CANADA ECONOMICS

CANADA - US

PM. April 27, 2018. Prime Minister to travel to the United States 

Ottawa, Ontario - The Prime Minister, Justin Trudeau, today announced that he will travel to the United States from May 16 to 18, 2018.

During the visit – which includes stops in New York and Boston – the Prime Minister will highlight the strong economic partnership between the United States and Canada, and the importance of working together to find solutions to global challenges.

In New York City, the Prime Minister will speak to graduates at New York University’s 186th commencement ceremony and accept an honourary doctor of laws degree. The Prime Minister will also address the Economic Club of New York to promote Canada as one of the best places to invest, and to underscore how the Canada-U.S. partnership creates good, middle class jobs and economic opportunities on both sides of the border.

In Boston, the Prime Minister will participate in the Solve at MIT conference, a flagship event that brings together more than 300 leaders – from businesses, foundations, non-profit organizations, government, academia, and the media – to explore innovative solutions to the world’s most pressing challenges, including those related to health, education, infrastructure, energy, and food production.

Quote

“We live in a time of tremendous change and face challenges global in scale. Finding solutions shaped across borders, involving every generation, is imperative. I look forward to visiting the United States to speak with graduates and those at the forefront of innovation to look at what we can – and must – do to build a better tomorrow for future generations.”

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

Quick Facts

• Prime Minister Trudeau last visited the United States in February 2018.
• Canada and the United States share one of the largest trading relationships in the world. Bilateral trade in goods and services between the two countries was valued at more than $918 billion in 2017, and Canada is the largest secure supplier of energy to the U.S.
• The two countries share the longest secure border in the world, over which some 400,000 people and $2.4 billion worth of goods and services cross daily.
• Canada buys more goods from the United States than China, Japan, and the UK combined.
• Canada is the number one export destination for most American states, and cross-border trade and investment supports nearly nine millions jobs in the United States.

Canada and United States Relations: http://international.gc.ca/world-monde/united_states-etats_unis/relations.aspx?lang=eng

NAFTA

The Globe and Mail. 27 Apr 2018. U.S. demands tougher NAFTA auto-content rules. Washington wants an even higher percentage of content to come from factories where workers are paid a specific wage
ADRIAN MORROW
GREG KEENAN

It doesn’t look like the U.S. came with the flexibility Mexico and Canada needed to get a deal done.

DANIEL UJCZO, INTERNATIONAL TRADE LAWYER

The Trump administration has toughened one of its most contentious demands in the renegotiation of the North American free-trade agreement, proposing that an even higher percentage of content in autos made in the NAFTA zone come from factories where workers are paid at least US$15 to $17 an hour, The Globe and Mail has learned.

The United States still wants a deal by the end of the month, threatening to hit Canada and Mexico with tariffs on steel and aluminium starting next Tuesday if they do not reach an agreement.

Other sticking points in the talks are effectively log-jammed, said sources with knowledge of the closed-door bargaining: Washington is holding firm on its demands for tougher Buy American procurement rules, to scrap NAFTA’s dispute-settlement process, a “sunset clause,” and the dismantling of Canada’s protectionist dairy and poultry system.

Negotiators have been meeting continuously for the past month in the U.S. capital. Top officials from the three countries hunkered down on Thursday for the third straight day.

The centrepiece of the talks is a U.S. demand to increase the amount of NAFTA zone content that vehicles made in North America must contain to qualify for tariff-free shipping among the three countries. The Trump administration wants the percentage raised from the current 62.5 per cent to 75 per cent or 85 per cent, with a series of additional new rules added in.

The original U.S. proposal to tie some car parts to factory wages would require auto makers to source at least 30 per cent of their parts from plants that met the wage threshold. But two sources said Washington demanded a higher percentage this week; one of the sources said the new figure is 40 per cent.

The measure, which is designed to drive auto jobs away from Mexico – where the average pay in a car plant is the equivalent of US$3 an hour – has been heavily resisted by both Mexican negotiators and some elements of the continental auto industry.

In addition, the United States wants rules that lay out what percentage of which parts of a car must come from North America, a bid to ensure that as much highvalue work – such as building transmissions – as possible is done in the NAFTA zone. It is also proposing that 70 per cent of all steel, glass and aluminium in autos come from North America.

Autos have dominated this week’s talks, with officials negotiating how NAFTA rules will apply to individual car parts.

“The car sector is both the core issue of this negotiation and an issue which is fiendishly complex,” Foreign Affairs Minister Chrystia Freeland said on Thursday as she walked into a meeting with U.S. Trade Representative Robert Lighthizer at his offices near the White House. “The devil really is in the detail.”

Ms. Freeland cancelled a trip to Brussels for a NATO meeting on Friday to keep negotiating.

Mexican Economy Minister Ildefonso Guajardo told reporters he was prepared to remain in Washington as long as it takes. “I’m available all the time that is required or necessary. I can be here as long as is needed, as we can keep on advancing,” he told reporters.

Prime Minister Justin Trudeau’s chief of staff, Katie Telford, and U.S. President Donald Trump’s son-in-law, Jared Kushner, were also seen entering Mr. Lighthizer’s offices, underscoring the seriousness of the deal-making. Asked about the prospects for an agreement, Mr. Kushner replied: “Still working on it.”

Mr. Lighthizer wants a deal that can be submitted to the current U.S. Congress for approval. Because of numerous hurdles in U.S. trade law, this means it must be ready by May. The trade chief leaves for a visit to China next week, and is said to want a deal before that.

International trade lawyer Daniel Ujczo said that, between the tough deal-making on autos and the lack of progress in other areas, the window for a deal that can pass Congress this year is rapidly closing.

“It doesn’t look like the U.S. came with the flexibility Mexico and Canada needed to get a deal done,” said Mr. Ujczo, who works in the Columbus, Ohio, offices of Dickinson Wright. “With each passing day, the prospects grow dimmer to get a full, substantial deal by the end of next week.”

Jerry Dias, the head of Canada’s largest private-sector union, said Canadian negotiators told him on Thursday the United States is holding fast on its toughest demands.

“That’s why, when people say a deal is imminent, not it’s not − not unless the U.S. moves in a significant way in a very short period of time,” he said.

REUTERS. APRIL 27, 2018. No risk of NAFTA termination despite Trump's bravado: economists
Bruno Federowski, Miguel Gutierrez

BRASILIA/MEXICO CITY (Reuters) - U.S. President Donald Trump’s threats to scrap the North American Free Trade Agreement (NAFTA) will soon be a distant memory, likely to be supplanted by only slight changes to the 24-year-old pact, a Reuters poll of economists suggested.

None of the 80 forecasters - most based in Canada, the United States and Mexico - polled by Reuters April 16-24 expect NAFTA to be terminated.

A large majority said the most likely outcome is a marginally different agreement, with only six expecting radical changes.

The results, though mostly in line with a January poll, showcase growing conviction among economists and analysts that months of thorny conversations will deliver a good outcome for all parties.

The findings come despite Trump’s decision to deliver on some of his campaign trail protectionist threats by hiking tariffs on steel and aluminum imports.

This suggests companies and policymakers may have convinced Trump to focus on China, instead of the pact underpinning over $1 trillion per year in trade between Mexico, the U.S. and Canada.

“The U.S. government has acknowledged the strong economic ties between the three North American economies, a result of efforts by pressure groups signaling to Trump’s administration the relevance of that treaty,” said Jesús López, an analyst at Banco BASE in Mexico City.

His remarks underline a recent swing toward optimism in official communications around NAFTA as negotiators stepped up efforts to reach an agreement ahead of Mexico’s July 1 presidential elections.

Trump said this week that a new NAFTA could be agreed on quickly as Canada hailed progress on forging new rules for the auto industry, the main standing point in talks to revamp the trade pact.

A preliminary agreement could be announced as soon as this month, respondents said.

“May 1 seems to be a key date to watch, not only because it signals the expiration of the exemption of Canada and Mexico from the steel and aluminum tariffs announced last month, but also because we would be six months apart from the U.S. midterm election,” JPMorgan economist Gabriel Lozano, based in Mexico City, wrote in a report.

Auto rules of origin, as well an opt-in mechanism for conflict resolution, are likely to be the main area of change, said Barclays analyst Marco Oviedo in New York. “The rest is likely to amount to marginal updates.”

A new NAFTA is likely to push the region’s automakers to source more parts from North America to create more jobs, but also raise costs for Detroit’s main car manufacturers.

Trump’s negotiators initially demanded North American-built vehicles contain 85 percent content made in NAFTA countries by value, up from 62.5 percent now. But industry officials say that has been cut to about 75 percent, with certain components coming from areas with higher wages.

Though a preliminary agreement would leave many details to be ironed out in coming months, it would ease uncertainty that has capped business investment in both Canada and Mexico.

“NAFTA will not be gone as a topic of conversation going forward, but even some kind of preliminary announcement is likely to be seen as a strong positive signal and have some effect on growth,” said Scotiabank deputy chief economist Brett House in Toronto.

The optimism around North American trade negotiations contrasts with escalating tensions between the U.S. and China that have stoked fears of a trade war between the world’s top two economies.

Trump’s administration proposed 25 percent tariffs on some 1,300 Chinese industrial, technology, transport and medical products, driving China to shoot back with a list of similar duties on major American imports including soybeans, planes, cars, beef and chemicals.

Reporting by Bruno Federowski and Miguel Gutierrez; Additional reporting by Reuters polls team in Bengaluru; Editing by Ross Finley and Chizu Nomiyama

REUTERS. APRIL 27, 2018. NAFTA talks grind on, Canada says consulting auto stakeholders

WASHINGTON (Reuters) - Negotiators trying to hammer out a quick deal to update NAFTA are consulting stakeholders in the auto industry, a top Canadian official said on Friday as the three nations spar over content rules for vehicles.

Canadian Foreign Minister Chrystia Freeland made her remarks ahead of a fourth straight day of top-level talks to modernize the North American Free Trade Agreement, which underpins $1.2 trillion in annual regional trade.

The question of how much NAFTA-produced content a vehicle should contain to qualify for duty free status is proving to be one of the hardest issues to solve.

“In addition to the focus being on our meetings with each other, we are all focusing on talking to our stakeholders in the automotive sector,” said Freeland.

Officials are under heavy time pressure, since the Trump administration has threatened to impose sanctions on Canadian and Mexican steel and aluminum on May 1 if it deems that not enough progress has been made on NAFTA.

Mexican Economy Minister Ildefonso Guajardo, speaking a few minutes before Freeland, said imposing the tariffs would not be in the region’s best interests.

Reporting by Jason Lange, writing by David Ljunggren; Editing by David Gregorio

BLOOMBERG. 27 April 2018. Nafta Trio Won’t Wrap Up Their Talks Before U.S. Trip to China
By Josh Wingrove and Eric Martin

• Ministers to meet again May 7, after tariff exemption expires
• Countries cite progress on auto rules and other key issues
• Trump: 'Very Good Chance' at Making Trade Deal With China

A push for a tentative Nafta deal in coming days has come up short despite progress on key issues, with ministers not meeting again until after a U.S. trade trip to China.

U.S. Trade Representative Robert Lighthizer met again Friday in Washington with Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo. After the meeting, Guajardo and Freeland stressed gains had been made and that more parts of a revised North American Free Trade Agreement are now almost done.

Guajardo said the three ministers meet next on May 7, once Lighthizer is back from China, and that technical talks with lower-level officials will continue until then. Freeland said there won’t be a deal before the next ministerial meeting.

That means Nafta talks won’t be complete before May 1, which had been a target for officials given the China trip and the expiry of a temporary exemption for Canada and Mexico from U.S. metals tariffs. The Americans had linked exclusion from its levies on steel and aluminum imports to successful completion of a Nafta deal.

Both Guajardo and Freeland downplayed the risk of being hit with metals tariffs, declining to give any indication of what assurances the Trump administration has given them. Mexico, for its part, hinted it could retaliate.

“Ambassador Lighthizer knows very clearly our position and how we have to react if any measure is imposed on Mexico,” Guajardo told reporters Friday in Washington. The North American steel sector is “strong” and “it will not be in the best interest of any country to be treated as the rest of the world,” he said.

‘Very Good Progress’

Mexico plans to retaliate if the U.S. allows steel and aluminum tariffs to take effect and already has a list of American products it would tax, including items it believes are politically sensitive in the U.S., according to a person familiar with the nation’s strategy, who asked not to be named discussing a plan that hasn’t been made public.

The steel and aluminum issue is “a completely separate track” from Nafta, Freeland said Friday. “We believe there is no justification whatsoever for tariffs or quotas on Canadian steel or aluminum as a national security consideration,” she said, adding that overall “this has been a week of very solid, very positive, very good progress.”

The U.S. Trade Representative’s office didn’t immediately respond to a request for comment.

Beyond the short-term obstacles of the China trip and metals tariffs, time is running out to achieve a deal in principle on Nafta. Mexico’s elections are approaching on July 1, and timelines set out in U.S. trade law mean a deal is almost certainly needed this month if it has a chance of passing in the current Congress, which is Lighthizer’s goal.

Freeland described a two-track progress before the May 7 meeting -- lower-level officials meeting in what she said is now considered “a continuous negotiation,” while political-level staff consult with industry and stakeholders over this week’s developments.

Negotiators are nearing deals on Nafta chapters including those on technical barriers to trade, state-owned enterprises, financial services and the environment, according to Guajardo. “With a little additional effort, we can finish and get them out of the way,” he said, reiterating that Mexico won’t rush to sign a bad deal. “We will have an agreement when the quality of the agreement is good for the three countries.”

— With assistance by Nacha Cattan

ECONOMY

The Globe and Mail. 27 Apr 2018. Millennials haven’t given up on Canada yet, but a new survey reveals many are unhappy with its economic model. Lingering economic woes sow seeds of millennial discontent. Survey highlights sentiment that the country’s current economic system benefits older generations over younger ones
ROB CARRICK, Columnist

Just as the economy isn’t firm enough to support higher interest rates, it’s not giving millennials a uniform sense of hope for prosperity.

The young adults living with their parents or renting because buying a house is unaffordable are starting to get restless. In a new survey of 18- to 37-year-olds, 40 per cent of participants said their generation is mostly or much worse off, compared with their parents and 54 per cent said the economic system in Canada benefits other generations over theirs. Asked whether capitalism is the best model or if we’d be better off with a more socialist system, 54 per cent chose socialism.

Almost two-thirds of the 2,000 participants in the Abacus Data survey said they were very or mostly optimistic about the future of Canada. Clearly, we are still a ways from reaching the point of millennials giving up on the Canadian definition of prosperity – owning a home and retiring in comfort. Yet, the level of discontent among young adults is striking.

Most millennials were raised to think there would be lots of opportunities and jobs for them, Abacus chief executive David Coletto said. “Very high expectations were set,” he added.

“But more and more millennials are entering the workplace and reality is starting to hit.”

Just more than four in 10 survey participants were getting or had received help from parents to cover their rent and 55 per cent had parental help at some point to cover regular expenses such as groceries and insurance. Almost 30 per cent said they didn’t have any savings and 22 per cent said they had less than $5,000. Only 29 per cent said they had an employer-provided pension plan.

Given this instability, it’s no surprise that debt is common among millennials. Just 38 per cent of survey participants said they had no debt, 22 per cent said they owed $5,000 or less and 31 per cent owed $5,000 to $50,000.

Asked about home ownership, 17 per cent of the young adults in the Abacus survey figured they’ll probably never own a home and 37 per cent don’t see themselves buying for at least another five years.

We’ve been talking about millennials and their financial challenges for six or seven years and it’s now apparent that economic growth won’t solve this problem for us. Just as the economy isn’t firm enough to support higher interest rates, it’s not giving millennials a uniform sense of hope for prosperity.

One way to help millennials is to equip them with a theory of personal finance that speaks to their particular needs. On May 16, I’ll be doing a Smart Money 101 session in Toronto for young adult

Globe and Mail subscribers with Shannon Lee Simmons, author of Worry-Free Money: The Guilt-free Approach to Managing Your Money and Your Life. We’ll cover topics such as how to be financially successful as a life-long renter and how people who will never be part of a company pension should save for retirement.

Beyond financial tips, what millennials need is more recognition by government and business of what they’re up against as they try to become financially independent. The alternative is to let things lie and see whether this flirtation with the idea of a more socialist system is just a whim or something more lasting.

Baby boomers should pay attention here. Millennials are becoming a dominant voting block and politicians will have to deal with that. Policies aimed at millennial voters could work against boomers by increasing taxes on high earners or cooling the housing market at a time when boomers are planning to cash in their equity.

The Abacus survey suggests that millennials still have some allegiance to the economic system that made boomers so financially successful. Mr. Coletto pointed to the fact that a majority of survey participants feel optimistic about Canada’s future and that just 15 per cent said they were mostly or very pessimistic about their personal-financial outlook.


“There isn’t a bubbling brew of anxiety,” he said. “But there are signs that millennials are stressed. As it takes longer and longer to build the nest-egg you need to buy a home or land the job you think you should have had five years ago, does this stress start building up?”

DEPARTMENT OF FINANCE CANADA. THE GLOBE AND MAIL. APRIL 27, 2018. Ottawa posts $2.8-billion surplus in February
BILL CURRY, PARLIAMENTARY REPORTER

OTTAWA - The federal Liberal government ran a $2.8-billion surplus in February and appears to be on track to close out the 2017-18 fiscal year with a smaller deficit than projected.

With just one month left before fiscal year-end, new Finance Department figures released Friday show the 2017-18 deficit stood at $5.6-billion. That compares with an $11.5-billion deficit reported during the same 11-month period one year earlier.

Finance Minister Bill Morneau’s February budget had estimated that the bottom line for 2017-18 would come in at $19.4-billion. The final deficit figure for the previous year, 2016-17, was $17.8-billion.

The Parliamentary Budget Officer released a report on Monday that estimated the 2017-18 deficit would come in at $18.8-billion, but that the combined deficits for the next two years would be about $8-billion larger than projected in the budget.

The fiscal numbers for March can be volatile due to fiscal year-end accounting issues. Government departments may also rush to spend amounts that have already been approved, a practice derisively referred to as March madness.

The official year-end figures are not released until the fall.

Last year the government said the March, 2017, budget deficit was $10.7-billion, representing about half of the deficit for the entire 2016-17 fiscal year.

This week the CBC reported that Shared Services Canada made an urgent order for 31,000 smartphones with the requirement that the products are shipped and billed before March 31, the end of the current fiscal year.

AVIATION

The Globe and Mail. REUTERS. 27 Apr 2018. Airbus ready to fight UTC over Bombardier C Series costs
TIM HEPHER
ALLISON LAMPERT

Airbus SE is preparing to cross swords with United Technologies Corp. over the price of components and services for the Bombardier Inc. C Series in a bid to make it easier to market the jet it agreed to bail out last year, people close to the matter said.

Airbus is concerned about an increased share of the Canadian project that would be controlled by United Technologies after it completes its US$23-billion acquisition of Rockwell Collins, they said, asking not to be named.

Together, the pair will have by far the largest share of C Series parts and systems by value, placing it at the center of efforts by Airbus to reduce the plane’s cost and echoing a broader power struggle between plane makers and suppliers. A key part of the acquisition is “muscling the supply chain down on price,” said Richard Aboulafia, vice-president of analysis at Virginia-based Teal Group.

“Bombardier couldn’t do that – they just didn’t have the leverage. And Airbus has more than enough leverage.”

Airbus and UTC declined to comment. A Bombardier spokeswoman said UTC was the largest C Series supplier even before completion of the Rockwell Collins merger, but declined to comment further.

Airbus agreed last October to buy the struggling C Series for a token $1, with both sides reckoning its global sales presence and clout with suppliers would make the plane more competitive and easier to sell.

The deal came weeks after United Technologies teamed up with Rockwell Collins with plans to create a new supersupplier.

Among shared components, United Tech supplies engines for the C Series and Rockwell Collins supplies cockpit systems. Aboulafia said pre-merger UTC supplied about a quarter of C Series content.

Items up for negotiation are likely to include the cost of parts, spares and services like repairs, sources said.

Costs are not the only factor as the C Series seeks a fresh start. Airbus is also studying how to use its marketing weight.

One proposal is to drop the 14year-old C Series name and call it the A200, indicating a smaller cousin of the Airbus product line that stretches from the A318 to the mammoth A380.

But the possible change, first reported by Bloomberg News, could upset politicians in Quebec who fear losing a key brand and jars with some in Europe who say it harks back to the first A300 Airbus or even the troubled A400M.

The debate over what to call it mirrors deeper questions over how Airbus will market the plane, a decision that would send a message on how it views its new Canadian partner. BOMBARDIER (BBD.B) CLOSE: $4.02, UP 3¢ UNITED TECHNOLOGIES (UTX) CLOSE: US$122.82, UP US$1.38

REUTERS. APRIL 27, 2018. Airbus says aims to cut CSeries costs, sell 'big volumes'

PARIS (Reuters) - Airbus said on Friday it aims to reduce recurring costs of Bombardier’s CSeries so that it can sell the jetliner in “big volumes” as soon as a deal to buy the loss-making program from Canada’s Bombardier is completed.

“We are ready to hit the market” using the global Airbus sales force as soon as the deal closes, Airbus executive Harald Wilhelm told analysts.

People familiar with the matter told Reuters in Canada earlier this week that the deal is expected to clear the final regulatory hurdles by the end of May.

On Thursday, Reuters reported that Airbus is preparing to put pressure on United Technologies over the price of components and services for the CSeries as the supplier completes its own merger deal with Rockwell Collins.

The resulting group is set to be by far the biggest supplier for CSeries parts, from engines to avionics.

Reporting by Tim Hepher and Cyril Altmeyer; Editing by Sudip Kar-Gupta

INTELLECTUAL PROPERTY

Innovation, Science and Economic Development Canada. April 26, 2018. Government of Canada launches Intellectual Property Strategy. Canada’s Intellectual Property Strategy will boost middle-class jobs and help our innovators compete on the global stage

Ottawa ON - Intellectual property is a key component of an innovation economy. It helps Canadian innovators reach commercial success, further discovery and create middle-class jobs by protecting their ideas and ensuring they reap the full rewards of their inventions and creations.

That is why the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, launched Canada’s Intellectual Property (IP) Strategy today at the Innovation Centre at Bayview Yards in Ottawa.

Canada’s IP Strategy will help Canadian entrepreneurs better understand and protect intellectual property and also get better access to shared intellectual property. Canada is a leader in research, science, creation and invention, but it can do more when it comes to commercializing innovations.

The IP Strategy will help give businesses the information and confidence they need to grow their business and take risks.

The IP Strategy will make changes in three key areas:

LEGISLATION

• The IP Strategy will amend key IP laws to ensure that we remove barriers to innovation, particularly any loopholes that allow those seeking to use IP in bad faith to stall innovation for their own gain.
• The IP Strategy will create an independent body to oversee patent and trademark agents, which will ensure that professional and ethical standards are maintained, and will support the provision of quality advice from IP professionals.

LITERACY AND ADVICE

• As part of the IP Strategy, the Canadian Intellectual Property Office will launch a suite of programs to help improve IP literacy among Canadians.
• The IP Strategy includes support for domestic and international engagement between Indigenous people and decision makers as well as for research activities and capacity building.
• The IP Strategy will also support training for federal employees who deal with IP governance.

TOOLS

• The IP Strategy will provide tools to support Canadian businesses as they learn about IP and pursue their own IP strategies.
• The government is creating a patent collective to bring together businesses to facilitate better IP outcomes for members. The patent collective is the coming together of firms to share in IP expertise and strategy, including gaining access to a larger collection of patents and IP. 

Taken together, these measures, along with the Innovation and Skills Plan, will help Canadian innovators maximize the value of their creations and enhance further innovation from coast to coast to coast.

Quotes

“We know IP is a critical ingredient in helping Canadian businesses reach commercial success. Canada’s IP Strategy will make sure Canadians know the value of their intellectual property and how to leverage it to innovate, increase profits and create middle-class jobs.”

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

“Minister Bains has been a tireless champion of innovative Canadian companies, and I’m delighted that, under his leadership, ISED put in place this most significant pillar for an innovation strategy. Raising sophisticated domestic capacity in IP ensures Canada will improve the commercialization of our ideas globally.”

– Jim Balsillie, former co-CEO of Research in Motion and Chair of the Council of Canadian Innovators

“Minister Bains has followed through on Budget 2017’s commitment to implement practical and important reforms to the Canadian IP system. The IP Strategy will strengthen the position of Canadian innovators to develop made-in-Canada technology and marketing strategies. The investment made in the federal government’s IP Strategy in IP education and standard setting, as well as the revision of Canadian IP laws to create a level and competitive playing field for Canadian firms, delivers on the federal government’s promises to advance innovation in Canada for the benefit of Canadian firms, employees and consumers. The Pilot Patent Collective offers an innovative response to the need to keep patents available to Canadian firms. The pilot is carefully designed, is open to all and allows the market to determine what is valuable. The fact that this is a pilot will allow the community to evaluate results and, if proven successful, to expand on it in future years. I am delighted to see that the federal government is providing support to Indigenous communities to help shape Canadian and international rules around not only the protection of their culture and genetic resources, but in increasing their involvement in the innovation economy in a way that is respectful and protective of their values and culture.”

– Dr. Richard Gold, Professor of Law, McGill University

Quick facts

• Small and medium-sized businesses that hold formal IP are:
  • three times more likely to engage in product innovation than those without IP,
  • two times more likely to engage in other types of innovation,
  • four times more likely to export, and
  • 64 percent more likely to be high growth. 
• IP-intensive businesses pay 16 percent more, on average, than businesses with little or no IP.
• Businesses using IP in patent-intensive industries have about 8 to 10 times more revenues than those not using IP.

IP Strategy: http://www.ic.gc.ca/eic/site/108.nsf/eng/h_00000.html
Video: Intellectual property and you!: https://www.youtube.com/watch?v=a-fSyZ1qaCU&feature=youtu.be

Backgrounder

“This is an important step for the future of the profession and for Canadian innovation. A governance framework for patent and trademark agents will instill greater public confidence in the IP system, thus helping to foster a culture of innovation in Canada. As we all know the work of patent and trademark agents is a key element in obtaining valuable IP rights, and therefore a key component in Canadian innovation.”
– Grant Lynds, President, Intellectual Property Institute of Canada

“A new governance framework will ensure that Canada has a modern, robust, highly trained intellectual property community of professionals to support the Canadian economy. This is a key step that will solidify the excellence of the IP profession in Canada and support a strong IP system. The creation of a modern and robust governance framework places the IP profession alongside other regulated professionals who deliver high quality services under a self-regulation model that serves the public interest.”
– Steve Garland, Chair, IPIC’s Professional Regulation Committee

 “For SunSaluter, holding a patent for my invention allows our non-profit organization to protect ourselves while we openly share the technology with others around the world who can benefit from our work. The SunSaluter technology has impacted over 15,000 people in 19 countries and counting.”
– Eden Full Goh, Founder, SunSaluter

“To take an idea from conception to building a business around it is extremely fulfilling but challenging. Owning the IP helps differentiate you from the rest as well as define and protect your idea.”
– Surbhi Guleria-Joshi, Chief Creative Director, TheAppLabb

“Intellectual property allows for a secure environment for the development and growth of innovative ideas.”
– Marie-Pier Corbeil, Co-founder, RVE

“Intellectual property protection provides both inventors and those who commercialize ideas with an avenue to benefit from their innovation efforts. Those efforts can follow a long and winding path before unique and useful solutions surface. Support for such value creation encourages us to keep imagining new futures and pursuing better outcomes in every sector.”
– Helen Kerr, Professor, Ontario College of Art and Design

"We are pleased to see new funds committed to the Copyright Board of Canada, coupled with the upcoming review, which were both well due and will hopefully lead to a reduction in delays for decisions."
– Eric Baptiste, CEO, SOCAN

 “AURP Canada is pleased to see the Federal government take on such an important initiative. The identification and coordination of Intellectual Property that exists in Canada through academic institutions and other public entities will create opportunities to private companies to create a unique competitive advantage for Canada.  The IP marketplace will also help to bolster new opportunities to accelerate the growth of companies in our economy. AURP Canada represents 28 research and technology parks and 1,400 companies across the country. We are pleased to have been an advocate of this strategy and to support its implementation.”
– Laura O’Blenis, Co-Founder and Managing Director, Association of University Research Park Canada

 “I enthusiastically welcome the IP law clinics initiative for building capacity in IP literacy and providing cost-effective legal support for innovators. Enhancing existing IP clinics and expanding their number across the country will bring multiple returns, including skills-training for the next generation of IP lawyers. In addition, the proposal to survey systemically underserved groups, including women and Indigenous entrepreneurs, is a critical first step to eliminating the structural barriers to their full participation in the IP ecosystem. “
– Myra J. Tawfik, Professor of Law, and EPICentre Professor of IP Commercialization and Strategy, University of Windsor

“The government’s IP Strategy does an exceptional job of responding to the long-standing need for better IP education, supporting innovation and combatting abusive IP practices. The changes to the Copyright Act’s Notice-and-Notice system restores its original intent and will come as a relief to thousands of Canadians who have received dubious settlement demands. By crafting rules designed to limit misuse of intellectual property, Canada is demonstrating leadership in fostering a progressive, balanced and innovative IP framework.”
– Michael Geist, Professor of Law, University of Ottawa

“The Government has crafted a very clever strategy to make Canada more competitive in the global knowledge economy. The strategy will help Canadian businesses and consumers fight back against IP misuse, such as patent trolling, copyright threats, and trademark squatting.  With the tools and advice this strategy provides for, Canada’s IP marketplace will function more efficiently and effectively.”
– Jeremy de Beer, Full Professor Centre for Law, Technology and Society, Faculty of Law, University of Ottawa

“Minister Bains has been a tireless champion of innovative Canadian companies, and I’m delighted that, under his leadership, ISED put in place this most significant pillar for an innovation strategy. Raising sophisticated domestic capacity in IP ensures Canada will improve the commercialization of our ideas globally.”
– Jim Balsillie, former co-CEO of Research in Motion and Chair of the Council of Canadian Innovators

“Minister Bains has followed through on Budget 2017’s commitment to implement practical and important reforms to the Canadian IP system. The IP Strategy will strengthen the position of Canadian innovators to develop made-in-Canada technology and marketing strategies. The investment made in the federal government’s IP Strategy in IP education and standard setting, as well as the revision of Canadian IP laws to create a level and competitive playing field for Canadian firms, delivers on the federal government’s promises to advance innovation in Canada for the benefit of Canadian firms, employees and consumers. The Pilot Patent Collective offers an innovative response to the need to keep patents available to Canadian firms. The pilot is carefully designed, is open to all and allows the market to determine what is valuable. The fact that this is a pilot will allow the community to evaluate results and, if proven successful, to expand on it in future years. I am delighted to see that the federal government is providing support to Indigenous communities to help shape Canadian and international rules around not only the protection of their culture and genetic resources, but in increasing their involvement in the innovation economy in a way that is respectful and protective of their values and culture.”
 – Dr. Richard Gold, Professor of Law, McGill University

“Standards and codes need to evolve to recognize innovative technologies like CarbonCure’s. Working with the Standards Council of Canada, we are finding solutions to help us grow our business.”
– Sean Monkman, Ph.D P.Eng, VP Technology Development, CarbonCure Technologies

“The Standards Council of Canada and standards have opened up a world of opportunity for us! We are leading and collaborating on the development of critical international standards for quantum-safe cryptography.”
– Mark Pecen, CEO, ISARA Corporation

“Our work with the Standards Council of Canada and retail REIT leaders to create indoor mapping standardization solutions has built the initial stepping stones to incredible indoor experiences!”
– Hongwei Liu, Founder and CEO, Mappedin

“Standards promote innovation by making marine sensor performance specifications easier to understand and compare between manufacturers. Participating and influencing those standards helps us compete and grow our business.”
– Dustin Olender, Director of Strategic Development, AML Oceanographic

“Questor is delighted to be working with the Standards Council of Canada to find standardization solutions to help us increase sales of our solar-powered incinerators.”
– Audrey Mascarenhas, President and CEO, Questor Technology

“Participating in standards development helps us shape the global market for our services.  And standardizing HMI will help our clients save time and money!”
– Dustin Tessier, Managing Director, TESCO Group

“I am delighted that the Federal Government’s IP Strategy is tackling so many of the IP issues that have been identified as limiting the success of Canadian companies. The Pilot Patent Collective, measures addressing issues surrounding patent trolls, and supporting access to IP advisors are initiatives that will no doubt help Canadian companies become better equipped to deal with IP issues offensively, defensively and as well strategically.”
– Karima Bawa, IP Strategy Advisor and Senior Fellow, Centre for International Governance Innovation

“As a Contract Development and Manufacturing Organization (CDMO) for global pharmaceutical and biotech companies, BioVectra develops a specific IP strategy for each of the projects we work on,” said BioVectra’s President, Oliver Technow. “The nature of our goods and services, as well as the confidential nature of our partnerships, enables us to both provide and realize value from innovation, without relying on a patent intensive strategy.”
– Oliver Technow, President, BioVectra

“Growing and sustaining an innovative economy requires both a solid foundation of protection for creative ideas and savvy awareness of the rules of engagement for businesses. The Canadian Chamber of Commerce is proud to be partnering with the Canadian Intellectual Property Office and the Canadian Bar Association in helping to deliver that awareness for business.”
– Scott Smith, Director, Intellectual Property and Innovation Policy, Canadian Chamber of Commerce

“The Canada China Business Council is pleased that Canada’s IP Strategy is helping Canadian firms learn more about IP and be more aware when they enter foreign markets such as China. IP protection in China is always a concern for Canadian companies, despite a vastly improved protection environment there, and we are working with the Canadian Intellectual Property Office to help educate Canadian companies on managing their IP well.”
– Sarah Kutulakos, Executive Director, Canada China Business Council

“We’re happy to see the government’s recognition of the importance of IP in the new economy. Canada has shown a refreshing willingness to work with industry to implement tools and policy that recognize the value of IP in helping companies stay competitive and scale globally.”
– Jeremy Auger, Chief Strategy Officer, D2L

“We started to accelerate our technology patents program about five years ago in the U.S. and Canada, at around the same time we began to invest heavily in our transformation strategy. In our view, there’s nothing more valuable than the collective creativity of our employees who are hyper-focused on developing the next generation of customer experiences, and we made the decision to protect that. We also recognize the central importance of patents to the success of Canada’s technology ecosystem and will continue to support our new patents for start-ups program that provides early-stage companies with the resources they need to file their initial patents.”
– Michael Rhodes, Group Head, Innovation, Technology and Shared Services, TD Bank

“Globally, economic value has increasingly been shifting away from physical goods and towards intangible ones like brands, design, R&D, software and patents. Canada needs a strong Intellectual Property Strategy to recognize and benefit from this shift. Today’s announcement is a critical step towards equipping Canadian citizens and businesses with the right tools to compete in this increasingly innovation-driven economy.”
– Sean Mullin, Executive Director, Brookfield Institute for Innovation + Entrepreneurship

“Innovation is one of our most valuable resources, and we must protect it. CAE welcomes the Government of Canada’s new Intellectual Property Strategy. We are convinced that this strategy will give innovators and creators throughout Canada access to tools that are critical to their success. Recognizing the value of intellectual property and the importance of protecting it in a world marked by technological change is a key element of the IP Strategy, and we are proud to have contributed to it.”
– Marc Parent, President and CEO, CAE

“Thalmic is investing heavily in advanced R&D and manufacturing. We have hundreds of patents and patent applications. That intellectual property is critical to our ability to compete globally. We’re glad to see the government support efforts like ours with today’s new intellectual property strategy.”
 – Stephen Lake, Co-founder and CEO, Thalmic Labs

“We support enhanced protection of creators’ and music publishing companies' intellectual property and fair compensation for those who help contribute to Canadian cultural content in order to remain innovative. The right IP strategy is critical to the continued economic growth of Canadian businesses. This strategy is the right one. For companies like mine, who operate in Canada and globally, or our members -- ole, Red Brick Songs, CCS Rights Management and so many more -- copyright and IP are at the heart of what we do."
 –Vince Degiorgio, President, CYMBA Music Publishing

“The Consortium for Research and Innovation in Aerospace in Québec is very pleased with this federal government initiative. The management of intellectual property places great importance on the approach leading to the commercialization of our innovations. The measures being put in place with this strategy will strengthen our ability to reach the market.”
– Denis Faubert, President and CEO, Consortium for Research and Innovation in Aerospace in Québec

REUTERS. APRIL 27, 2018. USTR criticizes 36 nations over IP protection, scrutinizes Canada

WASHINGTON (Reuters) - The United States on Friday labeled 36 countries as inadequately protecting U.S. intellectual property rights, keeping China on its “Priority Watch List” for the 14th straight year and adding Canada and Colombia to that list for extra scrutiny.

The U.S. Trade Representative’s wide-ranging annual report on global intellectual property concerns is separate from the Trump administration’s “Section 301” report on Chinese technology transfer practices that has sparked a series of tariff threats between the world’s two largest economies.

The so-called “Special 301 Report on Intellectual Property Rights” calls out China for its “coercive technology transfer practices” and “trade secret theft, rampant online piracy, and counterfeit manufacturing.”

But the report moved Canada from the lower-level “Watch List” to the same priority list as China because of “poor border enforcement” especially for counterfeit goods shipped through America’s northern neighbor, and concerns about intellectual property protections for pharmaceuticals.

Colombia also was added to the Priority Watch List for failing to revise its copyright laws as required under a free trade agreement with the United States.

The total number of countries on the Watch List and Priority Watch List grew to 36 from 34 a year ago, as USTR added Saudi Arabia and the United Arab Emirates to the Watch List.

Reporting by David Lawder; Editing by Paul Simao

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