CANADA ECONOMICS
US TARIFFS STEEL AND ALUMINIUM IMPORT
The Globe and Mail. THE CANADIAN PRESS. 5 Jun 2018. Steel industry calls for expedited tariffs. PM gives no indication he is willing to speed up the process of imposing commensurate taxes on the United States
STEVEN CHASE
GREG KEENAN
ADRIAN MORROW
Canada’s steelmakers are pressing Prime Minister Justin Trudeau to slap retaliatory tariffs on U.S. steel imports immediately rather than waiting until July 1 as planned.
Steel-industry executives who met with Mr. Trudeau on Monday afternoon are also asking the Liberal government for safeguards − import restrictions − to prevent foreign steel diverted from the U.S. market from being redirected to Canada.
The prospect of speedy aid for this sector appears slim, however, despite vows from the Liberal government to provide support in the face of punitive U.S. import taxes.
U.S. President Donald Trump triggered a trade war last week when he imposed hefty tariffs on steel and aluminum from Canada, Mexico and the European Union.
Canada promised retaliatory tariffs on a “dollar-for-dollar basis” that Ottawa said will take effect starting next month.
The Canadian steel industry does not want to wait that long.
Joseph Galimberti, president of the Canadian Steel Producers Association, said his industry wants Canada to levy commensurate taxes on U.S. imports as soon as possible.
“We’d like to have the tariff put in place as quickly as we can. The reality is there are [U.S.] tariffs on steel and aluminum going into the United States today. There are not tariffs on steel or aluminum coming from the United States today. We would like that relationship as balanced as we can get it,” Mr. Galimberti said.
Foreign Affairs Minister Chrystia Freeland said on the weekend that the government is consulting with the provinces, companies and unions about support for steel and aluminum workers and firms affected by the Trump tariffs. The federal government has not indicated when it would unveil such a package.
At Monday’s meeting, the country’s steel producers did not ask for financial assistance.
Mr. Galimberti said his organization has not made a formal request for support and wants to take some time discussing it before aid is offered.
“We know there is a risk to employment, but I think we’d like some time to have a discussion with the government about what kind of support is appropriate,” he said. “To this point, we haven’t initiated this discussion.”
During Question Period on Parliament Hill on Monday, Mr. Trudeau gave no indication that he is prepared to speed up levying Canadian tariffs on U.S. steel, saying he wants to consult for 15 days first. “We think it is important that … we make sure that what we are doing are the right things for Canadians, because we know these American motions are going to hurt workers in the United States. We would not want our decisions to hurt workers in Canada.”
Distribution of aid could be a challenge.
One executive in the steel service centre business said manufacturers and other companies in Canada that will pay the duty Ottawa imposes on their imports of U.S. steel should be part of any aid package, but Canadian steel mills should be excluded. Steel service centres buy steel from mills in North America and offshore and process it for users such as manufacturers.
The U.S. import taxes are 25 per cent on Canadian steel and 10 per cent on Canadian aluminum. They took effect on June 1.
The Quebec government said on Monday it is prepared to support smaller aluminum producers hurt by U.S. tariffs just as it did with the softwood lumber sector.
“If there is a risk of reducing their production or a risk of not being able to export as much, we will be there to support them in making sure that they maintain the jobs that they have in that sector,” Economic Development Minister Dominique Anglade told an aluminum summit.
“This is the approach we took with softwood lumber, we’ll be taking the same approach yet again this time with Quebec firms in aluminum.”
Canada last week said it would impose 25-per-cent tariffs on a slew of U.S. steel imports and a 10per-cent tax on aluminum imports, as well as dozens of U.S. consumer goods, from orange juice to sailboats to whisky.
Canada is the biggest foreign supplier of steel and aluminum to the United States. Canada’s steelmakers send $7-billion in steel shipments there annually and employ 22,000 people.
Mr. Galimberti said foreign steel is already showing up here after the Trump administration levied a 25-per-cent tariff in March on shipments from countries other than Canada, Mexico and the European Union.
“We are seeing steel coming from destinations where the industry is frankly not used to seeing it,” the steel association president said. “[Places] like Egypt. Turkey is an active presence. It’s not necessarily China or the traditional sort of dumpers that you’d associate with negative behaviour. It has become …. a global [problem].”
Federal Innovation Minister Navdeep Bains said he is having “intense conversations” with the steel industry on how Ottawa might help affected firms and workers.
He said any aid to the steel and aluminum industries would be “consistent with our international trade obligations” − meaning structured to reduce chances that the Americans could challenge it as a subsidy.
The Globe and Mail. JUNE 4, 2018. EXPLAINER. Trump’s tariffs: How Canada is retaliating and what it means for NAFTA.
ADRIAN MORROW
GREG KEENAN, AUTO AND STEEL AND AIRLINE INDUSTRY REPORTER
U.S. President Donald Trump slapped tariffs on Canadian steel and aluminum on June 1, sparking the most serious trade war between Canada and its largest trading partner in recent memory.
Prime Minister Justin Trudeau is fighting back with levies of his own on U.S. goods.
In total, more than $33-billion worth of annual business – and tens of thousands of jobs on both sides of the border – are at stake.
Things could get far worse: Mr. Trump has threatened a 25 per cent tariff on Canadian-made cars and trucks, which would put even more jobs in jeopardy than the steel and aluminum levies do.
What are Mr. Trump’s tariffs, and why is he imposing them?
Mr. Trump won the 2016 election on a nationalistic platform that included erecting trade barriers to protect U.S. manufacturing from foreign competition.
In March, he announced tariffs of 25 per cent on imported steel and 10 per cent on aluminium. He used Section 232, an obscure piece of U.S. trade law that allows tariffs to be imposed for national security purposes, as a basis.
The President temporarily exempted several countries, including Canada, to give them time to negotiate permanent exclusions.
The Trump administration said Canada and Mexico would be permanently exempted only if they reached a deal to renegotiate the North American tree-trade agreement (NAFTA) by June 1. When they did not, Mr. Trump went ahead with the tariffs. He also hit the European Union with levies the same day.
How does this affect Canada?
Canada is the largest supplier of steel and aluminum to the United States, exporting $16.6-billion worth in 2017. The U.S. is Canada’s largest customer, accounting for more than 80 per cent of all Canadian exports of the metal.
There are about 30,000 jobs in Canada’s steel and aluminum industries, spread across the country from Hamilton and Sault Ste. Marie, Ont., to Regina to Jonquière, Que., and Kitimat, B.C.
How is Canada retaliating?
Mr. Trudeau has announced 25 per cent tariffs on $16.6-billion worth of U.S. products to mirror “dollar-for-dollar” the amount of Canadian steel and aluminum subject to U.S. levies. Goods facing Canadian tariffs include steel and aluminium, and a long list of consumer products.
The goods have been chosen to inflict maximum political pressure: Orange juice from the key swing state of Florida; bourbon from Kentucky, the home of Republican Senate Majority Leader Mitch McConnell; pickles from House Speaker Paul Ryan’s Wisconsin.
The Canadian government is holding public consultations on the tariffs and will start levying them on July 1.
What are these auto tariffs Trump is talking about?
The President is threatening to impose 25 per cent tariffs on all vehicles imported into the United States, using the same Section 232 national security rules that he did for steel and aluminium. Under that process, the Commerce Department has six months to conduct an investigation and then recommend on whether to bring in tariffs.
Such a move would be even more damaging to Canada than the steel and aluminum tariffs: It would hit $80-billion of Canadian exports and 120,000 jobs, four times the amount affected by steel and aluminum levies.
“Auto tariffs would truly burn down the North American integrated economic framework,” warned Eric Miller, a former Canadian diplomat and Washington-based business consultant.
Where is NAFTA in all this?
Canada tried last month to cut a deal with the United States on NAFTA under which Ottawa would agree to U.S. demands on the automotive sector, and possibly open up its protected dairy market to more foreign imports in exchange for the Americans taking most of their other NAFTA demands off the table, sources with knowledge of the negotiations said.
National economic adviser Larry Kudlow, Treasury Secretary Steve Mnuchin and Jared Kushner, Mr. Trump’s son-in-law, were receptive, the sources said. But U.S. Trade Representative Robert Lighthizer shot it down.
On virtually every major U.S. demand in the NAFTA talks – including tough new Buy American procurement rules, the abolition of the deal’s dispute-resolution mechanisms, and a “sunset clause” that would terminate the deal in five years unless all three countries agree to extend it – Canada and the United States are at loggerheads.
Mr. Trudeau revealed last week that he pitched Mr. Trump on a leader-to-leader meeting in Washington to resolve NAFTA. But Vice-President Mike Pence insisted Mr. Trudeau agree to the sunset clause in exchange for getting a meeting. Mr. Trudeau refused.
Adding to the chaos, Mr. Trump has floated the possibility of breaking up NAFTA and cutting separate deals with Canada and Mexico.
How will this be resolved?
One possibility is for Canada and Mexico to agree to incorporate North American steel percentages into the NAFTA auto rules. This could be enough to get the United States to lift tariffs while they continue negotiating the rest of NAFTA.
The Americans have also asked Canada to agree to a quota that would limit how much of the metals it sells in the United States, said people with knowledge of the talks, but Canada has so far been reluctant even to discuss such a measure.
Canada is also pursuing complaints against the United States at NAFTA and World Trade Organization (WTO) tribunals. Given the glacial pace of those processes, rulings are unlikely to come any time soon.
One wildcard is U.S. domestic politics. Canada has plenty of support from the U.S. business community and Republican members of Congress: Nebraska Senator Ben Sasse described the tariffs as “dumb” and said Mr. Trump was trying to “Make America 1929 again.” Even Charles and David Koch, the right-wing billionaire industrialists, are planning a massive campaign against the tariffs.
Laura Dawson, director of the Canada Center at the Wilson Institute think tank in Washington, said the purpose of the tariffs is, in part, for Mr. Trump to score political points with his base before mid-term elections.
But in one way, she said, Canada is better off in this tariff fight than in others.
“The thing about these tariffs is there’s so much opposition to them,” she said. “It’s not like softwood lumber, where Canada fights alone.”
REUTERS. JUNE 5, 2018. Eye on Trump strongholds, Mexico hits back with pork, bourbon tariffs
David Alire Garcia, Miguel Gutierrez
MEXICO CITY (Reuters) - Mexico imposed wide-ranging tariffs on American products ranging from steel to pork and bourbon on Tuesday, responding to President Donald Trump’s metals tariffs and taking aim at Republican strongholds ahead of U.S. congressional elections in November.
Mexico’s retaliation further raises trade tensions between the two countries, which have been echoed in dealings between Washington and Ottawa. Trump last week rattled some of the closest U.S. allies by removing an exemption to tariffs on imported steel and aluminum that his administration had granted to Mexico, Canada and the European Union.
Meanwhile, Trump advisor Larry Kudlow revived the possibility on Tuesday that the president will seek to replace the trillion dollar North American Trade Agreement (NAFTA) with bilateral deals with Canada and Mexico.
Following news of the new Mexican tariffs, which take effect immediately, the peso MXN=MXN=D2 tumbled to its weakest level since February 2017, leading losses among major currencies.
Mexico’s retaliatory list included a 20 percent tariff on U.S. pork legs and shoulders, apples and potatoes and 20 to 25 percent duties on types of cheeses and bourbon, the Mexican economy ministry said in the government’s official gazette
A range of U.S. steel products will be hit by 15 percent to 25 percent tariffs. Mexico is a net importers of U.S. steel.
Separately, Mexico opened a tariff-free quota for pork imports from other countries.
It was not immediately clear where Mexican importers would buy pork from under the quota, which it said was opened to avoid an increase in the price of the meat used in many traditional dishes. No. 2 supplier Canada enjoys duty free access to Mexico under NAFTA, while the European Union was already gearing up to export more to Mexico under a recently reworked trade pact.
Brazil is another potential beneficiary.
Mexico’s trade negotiators designed the list, in part, to include products exported by top Republican leaders’ states, including Indiana where Vice President Mike Pence was formerly governor, according to a trade source familiar with the matter. Bourbon-producing Kentucky is the home state of Senate Majority Leader Mitch McConnell.
Mexico announced its response to Trump’s move late last week, with a focus on products from congressional districts that Trump’s Republican party is fighting to retain in November’s mid-term elections. It did not provide details of tariff levels or a full list of products at the time.
Mexico’s Economy Minister Ildelfonso Guajardo said last week that products were chosen to hit districts with important lawmakers who had been warning Trump not to mess with Mexico. He estimated the U.S. tariffs would affect $4 billion in trade between the two countries.
Pork exporter Iowa, where incumbent Representative Rod Blum is seen as vulnerable, is an example of a place Mexico’s reaction could hurt Trump’s party.
Trump’s administration imposed tariffs of 25 percent on imported steel and 10 percent on aluminum in March, citing national security grounds. Last week Washington said it was moving ahead with the metals tariffs on imports from Canada, Mexico and the European Union, ending a two-month exemption.
Mexico’s economy ministry said on Monday it would start a dispute settlement process at the World Trade Organization over the U.S. tariffs, joining the European Union in seeking WTO involvement against the new measures.
Reporting by Michael O'Boyle; Additional reporting by PJ Huffstutter and Dave Graham; Writing by Frank Jack Daniel; Editing by Frances Kerry
REUTERS. JUNE 4, 2018. Mexico firms eye workaround on U.S. metals tariffs; consumers in bind
Anthony Esposito, Sharay Angulo
MEXICO CITY (Reuters) - Mexican firms will need to cut deals with suppliers and consider buying goods elsewhere once a conflict over U.S. steel and aluminum import tariffs starts to bite, even as consumers are seen ultimately picking up the tab from any higher prices.
Company executives are braced for increased costs, while holding out hope that U.S. President Donald Trump’s tariffs are more of a negotiating tactic to pressure Mexico and Canada in talks to rework the North American Free Trade Agreement.
“Of course, it’s a very serious distortion in the industry, because all the supply chains that use these types of materials are impacted every time they cross the border,” said Jose Ramon Elizondo, chairman of manufacturer Vasconia Group.
One of Vasconia’s units produces aluminum sheets, more than half of which are exported to the United States.
“We’re going to have a series of negotiations and discussions with clients who have to absorb this tax,” Elizondo told Reuters.
Japanese auto safety products maker Ashimori Industry Co Ltd, whose plant in the central city of Silao in Mexico’s automotive heartland makes seat belts and air bags for the likes of Honda, Nissan, Mazda and Subaru, is in a similar bind.
“We aren’t aluminum manufacturers but we are in the industry, so at some point we’re going to have to absorb the price increases,” said Hiroyuki Namba, president of Ashimori Mexico. “I hope the (measures) aren’t definitive.”
Critics of the U.S. move say the escalating dispute could drive firms in Mexico to buy steel and aluminum elsewhere.
“Once we hit them and close U.S. imports, we will have to source from third markets,” said a Mexican official, who asked not to be named.
Mexico’s government said it would retaliate with targeted tariffs on pork legs, apples, grapes and cheeses, plus steel.
The Mexican official said once the retaliatory measures were put in place, the situation could backfire for Trump and end up hurting American producers.
It is “economics 101 for dummies,” the official added.
Mexico expects to publish the list of specific U.S. products it will hit on Tuesday or Wednesday, the Economy Ministry said.
Trump’s tariffs are aimed at allowing the U.S. steel and aluminum industries to increase capacity utilization rates above 80 percent for the first time in years. Still, Mexico already has a trade deficit in those metals with the United States.
Alfredo Arzola, head of the automotive industry cluster in the central state of Guanajuato, said many auto parts makers in Mexico could be exempt from the U.S. tariffs because their steel and aluminum imports from the United States are temporary.
“The steel and aluminum that stays in the domestic market for sale will be affected and the (higher) prices will be passed on to the consumer,” said Arzola.
But most auto parts makers import metals to turn them into value-added products that are shipped back to the United States as part of automakers’ cross-border value chains.
If those products comply with regional content rules under NAFTA, they are exempt from the tariffs, Arzola said.
Reporting by Anthony Esposito & Sharay Angulo; Additional reporting by Noe Torres; Editing by Peter Cooney
NAFTA
The Globe and Mail. JUNE 5, 2018. Trump wants to split NAFTA, negotiate separate trade deals for U.S. with Canada, Mexico, adviser says
ADRIAN MORROW, WASHINGTON
GREG KEENAN, AUTO AND STEEL AND AIRLINE INDUSTRY REPORTER. TORONTO
U.S. President Donald Trump wants to split up NAFTA and negotiate separate trade deals with Canada and Mexico, his chief economic adviser announced Tuesday.
Such a move would blow up the world’s largest free-trade zone – worth over $1-trillion in annual trade – spelling trouble for international business and giving the U.S. increased leverage to wring concessions out of Canada and Mexico. Larry Kudlow told Fox & Friends, Mr. Trump’s favourite television show, that the 10-month-old renegotiation of the North American free-trade agreement has “kind of dragged on” and it was time to deal with each country separately. “His preference now — and he asked me to convey this — is to actually negotiate with Mexico and Canada separately. He prefers bilateral negotiations,” Mr. Kudlow said. “When you have to compromise with a whole bunch of countries, you get the worst of the deals.”
Mr. Kudlow said he had briefed a Canadian official on the plan. It was unclear which official this was; one Canadian government source said it was not Foreign Minister Chrystia Freeland, who is in Washington this week for an Organization of American States meeting.
Shredding the three-way deal could hurt businesses with supply chains stretching across the continent. Many auto companies, for instance, find efficiencies by sourcing parts from all three countries. It would also prevent Canada and Mexico from teaming up to resist the Trump administration’s protectionist negotiating demands. Among other things, Washington has proposed tough new Buy American procurement rules, the abolition of NAFTA’s dispute resolution provisions and a “sunset clause” that would terminate the deal in five years unless all three countries agreed to extend it.
The countries are already under intense pressure from the U.S., which last week hit Canadian and Mexican steel and aluminum with hefty tariffs. Both countries responded with levies of their own on imported U.S. consumer goods.
Canada and Mexico have often presented a unified front in talks, in a bid to preserve as much of the current open market as possible. The two countries do, however, differ on some key matters: Canada has been more willing to agree to tighter automotive content rules than Mexico, which has fought back against an American demand to force automakers to source at least 40 per cent of their car parts from companies paying U.S. $16 an hour or more.
Both Canada and Mexico have proposed resolutions to NAFTA over the last month, under which they would agree to U.S. demands on autos and a few other areas in exchange for the Trump administration dropping all of its other proposals. U.S. Trade Representative Robert Lighthizer has turned them down.
Over the weekend, Prime Minister Justin Trudeau told NBC that Canada was willing to cut a deal with the U.S. on auto rules and opening Canada’s protectionist dairy market to imports, but that other American demands – such as the sunset clause – are non-starters.
Mr. Kudlow insisted that Mr. Trump was “not going to withdraw from NAFTA,” but it was unclear how he intended to cut different deals without tearing up the current one.
If the U.S. pulled out of NAFTA, the pact would remain in force between Canada and Mexico.
Christopher Sands, director of the Center for Canadian Studies at Johns Hopkins University, said a divided NAFTA could also achieve Mr. Trump’s goal of getting companies to leave Canada and Mexico and set up in the U.S. instead.
“My fear is that NAFTA gets split up and the U.S. would be the only country that works in both directions,” he said.
Daniel Ujczo, an Ohio-based trade lawyer, said Mr. Trump was pursuing a divide-and-conquer strategy.
“It is a way to split your negotiating partners to get maximum advantage,” Mr. Ujczo said. “We will reduce competitiveness by increasing compliance costs for companies operating in North America that now would have to meet three sets of rules.”
REUTERS. JUNE 5, 2018. Trump may seek separate trade deals with Canada, Mexico: U.S. adviser
WASHINGTON (Reuters) - U.S. President Donald Trump may seek separate talks with Canada and Mexico in a bid to get individual trade deals with the two countries, White House economic adviser Larry Kudlow said on Tuesday.
“He is very seriously contemplating kind of a shift in the NAFTA negotiations. His preference now, and he asked me to convey this, is to actually negotiate with Mexico and Canada separately,” Kudlow said in an interview with Fox News.
“He may be moving quickly toward these bilateral discussions instead of as a whole.”
The United States, Canada and Mexico have been in months of negotiations to rework the North American Free Trade Agreement, which Trump has long criticized as having harmed the United States economically.
On Friday, Trump said he might prefer to end NAFTA in favor of separate bilateral agreements with the two U.S. neighbors.
Kudlow said the U.S. president was moving toward that scenario.
“He prefers bilateral negotiations and he’s looking at two much different countries,” he said. “Canada’s a different country than Mexico. They have different problems.
“He believes that bilaterals have always been better. He hates these multilaterals ... he hates large treaties.”
Such a move toward separate talks would come at a tense time in U.S. trade relations with the two countries. The Trump administration said on Thursday it was moving ahead with tariffs on aluminum and steel imports from Canada, Mexico and the European Union, ending a two-month exemption and setting the stage for a possible trade war.
Canadian Prime Minister Justin Trudeau called the tariffs an affront to the longstanding security partnership between Canada and the United States, and Canada announced retaliatory steps.
In a television appearance on Sunday, Kudlow called the trade frictions a “family quarrel.”
Reporting by Eric Walsh and Doina Chiacu; Editing by Jeffrey Benkoe
REUTERS. JUNE 5, 2018. Canadian dollar slips as Trump mulls bilateral NAFTA talks
TORONTO (Reuters) - The Canadian dollar weakened against its U.S. counterpart on Tuesday as oil prices fell and U.S. President Donald Trump mulled moving toward bilateral discussions on NAFTA.
Trump is considering a shift in the effort to revamp the North American Free Trade Agreement to separate talks with Canada and Mexico, White House economic adviser Larry Kudlow said.
Canada sends about 75 percent of its exports to the United States so its economy could be hurt if a deal on NAFTA is not reached.
The price of oil, one of Canada’s major exports, fell following a report that the U.S. government had asked Saudi Arabia and other major exporters to increase oil output.
U.S. crude CLc1 prices were down 0.3 percent at $64.53 a barrel.
At 9:13 a.m. EDT (1313 GMT), the Canadian dollar CAD=D4 was trading 0.4 percent lower at C$1.2980 to the greenback, or 77.04 U.S. cents. The currency traded in a range of C$1.2915 to C$1.3007.
Canadian labor productivity fell by 0.3 percent in the first quarter, reflecting a deceleration in business output from the previous quarter, while hours worked accelerated, Statistics Canada said.
Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries and German Bunds. The two-year CA2YT=RR rose 5 Canadian cents to yield 1.909 percent and the 10-year CA10YT=RR climbed 34 Canadian cents to yield 2.238 percent.
Canada’s trade report for April is due on Wednesday and the May employment report is due on Friday.
Reporting by Fergal Smith; Editing by Bernadette Baum
IMF
Department of Finance Canada. June 4, 2018. International Monetary Fund Recognizes Canada's Success in Delivering Growth That Works for Everyone
Ottawa, Ontario – Finance Minister Bill Morneau today welcomed the Concluding Statement of the International Monetary Fund's (IMF) annual Article IV Mission to Canada, which found that the Government's plan to invest to strengthen and grow the middle class has resulted in economic growth that is working for all Canadians.
In examining the Government's pro-growth policies, the IMF confirmed the soundness of the Government's economic approach and the strength of Canada's economy, which had the highest growth rate among G7 countries last year. The IMF also confirmed that the measures the Government has introduced to address housing-related vulnerabilities have had their intended effect.
The IMF also reviewed developments in a number of other areas, including monetary and tax policy, as well as the evolution of Canada's housing market. The Government continues to monitor these issues closely to ensure that its actions continue to support growth and contribute to a strong middle class.
Quotes
"Our government's approach of investing in people and in the economy is yielding positive results, which are being recognized around the world. I want to thank the IMF for their recognition of Canada's sound economic approach and I look forward to continuing our good work together in building a global economy that works for everyone."
- Bill Morneau, Minister of Finance
Quick facts
- Since early 2016, the Canadian economy created more than 600,000 jobs, most of them full-time.
- Canada's unemployment rate is at its lowest level in 40 years.
- Since 2016, Canada has led the G7 in economic growth.
- Canada's federal debt-to-GDP (gross domestic product) ratio remains firmly on a downward track and the deficit-to-GDP ratio is projected to reach 0.5 per cent in 2022–23.
- Canada's total government net debt-to-GDP ratio is the lowest among G7 countries.
IMF. June 4, 2018. CANADA: Staff Concluding Statement of the 2018 Article IV Mission
A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.
The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.
Context
1. The economy has continued to perform well, but challenges remain. Growth has been robust and a key domestic vulnerability has moderated somewhat, as the housing market is finally showing signs of cooling down in response to several rounds of macroprudential measures and monetary tightening. However, economic anxiety is high due to trade tensions, uncertainty about the outcome of NAFTA negotiations, and the impact of the U.S Tax Cuts and Jobs Act on Canada’s medium-term competitiveness. Near-term growth will be supported by higher oil prices and strong U.S. growth, but weak productivity continues to weigh on longer-term prospects. The current favorable economic environment presents an opportunity to rebuild policy buffers, and forge ahead with structural reforms to boost Canada’s global competitiveness.
2. Against this backdrop, the 2018 Article IV consultation focused on policies to secure stronger, more inclusive, and sustainable growth. The consultation assessed the growth and risk outlook; policies and reforms to sustain the recent recovery and raise long-term potential growth; the implications of the U.S. tax reform for Canada; housing market imbalances and affordability issues; and policies to strengthen financial system resilience as household and corporate debt climbed to historic highs.
Outlook and Risks
3. Real GDP expanded by 3 percent in 2017, the highest growth rate among G7 economies in the year. Private consumption has been the largest contributor to Canada’s recent rapid growth, with exports and business investment still lagging. Growth is expected to moderate to more sustainable levels as the impact of monetary and macroprudential policy tightening takes effect. Real GDP is projected to slow to 2.1 percent in 2018 and to 2.0 percent in 2019. Tax cuts and stronger government spending in the U.S. are expected to support demand for Canadian exports in the near-term and contribute to a narrowing of the current account deficit. Over the medium-term, weak external competitiveness, sluggish labor productivity growth, and population aging are expected to limit potential growth to about 1¾ percent, significantly lower than its historical average.
4. The outlook is subject to significant risks, both domestic and external. A key domestic risk is a sharp correction in the housing market, which could be triggered by a sudden shift in price expectations or a faster-than-expected increase in mortgage interest rates. While the banking system is profitable, it is heavily exposed to household and corporate debt. In this context, risks to financial stability and growth could emerge, if the house price correction is accompanied by a rise in unemployment and sharp contraction in private consumption. External risks are more acute than in the recent past and relate to the impact of policy changes in the U.S. and NAFTA.
- The impact of U.S. tax reform on near-term growth in the U.S. and the subsequent impact on Canada are subject to considerable uncertainty, with both economies currently operating near full capacity and some tax provisions (notably on the international aspects of the reform) without historical precedent. Likewise, the medium-term impact of lower tax rates in the U.S. could make Canada a less attractive destination for investment, leading to heightened uncertainty about Canada’s medium-term growth prospects.
- Contention over several key issues have prolonged NAFTA negotiations. Failure to reach an agreement within a reasonable timeframe could impact investment and growth for an extended period. In the event negotiations fail and there is a reversion to tariff rates that satisfy WTO rules, long-run Canadian real GDP could be reduced by 0.4 percent relative to the baseline forecast and by even more if non-tariff trade costs increase.
- Other risks include structurally weaker growth in key advanced economies, a sharp slowdown in China, and tighter global financial conditions triggered by an abrupt change in global risk appetite. On the other hand, higher oil prices prompted by either rising global prices or an easing in domestic transportation constraints could present upside risks to the outlook.
5. With growth above potential, the priority of fiscal policy should be on rebuilding buffers. Provinces, especially those that are running high deficits or debt, should restore fiscal discipline and take the lead in implementing more ambitious fiscal adjustments. At the federal level, the overall size of the planned adjustment is appropriate, but it could be frontloaded to build buffers faster. If the economy overperforms, a larger portion of fiscal savings could be used for deficit and debt reduction. Rebuilding fiscal space creates room in the budget to finance policies that promote growth and reduce income inequality, and to enhance the economy’s resilience to adverse shocks.
6. To demonstrate the government’s commitment to well-managed public finances, the fiscal framework could explicitly incorporate fiscal rules. Fiscal rules are most effective when they are simple, flexible, and enforceable in the face of changing economic circumstances. The federal fiscal rule could include both a debt rule to anchor the course of medium-term fiscal policy, with the aim of reducing net federal debt to less than 30 percent of GDP as envisaged in the Budget 2018 forecast, and operational rules to guide annual budget decisions. Provincial fiscal rules should consider the sources of budget deficits and strike the right balance between stabilizing debt levels and protecting public investment.
7. It is time for a careful rethink of corporate taxation to improve efficiency and preserve Canada’s position in a rapidly changing international tax environment. Given its centrality to the architecture of the tax system as a whole, this requires a holistic review, which Canada has not had for some time. The U.S. tax reform increases the urgency of moving ahead with the review. Its impact remains highly uncertain, but the potential effects, through both real activity and profit shifting, could be substantial. The review should weigh the pros and cons of incremental approaches to change, such as more generous capital cost allowance, against more radical options, such as moving to some form of rent tax at the corporate level. Any changes should be implemented in a fiscally responsible way, including appropriate revenue-raising measures, and bearing in mind that corporate taxation is only one of several important determinants of business investment.
8. Monetary policy should be tightened gradually. Inflationary pressures are building and higher interest rates will help activity and inflation converge toward more sustainable levels. Nevertheless, the current balance of risks around the outlook warrants gradual policy normalization. In this context, the Bank of Canada’s approach appears to be broadly appropriate.
9. Macroprudential policy settings are appropriate but continued vigilance is needed. Current measures appear to be containing housing-related financial sector risk. Nevertheless, the banking system remains highly exposed to household debt and vulnerable to a sharp reversal in house prices. If housing vulnerabilities continue to rise, new lending by banks should be subject to loan-to-income limits. At the same time, coordinated monitoring between federal and provincial regulators are required to mitigate other potential and emerging risks to financial stability, including the increasing use of home-equity lines of credit, the rise of less regulated mortgage lending, and the rapid growth in exchange-traded funds. Improving access to beneficial ownership information and financial intelligence, in line with Canada’s recent AML/CFT assessment, would help mitigate money laundering risks in the real estate sector.
10. A broad set of supply-side policies is needed to durably manage housing affordability concerns. Deteriorating housing affordability raises not only important social concerns, but also economic ones, as worsening affordability impedes labor mobility. Addressing housing supply issues, particularly in the regions around Toronto and Vancouver, will require complementary transportation, immigration, and housing strategies at all levels of government. Greater emphasis should be given to increasing urban density and accelerating the delivery of land ready for development. This would require shortening the approval process for building permits and re-zoning applications, and re-evaluating rent control policies to ensure that they do not constrain rental property supply. Current funding and other incentives should be assessed to make sure that the right type of housing supply (e.g. purpose-built rental housing) is being developed to meet affordability objectives.
11. Trade policies and structural reforms targeted at boosting productivity and medium-term growth should remain a key focus of the government’s policy agenda to enhance Canada’s competitiveness.
- A NAFTA agreement that further improves trade opportunities and promotes competition should be reached within a reasonable timeframe. Rapid ratification of CPTPP would also enhance Canada’s ability to seize the potential benefits offered by greater market access and export diversification.
- Federal and provincial governments should do more to reduce inter-provincial barriers to trade and the free-movement of skilled labor. Regulatory red-tape remains substantial despite CFTA.
- The government should establish clear performance targets for innovation programs, such as the Supercluster Initiatives, and ensure that funding is stage-gated conditional on performance. Projects should be selected based on arms-length criteria.
- Closer coordination between federal and subnational governments to consolidate information on project plans and expand the use of common standards of project evaluation is important for efficient infrastructure investments. With the appointment of a new CEO, the Canada Infrastructure Bank should move expeditiously to attract private sector and institutional investment to new revenue-generating infrastructure projects.
- Further deregulation in some product markets (e.g. electricity, transportation, retail distribution and professional services) should help attract foreign direct investment. Tangible progress in this area could mitigate risks from the U.S. tax reform.
- Canada’s immigration policies can help counteract population aging and strengthen the labor force, but immigrant flows need to be carefully managed to maintain public support for the program. The authorities should strive to improve the labor market outcomes of immigrants, expand regional absorptive capacity, and facilitate the integration of immigrants into local communities.
OAS
Global Affairs Canada. June 5, 2018. Foreign Affairs Minister reaffirms Canada’s commitment to Americas
Washington, D.C., United States - The Honourable Chrystia Freeland, Minister of Foreign Affairs, today concluded her participation at the Organization of American States General Assembly in Washington, D.C.
At the General Assembly, the Minister reiterated the importance of multilateral actions to respond to political and humanitarian crises in the hemisphere. She underscored the need for concerted action to restore the fundamental democratic and human rights of the people of Venezuela. She also highlighted Canada’s contributions to the Caribbean at a time when many countries there are still recovering from the devastating 2017 hurricane season.
Minister Freeland announced, on behalf of the Honourable Marie-Claude Bibeau, Minister of International Development and La Francophonie, $79.21 million in funding for nine projects to support women and adolescent girls’ sexual and reproductive health rights, prevent gender-based violence, increase women’s political participation, improve water security for vulnerable populations—especially women—support climate resilience efforts and increase incomes among smallholder farming families, with an emphasis on woman farmers. This funding demonstrates Canada’s commitment to strengthening the economic prospects and security of some of the hemisphere’s most vulnerable people.
Quotes
“As an engaged bilateral and multilateral partner, Canada’s commitment to the promotion of democracy, human rights, security and development, for the good of all citizens, is unwavering. We, as members of the Organization of American States, have a responsibility to ensure this multilateral forum is used effectively to make important and difficult decisions.”
- Hon. Chrystia Freeland, P.C., M.P., Minister of Foreign Affairs
“Canada will continue to work with neighbouring states in the Americas to build a more prosperous and sustainable future together. Canada believes that supporting women and girls’ health and their right to security will enable them to play a key role in building climate resilience in their communities and to be drivers of an economic growth that benefits everyone. ”
- Marie-Claude Bibeau, Minister of International Development and La Francophonie
Quick facts
- The pillars of Canada’s engagement in Latin America and the Caribbean region are:
- promoting democracy, human rights, inclusion and diversity;
- supporting inclusive growth and poverty eradication;
- supporting climate change and adaptation; and
- improving regional security.
- Canada’s international assistance in Latin America and the Caribbean focuses on the empowerment of women and girls and the advancement of a progressive, feminist agenda that promotes human rights, prosperity, resilience and democratic governance.
- In 2016 to 2017, Canada provided more than $670 million in total international assistance to the Americas.
- Canada has seven free trade agreements in Latin America, with Chile, Colombia, Costa Rica, Honduras, Panama, Peru and Mexico.
- Canada is also pursuing free trade negotiations with two of the most important economic blocs in Latin American: Mercosur, composed of Argentina, Brazil, Paraguay and Uruguay; and the Pacific Alliance, composed of Chile, Colombia, Mexico and Peru.
On June 4, 2018, the Government of Canada announced $79.21 million in development assistance for nine projects aimed at empowering women and girls. They include projects to improve women and adolescent girls’ sexual and reproductive health rights, prevent gender-based violence, increase women’s political participation, improve water security for vulnerable populations—especially women—support climate resilience efforts and increase incomes among smallholder farming families, with an emphasis on woman farmers.
We decide: Reducing adolescent pregnancy in Loreto, Peru
Implementing partner: Plan International Canada
Funding: $11.2 million (2018 to 2023)
This project will promote the sexual and reproductive health and rights (SRHR) of adolescent girls in five districts in Peru’s Amazon rainforest. It will support the delivery both of sexual and reproductive health services and of comprehensive sexuality education for adolescent girls and boys. By empowering girls, the project will help prevent sexual violence and unwanted pregnancies.
Achieving reproductive rights for Bolivian adolescents
Implementing partner: Plan International Canada
Funding: $10 million (2017 to 2022)
This project will improve the delivery and utilization of SRHR services by women and adolescent girls and boys in 12 rural municipalities of Bolivia. It will also support the improvement of local health governance systems to improve the delivery of quality SRHR services.
Empowering adolescents to prevent unwanted pregnancies
Implementing partner: UNICEF with the support of Save the Children
Funding: $9.2 million (2017 to 2022)
This project will improve the quality of adolescent SRHR services to prevent unwanted pregnancies, sexual and gender-based violence and HIV/AIDS in Bolivia. It will enhance decision-making power and gender equality among vulnerable youth and will help adolescent girls and boys to meaningfully exercise their right to sexual and reproductive health.
Together against violence, women of Bolivia: Your rights, your budget
Implementing partner: Oxfam Québec
Funding: $7.3 million (2017 to 2022)
This project aims to prevent violence against women and girls in seven municipalities of Bolivia. By working with six local women’s organizations, it will promote public awareness of women’s fundamental rights and improve women and girls’ ability to exercise their rights and gain greater access to economic and social opportunities in their communities. It will also increase public investments in municipal services for women victims of violence.
Strengthening women’s organizations to support women’s political leadership in Latin America and the Caribbean
Implementing partner: ParlAmericas
Funding: $4.99 million (2018 to 2022)
This project aims to increase the capacity of two regional women’s organizations and their 11 local chapters in 15 countries, all working to improve women’s political participation. It will support these organizations in their work to advance gender equality through the delivery of leadership training for young women and training to support women’s electoral candidacies. It will also provide outreach support to extend the reach of the organizations’ activities in the region.
Inter-American task force on women’s empowerment and leadership
Implementing partner: Organization of American States’ Inter-American Commission of Women
Funding: $499,968 (2018 to 2022)
This project will support the newly created Inter-American Task Force on Women’s Empowerment and Leadership, launched during the recent Summit of the Americas in Lima. The Task Force aims to increase women’s political representation and participation in public decision making and strengthen the rights of women and girls. In addition, the Task Force will further enhance the quality and effectiveness of women’s leadership programming by improving coordination among inter-American and UN institutions.
Water management and climate resilience for Andean women and men
Implementing partners: Forest Trends and USAID
Funding: $16.2 million (2017 to 2022)
This project will ensure a stable water supply for the poorest people in the Andes, especially women, through appropriate water management and climate change adaptation measures. This will be done by adopting innovative financing, management and technical solutions, or “green infrastructure,” and by working with Indigenous Andean communities to ensure women’s needs and contributions are at the heart of Peru’s national climate policies and activities.
Cooperation for Adaptation and Resilience to Climate Change in the Caribbean Initiative
Implementing partner: Food and Agriculture Organization of the United Nations (FAO)
Funding: Up to $325,000 (2018 to 2019)
Managed by the UN Food and Agriculture Organization and co-financed with the Government of Mexico, this initiative will provide technical assistance to help Caribbean Community member states access climate and environment financing. Canada’s contribution will also help these countries design and manage projects supporting climate resilience in the Caribbean region.
Cacao Agropreneurs
Implementing partner: Société de Coopération pour le Développement International [cooperation society for international development] (SOCODEVI)
Funding: $19.5 million (2018 to 2023)
This project will allow Cacao Agropreneurs in Colombia to increase the cultivation of cacao to provide an alternative to illicit coca production. A partnership between SOCODEVI and co-financed by the private sector, this initiative will test an outcome-based payment model in which Canada pays only when results are achieved, rather than paying for activities in advance. This project is expected to help increase the income of over 5,000 smallholder farming families, especially those led by woman farmers.
FULL DOCUMENT: https://www.canada.ca/en/global-affairs/news/2018/06/foreign-affairs-minister-reaffirms-canadas-commitment-to-americas.html
INTERNATIONAL RESERVES
Department of Finance Canada. All 2018 Official International Reserves. June 5, 2018. Official International Reserves on May 31, 2018.
Ottawa, ON - The Department of Finance Canada announced today that Canada's official international reserves decreased by an amount equivalent to US$1,444 million during May to US$80,777 million.
Details on the level and composition of Canada's reserves as of May 31, 2018, as well as the major factors underlying the change in reserves, are provided below. All figures are in millions of US dollars unless otherwise noted.
| Millions of US dollars | |
|---|---|
| Securities | 69,343 |
| Deposits | 1,448 |
| Total securities and deposits (liquid reserves): | 70,791 |
| Gold | 0 |
| Special drawing rights (SDRs) | 7,971 |
| Reserve position in the IMF | 2,015 |
| Total: | |
| May 31, 2018 | 80,777 |
| April 30, 2018 | 82,221 |
| Net change: | -1,444 |
FULL DOCUMENT: https://www.fin.gc.ca/n18/18-045-eng.asp
The Department of Finance Canada announced today that Canada's official international reserves decreased by an amount equivalent to US$1,444 million during May to US$80,777 million.
Details on the level and composition of Canada's reserves as of May 31, 2018, as well as the major factors underlying the change in reserves, are provided below. All figures are in millions of US dollars unless otherwise noted.
NOTES:
- Net change in securities and deposits resulting from foreign currency funding activities of the Government. (Issuance of foreign currency liabilities used to acquire assets increases reserves, while maturities decrease reserves). During May, Canada bills decreased by US$67.9 million to a level of outstanding bills of US$1,910 million. An equivalent of US$744.5 million in cross-currency swaps matured during the month.
- "Return on investments" comprises US$100 million of interest earned on investments and a US$299 million increase in the market value of securities.
- "Revaluation effects" reflect changes in the market value of reserve assets resulting from movements in exchange rates. In May, the revaluation effect was mainly due to the depreciation of the euro and the pound sterling.
- "Net government operations" are the net purchases of foreign currency for government foreign exchange requirements and for additions to reserves.
- "Foreign currency securities" include maturities of foreign currency debt, cross-currency swap payments and an estimate of interest payments on foreign currency liabilities.
- "Securities lent under repurchase agreements" are included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.
- Cash invested under repurchase agreements is included in total reserves. Collateral provided in securities lending transactions is not included in total reserves.
G7
The Globe and Mail. JUNE 5, 2018. OPINION. Real change for girls requires more than words at G7 summit
MICHAEL MESSENGER
DAVID MORLEY
CAROLINE RISEBORO
Michael Messenger is the president and CEO of World Vision Canada. David Morley is the president and CEO of UNICEF Canada. Caroline Riseboro is the president and CEO of Plan International Canada.
When we educate and empower children, especially girls, we break cycles of violence and conflict, reduce gender inequality, and promote tolerance and reconciliation.
When we don’t, we risk a future full of violence, conflicts and crises.
This year’s G7 summit is an opportunity for Canada and Prime Minister Justin Trudeau to shape the future by leading the world in ensuring education for all children, especially girls.
We are standing in the wake of the largest wave of young people in history. With the population under the age of 30 in the most fragile and unstable countries about to spike, far too many of this generation are facing bleak, uncertain futures.
We are also witnessing the largest number of refugees and internally displaced people on Earth since the Second World War.
During times of crisis, schools are often the first service to be suspended and the last service to resume. There are 75 million children and youth out of school in 35 crisis-affected countries. And in crises, girls are 2.5 times more likely to be out of school, making them vulnerable to violence, discrimination and exploitation.
Yet these young people are inherently powerful and hold the potential to dramatically remake the world for the better, using innovation and creativity to solve society’s biggest challenges. If the global community commits to providing quality, long-term education to this generation – especially every girl – possibilities for our collective future could be limitless.
But without a significant global financial commitment toward their education, insecurity and crises will only worsen, as will their impact on our global peace and security.
In recent years, less than 2 per cent of humanitarian funding globally has been dedicated to education. Yet when children and families affected by emergencies are asked what they want and need, it isn’t food, water or health care that tops the list. It’s education.
We must start seeing education as a strategic cost worth paying. An investment in education is an investment in the future and toward our common peace and security. Education can empower everyone – girls and women in particular – to improve the health, well-being and prosperity of entire communities and countries.
That is why Plan International Canada, RESULTS Canada, Right to Play, Save the Children, UNICEF Canada, World Vision and several other Canadian and global organizations are rallying together to call on Mr. Trudeau and other world leaders at the G7 to raise $1.3-billion to reach 3.7 million vulnerable children living in crisis situations with education, with a special emphasis on girls who face additional barriers due to their gender.
Mr. Trudeau has already pledged to make a meaningful commitment to, and investment in, the education of girls in crises as one of Canada’s legacy initiatives at the Charlevoix, Que., summit. But these girls and children need more than words to help them not only survive, but thrive. A significant investment from Canada of $500-million out of the US$1.3-billion global ask would change the course of millions of children’s lives, empower girls who are now out of school and give them back hope for their future. This investment is key to delivering on Canada’s feminist agenda – particularly for the world’s most vulnerable girls.
As the president of this year’s G7 summit, Mr. Trudeau is in a unique position to influence the outcome. A significant financial commitment from Canada toward all girls’ and children’s education in crises is a smart investment in what’s right – the empowerment of an entire generation of girls, of peace builders, who will work to make this world a better place for us all.
The world is looking to Canada for leadership. This is a moment that we cannot allow to pass us by.
Together we have the opportunity to address one of the biggest problems the world is facing today and transform it into the possibility of a brighter, more equal and feminist tomorrow.
Additional signatories: Bill Chambers, president and CEO of Save the Children Canada; Christina Dendys, executive director, RESULTS Canada; Kevin Frey, CEO of Right To Play International
UN
REUTERS. JUNE 5, 2018. Ecuador's foreign minister elected U.N. General Assembly president
NEW YORK (Reuters) - Ecuadorean Foreign Minister Maria Fernanda Espinosa on Tuesday was elected president of the 73rd United Nations General Assembly, a mainly ceremonial title that nonetheless carries a high profile and important procedural functions.
Espinosa defeated Ambassador Mary Elizabeth Flores Flake of Honduras by 128 votes to 62, with two abstentions. Espinosa will become the fourth woman ever to hold the UNGA presidency and the first since Haya Rashed Al-Khalifa, from Bahrain, in 2006-2007.
Espinosa will assume the position in September at the start of the 73rd UN General Assembly.
It is rare to have a contested election for the position, which is normally filled by consensus without a vote. It was the turn for Latin America and the Caribbean to nominate the assembly president based on a preset geographical rotation.
Reporting by Rodrigo Campos; Editing by Paul Simao
PM
1) Statement by the Prime Minister of Canada on World Environment Day Ottawa, Ontario - June 5, 2018
The Prime Minister, Justin Trudeau, today issued the following statement on World Environment Day:
“Today, on World Environment Day, we join the international community to celebrate the natural world around us and reflect on our shared responsibility to safeguard the environment for generations to come.
“The theme for this year’s World Environment Day – Beat Plastic Pollution – calls on all of us to make changes in our lives that help eliminate plastic waste and pollution, and protect our planet.
“Plastic pollution is a global challenge that does not respect borders – it litters our streets, accumulates in our landfills, and contaminates our rivers and oceans. To help reduce waste and fight climate change, the Government of Canada has taken significant steps and is planning important new measures to protect the environment and promote clean growth, here at home and abroad.
“Today, we announced the appointment of Patricia Fuller as Canada’s new Ambassador for Climate Change to help advance Canada’s clean growth and climate change priorities on the world stage. Later this week at the G7 Summit, we will bring world leaders together to discuss how we can reduce plastic pollution, tackle climate change, and improve the health of the world’s oceans.
“The Government of Canada will continue to drive progress on the environmental challenges we face as a global community, and protect the clean air and water we share.
“On behalf of the Government of Canada, I encourage everyone to take action and #BeatPlasticPollution. I also invite Canadians to share their ideas on how we can move Canada toward zero plastic waste. From changing how we create plastics to making sure they are reused and recycled, together, we can make a real difference for our planet’s future.”
2) Prime Minister names new Ambassador for Climate Change Ottawa, Ontario - June 5, 2018
Canada continues to provide international leadership to address climate change, honour its Paris Agreement commitments, and transition to a low-carbon, clean-growth economy. We know our future prosperity and well-being depend on taking ambitious, coordinated action at home and as a global community.
Today, on World Environment Day, the Prime Minister, Justin Trudeau, announced that Patricia Fuller has been appointed Canada’s new Ambassador for Climate Change, for a term of three years, effective immediately.
Ms. Fuller will advise both the Minister of the Environment and Climate Change and the Minister of Foreign Affairs on how Canada can best advance its climate change priorities on the world stage and work closely with Canadian missions to put the Government of Canada’s environmental policies into practice. She will reinforce Canada’s work with other countries on innovative climate solutions and promote our clean technology sector to global investors.
Working together on climate change, oceans, and clean energy is one of the key themes of Canada’s 2018 G7 Presidency and will be at the centre of the discussions at the G7 Summit from June 8-9, 2018.
Quotes
“Climate change is a global challenge that requires a global solution. Everywhere, we are seeing the effects of climate change reminding us of the need to act now. Canada’s new Ambassador for Climate Change, Ms. Fuller, is here to lead Canada’s efforts and work in collaboration with the global community to tackle climate change and promote clean economic growth.”
—The Rt. Hon. Justin Trudeau, Prime Minister of Canada
“I’m very pleased to welcome Patricia Fuller as Canada’s new Ambassador for Climate Change. Canada is proud to work with our international partners to advance climate solutions like phasing out coal, reducing risks from extreme weather and climate impacts, and supporting clean solutions and innovation. We’re all in this together, and international collaboration is essential to make sure we are leaving a healthy environment and a strong economy to our kids and grandkids.”
—The Hon. Catherine McKenna, Minister of Environment and Climate Change
Quick Facts
- The Climate Change Ambassador is appointed by the Governor in Council to hold office on a full-time basis for a term of up to three years.
- The Climate Change Ambassador has a key role in government-wide engagement on climate change and in the implementation of Canada’s clean growth and climate change priorities.
- Continued leadership and global cooperation are key to moving forward and meeting the Paris Agreement commitment to limit global temperature increases and to increase the ability to adapt to adverse impacts of climate change. To that effect, in December 2016, Canada released the Pan-Canadian Framework on Clean Growth and Climate Change to reduce greenhouse gas emissions and enable sustainable economic growth.
- In 2014, Canada's clean and sustainable technology industry employed over 55,600 people in almost 800 technology companies in all regions of the country. Most of these companies are small and medium-sized enterprises. Total revenues from this industry reached nearly $12 billion.
- Canada has committed $2.65 billion to international climate finance to support a wide range of programs and initiatives that will help developing countries mitigate and build resilience to the impacts of climate change, deploy clean energy technology, and manage natural resources sustainably.
Biographical Notes
Patricia Fuller holds a Bachelor of Arts (Honours) in Economics and Political Studies from Queen's University, and a Master of Science with distinction from the London School of Economics.
Throughout her career, Ms. Fuller has specialized in trade and economic policy, as well as climate change and energy. At Foreign Affairs and International Trade Canada, she served as Deputy Director for Trade Remedies (1997-1999), Director of the Softwood Lumber Division (2003-2004), Chief Economist (2007-2010), and Director General of Planning and Reporting (2010-2012). While working at Natural Resources Canada from 2015 to 2017, Ms. Fuller headed the Office of Energy Efficiency and contributed to the development of the Pan-Canadian Framework on Clean Growth and Climate Change. She also gained experience on environment and climate change files earlier in her career while working at the Privy Council Office and supporting the Cabinet Committee on Economic and Regional Development Policy from 2000 to 2003.
Ms. Fuller served abroad as Ambassador of Canada to Uruguay from 2004 to 2007 and as Ambassador to Chile from 2012 to 2015. Previous international assignments also included Mexico and Guatemala.
Most recently, she has been serving as Director General of Economic Development at Global Affairs Canada. Her responsibilities include oversight of Canada's engagement with International financial institutions, as well as leadership for development assistance policy related to economic growth and governance.
Ms. Fuller and her husband have two children.
3) Prime Minister welcomes recommendations from the Gender Equality Advisory Council for Canada’s G7 Presidency Ottawa, Ontario - June 4, 2018
The Prime Minister, Justin Trudeau, today issued the following statement to welcome the recommendations from the Gender Equality Advisory Council for Canada’s G7 Presidency:
“Today, I welcome the recommendations from the Gender Equality Advisory Council for Canada’s G7 Presidency, entitled ‘Make Gender Inequality History.’ I thank the Council for their important work and for sharing their knowledge and expertise, which will inform the discussions and decision-making at this week’s G7 Summit, and help to inspire the work of the G7 countries moving forward.
“Gender equality is a fundamental human right, a key to growing strong economies, and a top priority for Canada and our G7 Presidency. None of us can move forward when half of us are held back. To build peace, reduce poverty, and grow economies that work for everyone, we must address the deep-rooted drivers of inequality and eliminate the barriers that prevent women, girls, and gender diverse people from participating fully and freely in all aspects of our society.
“Canada is committed to working with G7 members and its domestic and international partners to promote the rights of women, girls, and marginalized communities. Together, we can explore ways to implement the recommendations of the Council and continue to work to achieve the gender equality targets set out in the 2030 Agenda for Sustainable Development. We know that when women and girls have an equal opportunity to succeed, all of us benefit.
“I look forward to discussing the Council’s recommendations with Council members and G7 leaders in Charlevoix. We will listen to the voices of women, girls, and gender diverse people as we work to build a world where all people – no matter their gender identity – are safe, free, and empowered.”
4) Itinerary for Tuesday, June 5, 2018 Ottawa, Ontario - June 4, 2018
Note: All times local
Rosedale, British Columbia
8:15 a.m. The Prime Minister will participate in a discussion with the Indigenous Advisory and Monitoring Committee.
Cheam Multiplex
52161 Victor Drive
Notes for media:
Open coverage for opening remarks only
Media are asked to arrive no later than 7:45 a.m.
Sherwood Park, Alberta
2 p.m. The Prime Minister will visit the Kinder Morgan Edmonton Terminal.
1680 101A Avenue
Notes for media:
Open coverage
Media are asked to arrive through the security gate no later than 1:00 p.m.
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LGCJ.:
