CANADA ECONOMICS
NAFTA
Global Affairs Canada. March 12, 2018. Foreign Affairs Minister to hold meetings in Washington on Canada-United States trade
Ottawa, Ontario - Canada is committed to strengthening its important economic relationship with the United States and to creating new opportunities for workers and businesses on both sides of the border.
As part of these efforts, the Honourable Chrystia Freeland, Minister of Foreign Affairs, will be in Washington, D.C., for meetings on March 13 and 15, 2018. The Minister will meet with Ambassador Robert Lighthizer, U.S. Trade Representative; Wilbur Ross, U.S. Secretary of Commerce; Representative Kevin Brady, Chairman of the Committee on Ways and Means; and Senator Orrin Hatch, Chairman of the Senate Finance Committee, as well as with other government representatives, representatives from the International Monetary Fund and, U.S. senators.
While in Washington, the Minister will advance Canada’s efforts to keep trade open, fair and barrier-free, to benefit people on both sides of the border. The Minister will also reiterate Canada’s commitment to conclude a modernized NAFTA that is a win-win-win for Canadians, Americans and Mexicans.
Quotes
“Canada and the United States have the greatest economic partnership of any two countries in the world. We are energetically at work modernizing and updating NAFTA in a way that upholds and defends the best interests of Canadians. We know a fair deal, a win-win-win deal, is within reach. That is what we are working toward. Canada is absolutely committed to this outcome, and we are working tirelessly to achieve it.”
- Hon. Chrystia Freeland, P.C., M.P., Minister of Foreign Affairs
Quick facts
- Canada and the United States share the world’s longest secure border, over which approximately 400,000 people, and goods and services worth $2.5 billion, cross daily.
- Canada and the United States share one of the largest trading relationships in the world. Canada is the largest market for the United States, with US$283 billion worth of goods exported to Canada in 2017—more than China and Japan, and the UK combined.
- Canada is the number one export destination for most American states, and cross-border trade and investment support nearly 9 million jobs in the United States.
- Canada and the United States share values and interests on a range of international issues, including human rights, democracy, development, defence, nuclear non-proliferation and counterterrorism.
Canada-United States relations: http://international.gc.ca/world-monde/united_states-etats_unis/relations.aspx?lang=eng
North American Free Trade Agreement - Resources: http://www.international.gc.ca/trade-commerce/consultations/nafta-alena/toolkit-outils.aspx?lang=eng&_ga=2.9781430.2044189505.1519075289-419424296.1488419833#factsheet
North American Free Trade Agreement - Important news: http://international.gc.ca/trade-commerce/consultations/nafta-alena/important_news-nouvelles_importantes.aspx?lang=eng
US TARIFFS ON STEEL AND ALUMINIUM
Statement by the Prime Minister on Canada’s steel and aluminum workers and businesses Ottawa, Ontario - March 12, 2018
The Prime Minister, Justin Trudeau, today issued the following statement on Canada’s steel and aluminum workers and businesses:
“This week, I will travel across Canada to meet with the workers and businesses at the heart of our country’s world-class steel and aluminum industries.
“From Northern Quebec to the St. Lawrence Valley and the Great Lakes, to the ports of the east and west coasts and urban centres across the country, Canada’s steel and aluminum industries provide thousands of Canadians with good, middle class jobs and play an important role in our economy. Canada produces some of the cleanest steel and aluminum in the world thanks to our focus on new technology and cleaner sources of energy.
“We know the tremendous effort that steel and aluminum workers put in every day to provide for their families, support their communities, and build businesses that are competitive in the global market. We also know they face real challenges, including concerns around global overcapacity and our integrated North American market.
“I look forward to hearing directly from workers about how we can work together to address these issues and help our steel and aluminum industries grow and succeed.
“We will always stand up for Canadian steel and aluminum workers. This is about defending our country’s primary interests and values, so that our industries and businesses can continue to drive economic growth, and create the good, middle class jobs that we need for our future prosperity.”
Itinerary for Monday, March 12, 2018 Ottawa, Ontario - March 11, 2018
Itinerary for the Prime Minister, Justin Trudeau, for Monday, March 12, 2018:
Ville de Saguenay (Chicoutimi), Quebec
10 a.m. The Prime Minister and the Premier of Quebec, Philippe Couillard, will participate in a roundtable with aluminum industry leaders.
NRC’s Aluminium Technology Centre
501 Boulevard de l’Université Est
Notes to media:
Photo opportunity at the beginning of the roundtable
Media are asked to arrive no later than 9:15 a.m.
Ville de Saguenay (Jonquière), Quebec
1 p.m. The Prime Minister and the Premier of Quebec will participate in a brief tour and meet with workers of the Rio Tinto AP60 Technology Centre. A joint media availability will follow.
Rio Tinto AP60 Technology Centre
Notes to media:
Pooled photo opportunity of visit
Open coverage of media availability
Media must present themselves to the Aluminium Operations Centre at 1655 Rue Powell, Jonquière, no later than 11:30 am. Media will be escorted by bus to the AP60 Technology Centre. Satellite trucks will be able to follow.
Attire: Long pants, long sleeve shirts, and closed toe footwear must be worn.
Alma, Quebec
3:30 p.m. The Prime Minister will meet with workers of the Rio Tinto Alma Smelter.
Closed to media
Media appearances
7:40 a.m. An interview with the Prime Minister will air on ICI Radio-Canada Première Saguenay–Lac-Saint-Jean, Y'a des matins.
2:10 p.m. A live interview with the Prime Minister will air on the CNBC network.
8 p.m. An interview with the Prime Minister will air on CNN, Anderson Cooper 360°.
Atlantic Canada Opportunities Agency. March 12, 2018. New equipment and expansion fueling growth at Max Steel
Clair, NB – Supporting businesses in rural communities helps create opportunities for business growth and good paying jobs for the middle-class and those looking to join it. That’s why the Government of Canada and the Province of New Brunswick have supported Max Steel to help the company expand its existing operations, increase sales and create two new jobs.
René Arseneault, Member of Parliament for Madawaska-Restigouche, on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency (ACOA), was joined by the Honourable Francine Landry, MLA for Madawaska Les Lacs-Edmundston, and François Bossé, General Manager of Max Steel, to make the announcement today.
Specifically, this investment has enabled the company to expand its base of operations, purchase new equipment and reconfigure the plant floor, all to allow for better work flow, improved employee safety and increased efficiency to support growing sales of specialized products for the manufacturing and forestry sectors.
The Government of Canada is providing a repayable contribution of $109,000 through ACOA’s Business Development Program. The Province of New Brunswick is also investing $109,000.
This project builds on the Government of Canada’s commitment to drive economic growth in Atlantic Canada through the Atlantic Growth Strategy, by providing strategic investments for projects that build on the region’s competitive advantages, including expertise in manufacturing and a skilled workforce.
Quotes
“The Government of Canada is committed to helping Atlantic Canadian businesses grow and innovate so that they can continue to create good quality jobs and generate wealth within their communities. Through ACOA, we are making strategic investments in companies like Max Steel to help them continue growing, innovating, and supporting the diversification of local economies.”
- The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for ACOA
“I am pleased that the Government of Canada, through ACOA can support Max Steel’s efforts to expand and grow its operation. This investment also means two new jobs in our community and will help advance our region’s reputation for providing innovative and specialized products to the forestry sector.”
- René Arseneault, Member of Parliament for Madawaska-Restigouche
“Your government is committed to making smart investments to help businesses succeed in every corner of New Brunswick. We are pleased to see long-time New Brunswick businesses like Max Steel continue to succeed and grow. These investments create and maintain good jobs, supporting New Brunswick workers and their families.”
- The Honourable Francine Landry, Minister of Economic Development and Minister responsible for Opportunities NB
“These investments have allowed us to complete an expansion of our factory and acquire additional production equipment, enabling us to optimize our services, and ensure the continued success of our enterprise. Today, the factory is 16,500 square feet and boasts new lifting equipment for up to 10 tonnes. This expansion means we are better equipped to respond to demand and facilitates the manufacture of various construction products. We are very appreciative.’’
- François Bossé, General Manager, Max Steel
The Globe and Mail. 12 Mar 2018. In U.S. steel country, a test of GOP loyalty. President Trump leads charge to retain working-class support in Pennsylvania race as Democrats mount effort to wrest control
ADRIAN MORROW, WAYNESBURG, PA.
Eugene Barno was once among the Democratic Party’s base. A coal miner for 45 years in southwestern Pennsylvania, his work stoked the steel mills that formed the backbone of the area’s economy and his vote gave the left power in the rugged, blue-collar hill country that stretches south of Pittsburgh.
That changed in 2016, when Mr. Barno was impressed by Donald Trump’s campaign on traditional working-class themes. Helping the coal industry and slapping tariffs on foreign imports to protect American manufacturers were at the centre of the bombastic billionaire’s populist appeal.
“For a long time, it seemed the Democrats were for the working man,” Mr. Barno, 71, said. “This time, it seemed Trump was more for us than the Democrats.”
“Coal and steel: Our area depends on these for survival,” adds his wife, Kathy Barno, 69, a homemaker.
But on Sunday, the couple found themselves at a rally for Conor Lamb, the Democratic candidate in a special election in Pennsylvania’s 18th congressional district, in an outbuilding on the Greene County Fairgrounds in Waynesburg. They wanted to hear what he had to say as they weighed how to vote on Tuesday. Their support for Mr. Trump had not, they said, automatically translated into backing the Republicans.
The Barnos were the key demographic that handed Mr. Trump his shock presidential victory, delivering swing states in the country’s manufacturing belt. Now, retaining them is key to the President’s political survival – and winning them over is a major imperative for a Democratic Party trying to come back from its stinging loss.
The stakes could not be higher. With midterm elections looming in November, the Republicans must retain control of Congress to foreclose the possibility of impeachment against the President. Both sides are throwing everything they have at Tuesday’s election – a statistical dead heat in a district that backed Mr. Trump by 18 points in 2016.
The district, which stretches from the suburbs of Pittsburgh to the West Virginia and Ohio borders, became vacant last year after incumbent pro-life GOPer Tim Murphy resigned after he was caught encouraging a woman, with whom he was having an extramarital affair, to have an abortion.
Even the President’s opponents here acknowledge that his economic policies are winners.
Rita Yantko, a Democratic organizer in Fayette County, says her local party lost 5,000 registered voters to the GOP in 2016. She is in favour of the tariffs on steel and aluminum Mr. Trump rolled out last week.
“It’s a good thing – I don’t have a problem with that,” she said. “I’d love to see some jobs.”
But she hopes that voters have become disenchanted enough with Mr. Trump’s drama and scandal-plagued White House to return to the Democratic fold this time around.
It also helps that the Democrats have nominated a candidate who is culturally conservative, but leans left economically.
A lanky 33-year-old former Marine and federal prosecutor, Mr. Lamb identifies as pro-life and campaigns as a tough-on-crime supporter of gun rights, but also backs both unions and tariffs, and promises to protect education and other social programs from Republican cuts. And he has publicly broken with Nancy Pelosi, the liberal Californian who leads the Democratic House caucus.
“I like the fact that he’s pretty non-partisan – he doesn’t buy into the party line,” said Lars Lange, a 53-year-old former miner turned lawyer, as he stood on the sidelines of Mr. Lamb’s rally.
Pacing the front of the hall in shirt sleeves, a hand-held microphone giving him the mien of an evangelical preacher, United Mine Workers of America president Cecil Roberts brought the crowd to its feet with his thumbnail sketch of the candidate.
“He’s a God-fearing, unionsupporting, gun-owning, jobprotecting, pension-defending, social-security-believing, healthcare-creating and sending-drugdealers-to-jail Democrat,” Mr. Roberts shouted in his West Virginian drawl.
Mr. Lamb has also been careful about criticizing Mr. Trump. And it’s no wonder: At a Saturday evening rally, the President packed an airplane hangar at the Pittsburgh airport, drawing wild cheers as he crowed about his plans to freeze-out foreign goods.
“Your steel is coming back, it’s all coming back,” he declared. “The great American comeback continues full-speed ahead.”
Claire Fox, a 56-year-old school guard, thinks of her son, a welder, when she hears the President’s promises to pump up blue-collar employment.
“The tariffs are good, to bring jobs back here,” she said as she stood near the back of the rally with a group of friends. “Not everyone’s a college kid.”
The Republicans have also nominated a colourful candidate: Rick Saccone, a populist right-wing state legislator who likes to say he was “Trump before Trump was Trump.” In a previous life, he was also a counterintelligence officer and lived in North Korea for a year, monitoring the failed Clinton-era deal to dismantle its nuclear program in exchange for help building power plants.
But whether the enthusiasm for the President still evidenced here will help Mr. Saccone – or any other Republican come November – is an open question.
Daniel and Elke Miller, who spent their careers at coal and aluminum companies, voted for Mr. Trump and still like him: They give the President’s tariff plan high marks (although Mr. Miller is quick to add that he’d rather the United States spare its allies, such as Germany and Canada, from the trade attack.)
“Hillary made me very nervous,” Ms. Miller said. “She wanted to close all the coal plants.”
But they are both voting for Mr. Lamb on Tuesday.
“He supports all the things I’m for,” Mr. Miller, 73, said as he stood in the hall after Mr. Lamb’s rally. “He’s pro-union and he’s pro-education.”
The Globe and Mail. 12 Mar 2018. Despite tariff reprieve, aluminum industry expected to keep investment under wraps
NIALL McGEE, MINING REPORTER
After receiving a stay of execution on punitive import tariffs imposed by the United States the Canadian aluminum industry can breathe a little easier, but companies are unlikely to make major investment decisions under the status quo.
On Thursday, U.S. President Donald Trump exempted Canada and Mexico from new 10-percent aluminum tariffs that will soon apply to the rest of the world.
The final outcome for Canada will depend on how the ongoing North American free-trade agreement talks proceed, the President said.
Mr. Trump justified the tariffs on national security grounds, specifically the need to secure a domestic supply of metals such as aluminum, for the manufacture of military equipment.
Canada – historically a staunch U.S. military ally – is the largest supplier of aluminum to the United States, accounting for 44 per cent of its imports, according to TD Securities Inc. The Canadian aluminum industry employs roughly 10,000 people at 10 smelters, nine of which are in in Quebec. About 80 per cent of domestic production goes to the United States.
Canadian-based producers have spent $13-billion over the past 15 years to modernize smelting facilities.
Rio Tinto PLC alone spent about $6-billion to upgrade its Kitimat smelter in British Columbia. Just last month, the Australian-British giant announced a $250-million investment in a Quebec alumina refinery.
But the state of limbo over the tariffs means the industry is unlikely to pull the trigger on any major new investment until there is certainty, said Jean Simard, chief executive of the Aluminium Association of Canada (AAC).
“We shall employ ourselves over the next weeks, together with our Canadian and Quebec governments and our U.S. allies, to find a pathway towards a full and permanent exemption,” Mr. Simard said in a statement on Thursday.
If the United States ultimately imposes the new tariffs on imports of Canadian aluminum, the AAC pegs the economic impact at US$700-million, half of which it expects to be absorbed by the primary aluminum producers, and the rest by end customers, such as U.S. auto and aerospace manufacturers.
Apart from Rio Tinto, the major players in Canada are U.S. firm Alcoa Corp. and Canadian company Aluminerie Alouette, which operates the largest smelter in the Americas, in Sept-Îles, Que. That facility produces about 600,000 tonnes of primary aluminum a year, and employs more than 900 people. Alouette is privately held and owned by a small group of shareholders, which include Rio Tinto and the Quebec government.
While not as competitive as China, Canada has a big cost advantage over the United States because of its access to cheap electricity, particularly hydro power in Quebec. Aluminum production is extremely energy-intensive.
Canadian smelters are also much more modern than their U.S. counterparts. The average age of a U.S. facility dates from the 1970s, according to the AAC. Canadian smelters are 1990s-era. Chinese facilities date from the 2000s.
“The Chinese are going around in a Tesla, whereas the U.S. is going round in an old Chevy,” Mr. Simard said.
While China has flooded the global market with cheap aluminum over the past decade as new production has come online, it does relatively little business with the United States, accounting only for about 8 per cent of U.S. aluminum imports. Consequently, the new Trump tariffs won’t be overly damaging toward China.
“President Trump’s 10 per cent tariff on aluminum imports is unlikely to have a large direct impact on Chinese export activity, as they will likely increase exports to other regions where the majority of exports are sold anyways,” Bart Melek, head of commodity strategy with TD Securities, said in a note to clients on Thursday.
However, trade uncertainty is weighing on global aluminum prices. As recently as three weeks ago, aluminum futures were trading at a six-year high of around US$2,250 a tonne on the London Metals Exchange. Prices have since fallen by about 7.5 per cent.
THE GLOBE AND MAIL. MARCH 12, 2018. Could Canada be forced into a bad deal on NAFTA to escape tariffs?
MICHAEL BABAD, Columnist
TARIFFS VS. NAFTA
The chief economist at RBC Global Asset Management is raising the possibility of Canada being pushed into a bad deal on NAFTA to permanently escape the new U.S. tariffs on steel aluminum.
"The primary reason Canada and Mexico have been excluded is to hold the tariffs in reserve as a pressure tactic during NAFTA negotiations," Eric Lascelles warned today.
"The odds of a successful resolution to NAFTA appear to be dimming given recent protectionist actions, especially with the threat of steel and aluminum tariffs now linked to the NAFTA outcome (this might make Canada and Mexico slightly more inclined to accept a bad deal, but more importantly signals the U.S. is not just going to forget about NAFTA or accept the status quo)," he added in his weekly research note.
"We had been highlighting a 40-per-cent chance of a bad NAFTA outcome, but that risk is arguably now rising toward 50 per cent."
Mr. Lascelle's comments came after Foreign Affairs Minister Chrystia Freeland said Canada wouldn't be forced into accepting something less than Ottawa wants because of the tariff sword dangling over its head.
"This episode has not changed our NAFTA negotiation position," she stressed.
Separately, trade lawyers are warning that the tariffs could yet hurt Canadian industry if foreign steel floods our market.
As The Globe and Mail's Steven Chase, Adrian Morrow and Greg Keenan report, the Canadian government is also on guard against this, though, at least partly, for other reasons.
Mr. Trump last week unveiled tariffs of 25 per cent on imported steel and 10 per cent on aluminum, but exempted Canada and Mexico indefinitely, the assumption being they can remain exempt if they play ball on renegotiating the North American free-trade agreement.
As Mr. Chase, Mr. Morrow and Mr. Keenan report, the exemption hinges, too, on Ottawa not allowing foreign producers to get into the U.S. via Canada.
Borden Ladner Gervais managing partner Alan Ross, partner Denes Rothschild and associate Danielle Ridout looked at the issue through a different lens, that of the potential impact on the Canadian steel and aluminum sectors.
"While the exemptions for Canada and Mexico are good news for steel and aluminum businesses, as well as businesses with cross-NAFTA-border integrated supply chains in those countries, Canadian and Mexican businesses are still likely to be impacted by the new tariffs," Mr. Ross, Mr. Rothschild and Ms. Ridout said in a report.
"There are real concerns about foreign steel and aluminum, which are effectively tariff-barred from the U.S., flooding the Canadian and Mexican markets," the BLG lawyers added.
"This may be good news for some Canadian and Mexican businesses, but bad news for the Canadian and Mexican steel and aluminum industries – although the news would be much worse if they were subject to tariffs on exports to the U.S."
Mr. Rothschild added in an interview that he doesn't expect "huge change," but that "the reality is that there's excess capacity globally."
Thus, further disruption would make a difference.
Steel coming into Canada could be predominantly from Asia, though, "I'd think it would be a diversified group," Mr. Rothschild said.
There's another way of looking at this, of course, and that's the potential for Canadian companies to pick up market share in the U.S. as other exporters are forced out of the market by the tariffs.
And there's a "good chance" of that happening, Mr. Rothschild said, though the U.S. could well reconsider the exemption if Canadian steel started to flood its market.
The more likely scenario, however, is that this all gets settled before that could occur, he added.
The tariffs would, of course, hit the Canadian economy if Ottawa were to lose the exemption should NAFTA negotiators fail to make nice, something observers don't expect to happen, but keep warning us about, nonetheless.
"If the tariffs eventually extend to Canada (i.e., if Trump doesn't get his way on NAFTA), its economy could slow a few tenths, with Quebec and Ontario taking the brunt of the impact," said Bank of Montreal senior economist Sal Guatieri.
"U.S.-bound shipments of steel and aluminum are just over 1 per cent of GDP," he added.
"The economy will be hurt even in the absence of tariffs, as noted by Bank of Canada deputy governor [Timothy] Lane, because the uncertainty will affect investment decisions."
Regardless of how it turns out for Canada, the U.S. economy will feel a pinch.
"The tariffs will extend an upswing in steel and aluminum prices and users' input costs," Mr. Guatieri said.
"Industries, such as fabricated metals that operate at capacity, will likely pass along the cost increase, cramping spending power," he added.
"As one example, Americans could pay about 1 per cent more for an automobile, or just over $300. Sure, they won't stop driving, but they will have less money to spend on other stuff. The direct impact of the tariffs on GDP could be 0.2 per cent, or somewhat less if Canada and Mexico (which supply a quarter of the U.S.'s foreign steel needs) get an extended pass."
THE GLOBE AND MAIL. MARCH 12, 2018. Morneau says steel and aluminum tariff exemption bodes well for NAFTA talks
PAUL WALDIE, EUROPEAN CORRESPONDENT
LONDON, UK - Finance Minister Bill Morneau says Canada's ability to win an exemption from proposed U.S. tariffs on steel and aluminum should help in the ongoing NAFTA negotiations.
"I think that the demonstration of our relationship that came through this discussion is one that bodes well for the future in terms of any future discussion around tariffs, or for that matter, around NAFTA, showing that we can get to good outcomes through the use of our relationships and the explanation of how important it is that we work together," Mr. Morneau said after a speech to a business group in London.
Last week, U.S. President Donald Trump excluded Canada and Mexico from new import duties of 25 per cent on steel and 10 per cent on aluminum. However, the President connected the tariff decision to the talks about a new NAFTA deal between Canada the U.S. and Mexico, saying the tariffs could be imposed depending on the outcome of the negotiations.
Mr. Morneau said Canada does not believe the steel and aluminum issues should be tied to the NAFTA talks, but he said the fact that Canada won an exemption was a positive sign. "We worked hard to explain how integral we are to the North American market," he said, adding that he was "cautiously optimistic" about a new NAFTA agreement. "We've shown that we can deal with steel and aluminum tariffs as something that's a separate issue and we'll continue down those paths."
Canada is also keen to reach a post-Brexit trade deal with the U.K. that would have as few trade barriers as possible, he added. The U.K. cannot formalize any new trade agreements until it is completely out of the EU, a process that could take until 2020. The Canada-EU trade deal has been cited as an example for a future trading relationship between Canada and the U.K., as well as between the U.K. and the EU. That deal, however, covers only a limited number of areas.
The British government has said it wants a "Canada plus, plus, plus" deal with the EU after Brexit, covering not only goods but a host of sectors, including financial services. Mr. Morneau indicated that Canada would be interested in negotiating a similarly broad trade treaty.
"To the extent we can get a better arrangement with the U.K. in future, that's positive," he said. "We've been pretty clear that we want to have trading relationships around the world that are going to create advantage for Canada …. So any barriers that we can break down in the post-Brexit world with the U.K. would be positive."
Several British politicians have also been eager to expand the U.K.'s trade within the Commonwealth after Brexit, with some saying there could be a kind of trading block among the 53 member countries. When asked if Canada viewed the Commonwealth as a potential trade area, Mr. Morneau stressed the importance of striking deals with individual countries instead. "Our approach around expanding trading relationships has been to be focused on places where we have current and future opportunities. So we are thinking about the size of the economies that we're trying to expand trade with," he said, citing China and the EU as example.
Next month, Prime Minister Trudeau will join the leaders of other Commonwealth countries at a summit in London hosted by the Queen, where trade issues are expected to come up. Mr. Morneau said Canada's Commonwealth ties were "a positive aspect of our trading relationship with the U.K. and with other countries, and one that we should clearly continue to expand upon."
And while he seemed unaware that Monday was Commonwealth Day, Mr. Morneau said the Commonwealth connection was special. "There are these ties that do persist based on that historical background. I wouldn't want to say I've been to every country and know how it feels everywhere, but I do think there's something that's special about the Commonwealth relationship."
REUTERS. MARCH 12, 2018. Canada's PM bids to reassure aluminum workers about U.S. tariffs
Allison Lampert
MONTREAL (Reuters) - Canadian Prime Minister Justin Trudeau on Monday kicked off a tour of the nation’s steel and aluminum regions to reassure workers worried that the United States could still introduce tariffs on the imports of the metals.
Trudeau’s first stop was the province of Quebec, the heart of Canada’s aluminum industry, where he will be accompanied by Quebec Premier Philippe Couillard. He was due to meet workers at Rio Tinto Ltd’s (RIO.AX) smelting plant in Alma.
U.S. President Donald Trump seeks to impose import tariffs of 25 percent on steel and 10 percent for aluminum, effective later this month.
Canada, the biggest supplier of steel and aluminum to the United States, escaped Trump’s import duties along with Mexico, but the two countries could still face duties if they fail to negotiate a North American Free Trade Agreement (NAFTA) deal.
“We know well that with this president there are moments of unpredictability and I think it’s important to show that we are there to reassure the workers,” Trudeau told public broadcaster Radio Canada on Monday.
“We are negotiating the NAFTA accord in good faith and we will continue to do so but I don’t want the president to think he can bring tariffs on Canadian steel and aluminum without there being consequences.”
Trudeau rejected calls by some Quebec union leaders to take a harder line in NAFTA talks and leave the table.
“I understand this point of view, but for me, I think Canadians in general are expecting us to work productively with the United States,” Trudeau said.
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U.S. tariffs on Canadian steel and aluminum would be “very harmful” for industry and workers in both countries, he added. Canada has vowed to retaliate if duties are imposed.
Later this week Trudeau is due to visit the steel town of Hamilton, where workers are on edge.
Although Trump linked the exemption of tariffs for Canada to progress at the NAFTA talks, Foreign Minister Chrystia Freeland said there was no link between the two.
“These are two separate tracks and in the NAFTA negotiations Canada will not be subject to any type of pressure. This episode has not changed our NAFTA negotiating position — we are very clear on that,” she told CTV television on Sunday.
Additional reporting by David Ljunggren in Ottawa; Editing by Denny Thomas and Alistair Bell
REUTERS. MARCH 11, 2018. Canada's steel town still nervous despite tariff reprieve
Allison Martell
HAMILTON, ONTARIO (Reuters) - A temporary exemption from U.S. tariffs is little comfort to the Canadian steel city of Hamilton, coping with months of uncertainty as U.S. President Donald Trump has threatened a potentially devastating 25 percent duty unless the North American Free Trade Agreement is renegotiated.
Canadian negotiators are weighing the interests of the relatively small sector, responsible for about 22,000 direct Canadian jobs and C$9.0 billion ($7.0 billion) in U.S. exports, against those of bigger industries like auto manufacturing and politically influential groups like dairy farmers.
“I don’t think we’re at the end of it. Now it’s being used as leverage,” said Hamilton Port Authority Chief Executive Officer Ian Hamilton. “President Trump is putting a lot of pressure on everybody.”
Hamilton, population 700,000, has pushed to diversify its economy, with better transit links to Toronto and affordable homes that are attracting families priced out of Canada’s biggest city.
A C$139-million project is underway to clean up coal tar that contaminates the harbor and condos are replacing once empty downtown storefronts.
When Canadian steel escaped U.S. steel tariffs in 2002, the duties had diverted some cheap steel into Canada. In recent years, a global steel glut has made it difficult for Canadian mills to compete.
But ArcelorMittal’s (MT.AS) Dofasco mill, coking and finishing operations at Stelco (STLC.TO), and a collection of smaller operations still directly employ 10,000 people in Hamilton.
The North American steel industry is heavily integrated, with raw materials, steel and parts crossing the U.S.-Canadian border several times before a finished product such as a vehicle or refrigerator is sold to consumers. About 65 percent of the Hamilton port’s tonnage is iron ore and coal used to make steel.
Hamilton, the port president, said one steel company called after Trump first signaled the tariffs on March 1, when it was unclear whether Canada would be exempt at all. The firm wanted to know if the agency might be willing to take over management of its warehouse and find different cargo to fill it.
Hamilton Chamber of Commerce President Keanin Loomis, a former Washington lawyer, is part of a new generation in the city who have never worked in a steel mill. But like much of the city, he has a personal connection to steel, a father-in-law retired from the Dofasco mill.
If a tariff is imposed, Loomis expects imports to lower domestic steel prices, potentially driving some employers south of the border, where tariffs are expected to boost prices.
Loomis said high labor costs, environmental regulations and a looming carbon tax already make it difficult for the steel industry to compete.
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“This could be the thing that puts it over the edge,” he said.
The city’s United Steelworkers Local 1005 has only about 550 active members, down from more than 13,000 in its heyday in the 1970s.
The local union represents workers at Stelco, but not Dofasco, which never organized. Since 2004 it has weathered the closure of Stelco’s Hamilton mill, Stelco’s two trips through bankruptcy protection, and two new owners. Members at another plant, Max Aicher North America, have been locked out for almost five years over proposed wage and benefit cuts. And union president Gary Howe sees choppy waters ahead.
“With Trump being in there, it’s probably never going to be over,” he said.
The Canadian government has vowed to continue lobbying Washington until the threat of duties disappears.
Pressed on Trump’s decision to link the exemption to NAFTA, Canadian Foreign Minister Chrystia Freeland said on Thursday that Canada considers the two issues to be totally separate.
“I think they should get some more backbone,” Steve Kajganic, a retired veteran of the Stelco mill and a second-generation steelworker, said of the Canadian government. “Stand up for our country, instead of selling it out.”
Editing by Denny Thomas and Jeffrey Benkoe
REUTERS. MARCH 12, 2018. Commerce secretary to push EU to lower tariffs: Trump
Philip Blenkinsop, Doina Chiacu
BRUSSELS/WASHINGTON (Reuters) - U.S. Commerce Secretary Wilbur Ross will urge the European Union to lower its trade barriers, U.S. President Donald Trump said on Monday, calling them unfair to U.S. farmers and industry, a view the EU firmly rejects.
The European Commission accused Trump of “cherry-picking” data to distort the debate in a transatlantic dispute that threatens to become a trade war.
The EU is seeking to be exempted from planned U.S. import duties of 25 percent on steel and 10 percent on aluminum, but says Washington has not made clear how the exemption process works.
Trump said in a tweet on Saturday the United States was ready to drop its tariffs if the EU lowered its “horrific” rates on U.S. products. On Monday, he tweeted that Ross would be speaking with EU representatives about eliminating “large tariffs and barriers”.
“Not fair to our farmers and manufacturers,” he wrote.
Representatives from the Department of Commerce did not immediately respond to queries on the content or timing of those discussions.
French Finance Minister Bruno Le Maire said he was worried about the possibility of a U.S.-EU trade war.
“We believe there will only be losers,” he told reporters in Brussels. “We have to find solutions, we have to make the assessment and we will have thereafter to take the necessary steps, to find a way out and to fix the issue.”
The Commission said it expected to be in contact with Washington over the metals tariffs this week, but that no formal talks had been scheduled. It was still hoping for clearer indications about the exemption process.
It also said Trump was “cherry-picking” particular tariffs to highlight differences, and maintained average tariffs were very similar on each side of the Atlantic — 3 percent for products into Europe and 2.4 percent into the United States.
The U.S. tariff for cars, at 2.5 percent, was lower than the EU rate of 10 percent, but its rate of up to 25 percent on trucks was higher. The Commission spokesman also pointed to U.S. import duties of up to 48 percent on shoes, 12 percent on textiles and 164 percent on peanuts.
“Cherry-picking particular tariffs in one category, like looking just at car tariffs on both sides, misses the whole picture, while not taking into account lower levels on other products does not give an accurate picture of tariffs in general,” a Commission spokesman said.
“The EU market is one of the most open in the world and if anyone starts throwing stones, it’s better first to make sure he is not living in a glasshouse.”
The EU, he said, preferred dialogue, but was continuing its preparations for a “firm and proportionate” response.
Commission First Vice President Frans Timmermans said at a steel conference in Germany that Europe did not understand the logic of the proposed U.S. tariffs on the basis of national security and was preparing retaliatory measures if necessary.
“How is European steel a threat to the U.S.?” he said. “We have a different relationship on matters of national security than the U.S. has with China.”
The EU has been talking with partners about a legal challenge at the World Trade Organization to Trump’s plan and is considering safeguards to prevent steel and aluminum, diverted from the United States, flooding into Europe.
It has also lined up 2.8 billion euros of U.S. products, from maize to motorbikes, on which to impose tariffs so as to “rebalance” trade flows.
Additioanl reporting by Robert-Jan Bartunek in Brussels, Edward Taylor in Dillingen; Editing by Catherine Evans
REUTERS. MARCH 12, 2018. Canada's PM bids to reassure aluminum workers about U.S. tariffs
Allison Lampert
MONTREAL (Reuters) - Canadian Prime Minister Justin Trudeau on Monday kicked off a tour of the nation’s steel and aluminum regions to reassure workers worried that the United States could still introduce tariffs on the imports of the metals.
Trudeau’s first stop was the province of Quebec, the heart of Canada’s aluminum industry, where he will be accompanied by Quebec Premier Philippe Couillard. He was due to meet workers at Rio Tinto Ltd’s (RIO.AX) smelting plant in Alma.
U.S. President Donald Trump seeks to impose import tariffs of 25 percent on steel and 10 percent for aluminum, effective later this month.
Canada, the biggest supplier of steel and aluminum to the United States, escaped Trump’s import duties along with Mexico, but the two countries could still face duties if they fail to negotiate a North American Free Trade Agreement (NAFTA) deal.
“We know well that with this president there are moments of unpredictability and I think it’s important to show that we are there to reassure the workers,” Trudeau told public broadcaster Radio Canada on Monday.
“We are negotiating the NAFTA accord in good faith and we will continue to do so but I don’t want the president to think he can bring tariffs on Canadian steel and aluminum without there being consequences.”
Trudeau rejected calls by some Quebec union leaders to take a harder line in NAFTA talks and leave the table.
“I understand this point of view, but for me, I think Canadians in general are expecting us to work productively with the United States,” Trudeau said.
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U.S. tariffs on Canadian steel and aluminum would be “very harmful” for industry and workers in both countries, he added. Canada has vowed to retaliate if duties are imposed.
Later this week Trudeau is due to visit the steel town of Hamilton, where workers are on edge.
Although Trump linked the exemption of tariffs for Canada to progress at the NAFTA talks, Foreign Minister Chrystia Freeland said there was no link between the two.
“These are two separate tracks and in the NAFTA negotiations Canada will not be subject to any type of pressure. This episode has not changed our NAFTA negotiating position — we are very clear on that,” she told CTV television on Sunday.
Additional reporting by David Ljunggren in Ottawa; Editing by Denny Thomas and Alistair Bell
REUTERS. MARCH 11, 2018. Canada's steel town still nervous despite tariff reprieve
Allison Martell
HAMILTON, ONTARIO (Reuters) - A temporary exemption from U.S. tariffs is little comfort to the Canadian steel city of Hamilton, coping with months of uncertainty as U.S. President Donald Trump has threatened a potentially devastating 25 percent duty unless the North American Free Trade Agreement is renegotiated.
Canadian negotiators are weighing the interests of the relatively small sector, responsible for about 22,000 direct Canadian jobs and C$9.0 billion ($7.0 billion) in U.S. exports, against those of bigger industries like auto manufacturing and politically influential groups like dairy farmers.
“I don’t think we’re at the end of it. Now it’s being used as leverage,” said Hamilton Port Authority Chief Executive Officer Ian Hamilton. “President Trump is putting a lot of pressure on everybody.”
Hamilton, population 700,000, has pushed to diversify its economy, with better transit links to Toronto and affordable homes that are attracting families priced out of Canada’s biggest city.
A C$139-million project is underway to clean up coal tar that contaminates the harbor and condos are replacing once empty downtown storefronts.
When Canadian steel escaped U.S. steel tariffs in 2002, the duties had diverted some cheap steel into Canada. In recent years, a global steel glut has made it difficult for Canadian mills to compete.
But ArcelorMittal’s (MT.AS) Dofasco mill, coking and finishing operations at Stelco (STLC.TO), and a collection of smaller operations still directly employ 10,000 people in Hamilton.
The North American steel industry is heavily integrated, with raw materials, steel and parts crossing the U.S.-Canadian border several times before a finished product such as a vehicle or refrigerator is sold to consumers. About 65 percent of the Hamilton port’s tonnage is iron ore and coal used to make steel.
Hamilton, the port president, said one steel company called after Trump first signaled the tariffs on March 1, when it was unclear whether Canada would be exempt at all. The firm wanted to know if the agency might be willing to take over management of its warehouse and find different cargo to fill it.
Hamilton Chamber of Commerce President Keanin Loomis, a former Washington lawyer, is part of a new generation in the city who have never worked in a steel mill. But like much of the city, he has a personal connection to steel, a father-in-law retired from the Dofasco mill.
If a tariff is imposed, Loomis expects imports to lower domestic steel prices, potentially driving some employers south of the border, where tariffs are expected to boost prices.
Loomis said high labor costs, environmental regulations and a looming carbon tax already make it difficult for the steel industry to compete.
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“This could be the thing that puts it over the edge,” he said.
The city’s United Steelworkers Local 1005 has only about 550 active members, down from more than 13,000 in its heyday in the 1970s.
The local union represents workers at Stelco, but not Dofasco, which never organized. Since 2004 it has weathered the closure of Stelco’s Hamilton mill, Stelco’s two trips through bankruptcy protection, and two new owners. Members at another plant, Max Aicher North America, have been locked out for almost five years over proposed wage and benefit cuts. And union president Gary Howe sees choppy waters ahead.
“With Trump being in there, it’s probably never going to be over,” he said.
The Canadian government has vowed to continue lobbying Washington until the threat of duties disappears.
Pressed on Trump’s decision to link the exemption to NAFTA, Canadian Foreign Minister Chrystia Freeland said on Thursday that Canada considers the two issues to be totally separate.
“I think they should get some more backbone,” Steve Kajganic, a retired veteran of the Stelco mill and a second-generation steelworker, said of the Canadian government. “Stand up for our country, instead of selling it out.”
Editing by Denny Thomas and Jeffrey Benkoe
REUTERS. MARCH 12, 2018. Commerce secretary to push EU to lower tariffs: Trump
Philip Blenkinsop, Doina Chiacu
BRUSSELS/WASHINGTON (Reuters) - U.S. Commerce Secretary Wilbur Ross will urge the European Union to lower its trade barriers, U.S. President Donald Trump said on Monday, calling them unfair to U.S. farmers and industry, a view the EU firmly rejects.
The European Commission accused Trump of “cherry-picking” data to distort the debate in a transatlantic dispute that threatens to become a trade war.
The EU is seeking to be exempted from planned U.S. import duties of 25 percent on steel and 10 percent on aluminum, but says Washington has not made clear how the exemption process works.
Trump said in a tweet on Saturday the United States was ready to drop its tariffs if the EU lowered its “horrific” rates on U.S. products. On Monday, he tweeted that Ross would be speaking with EU representatives about eliminating “large tariffs and barriers”.
“Not fair to our farmers and manufacturers,” he wrote.
Representatives from the Department of Commerce did not immediately respond to queries on the content or timing of those discussions.
French Finance Minister Bruno Le Maire said he was worried about the possibility of a U.S.-EU trade war.
“We believe there will only be losers,” he told reporters in Brussels. “We have to find solutions, we have to make the assessment and we will have thereafter to take the necessary steps, to find a way out and to fix the issue.”
The Commission said it expected to be in contact with Washington over the metals tariffs this week, but that no formal talks had been scheduled. It was still hoping for clearer indications about the exemption process.
It also said Trump was “cherry-picking” particular tariffs to highlight differences, and maintained average tariffs were very similar on each side of the Atlantic — 3 percent for products into Europe and 2.4 percent into the United States.
The U.S. tariff for cars, at 2.5 percent, was lower than the EU rate of 10 percent, but its rate of up to 25 percent on trucks was higher. The Commission spokesman also pointed to U.S. import duties of up to 48 percent on shoes, 12 percent on textiles and 164 percent on peanuts.
“Cherry-picking particular tariffs in one category, like looking just at car tariffs on both sides, misses the whole picture, while not taking into account lower levels on other products does not give an accurate picture of tariffs in general,” a Commission spokesman said.
“The EU market is one of the most open in the world and if anyone starts throwing stones, it’s better first to make sure he is not living in a glasshouse.”
The EU, he said, preferred dialogue, but was continuing its preparations for a “firm and proportionate” response.
Commission First Vice President Frans Timmermans said at a steel conference in Germany that Europe did not understand the logic of the proposed U.S. tariffs on the basis of national security and was preparing retaliatory measures if necessary.
“How is European steel a threat to the U.S.?” he said. “We have a different relationship on matters of national security than the U.S. has with China.”
The EU has been talking with partners about a legal challenge at the World Trade Organization to Trump’s plan and is considering safeguards to prevent steel and aluminum, diverted from the United States, flooding into Europe.
It has also lined up 2.8 billion euros of U.S. products, from maize to motorbikes, on which to impose tariffs so as to “rebalance” trade flows.
Additioanl reporting by Robert-Jan Bartunek in Brussels, Edward Taylor in Dillingen; Editing by Catherine Evans
INVESTMENT
Global Affairs Canada. March 12, 2018. Government of Canada launches Invest in Canada to attract global investment and create jobs
Ottawa, Ontario - Foreign investment offers far-reaching economic benefits for the middle class and everyone working hard to join it. It creates jobs in Canada for Canadians, expands trade, boosts productivity, provides access to new technologies, encourages innovation, and links Canadian firms to global supply chains.
Canada is stepping up its efforts to attract and increase foreign direct investments (FDI) to Canada.
Today, the Honourable François-Philippe Champagne, Minister of International Trade, launched Invest in Canada, a new federal organization dedicated to attracting global investment and simplifying the process for global businesses to make Canada their new home, creating jobs that come with their investments.
As part of its launch, Minister Champagne introduced Mitch Garber as its inaugural chairperson of the board and Ian McKay as its inaugural chief executive officer (CEO).
Under the leadership of a CEO and an independent board of directors, Invest in Canada will promote FDI into Canada and bring together all levels of government and private sector partners to provide seamless, single-window service to global investors.
Invest in Canada will promote Canada to global investors and entrepreneurs as a diverse and open place to do business that inspires creativity and offers stability, predictability and clarity. Invest in Canada will position Canada for success today and in the long term.
The appointments were made following open, transparent and merit-based selection processes developed to attract high-quality candidates, while reflecting gender parity and Canada’s diversity in Governor-in-Council appointments.
Quotes
“Canada is a great place to do business, and a strong FDI attraction strategy can strengthen economic growth, create middle-class jobs and lead to a higher standard of living for Canadians. I am confident that Mr. Garber and Mr. McKay have the experience and leadership to guide Invest in Canada’s development and success and to position Canada as the top investment destination.”
- François-Philippe Champagne, Minister of International Trade
“As a long-time entrepreneur, I understand the challenges that companies can face when trying to set up or expand their businesses in a new country. I am excited to be part of developing this organization and making sure that Canada is at the forefront of the innovation and prosperity that comes with global investment in our country.”
- Mitch Garber, Chairperson of Invest in Canada
“Canada has a lot to offer international businesses, which can, in turn, create jobs that are important to Canadians. As the CEO of this new organization, I look forward to building the partnerships and team that will make it easier for international companies to choose Canada as the place to invest and grow their businesses.”
- Ian McKay, CEO of Invest in Canada
Quick facts
- The Government of Canada announced funding of $218 million to create Invest in Canada and enhance the Canadian Trade Commissioner Service in the 2016 Fall Economic Statement.
- Approximately 1.9 million Canadians are employed by foreign-controlled multinational enterprises in Canada; that’s almost 12% of Canadian workers, or 1 in 8 Canadian jobs.
- The organization will work with global companies to attract FDI in sectors aligned with the government’s economic growth strategy, in particular in advanced manufacturing, agri-food, clean technology, digital technology, health sciences and bio-sciences, and clean resources.
- Most, if not all, G20 countries currently have similar organizations, which have become vital instruments in attracting foreign investment in a very competitive landscape.
- Foreign investment in Canada currently stands at approximately $800 billion.
Backgrounder - Invest in Canada
As announced in the 2016 Fall Economic Statement, the Government of Canada is providing $218 million over five years to create a new organization, Invest in Canada, focused on streamlining and encouraging investment in Canada. This funding will also increase capacity of Global Affairs Canada’s Canadian Trade Commissioner Service to promote international investment in strategic markets around the world. It includes funding for 25 new trade commissioners over the next three years.
Under the leadership of a chief executive officer and an independent board of directors, Invest in Canada will develop a cohesive foreign direct investment strategy to align with the country’s overall economic growth strategy, promote Canada as a premier investment destination and establish an investor support network, including world-class investment aftercare, retention and reinvestment services.
Canada is an investment destination of choice for companies for a number of compelling reasons:
- Canada has a highly educated workforce and the Government strongly supports development of skills and global talent mobility (e.g. through the Innovation and Skills Strategy and Global Skills Strategy)
- Canada’s workforce is diverse, offering new ways of tackling problems and outside-the-box thinking
- Creativity in vibrant multicultural cities like Montreal, Toronto and Vancouver
- A stable and predictable business environment
- Lowest overall business costs in the G7
- Support for research and development, and innovation through the Industrial Research Assistance Program, the Strategic Innovation Fund and the Innovation Supercluster Initiative
- Preferred access to an increasing share of the global economy via our many free trade agreements
- Clear, predictable rules for foreign investment
- A sound banking system
Mitch Garber biography
A lawyer by training, Mitch Garber is a Canadian business executive and philanthropist with significant experience leading international corporations as board chairperson, as well as CEO, of both privately held companies and those listed on the Toronto Stock Exchange, Nasdaq Stock Market and London Stock Exchange.
He is currently a co-investor and chairperson of Cirque du Soleil, co-investor and board member of Rackspace and co-investor and adviser to CareerBuilder.
In 2009, he co-founded Caesars Interactive Entertainment and, as the chairperson and CEO, built the company into a world-leading game development company before it was sold to a consortium of Chinese buyers including Alibaba founder Jack Ma, in 2016.
With experience in Canada, the United Kingdom, the United States, Israel and Germany, he has developed a keen understanding of governance, finance, operations and many other facets of international business. For two seasons, he was a “dragon” on the entrepreneurship television show Dans l’Oeil du Dragon (Dragons’ Den).
Mr. Garber remains extremely committed to his philanthropic pursuits, which include chairing the advisory board of the Faculty of Medicine at McGill University, where he and his wife have established a post-doctoral fellowship grant in cancer research. He chaired the 2016 United Way campaign, raising a record $55 million. He also created the Mitch and Anne-Marie Garber Foundation, which focuses on education and health care.
Fully bilingual, Mr. Garber holds a Bachelor of Arts degree in Industrial Relations (1986) from McGill University and a Civil Law degree (1989) from the University of Ottawa. In November 2017, he received an honorary doctorate from the University of Ottawa in recognition of his civic and business accomplishments.
He is married to Anne-Marie Boucher, a tax lawyer and philanthropist, and they live together in Montréal, Quebec, with their two sons.
Ian McKay biography
A native of Penticton, British Columbia, Ian McKay has led a distinguished career as an executive in international financial markets, as a political adviser to federal cabinet ministers, and as CEO of the Vancouver Economic Commission.
Ian entered the financial markets prior to completing his studies at the University of British Columbia in 1987, when he was recruited as a derivatives broker by EuroBrokers International in New York. From there, Ian led a New York-based team to Tokyo, Japan, where EuroBrokers launched a brokerage operation. He went on to become managing director of the firm in Tokyo, spending 12 years there. In 1999, Ian became joint Managing Director of EuroBrokers Investment Corp., London. Between 2006 and 2009, Ian worked for ICAP Capital Markets NY, as the director of business development in Canada.
In 2001, Ian moved to Ottawa, where he spent four years serving as senior policy adviser to three federal cabinet ministers under prime ministers Jean Chrétien and Paul Martin. In 2010, he was appointed national director of the Liberal Party of Canada for a three-year term. Most recently, he served as CEO of the Vancouver Economic Commission, from 2013 to 2018. Mr. McKay also served as Chair of the CCCA, the 13 big-city alliance of economic development and FDI attraction platforms across Canada.
Mr. McKay studied Political Science and Asian Studies at the University of British Columbia and a Master of Business Administration from Queen’s University.
- Governor-in-Council appointments: https://www.canada.ca/en/privy-council/topics/appointments/governor-council.html
- Invest in Canada Act: http://laws-lois.justice.gc.ca/eng/acts/I-21.5/FullText.html
- Invest in Canada: http://www.investcanada.ca/
COMMONWEALTH
PM. Statement by the Prime Minister on Commonwealth Day. Ottawa, Ontario - March 12, 2018
The Prime Minister, Justin Trudeau, today issued the following statement on Commonwealth Day:
“Today, on Commonwealth Day, we join the citizens of the Commonwealth of Nations to celebrate our shared values and the strong bonds of cooperation and friendship that unite us.
“This year’s theme, Towards a Common Future, underscores our shared commitment to the ongoing goal of creating a better tomorrow for all.
“The Commonwealth is a voluntary association of 53 states that spans from Africa, Asia, and the Caribbean, to the Mediterranean and the Pacific. Headed by Her Majesty Queen Elizabeth II, the Commonwealth promotes the values of democracy, freedom, sustainable development, the rule of law, and human rights – especially those of women and girls. As a proud member, Canada will continue to promote and protect these values.
“On behalf of the Government of Canada, I invite all Canadians to take time today to learn more about the Commonwealth and its history.”
Global Affairs Canada. March 12, 2018. Statement by Foreign Affairs Minister on Commonwealth Day
Ottawa, Ontario - The Honourable Chrystia Freeland, Minister of Foreign Affairs, today issued the following statement:
“As a proud member of the Commonwealth, Canada works with 52 other countries around the world to advance and uphold democracy, human rights and the rule of law, all enshrined in our Commonwealth Charter. These values are critical for the development and prosperity of the Commonwealth’s member states and the well-being of its 2.4 billion people.
“At the upcoming Commonwealth Heads of Government Meeting, hosted this year in the United Kingdom, Canada will further advance priorities that can benefit the diverse countries and peoples that make up the Commonwealth.
“We will advocate for greater respect for the rights of all LGBTQ2 people, so those who discriminate are reminded that human rights are universal and indivisible and apply equally to all.
“We will promote the empowerment of women and girls, whose greater presence in political, economic and social structures has proven to be the most effective way to reduce poverty and build a more inclusive, peaceful and prosperous world.
“We will also speak with a strong voice on other pressing global issues that align with the priorities we have established for our 2018 G7 presidency, including building a more peaceful and secure world; climate change and oceans protection; inclusive economic growth; and the empowerment of youth, who account for 60% of the Commonwealth’s population.
“On this day, we celebrate the diverse cultures, faiths, languages, backgrounds and beliefs of all people in the Commonwealth. We pledge to keep working alongside our partners in the common pursuit of the values we share and a more just and prosperous future for all.”
Canada and the Commonwealth
The modern Commonwealth is a voluntary association of 53 countries, most with historic links to the United Kingdom and home to over two billion citizens.
Canada joined the Commonwealth in 1931 and has played an important role in its evolution into the modern Commonwealth of today. Canadian diplomat Arnold Smith served as the first Commonwealth Secretary-General from 1965 to 1975. The current Secretary-General is the Rt Hon Patricia Scotland QC. She is the sixth Secretary-General of the Commonwealth, and the first woman to hold the post.
The mandate of the Commonwealth is to serve the needs of its member governments and their citizens in political, economic and social development. The Commonwealth also provides a forum for deliberation, problem solving, consensus decision-making, and action on matters of importance to the organization.
The Commonwealth sees itself as an advocate for small and vulnerable states, helping to strengthen their resilience and inclusion in the global order. Each year, the Commonwealth selects a theme. The theme for 2018 is “Towards a Common Future”.
Canada funds the Commonwealth and its institutions through assessed and voluntary contributions as a member state of the Commonwealth. Canada is one of the top three donors, and contributed $8.1 million to the Commonwealth Secretariat and the Commonwealth Foundation in 2016-17. In 2015-16, Canada renewed its institutional and project support to the Commonwealth of Learning for $7.8 million over three years (2.6 million in 2016-17), for a total contribution of $10.7 million to the Commonwealth in 2016-17.
Canada participates in the Commonwealth Heads of Government Meeting (CHOGM) every two years. Leaders review the progress of previous commitments, discuss matters for mutual participation, and provide direction to the organization. CHOGM 2018 will be hosted by the United Kingdom and it will be held the week of April 16th, 2018.
The Commonwealth includes three intergovernmental organizations – the Commonwealth Secretariat, the Commonwealth Foundation and the Commonwealth of Learning (COL), (located in Burnaby, B.C.) and over 80 accredited civil society organizations.
Commonwealth of Learning
The Commonwealth of Learning (COL) focusses on strengthening institutions in developing Commonwealth countries that are striving to provide affordable education to larger numbers of their citizens. It is the only intergovernmental organization dedicated to the development and sharing of open learning and distance education knowledge, resources and technologies. COL is helping developing members improve access to quality education and training. Canada is the largest donor, and provides one-third of its annual funding.
Commonwealth Foundation
The Commonwealth Foundation is dedicated to supporting civil society so that success stories may be shared, learning enabled and cooperation fostered in order to influence the institutions that shape people’s lives. The Commonwealth Foundation strives for more effective, responsive and accountable governance with civil society participation, which contributes to improved development outcomes.
VENEZUELA
ANTULIO ROSALES, Postdoctoral fellow at the Centre for Development and the Environment, University of Oslo
On May 20, Venezuela will hold presidential elections. These elections will not be fair and do not meet basic standards of transparency, according to the vast majority of the Venezuelan opposition and members of the international community. They are poised to re-elect President Nicolas Maduro for another six-year term.
The Maduro government is using the dire conditions of most Venezuelans to stay in power.
Ninety per cent of Venezuelans reported not having enough money to purchase food in a nationwide survey. The vast majority of Venezuelans eat less than three times a day and more than half have lost an average of 24 pounds.
Income-related poverty has increased to 87 per cent of households, with 60 per cent in extreme poverty. In a context of hyperinflation and scarcity, more than a third of households report not purchasing any source of protein while more than 40 per cent of households rely mostly on tubers as the basis for their dietary needs.
As the country’s economic crisis unfolded in the past five years, these policies have deteriorated or have been eliminated altogether. The few that are left are used as mechanisms of social control and political coercion.
What happened to the social policies that the government became known for? In 2015, about 2.6 million people reported being beneficiaries of the health-care program, Mission Barrio Adentro, which gives communities access to primary care. Only 200,000 people used the program in 2017.
All the government’s efforts have now turned to food distribution. In 2017, 12.6 million received government-subsidized boxes of food called CLAP boxes.
The CLAP (Comites Locales de Abastecimiento y Produccion) is a network centralized by military authorities. Boxes are distributed in a discretionary manner to neighbourhood councils without formal oversight from elected officials. The network responds directly to the president.
CLAP boxes are not delivered regularly, their prices vary and their content is inconsistent. Most people use them not as their main source of food, but as a tool for barter. Basic products such as powdered milk have been found without the necessary nutrients to provide calcium and protein to a child. The imported milk barely costs US$1 a kilo, but government officials report paying US$4 to $7. This is a corruption scheme that profits from people’s hunger.
The government distributes these boxes through an ID known as “el Carnet de la Patria” or the homeland ID. This ID has a QR code used to store information about citizens, their socio-economic conditions, the benefits they receive and where they live. It is also used to replace the traditional citizenship ID.
Government officers demand this ID as a prerequisite for common bureaucratic procedures and as a way to obtain government benefits. Most people who receive CLAP boxes report having a “Carnet de la Patria” holder in their households.
Most important, the government has used this tool to coerce the population into political participation in favour of the government.
It has done so since 2017 when it organized scarcely competitive elections where the electoral conditions and polling stations have changed considerably. The socalled “puntos rojos,” which are red tents located outside polling stations, have been equipped with computers and phone lines to facilitate voter mobilization during election day. Here, government activists demand individuals activate their ID cards before casting their vote. This procedure works together with threats and suggestions that the government may be capable of knowing who they voted for. Ultimately, what is at risks for common Venezuelans is their access to subsidized food.
The use of electronic forms of data gathering has been successful at assuring participation in elections. The government’s victory in the 2017 regional elections (in which they won 18 of 23 seats) was to a large extent because of the use of this mechanism. Even though opposition support has increased in those areas , people here are more vulnerable to government pressure, and dependence on government-subsidized food is much higher.
The current economic crisis has been used as an opportunity to manipulate the poorest people’s needs for political support and discipline.
For the May elections to satisfy minimum fairness principles, at the very least, the government must allow international humanitarian support channelled through independent organizations. In addition, a crucial guarantee would be dismantling the focal points of surveillance and control.
BUDGET
Department of Finance Canada. March 12, 2018. Minister Morneau Takes Canada's Plan for a Strong Economy and Equal Opportunities to London
London, United Kingdom – Making sure every Canadian has a real and fair chance at success is not just the right thing to do, it is the smart thing to do. Canada's future prosperity depends on it. With a strong and growing economy in place, now is the right time to make progress in Canada and around the world, where everyone can contribute to, and share in, the country's prosperity.
Today, Finance Minister Bill Morneau spoke with business leaders at an event hosted by the City of London, where he discussed how Canada's 2018 budget helps to promote equality, enable the broader participation of women in the workforce, and build an economy that works for everyone. He highlighted several investments included in the budget, such as:
- Introducing proactive pay equity legislation for federally regulated sectors.
- Introducing a new Employment Insurance Parental Sharing Benefit that will provide up to five additional weeks of Employment Insurance parental benefits when parents—including adoptive and same-sex couples—agree to share parental leave.
- Increasing support for women-led businesses under a new Women Entrepreneurship Strategy for women entrepreneurs.
Minister Morneau also underscored the importance of business leaders around the globe hiring, promoting, and retaining more women in the workforce so that everyone has the opportunity to fully contribute to the economy.
He also emphasized Canada's strong fiscal fundamentals, anchored by a low and consistently declining debt-to-GDP (gross domestic product) ratio, which mean that the Government of Canada has the ability to make the investments that will strengthen and grow the middle class, and lay a more solid foundation for our children's future.
Quote
"With a strong and growing Canadian economy in place, now is the time to ensure it truly reflects Canadians in all their diversity, and what kind of country we are. Moreover, now is the time to show the world, once again, what kind of country Canada really is: a land where differences are a source of strength, not a barrier to success. A place where everyone can achieve their dreams, and share their success. A country where everyone can move forward, because no one is held back."
- Bill Morneau, Minister of Finance
FULL DOCUMENT: https://www.fin.gc.ca/n18/18-018-eng.asp
Equality and Growth: For a Strong Global Economy. Speech. The Honourable Bill Morneau, Minister of Finance
Thank you, Lord Mayor, for your kind words. And thank you to the City of London for organizing this event. It's always great to be back here, the home of my alma mater, the London School of Economics.
It's even better to be back when you have good news to share!
In my first speech here as Canada's Finance Minister in 2016, I told you about our plan to help middle-income earners.
We raised taxes on the wealthiest one per cent so that we could introduce a tax cut for individuals in the middle incomes, and those striving to raise their standard of living through hard work.
We also made Canada's system of child benefits more generous and better targeted to those who need them most.
Our plan is working.
In the last two years, the Canadian economy created almost 600,000 jobs, most of them full-time. That's the equivalent of one million jobs in a country with the population the size of the United Kingdom.
Our unemployment rate is near its lowest level in 40 years. Since 2016 we have led the Group of Seven (G7) in economic growth, as we make steady improvements to our public finances.
Our federal debt-to-GDP (gross domestic product) ratio remains firmly on a downward track. And Canada's net debt-to-GDP ratio is the lowest among G7 countries.
Our deficit-to-GDP ratio is projected to reach a low 0.5 per cent.
In other words, Canada's fiscal house is in order, which means that we are resilient to shocks and uncertainty.
But while the Canadian economy is doing great, we know we cannot rest on our laurels.
For the first time in our history, there are now more Canadians aged 65 and older than there are people under the age of 15. Who will step in as more and more people leave the workforce?
Canada's future success rests on making sure that every person has an opportunity to work.
One thing we, like all countries, need to address is the chronic underrepresentation of women in the economy.
Canada's Challenge to the World
Some things have changed since I was a student here.
The digital age, for example, has revolutionized the way we live and work.
Serious issues are becoming increasingly real and will have to be overcome: global warming, population aging, and rapid technological changes, to name a few.
Meanwhile, some barriers persist. Years after years.
Barriers to gender equity to begin with. Among Organisation for Economic Co-operation and Development countries, the participation of women in the economy has increased in the last decades, but it remains well below that of men.
This needs to change.
A very brave young woman, Malala Yousafzai, said it best: "We cannot all succeed when half of us are held back."
Which brings me to Canada's message and actions on equality and growth.
Earlier this year, in Davos, Canadian Prime Minister Justin Trudeau issued a challenge to the world's business leaders.
He said that a fundamental shift was needed, and he invited all leaders to ensure that more women are hired, promoted and retained in the workforce.
Not only because it's the right thing to do, but because it's the smart thing to do.
Because women who enter the workforce change it for the better. They represent a major economic driver: research shows that companies with women in leadership positions see stronger financial performance and more innovation.
Let's look at Canada. The Canadian economy—like most developed economies for that matter—owes to women a large part of its recent growth. In the last 40 years, the rising number of women in the Canadian workforce has accounted for about a third of our real growth in GDP per capita.
As I speak, women's participation in the workforce in Canada is the highest among G7 countries. But it's still almost 10 percentage points below the rate for Canadian men.
The gender wage gap is also an issue in Canada, as in many countries.
On an annual basis, Canadian women earn on average 88 cents for every dollar men earn, even though Canadian women are among the most educated people in the world.
We know we must do better.
The data are unequivocal: increasing gender diversity leads to more growth.
McKinsey Global Institute estimates that taking steps to advance equality for women could add $150 billion to the Canadian economy by 2026.
And a study conducted by one of Canada's major financial institutions—the Royal Bank of Canada—shows that if our country had a completely equal representation of women and men in our workforce, we could increase the size of the economy by 4 per cent.
Four per cent! That's good for everybody!
However, to quote a very eloquent Briton, David Lloyd George, you cannot feed the hungry on statistics.
Action is needed, and Canada is taking action.
Canadian Leadership
Two weeks ago, I tabled our 2018 budget.
It is the next step towards building an equal, competitive, sustainable and fair Canada and investing in the economy of the future.
The budget puts gender at the heart of decision-making.
For example, it includes pay equity legislation in federally regulated industries such as banks and telecommunications. It's simple: equal pay for work of equal value.
But as Prime Minister Trudeau said in Davos, equal pay does not necessarily mean equal opportunity or equal sacrifice. For example, child care duties continue to fall disproportionately to mothers.
Therefore, we are also creating an additional shared parental leave. It will give parents five additional weeks of parental leave if they agree to share that leave, allowing for better parity when it comes to child care, and more flexibility—mainly for women—for returning to work earlier if they choose to.
The measure will also be available to adoptive parents and same-sex partners.
We're also creating a new Women Entrepreneurship Strategy to provide more funding to women entrepreneurs, and we're enhancing our international assistance policy to provide greater support for refugee women and girls, who face increased risks due to their gender.
Advancing women's equality in Canada will drive our economic growth, while boosting the income of Canadian families.
More women in leadership positions won't just grow the economy, create jobs and strengthen communities, it will also lead to innovation and change in the workplace that will benefit everyone.
These are important steps, and we hope other governments will follow our lead.
But governments can't do it alone.
So, today, I am going to issue the same challenge Justin Trudeau issued in Davos: hire more women, promote them, and make sure they keep working for you!
The global economy needs more women on corporate boards. More women entrepreneurs. More women in leadership positions.
As the Canadian Minister of Finance, I sit around a diverse Cabinet table with as many women as men, and I can tell you the diversity of voices and perspectives around that table makes for better government.
Canada is stepping up and calling on the world to do the same. The economy must work for everyone.
Let's build a world built on prosperity, justice, fairness and gender equality, for everyone: girls and boys, women and men, and persons with intersecting identities.
A world where everybody has a chance to fulfill their potential and achieve their dreams.
A world where everyone can succeed and move forward, because no one is held back.
Thank you. I'll be happy to answer your questions.
REUTERS. MARCH 12, 2018. Brexit and NAFTA dispute making firms wary, says Canadian minister
David Milliken
LONDON (Reuters) - There are parallels between the way companies in North America and Britain are holding back on investment as they wait for clarity on the re-negotiation of NAFTA and the outcome of talks on a Brexit deal, Canada’s finance minister said on Monday.
“Certainly anecdotally in North America there are some businesses that are being cautious about investments because there is an expectation that NAFTA could be slightly different tomorrow than it was yesterday,” Bill Morneau said in a speech in London.
“I just assume that is a similar situation here. Hopefully (that’s) one to be overcome as more clarity comes out.”
Morneau reiterated that he hoped Canada would have at least as good a trade arrangement with Britain after Brexit as now, taking its current CETA deal with the EU as a model, and said close ties with Britain remained critically important.
Canada and Mexico have won exemption from U.S President Donald Trump’s planned tariffs on steel and aluminum imports, pending renegotiation of the 24-year-old North America Free Trade Agreement.
Morneau said he was “cautiously optimistic” that the three countries would be able to reach agreement on changes to NAFTA requested by the United States. Canada’s ability to avoid the tariffs was positive for the future of the trade treaty, he added.
“The demonstration of our relationship that came through this discussion bodes well for the future, in terms of any future discussion around tariffs or for that matter around NAFTA,” he told reporters after his speech.
Rising trade protectionism was a concern that Canada wanted to raise in the G20 group of major economies, Morneau said.
The European Union has drawn up a list of potential retaliatory tariffs on U.S. products, including bourbon and blue jeans, if it faces additional charges on its exports of steel and aluminum to the United States.
Reporting by David Milliken; Editing by Andrew Roche
Employment and Social Development Canada. March 12, 2018. Budget 2018: More help for those who need it with the new Canada Workers Benefit
Winnipeg, Manitoba - When every Canadian has the opportunity for meaningful work, our middle class is stronger and our economy thrives. That’s why, through Budget 2018, the Government of Canada is taking the next step to ensure that all Canadians have a fair shot at success.
Today, the Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour, was in Winnipeg to highlight Budget 2018 investments and talk about the new Canada Workers Benefit (CWB). The CWB will put more money in the pockets of low-income workers. Building on the former Working Income Tax Benefit (WITB), the CWB will encourage more people to join the workforce, and offer real help to more than two million Canadians who are working hard to join the middle class, while raising around 70,000 Canadians out of poverty.
With almost $1 billion in new funding starting in 2019, the proposed CWB will increase both maximum benefits and the income level at which the benefit is entirely phased out. As a result, a low-income worker earning $15,000 could receive up to almost $500 more from the CWB in 2019. Unlike the old WITB, everyone who can benefit from the new CWB will receive it even if they do not claim it when they file their taxes.
By continuing to invest in the middle class and those working hard to join it, the Government of Canada is ensuring that everyone has the opportunity to fully contribute to the Canadian economy, leading to economic growth that everyone.
Quotes
“Ensuring everyone can take part in and benefit from our country’s economic growth is key to strengthening the middle class and helping those working hard to join it. An enhanced Canada Workers Benefit will ensure more Canadians have a fair shot at success.”
– The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour
"When low income families are transitioning into the workforce, having some extra money in their pocket can a mean a lot to staying employed - providing stability at their most vulnerable time."
– Marileen Bartlett, Executive Director, Centre for Aboriginal Human Resource Development Inc. (CAHRD)
FULL DOCUMENT: https://www.canada.ca/en/employment-social-development/news/2018/03/budget-2018-more-help-for-those-who-need-it-with-the-new-canada-workers-benefit1.html
Employment and Social Development Canada. March 12, 2018. Minister Hajdu to discuss Budget 2018 with women in Thunder Bay
Thunder Bay, Ontario - The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour and Member of Parliament for Thunder Bay–Superior North, on March 13, 2018, 8:30 a.m., will meet with local female leaders to discuss Budget 2018 measures that will promote women in the workplace.
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