovation to mutual benefit through the promotion of research and scientific exchanges between scientists, researchers and technical experts.

Security

Counter-terrorism: In order to strengthen the fight against terrorism, Canada and India concluded a Framework for Cooperation on Countering Terrorism and Violent Extremism. This Framework focuses on practical measures for enhancing cooperation related to intelligence techniques and the prevention and investigation of terrorism.

Peacekeeping Collaboration: Mindful of the significant contribution that India is making to the United Nations’ current peacekeeping operations and recognizing the interest that Canada and India share in efforts to ensure that UN peacekeeping operations continue to offer an effective multilateral response to global peace and security challenges, Canada and India agreed to explore new forms of collaboration in the area of peacekeeping training and to advance the role that women play in peacekeeping operations.

Bilateral relationship

Consular cooperation: Canada and India recognize that strengthening people-to-people ties requires the support of modern, responsive consular services. To ensure the highest quality services to Canadians and Indians, senior officials from both countries will meet to discuss consular topics of mutual interest.

National Security Advisors Dialogue: The National Security Advisors for Canada and India agreed to expand cooperation on counter-terrorism files, and regional and global security.

Research collaboration: Canada and India announced new cooperation between leading independent think tanks. The Macdonald-Laurier Institute of Ottawa and its counterpart in New Delhi, the Observer Research Foundation, will work together to generate new ideas on key strategic issues toward mutual prosperity and security.

Canada-India Memorandums of Understanding

New Delhi, India. February 23, 2018 - Today, Canada and India signed a number of Memoranda of Understanding that cover a wide variety of areas of cooperation, including nuclear science, technology and innovation, and education.

Memoranda of Understanding (MoU) signed in New Delhi:

• Memorandum of Understanding between the Department of Atomic Energy of the Republic of India and the Department of Natural Resources of Canada concerning cooperation in the fields of science, technology and innovation.
• Memorandum of Understanding between the Government of Canada and the Government of the Republic of India concerning cooperation in higher education.
• Terms of reference of the Canada-India Ministerial Energy Dialogue.
• Joint Declaration of Intent between the Ministry of Electronics and Information Technology of the Government of the Republic of India and the Department of Innovation, Science and Economic Development of the Government of Canada on cooperation in the field of information and communication technology and electronics.
• Memorandum of Understanding between the Department of Canadian Heritage (Sport Canada) and the Government of the Republic of India, Ministry of Youth Affairs and Sports on cooperation in sport.
• Memorandum of Understanding in the field of cooperation on intellectual property rights (IPR) between the Department of Industrial Policy and Promotion, India (DIPP) and the Canadian Intellectual Property Office.

Framework for Cooperation on Countering Terrorism and Violent Extremism

New Delhi, February 23, 2018 - As multi-cultural, diverse, pluralistic societies, committed to democratic principles, human rights and the rule of law, India and Canada recognize the grave challenges posed by terrorism, violent extremism and radicalization to violence.

Recalling that any acts of terrorism are criminal and unjustifiable regardless of their motivations, whenever, wherever and by whomever committed, the National Security Advisor of India and the National Security and Intelligence Advisor of Canada reaffirmed the shared resolve of both India and Canada to combat terrorism and violent extremism in all their forms and manifestations.

They reviewed the ongoing collaboration between the law enforcement and security agencies of both countries and resolved to step up their bilateral cooperation under the supervision of the National Security Advisor’s Dialogue, the Joint Working Group on Counter-terrorism and its Experts' Sub-Group (the “Sub-Group”).

They recognized the urgent imperative to disrupt recruitment, terrorist movements and the flow of Foreign Terrorist Fighters, address the threat posed by cross-border and state-sponsored terrorism, stop sources of terrorist financing, dismantle terrorist infrastructure and prevent supply of arms to terrorists and counter violent extremism and radicalization to violence. They emphasized the need to deny operating space to terrorist and violent extremist groups.

They committed to work together to neutralize the threats emanating from terrorist groups such as Al Qaida, ISIS, the Haqqani Network, LeT, JeM, Babbar Khalsa International, and the International Sikh Youth Federation.

To this end, they committed to further develop exchanges and facilitate effective cooperation in the fields of security, finance, justice, and law enforcement, including, where appropriate, at the operational level.

Pursuant to the above, India and Canada have agreed on this Framework for Cooperation on Countering Terrorism and Violent Extremism (the “Framework”), the objective of which is to facilitate effective cooperation between law enforcement and security agencies and legal and policy practitioners.

The framework is based on fundamental respect for the sovereignty, unity and territorial integrity of India and Canada.

The Framework consists of institutionalized cooperation between the National Security Council Secretariat of the Republic of India and the office of Canada’s National Security and Intelligence Advisor, and regular exchanges and coordination between India and Canada. It will be guided by the joint National Security Advisor’s Dialogue.

The National Security Advisor of India and the National Security and Intelligence Advisor of Canada further acknowledged their partnership and commitment to strengthen cooperation in counter-terrorism capacity-building and to contribute to international efforts through the UN mechanisms and initiatives as well as groupings such as the Global Counterterrorism Forum, the Financial Action Task Force, and the G-20.

India-Canada Joint Statement: Partnership for Security and Growth

New Delhi, India - February 23, 2018

1. Prime Minister of Canada, The Right Honourable Justin Trudeau, paid a State Visit to India from 18 to 24 February 2018 at the invitation of the Prime Minister of India Shri Narendra Modi.
2. The prime ministers met in New Delhi on February 23 and reaffirmed the breadth and scope of Canada-India relations, based on the fundamental principle of respect for sovereignty, unity and territorial integrity of the two countries. They reaffirmed their commitment to the ongoing diversification and growth of the strategic partnership, based on shared values of democracy, diversity, pluralism, and rule of law. The leaders also affirmed the importance of protecting and advancing human rights at home and abroad, promoting gender equality and the importance of civil society groups as a mainstay of democratic societies.They agreed to continue deepening their close ties and to leverage the complementarity between their two countries in key areas.
3. Towards this objective, the leaders agree on the following:

Investing in Mutual Growth

i. To continue strengthening the government-to-government framework for cooperative economic engagements, the prime ministers welcomed the conclusion of, and progress on, cooperation agreements/MoUs in areas such as civil nuclear science and technology, education, audio-visual co-production, information technology, intellectual property and sports.

ii. To realize the full potential of bilateral trade and investment, both sides will renew efforts to expand and diversify bilateral economic and commercial relations. They will also intensify negotiations to finalize a Comprehensive Economic Partnership Agreement and a Bilateral Foreign Investment Promotion and Protection Agreement.

iii. To encourage the private sectors to further explore investment opportunities in both countries, including through India's flagship programmes such as Make in India, Start-Up India, Digital India and Smart Cities, as well as Canadian programs such as the Innovation and Skills Plan, the Canadian Technology Accelerators, the Start-Up VISA Program and the Global Skills Strategy. The leaders welcomed the signing of commercial agreements which will create new economic opportunities and jobs in both countries. They applauded the launch of the Canada-India Accelerator Program for Women Tech Entrepreneurs, as well as the decision to convene a Canada-India Track 1.5 Dialogue on Innovation, Growth and Prosperity.

iv. The prime ministers emphasized the importance of ensuring access to sufficient, safe and nutritious food for all, and noted that transparency and predictability of market access conditions, including sharing of information on production of agricultural commodities, are key in advancing the food security goals of both countries. India and Canada will work closely together to finalize an arrangement within 2018 to enable the export of Canadian pulses to India free from pests of quarantine importance, with mutually acceptable technological protocols.  The Canadian Food Inspection Agency will continue to work closely with the Agricultural and Processed Food Products Export Development Authority to facilitate access for Indian organic products.

Working Together on Climate Change, Oceans, Space and Clean Energy

v. To strengthen bilateral and international cooperation to address climate change and secure a clean energy future, they committed to promoting the implementation of the Paris Agreement. The leaders welcomed the initiative to establish the International Solar Alliance to promote renewable energy for sustainable development. They urged research institutions and industry in both countries to collaborate to promote greater use of solar technology.

vi. The leaders underscored the importance of accelerating the global transition to affordable, reliable, sustainable and modern energy sources and acknowledged that renewable energy is a pathway to a low-carbon and more sustainable energy system. In this regard, they agreed to work together to explore opportunities to use innovative financing mechanisms. They also agreed to the importance of providing clear and predictable signals for long–term investment and innovation in clean technologies and working at the global level to ensure universal access to affordable, reliable and modern energy services consistent with the Sustainable Development Goals.

vii. The leaders agreed to expand the scope of the Canada-India Ministerial Energy Dialogue to additionally include electricity, energy efficiency and renewables, and agreed to hold the fourth meeting of the Ministerial Energy Dialogue in Canada in 2018.

viii.  The leaders welcomed the continuation of uranium exports from Canada for peaceful use of civil nuclear power. The leaders agreed to expand the ongoing mutually-beneficial civil nuclear cooperation by developing collaboration in nuclear science and technology. They welcomed the signing of an Agreement between the Department of Atomic Energy and the Department of Natural Resources Canada.

ix. To enhance geo-spatial collaboration and to consider Indian participation in Canadian Arctic research. The prime ministers also expressed satisfaction at the expansion of India-Canada space cooperation, including the launch of Canadian satellites.

Advancing Gender Equality and Empowerment of Women and Girls

x. The leaders highlighted the importance of empowering women and girls in order to secure a more just and prosperous future for everyone. They recognized the importance of sexual and reproductive health and rights of women and girls and welcomed the announcement of new health innovations in India through Canada and India Grand Challenges.

xi.    The leaders underscored the commitment to combat all forms of gender-based violence and exploitation against women, girls and children. The leaders also affirmed their joint commitment to Agenda 2030 and the Sustainable Development Goals, underscoring their shared commitment to gender equality and the realization of human rights for women and girls across all spheres of economic, social, cultural and political life.

Building a More Peaceful and Secure World

xii. Recognizing that terrorism, violent extremism and radicalization to violence present acute challenges to global peace, stability and prosperity, the leaders resolved to combat terrorism and violent extremism in all their forms and manifestations. They called for bringing terrorists to justice and holding accountable state sponsors of terrorism, including cross-border terrorism. They further emphasized that no country should allow its territory to be used for terrorist and violent extremist activities.

xiii.  Towards this end, the leaders agreed to expand security cooperation through institutionalization of NSA-level Dialogue and regular convening of Foreign Minister-level Strategic Dialogue. They welcomed the meetings of their national security advisors and of the bilateral counter-terrorism working group, which focused on practical measures to enhance cooperation in that sphere. In this regard, the leaders welcomed the agreement on a bilateral Framework for Cooperation on Countering Terrorism and Violent Extremism.

xiv.  The leaders expressed strong concern at the prevailing security situation in Afghanistan and noted that terrorist activities pose a grave threat to peace, security and stability of Afghanistan and the region. They called for immediate cessation of violence, renunciation of links with international terrorism and dismantling of infrastructure of support to terrorism from across borders of Afghanistan. Both sides reaffirmed their support to the Government and the people of Afghanistan in their efforts to achieve an Afghan-led, Afghan-owned and Afghan-controlled  national peace and reconciliation process and build a peaceful, secure, united, democratic, prosperous and pluralistic nation.

xv. To reaffirm the importance of lawful commerce and the freedom of navigation and over-flight throughout the Indo-Pacific region, in accordance with international law, including the rights and jurisdiction of states under UNCLOS. The leaders supported bolstering regional connectivity through transparent development of infrastructure and use of responsible debt financing practices, while ensuring respect for sovereignty and territorial integrity, the rule of law and environment.

xvi.  Recognizing that Democratic People’s Republic of Korea’s continued enhancement of its nuclear and ballistic missile program poses a grave threat to regional security and global peace, the leaders called on DPRK to abide strictly by its international obligations and commitments. They called on all states to implement rigorously relevant UN Security Council resolutions and hold accountable all those that have supported DPRK’s nuclear and missile programmes.

xvii. The two leaders congratulated South Korea on the successful PyeongChang Winter Games and welcomed the participation of DPRK in the Games, expressing hope that sports cooperation would lead to easing of tensions on the Korean Peninsula and improvements in inter-Korean relations.

xviii. The two leaders expressed strong concern about recent developments in Maldives and their implications for a free society. As leaders of parliamentary systems, they deplored the degradation of judicial independence and authority and of democratic institutions, as well as respect for fundamental freedoms, including those of speech and assembly, constitutional rights and obligations under international law. The Government of Maldives was urged to ensure early resumption of the political process after revoking the state of emergency and to allow democratic institutions, including the judiciary, to function independently in a fair and transparent manner.

xix.  The two leaders discussed the humanitarian and security crisis in Rakhine State of Myanmar and across the border in Bangladesh. Canada and India call for the voluntary, safe and sustainable return of the people displaced, while stressing the importance of ensuring law and order and respect for human dignity in this process. They called for restoration of humanitarian access for relevant UN and other international organisations to facilitate the return process.

xx. To develop bilateral defence cooperation by exploring cooperation possibilities in diverse fields including cold climate training, enhancing naval interactions, and staff exchanges.

xxi.  The two leaders affirmed cooperation on peacekeeping to provide an effective response to global challenges. They stressed the importance of integrating gender perspectives into peace and security activities and interventions in line with the women, peace and security agenda, including prevention of conflict-related sexual violence.

xxii. The leaders agreed that Canada and India would coordinate on cyber security and addressing cyber crimes at bilateral and multilateral forums going forward.

xxiii. Prime Minister Modi thanked Prime Minister Trudeau for Canada’s support towards India’s accession to the MTCR, Wassenaar Arrangement and the Australia Group. Prime Minister Trudeau reaffirmed Canada’s strong support for India’s membership of the Nuclear Suppliers Group.

Enhancing People-to-People Contacts

xxiv. Recognizing the dynamic role of people-to-people ties in the India-Canada partnership, the leaders reaffirmed their commitment to address consular issues of mutual concern through discussion between the concerned officials. They welcomed the expansion of direct air connectivity between Indian and Canadian cities.

xxv. Noting the significant increase in number of Indian students in Canada, the leaders expressed satisfaction at the renewal of the MOU on higher education. They recognized the 50th Anniversary of the Shastri Indo-Canadian Institute in promoting understanding between India and Canada through academic activities and exchanges, with the support of both governments to the institute. The leaders also agreed on the benefits of supporting the arts, sports and cultural activities in each other’s country, and agreed to encourage collaboration between academia and think tanks.

xxvi. The prime ministers also resolved to facilitate the movement of highly skilled persons from India to Canada under the Global Skills Strategy, to fully harness the complementarity between their technological capabilities and human resources.

4. Prime Minister Trudeau invited Prime Minister Modi to return to Canada at an early date.  Prime Minister Modi accepted the invitation.

Other information

• Prime Minister Trudeau to travel to India for state visit: https://pm.gc.ca/eng/news/2018/01/22/prime-minister-trudeau-travel-india-state-visit
• Canada and India’s relationship strengthened by people-to-people ties: https://pm.gc.ca/eng/news/2018/02/19/canada-and-indias-relationship-strengthened-people-people-ties
• Canada announces new commercial partnerships with India: https://pm.gc.ca/eng/news/2018/02/20/prime-minister-announces-new-commercial-partnerships-india-and-thousands-middle

Itinerary for Saturday, February 24, 2018 Ottawa, Ontario - February 23, 2018

Note: All times local

Itinerary for the Prime Minister, Justin Trudeau, for Saturday, February 24, 2018:

New Delhi, India

9:30 a.m. The Prime Minister will participate in a hockey event with Canadian Olympic Gold Medalist, Hayley Wickenheiser.

High Commission of Canada

Note for media:

Open coverage

12 p.m. The Prime Minister and Ms. Grégoire Trudeau will deliver remarks at the Young Changemakers Conclave 2018.

Indira Gandhi Stadium

Note for media:

Open coverage

The Globe and Mail.  23 Feb 2018. Trudeau under fire for inviting alleged Sikh extremist to dinner reception this week
IAN BAILEY
MIKE HAGER

VANCOUVER - A man convicted of trying to assassinate an Indian cabinet minister after, as a judge described, stalking him like a hunter through the forest has had a habit of turning up at political events, to the eventual embarrassment of his hosts.

Jaspal Atwal was one of four extremists pushing for an independent Sikh state on the Indian subcontinent who, in 1986, participated in the shooting of politician Malkiat Singh Sidhu, who was ambushed while driving to a family wedding on Vancouver Island.

Mr. Sidhu survived the attempted assassination and Mr. Atwal and the others, all members of the International Sikh Youth Federation, were convicted of attempted murder by a jury that deliberated for less than three hours.

“They tracked and [stalked] Mr. Sidhu as a hunter would [stalk] his quarry,” B.C. Supreme Court Justice Howard Callaghan said in his ruling years ago. “It was a cowardly and heinous attack on a man they did not personally know, not for personal gain, but as a result of some belief or impression that by so doing they were advancing a political cause deemed important to these four individuals.”

Mr. Atwal was sentenced to 20 years for his role and, upon his release, became politically active in Metro Vancouver’s South Asian community.

This week, photos taken of him with Prime Minister Justin Trudeau’s wife at an event in Mumbai, coupled with his invitation to be a guest of Canada’s High Commission in India, prompted a storm of controversy and questions during an official trip already facing geopolitical headwinds.

Mr. Trudeau is not the first politician to face pointed questions over the presence of Mr. Atwal.

In 2012, BC Liberal premier Christy Clark had to explain how Mr. Atwal, then a member at large for one of her party’s riding associations in Surrey, had got an invitation to her government’s budget speech.

“He shouldn’t have been here. So in future, we’re going to have much more scrutiny on this list between us and the Speaker’s office,” Ms. Clark told the media after another guest – a regional director for the B.C. party – made a last-minute request for an invitation for Mr. Atwal that got him into her orbit.

As Mr. Trudeau could have learned of the Atwal effect from Ms. Clark, the B.C. premier could have learned from Don Bell who, as Liberal MP for North Vancouver, previously found himself in the spotlight for reaching out to the Indian consul-general to try and get Mr. Atwal a visa to visit India.

On Thursday, a spokesperson for the B.C. Liberal Party said Mr. Atwal is not a member, while a counterpart with the federal Liberals, which has no affiliation to the provincial party of the same name, said they do not disclose the personal information of members.

Attempts to reach Mr. Atwal by phone and social media were unsuccessful on Thursday. Media reports have linked him to an online radio station based in Surrey, but an official there denied any association with Mr. Atwal.

Dave Hayer, a three-term provincial Liberal politician who retired in 2013, said Mr. Atwal came to his Surrey constituency office some time in the 2000s to tell his MLA, after serving his time, that he was no longer an extremist. “He told me at that time he has paid the price for the crimes he had committed,” Mr. Hayer said Thursday. “He said ‘I made a mistake.’ ”

In 2010, Mr. Atwal was found guilty by a B.C. Supreme Court judge of participating in a stolen car ring along with two dozen other defendants, including his son. Mr. Atwal, the judge found, helped resell stolen vehicles while working at a car dealership.

Two years later, Mr. Atwal, his father and another man sued a local radio-station owner and five others for allegedly being defamed during broadcasts on Radio India, a Punjabi-language station based in Surrey. After those broadcasts had aired, Mr. Atwal’s father was shot in the leg outside the Guru Nanak Sikh Temple in Surrey while attending a wedding.

In recent years, Mr. Hayer said that Mr. Atwal has been a regular at events in the Vancouver region’s Indo-Canadian community.

“Almost every person who is active in the community and is involved in politics knows the history of Mr. Atwal and that he spent almost 20 years in jail,” said Mr. Hayer, whose father became the only journalist ever to be killed in Canada for his work when he was fatally shot in 1998 at his home in Surrey after years of coverage of the unsolved Air India terrorist case.

Mr. Hayer said the Sikh extremism that Mr. Atwal once subscribed to is now incredibly rare among Canada’s sizable South Asian population.

The Globe and Mail. 23 Feb 2018. ARTICLE. Could Trudeau’s trip to India get any worse? It just did
GARY MASON, Columnist

It was a huge embarrassment for a Prime Minister who’s had to spend some of his time here trying to convince people he’s not a radical Sikh sympathizer.

The low point of Prime Minister Justin Trudeau’s eight-day work-trip-disguised-as-a-family-vacation to India might have been a toss-up – until recently.

Things got off to a poor start when he stepped out of his plane with his wife and three children to be welcomed by the country’s agriculture minister – not Prime Minister Narendra Modi, known for receiving foreign dignitaries with aggressive bear hugs. Mr. Modi’s decision to send a low-level stand-in prompted international headlines that his absence was the snub heard round the world.

Things went downhill from there. There were grumblings from locals and visiting tourists that the Taj Mahal had to be shut down to accommodate a private tour by Mr. Trudeau and his brood. That began an onslaught of tourist stops. Soon the Trudeaus could be found doing everything from feeding elephants at a rescue sanctuary one minute to touring the grounds of the Golden Temple in Amritsar the next. The internet was flooded with photos of the family, often in pensive poses: hands pressed together, fingers pointing upward, eyes closed, heads bowed.

They’ve often been decked out in stunning traditional Indian garb from some of the country’s top designers; brightly coloured sherwanis for the Trudeau men (except three-year-old Hadrien) and garland-laden chanderis for the women.

It’s been all too much for many. Omar Abdullah, an Indian politician, took to Twitter to ask whether others felt like he did: that the family’s choreographed cuteness was over the top. “Also FYI,” Mr. Abdullah tweeted, “we Indians don’t dress like that every day sir, not even in Bollywood.” Another Indian academic, Vivek Dehejia, questioned the value of the trip on CNN. “All you can see are these Lonely Planetstyle pictures of his family,” he said. Conservative MP Michelle Rempel also chimed in on Twitter, suggesting Mr. Trudeau’s trip emphasized Vogue-like photo shoots over solving trade disputes with India, which she said was a “shit call for a PM.”

Just when you thought the publicity the trip was generating couldn’t get worse, it did. The CBC discovered that a man convicted of attempting to murder an Indian cabinet minister on Vancouver Island back in 1986 had been invited to a dinner reception hosted by the High Commissioner of Canada in India. Jaspal Atwal’s invitation was rescinded shortly after CBC inquired about it. But it was too late: soon pictures surfaced of the former member of a Sikh terrorist group and Sophie Grégoire Trudeau at an earlier event in Mumbai.

It was a huge embarrassment for a Prime Minister who’s had to spend some of his time here trying to convince people he’s not a radical Sikh sympathizer. The perception in some corners that he might be led to speculation that was the reason Mr. Modi didn’t show up to greet him at the airport. (Mr. Trudeau once foolishly boasted that he had more Sikhs in his cabinet than Mr. Modi. It did not go down well in India.)

By this point, news outlets such as MSNBC were calling Mr. Trudeau’s visit a “slow-motion train wreck.”

It certainly has given groups such as the Canadian Taxpayers’ Federation an opening to denounce the trip as a colossal waste of money. While it certainly has been light on official work, the Prime Minister has spent at least part of every day meeting with one group or another. He is scheduled to finally meet with Prime Minister Modi on Friday.

While the visit has not generated the kind of headlines Mr. Trudeau would have wanted, I doubt he’ll be bothered by it much in a few months time, when the story and the images fade from the public’s mind. This trip was never intended to be about signing blockbuster business deals. It was a taxpayer-funded photo shoot for the next election.

Don’t forget that there is a large and influential Sikh diaspora in Canada. Nearly half a million of them call the country home, the largest contingent located in Surrey, B.C., which turns into an important urban battleground during federal elections. Mr. Trudeau was playing as much to the crowd back home as he was the folks he was meeting in India.

Don’t forget, either, that the new leader of the federal New Democratic Party does not wear brightly coloured scarves on his head for show or for photo-op purposes. Jagmeet Singh wears a turban because he is a proud Sikh and his presence on the national scene is certain to shake up the political calculus in Surrey and elsewhere.

In other words, don’t be surprised if the photos we’ve recently seen of Mr. Trudeau and his family in kurtas and saris surface a couple of years from now, when brandishing his Indian cred during a federal election campaign could be critical.

The Globe and Mail. 23 Feb 2018. EDITORIAL. From bad to worse

Diplomacy is full of unwritten rules, such as: When visiting a foreign country, do not appear to be cozy with a notorious ex-terrorist who tried to assassinate a cabinet minister from that country.

Okay, that one might actually be written down. In either case, the Trudeau government ignored the rule this week.

In a spectacular gaffe that exacerbated an already troubled week-long excursion to India, the Canadian High Commissioner in India invited a man named Jaspal Atwal to an official dinner with Prime Minister Justin Trudeau.

Mr. Atwal once belonged to a group of Sikh separatist terrorists and was convicted in Canada of the attempted murder in 1986 of Malkiat Singh Sidhu, a moderate Sikh politician and Indian cabinet minister who was visiting British Columbia at the time. Mr. Atwal’s invitation was rescinded only after the CBC asked the PM’s office about it.

This would be bad enough in a vacuum. But India is already preoccupied with Sikh separatism in Canada, and with the Trudeau government’s apparent willingness to tolerate it for votes.

Last spring, the Indian government objected to Mr. Trudeau’s appearance at a Sikh community event in Toronto that reportedly featured floats celebrating extremists. The issue has shadowed this trip from the beginning, which makes it all the more stunning that the government should have let this happen.

Did the name not ring any bells when Mr. Atwal was added to the invite list, apparently by a Liberal backbencher from B.C.? Or when Mr. Atwal posed with Sophie Grégoire Trudeau and Infrastructure Minister Amarjeet Sohi at an event in Mumbai on Tuesday? Couldn’t someone have googled him?

Yes, the PM quickly admitted the invitation was a mistake, and Indian Prime Minister Narendra Modi graciously tweeted on Thursday that he was looking forward to meeting with Mr. Trudeau on Friday.

But what a mess. Yesterday, we quaintly said the India trip seemed awkward and unproductive. Those were the days.

BLOOMBERG. 23 February 2018. Modi Hugs Trudeau After Canadian Invitation Gaffe


Narendra Modi embraces Justin Trudeau Photographer: Prakash Singh/AFP via Getty Images

New Delhi (AP) -- Prime Minister Narendra Modi greeted his Canadian counterpart Justin Trudeau on Friday with a hug, one day after embarrassed Canadian diplomats had to revoke a party invitation for a man convicted of attempting to kill an Indian politician.

The invitation was the latest blunder in Trudeau's eight-day visit, which has included everything from criticism of his colorful wardrobe to questions about whether his government is sufficiently critical of Sikh extremists.

Jaspal Atwal, a Canada-based former member of a banned Sikh separatist group, had been invited by a Canadian member of Parliament to a Thursday evening party for Trudeau at Canada's High Commission in New Delhi.

Atwal was convicted of trying to kill an Indian Cabinet minister during a 1986 visit to Canada. The minister was shot but survived. Atwal was imprisoned, and became a businessman after his release.

Canada quickly withdrew the invitation once it was discovered, with Trudeau telling reporters: "Obviously we take this situation extremely seriously. The individual in question never should have received an invitation."

Earlier in the week, Atwal attended a Mumbai reception at which he was photographed with Trudeau's wife, Sophie Gregoire Trudeau.


Narendra Modi greets Justin Trudeau’s family.Photographer: Prakash Singh/AFP via Getty Images

Modi still welcomed Trudeau on Friday with his signature bear hug, smiling at his wife and their three children, who also attended the formal outdoor ceremony.

In a Thursday night tweet, Modi said he looked forward to meeting Trudeau and his family, adding "I appreciate his deep commitment to ties between our two countries."

But it hasn't been an easy trip for Trudeau in many ways.

Canada's Globe and Mail newspaper flayed the Trudeau government for the invitation, calling it "a spectacular gaffe that exacerbated an already troubled weeklong excursion."

Trudeau has been ridiculed in India on social media for his family's seemingly endless wardrobe changes, with the photogenic group often appearing in matching and colorful Indian clothing, and has faced repeated insistence that he denounce Sikh extremism.

"Sikh radicalism is the main issue," the Hindustan Times, one of India's largest newspapers, said in an editorial earlier this week. "Justin Trudeau should allay India's concerns on terrorism."

Canada has a small but politically potent Sikh population, some of whom support a breakaway Sikh state, known as Khalistan, inside India. The Indian media often describe Trudeau's government as being soft on the Khalistan issue.

Trudeau insisted that he'd told Indian politicians that was not true. "I was pleased to be able to make very, very clear that Canada supports one united India," he said after one meeting.

Later Friday, the two countries signed agreements for cooperation in security, trade and higher education, including making it easier for exchanges of students and teachers. Canada is one of the most sought-after destinations by Indians for their studies.

NAFTA

Agriculture and Agri-Food Canada (AAFC). February 23, 2018. Minister MacAulay promotes agricultural trade with California and the United States

Ottawa, Ontario – Canada and the United States (U.S.) share deeply integrated economies and enjoy the largest bilateral trade and investment relationship in the world.

As negotiations on a modernized North American Free Trade Agreement (NAFTA) continue to progress with the seventh round of renegotiations to be held in Mexico City, Mexico from February 25 to March 5, 2018, the government of Canada continues to work to strengthen the Canada-U.S. trade relationship and create new opportunities for producers and food processors on both sides of the border.

As part of these efforts, Minister MacAulay travelled this week to Sacramento, California, where he highlighted the strengths of agriculture trade with California, noting that Canada is the number one market for California’s agriculture and agri-food exports worth $5.4 billion (CAD) in 2017.

The Minister had a bilateral discussion with California Secretary of Food and Agriculture, Karen Ross, and Canada was recognized as an important trading partner for the U.S. on the California Assembly Floor, and the California Senate Floor.

During these events, the Minister discussed the agricultural benefits of NAFTA regarding trade between Canada, California and the U.S. He also emphasized the importance of ongoing U.S.-Canada collaboration and cooperation, while speaking with the California Chamber of Commerce and U.S. Congressman, Ami Bera.

Minister MacAulay later provided remarks at a Friends of Canada Reception, and held meetings with various U.S. legislators, business representatives, and members of industry.

Quotes

“Canada and California are important trading partners for agriculture and agri-food products, supporting millions of middle class jobs on both sides of the border. NAFTA has brought tremendous economic benefits to Canada and California. Working closer together will make farmers and food processors on both sides of the border reach more markets, create more jobs and become more prosperous."

- The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food 

Quick facts

• Canada exported $2.9 billion (CAD) in agriculture and agri-food products to California in 2016.
• Canada and the United States are each other's largest trade partners for agriculture and agri-food, with bilateral agriculture trade reaching $62 billion (CAD) ($47 billion (USD)) in 2016.
• Canada is the top agriculture and agri-food export market for 29 states.

Canada-United States Bilateral Agricultural and Agri-food Trade: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/united-states-and-mexico/canada-united-states-bilateral-trade/?id=1453911839961
Canada-California Bilateral Agricultural and Agri-food Trade: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/united-states-and-mexico/trade-data-and-analysis/california-canada-agricultural-trade/?id=1386706014097
Canada-United States Trade 2016 - State Factsheets: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/united-states-and-mexico/trade-data-and-analysis/?id=1453922296633
Canadian Trade Commissioner Service – United States: http://tradecommissioner.gc.ca/united-states-of-america-etats-unis-amerique/index.aspx?lang=eng
Agriculture and Food Market Intelligence – United States: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/united-states-and-mexico/market-intelligence/by-market/?id=1453917274849

REUTERS. FEBRUARY 23, 2018. RBC chief says NAFTA concerns affecting business clients
Matt Scuffham

TORONTO (Reuters) - Royal Bank of Canada on Friday said concerns about the outcome of talks to renegotiate the North American Free Trade Agreement were impacting longer-term investment decisions by its commercial customers.

Officials from the United States, Canada and Mexico are preparing for a critical seventh round of negotiations in Mexico City beginning on Sunday, amid growing doubts a deal will be agreed before talks are scheduled to finish in early April.

“Some of our commercial customers remain concerned about it and it’s certainly impacting longer-term investment decisions that we see customers making,” RBC Chief Executive Dave McKay said on a conference call after the bank reported first-quarter earnings that exceeded market expectations.

McKay was hopeful a deal would be reached but believed there was a “reasonable probability” that U.S. President Donald Trump would trigger a 180-day countdown to withdraw from the agreement.

“At that point I still think the markets will largely anticipate a good outcome and look through that but you’ll see some volatility through this process,” he said. “We all hope this gets resolved in the near-term.”

Chief Financial Officer Rod Bolger said in an interview he believed Canada’s economy would be resilient enough to withstand the impact of NAFTA being terminated if the countries reverted to World Trade Organization tariff levels.

“If that were the case, we do not believe the impact on GDP growth over a several-year period would be more than half a percent to 1 percent and the number of jobs lost in Canada would be fewer than the amount added last year,” he said. “You’re talking more of a blip than a major concern.”

Canada’s biggest lender by market value reported earnings per share, excluding one-off items, of C$2.05 for the quarter through Jan. 31. Analysts had on average forecast earnings of C$1.99 per share, Thomson Reuters I/B/E/S data showed.

RBC reported net income of C$3 billion ($2.4 billion), up 7 percent. That included a writedown of C$178 million as a result of a tax overhaul in the United States.

The bank’s core personal and commercial banking division produced a 10 percent rise in net income to C$1.5 billion, benefiting from a 6 percent increase in sales of residential mortgages despite concerns over Canada’s housing markets.

RBC said it was too early to assess the impact of stricter rules on mortgage lending introduced in January.

Reporting by Matt Scuffham; Editing by Jane Merriman and Bernadette Baum

BLOOMBERG. 23 February 2018. RBC Chief Says Some Commercial Clients Are Anxious About Nafta
By Doug Alexander

Uncertainty over ongoing Nafta negotiations is creating angst among Royal Bank of Canada’s business clients even as markets appear to shrug off the risks, Chief Executive Officer David McKay said.

“Some of our commercial customers remain concerned about it,” McKay said Friday during the bank’s quarterly earnings call. “It’s certainly impacting longer-term investment decisions that we see customers making.”

McKay, heads of the country’s second-largest lender by assets, said the North American Free Trade Agreement is “highly beneficial” for the U.S. and Canada, and he “remains hopeful” the two countries and Mexico can reach a positive outcome to the talks, which resume next week.

McKay said there’s a “reasonable probability” that the 180-day notice to withdraw from the pact will be invoked.

“At that point, I still think there’s a good runway to negotiate this and I still think the markets will largely anticipate a good outcome and look through that,” he said. “But you’ll see some volatility through this process."

In the meantime, “customers who have to make long-term investments are obviously hedging and thinking twice about it and we all hope this gets resolved in the near term."

INFLATION

StatCan. 2018-02-23. Consumer Price Index, January 2018

• Consumer Price Index, January 2018: 1.7% increase (12-month change)
• Source(s): CANSIM table 326-0020: http://www5.statcan.gc.ca/cansim/a26?lang=eng&retrLang=eng&id=3260020&&pattern=&stByVal=1&p1=1&p2=31&tabMode=dataTable&csid=

The Consumer Price Index (CPI) rose 1.7% on a year-over-year basis in January, following a 1.9% increase in December. Excluding energy, the CPI increased 1.7%, matching the gain in December.

Chart 1: The 12-month change in the Consumer Price Index (CPI) and the CPI excluding energy

12-month change in the major components

Prices were up in all eight major components in the 12 months to January, with the transportation (+3.2%) and shelter (+1.4%) indexes contributing the most to the gain.

Chart 2: Consumer prices increase in all major components 

Consumers paid 3.2% more for transportation in January, following a 4.9% increase in December. Growth in this index was moderated by the purchase of passenger vehicles index, which increased less on a year-over-year basis in January (+1.4%) than in December (+3.7%). Gasoline prices rose 7.8% in January, after a 12.2% gain in December.

Food prices were 2.3% higher in January on a year-over-year basis, after rising 2.0% in December. This gain, the largest year-over-year movement in the food index since April 2016, was led by higher prices for food purchased from restaurants, which were up 3.7% in January after increasing 2.9% in December. Year-over-year growth in the fresh vegetables (+9.0%) and fresh fruit (+2.8%) indexes intensified in January.

The household operations, furnishings and equipment index rose 0.8% year over year in January after decreasing 0.3% in December. Prices for telephone services increased 6.5% on a month-over-month basis in January following a 7.6% decline in December, when a series of industry-wide price promotions took place.

12-month change in the provinces

Consumer prices rose less on a year-over-year basis in eight provinces in January than in the previous month. British Columbia (+2.1%) and Ontario (+1.8%) were the only provinces to record larger year-over-year increases in January than in December.

Chart 3: Consumer prices rise at a slower rate in eight provinces

Consumers in Alberta saw prices rise 1.4% in the 12 months to January, following a 2.0% increase in December. Lower natural gas prices (-14.7%) contributed the most to the moderation of the CPI in Alberta. Among the provinces, year-over-year growth in gasoline prices slowed the most in Alberta in January.

Prices in Ontario (+1.8%) increased more on a year-over-year basis in January than in December, in contrast to the Canada-level movement. Electricity prices decreased less in January than in December. This year-over-year movement partially reflects January 2017 electricity rebates introduced under the Ontario Rebate for Electricity Consumers Act, which no longer influence the 12-month movement. Prices for food purchased from restaurants (+4.9%) and child care and housekeeping services (+9.9%) rose, coinciding with a legislated minimum wage increase.

Seasonally adjusted monthly Consumer Price Index

On a seasonally adjusted monthly basis, the CPI was up 0.5% in January, following a 0.1% increase in December. All eight major components increased, with the household operations, furnishings and equipment index (+1.2%) recording the largest gain.

Chart 4: Seasonally adjusted monthly Consumer Price Index

FULL DOCUMENT: http://www.statcan.gc.ca/daily-quotidien/180223/dq180223a-eng.pdf

REUTERS. FEBRUARY 23, 2018. Canada annual inflation cools in Jan but underlying prices firm
Leah Schnurr

OTTAWA (Reuters) - Canada’s annual inflation rate cooled in January from a year earlier as consumers paid less for gasoline and vehicles, but firmer underlying prices were seen keeping the central bank on track to raise interest rates again later this year.

The annual inflation rate was 1.7 percent last month, Statistics Canada said on Friday, down from 1.9 percent in December but above economists’ forecasts for 1.4 percent.

The Canadian dollar rallied against the greenback following the better-than-expected figures.

The Bank of Canada’s three measures of core inflation were also less muted, with CPI common, which the central bank says is the best gauge of the economy’s underperformance, rising to 1.8 percent, the highest since April 2012.

Taken together, the core measures averaged 1.8 percent. Economists said that should keep the Bank of Canada on a tightening path, though it has room to wait amid several uncertainties, including North American trade negotiations.

“There’s still not a lot of evidence that inflation pressures are really getting out of hand in a way that would force the bank to hike more quickly than they’ve been planning to,” said Nathan Janzen, senior economist at Royal Bank of Canada.

“At the same time, you are seeing the firming that’s been expected, so that means the economy is probably still strong enough, in their view, to withstand further gradual rate hikes.”

The bank has raised rates three times since July amid a strengthening economy and labor market, and has said it will be data-dependent in its approach from here.

Markets expect the bank to make no change at its next policymaking meeting in March but another rate hike is fully priced in by July. BOCWATCH

Transportation costs rose 3.2 percent from a year ago, moderating from the previous month’s pace as price gains for gasoline and autos decelerated.

But food prices were up 2.3 percent, the largest gain since April 2016, as Canadians paid more for food at restaurants as well as fresh fruits and vegetables.

Rounding out the three measures of core inflation, CPI median, which shows the median inflation rate across CPI components, held at 1.9 percent, while CPI trim, which excludes upside and downside outliers, was unchanged at 1.8 percent.

Prices in Ontario, Canada’s most populous province, rose 1.8 percent, as consumers paid more at restaurants and for childcare and housekeeping services after the province raised its minimum wage at the start of 2018.

Additional reporting by Susan Taylor in Toronto; Editing by Jeffrey Benkoe and Bernadette Baum

BLOOMBERG. 23 February 2018. Canada Inflation Stronger Than Expected as Price Pressures Grow
By Theophilos Argitis

• Core annual prices inched higher for fourth straight month
• Overall inflation comes in at 1.7% versus 1.5% forecast

Canadian inflation came in stronger than expected in January as signs point to price pressures continuing to slowly build.

Core consumer prices -- which exclude more volatile items like energy and are considered a gauge of inflation pressures -- inched higher for a fourth month and are now hovering at the highest since September 2016. The overall inflation number actually slowed due to favorable year ago base effects, but still came in stronger than expected.

While monthly data can be volatile, the trend in recent months has been upward, with the price strength reflecting an economy that emerged from a stellar performance in 2017 and continues to grow above its potential. That is adding pressure on the Bank of Canada -- which has kept the expansion going with low interest rates -- to keep hiking borrowing costs to more normal levels.

“You wouldn’t know it from the headline number, but Canadian inflationary pressures are heating up,” said Royce Mendes, an economist at CIBC World Markets.



Investors are anticipating at least two more increases this year, after the Bank of Canada hiked borrowing costs three times since July. Canada’s dollar strengthened 0.3 percent to C$1.2664 per U.S. dollar at 8:43 a.m. in Toronto.

Overall inflation slowed to 1.7 percent in January from 1.9 percent in December, due to favorable base effects following a surge in prices a year ago and is expected to be temporary. Economists expected a bigger slowdown, with forecasts of overall inflation at 1.5 percent.

Higher minimum wages in Ontario, up more than 20 percent on Jan. 1, seem to be adding fodder to the upward price trend, Statistics Canada reported. Ontario’s inflation rate accelerated in January to 1.8 percent, even as it slowed nationally.

The Bank of Canada expects inflation will stay at about 2 percent on average over the next two years -- in line with an economy around full capacity.

Highlights of CPI Report

• The average of the Bank of Canada’s three key core inflation measures rose to 1.83 percent in January, the highest since September 2016 and up from 1.77% in December
• For the three so-called core measures, the “common” core rate rose to 1.8%, the “median” core rate was unchanged at 1.9% and the “trim” measure was unchanged at 1.8%
• The minimum wage hikes seem to have had an impact on restaurant prices in Ontario, with a 1.9% monthly increase in January that was the fastest since 1991
• Ontario restaurant prices were up 4.9% from a year ago, while child care and housekeeping services were up 9.9%, Statistics Canada said
• Overall consumer prices in Ontario were up 0.9% in January, the biggest one-month increase since 2014
• Seasonally adjusted, consumer prices nationally were up 0.5% in January
• On a monthly basis, overall prices were up 0.7% versus estimates of 0.5%

(A previous version of this story was corrected to show core inflation up for fourth straight month.)

— With assistance by Erik Hertzberg

INFRASTRUCTURE

THE GLOBE AND MAIL. FEBRUARY 23, 2018. OPINION. How political interests shape our infrastructure
MATTI SIEMIATYCKI, is an associate professor and Canada research chair in infrastructure planning and finance at the University of Toronto

With billions of dollars likely to be committed to infrastructure in Tuesday's federal budget, it is a good moment to take stock of how politics influences public spending in this area.

In Canada, we've seen political interference in infrastructure spending play out in all shapes and sizes. At one level, there is the disproportionate investment of infrastructure dollars in the ridings of the government compared with those held by the opposition. Today, it is the Liberal government being accused of directing an uneven amount of money to its ridings. The Conservatives under Stephen Harper were similarly criticized for their targeting of infrastructure spending.

At a finer grain, there are the egregious vanity projects, legacy plays and vote-winning schemes that dot the country. On the greatest-hits list would most certainly be the federal Conservative government's investment in gazebos and beautification projects in the Muskoka riding of a sitting cabinet minister in the lead-up to the G8 Summit in 2010. Curiously, these investments were made from a fund to improve border infrastructure, though the area is hundreds of kilometres from the border.

Stadiums, museums and art galleries are another frequent site for politically-motivated investment, with Montreal's Olympic stadium a continuing reminder of the high long-term cost of short-sighted infrastructure spending.

Transit is also a favourite for political patronage. From the Millennium SkyTrain line in Metro Vancouver to the Sheppard Subway line in Toronto, politics has had a strong influence on the prioritization of route and technology choices, often to the detriment of transit riders.

Beyond Canada, politically-motivated infrastructure investments are common as well. Visitors to West Virginia, for instance, will be struck by the number of infrastructure facilities named after Robert Byrd, a senator so renowned for his success at attracting federal infrastructure spending that he once bragged about his ambition to be the state's "billion-dollar industry."

And the small city of Ketchikan, Alaska, gained worldwide attention for the hundreds of millions of dollars in federal government funding that was earmarked to build what became known as "the Bridge to Nowhere," connecting the town with the local airport on a nearby island. The project was ultimately cancelled after it became a symbol of wasteful government spending.

The politicization of infrastructure investment decisions is driven by a few key rationales. Politicians love infrastructure investments because they are highly visible, can deliver real economic, social and environmental benefits to their users, and are potent symbols, demonstrating the power of their political champion to get results for their constituents.

At the same time, there is nothing inherently improper about politicians being involved in infrastructure investment decisions. On the contrary, in Canada, politicians provide democratic accountability and oversight and their input is imperative to the legitimacy of major spending allocations.

The key is to find the appropriate balance between the production of evidence-based infrastructure project assessments and political input into priority setting and project selection. At present, the Canadian system skews too far toward political intervention in what should be independent project assessments. And in a surprising number of cases, no thorough study of the benefits and costs of major projects are conducted before political approval is granted.

There is a need to rebalance the decision-making process to ensure that solid evidence is consistently collected and available to inform investment choices. The federal government should create an independent entity that provides national guidance on producing high-quality, infrastructure-project appraisals and evaluates the strength of the evidence submitted to support very large projects seeking federal government funding.

With such a move, Canada should aim to become a global leader in evidence-based infrastructure planning. Without such changes, there is a major risk that the current wave of infrastructure investment across the country will be captured by wasteful spending that does not meet the public interest.

TRADE PROMOTION

TCS. 2018-02-22. Opportunities uncorked for Canadian wine in China

Wine is gaining popularity throughout China and as a growing number of tourists have a sip of what Canada’s vineyards have to offer, more bottles of Canadian wine will soon be uncorked in the world’s most populated country.

Canada and China have designated 2018 as the Canada-China Year of Tourism, a joint initiative to increase the number of Chinese tourists to Canada and Canadian tourists to China. Activities will take place throughout the year in both countries to promote the other as a tourism destination. The initiative—and tourism in general—present tremendous opportunities for Canadian businesses, says Janet Dorozynski, an Ottawa-based trade commissioner who specializes in tourism, as well as Canadian wine, beer and spirits.



“The one thing that all tourists have in common is that they all have to eat,” Dorozynski says. That common denominator is an opportunity for Canadian food and beverage producers to make their products known, perhaps by creating partnerships within the hospitality industry, she adds.

Canadian Icewine is currently very popular in China, Dorozynski says, with other types of wine gaining traction. Having a direct line to the Chinese consumer through tourism is a great way for the industry to make further inroads into China.

A tourist who enjoys a Canadian wine here may bring some home to share with family and friends, and look for a place to purchase it in China, Dorozynski says. Tourism can create a demand for a product and for new exporters it can mean a way in to the Chinese market.  For exporters already in China, it’s a way to raise awareness about their products and increase sales.

“When tourists come here they’re eating, they’re drinking wine, they’re visiting craft breweries—that’s opportunity for businesses to have a first experience with their clients and to form more of a relationship directly with the client,” she says. “They can get a better sense of what it is these clients are looking for.”

Several Canadian wineries are prepared, and have already been catering to Chinese tourists by hiring people who speak Mandarin to interact with tourists and answer questions while they are visiting, and in their tasting rooms, Dorozynski says.

While every Asian market is different, traditionally there has been more consumer interest in beer and spirits than in wine, Dorozynski says. “There has definitely been an increase in appetite for wine and in China and in Asia in general,” she adds. “A wine ‘culture’ has taken off amongst younger professionals—particularly women—in mainland China.”

Hong Kong removed all tariffs on wine imports to the island in 2008, and has since been positioning itself as a “hub” for wine in Asia. At that time Henry Tang, chief secretary for Hong Kong and a known wine connoisseur, said he hoped the move would “help make Hong Kong the centre of wine distribution in Asia.”

“What has been happening in Hong Kong over several years means that they now have a very strong wine culture and some of that is starting to spill into mainland China,” Dorozynski says.

Canadian trade commissioners in China have leveraged the growing interest in wine to raise awareness of Canadian wine, and of Canada as a wine tourism destination. As part of initiatives to celebrate Canada’s 150th birthday in 2017, trade commissioners organized the first Canadian Wine Sommelier Championship. The event culminated in the selection of one finalist of each of five regions—Beijing, Hong Kong, Shanghai, Chongqing and Guangzhou—competing in a final round of tests and blind tasting.

A panel of judges comprised of master sommeliers, wine educators and industry representatives awarded Christian Cong Zhang, of Shanghai, the title of the first ever Canadian Wine Sommelier Champion in Greater China. Zhang works as a sommelier at the posh Noah’s Yacht Club in Shanghai.

The event will spill into the Canada-China Year of Tourism as Zhang takes his prize—a trip to three of Canada’s major wine regions in 2018, Dorozynski says. The trip is sponsored by Destination Canada, the British Columbia Wine Institute, the Wine Marketing Association of Ontario and Wines and Taste of Nova Scotia.

FULL DOCUMENT: http://tradecommissioner.gc.ca/canadexport/0002706.aspx?lang=eng

TCS. 2018-02-22. Chinese tourists a boon for Canadian exports
By Brigitte Audet Martin

Most of 2018 falls under the Year of the Dog in the Chinese calendar, and it’s also the designated Canada-China Year of Tourism, during which predictions for Canadian businesses include an increased demand for their goods in China.

February 16 marked the start of Chinese New Year, only a few weeks into a year-long joint initiative between Canada and China to increase the flow of tourists to both countries. Activities will take place throughout the year in China to raise awareness amongst Chinese consumers about Canada as a travel destination, says Roxanne Hamel, an Ottawa-based trade commissioner working in Global Affairs Canada (GAC)’s Greater China division.



While some of the economic benefits that an increase in the number of Chinese tourists will bring to Canada are plain to see—for example money spent on food, hotels and activities and in shops—other benefits, including an increase in Canadian exports to China, are less obvious.

“When tourists come to Canada, they spend money on hospitality and attractions, but what’s also valuable is the exposure for Canadian businesses to Chinese consumers and the direct contact with the customer,” Hamel says. “When Chinese tourists come here and have a positive experience with our goods and services they get to discover the Canadian brand, and when they go back home they look for it.”

A trilingual logo featuring a polar bear and a panda bear was designed to represent the Canada-China Year of Tourism. The recent Ottawa Ice Dragon Boat Festival, for example—billed as the world’s largest—featured the logo. Canadian businesses can also use it to indicate they are eager to welcome Chinese tourists, Hamel says.

In China, initiatives to raise interest in travelling to Canada are underway including a social media and marketing campaign and promotional activities at tourism and other commercial fairs, cultural events, ceremonies, and hockey games.



“It’s important for businesses to see tourism as a window into Canada,” Hamel says. There are many things exporters can do to make themselves visible through that window, she adds, for example associating themselves with service providers such as hotels and attraction operators to ensure their products are exposed to tourists.

Chinese tourists are generally looking for quality products and interesting cultural experiences that are unique to Canada, Hamel says, citing Cirque du Soleil and Canada Goose brand jackets as examples of brands that are familiar to Chinese consumers.

“The Canadian brand is very strong when it comes to winter apparel.  Products and services associated with healthy living are also popular. Canada is known for having a clean environment and Chinese tourists and consumers are very attracted to food and natural products that are grown and sold in Canada for that reason.”

Ontario ginseng is popular amongst Chinese consumers, Hamel says, as well as other vitamins and nutraceuticals. Blueberries, and cranberries, wine, beer and spirits, private health services, winter sports gear and sporting experiences and activities, ‘’are great examples of things that will appeal to Chinese tourists,” she notes.

As China gears-up to host the 2022 Winter Olympic and Paralympic Games in Beijing, it has set an ambitious target to get 300 million people involved in winter sports by that time. This creates opportunities for Canadian companies in sports equipment, apparel and services for sports facilities and related projects.

Other countries—France and Italy, for example—have attracted many tourists who first became familiar with their food and beverages and fashion then became curious about visiting, Hamel points out, adding that tourism can help drive exports and vice-versa, back and forth. An increase in Chinese tourists can benefit not only new exporters by creating a new demand for previously unfamiliar products, but it can help those Canadians already exporting to China increase their sales.

“Chinese tourists will come here and familiarize themselves with Canadian products and often they will go home and purchase them online,” Hamel says, adding online shopping is very popular in China. Similar to the well-known Black Friday and Cyber Monday shopping days in North America, November 11 is known as ‘’Single’s Day’’ in China, a popular day for on-line shopping promotions. “For example on that one day (in 2017), six million Canadian lobsters were sold on Alibaba's e-commerce site.”

Prime Minister Justin Trudeau announced the Canada-China Year of Tourism initiative during his first state visit to China in September 2016. The Canada-China Year of Tourism is a joint initiative led by Canada’s department of Innovation, Science and Economic Development (ISED) and the Chinese National Tourism Administration. Several partners are involved including Global Affairs Canada and Destination Canada, a Crown corporation focused on supporting tourism to Canada.

With a population of nearly 1.4 billion, China is an important export market, and the world’s largest tourism source market. Chinese nationals are the largest spenders in international tourism, states the Government of Canada’s official Canada-China Year of Tourism web site. The site includes tips for Canadian businesses on how to use the initiative to their advantage, as well as access the logo which they can use for promotional purposes.

In 2016, Canada welcomed close to 625,000 Chinese visitors who spent approximately $1.5 billion—an average of $2,438 per visitor.

“China is now Canada’s third-largest tourism source market (behind the United States and the United Kingdom),” the site states. “The Chinese tourist market is growing and represents an opportunity for Canadian businesses.”

FULL DOCUMENT: http://tradecommissioner.gc.ca/canadexport/0002703.aspx?lang=eng

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LGCJ.: