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Thursday September 17, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday September 17, 2020

U.S. calls off tariffs on Canadian aluminum — for now

The United States hit the pause button on tariffs on Canadian aluminum today, agreeing to withdraw current penalties — at least until after the presidential election in November.

November 21, 2019

The move came right as Canada was set to impose a wide range of retaliatory measures that would have hit some politically inconvenient targets for President Donald Trump as he seeks re-election.

Ottawa was planning to reveal its targets for retaliation at 3 p.m. ET today. Shortly after noon, however, the U.S. abruptly declared it would drop its recently imposed 10 per cent import tax on Canadian aluminum — and revisit the issue every month.

That doesn’t mean the conflict is over. In making the announcement, the U.S. unilaterally set monthly targets for the volume of aluminum imports it will accept from Canada without a tariff.

Those targets set by the U.S. take effect in September. The U.S. said it will monitor export volumes six weeks after the end of every month — which punts the issue to mid-November, right after the Nov. 3 presidential election.

May 24, 2019

A Washington trade expert who worked in the Obama White House said it appears the Trump administration wanted to postpone a politically risky fight.

According to Canadian officials, the list of retaliatory tariffs Canada was preparing to impose Tuesday would have struck the very Ohio washing-machine plant where Trump announced his levy on cross-border aluminum.

“I think the threat the Canadian government made of retaliation was credible,” said Chad Bown, a trade official in the Obama White House and senior fellow at the Peterson Institute for International Economics.

“[It had] the potential to hurt some of President Trump’s voters.”

The federal government welcomed the U.S. decision — but warned it’s still prepared to impose retaliatory measures if necessary. (CBC) 

 

Thursday, August 17, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday, August 17, 2017

Chapter 19 may be a NAFTA deal breaker for Canada

A lot of Canadian softwood lumber exporters will tell you Chapter 19 is an instrumental part of the North American Free Trade Agreement.

July 17, 2017

Softwood lumber is the longest and bitterest of Canada-U.S. trade disputes. Small wonder then that Prime Minister Justin Trudeau has cautioned that removing Chapter 19 from the trade pact would be a deal breaker in the upcoming renewal talks between Canada, the United States and Mexico.

Chapter 19 is a mechanism NAFTA members can use to review the fairness of anti-dumping and countervailing duties. The U.S. has a long history of slapping such duties on Canadian softwood lumber shipments, and Canada has taken advantage of Chapter 19 to reverse those actions.

A Chapter 19 panel decides each case according to the domestic laws of the country that imposed the duties. So a Chapter 19 panel does not override a country’s domestic laws, but serves as a check on how each country is applying its own rules.

June 7, 2017

“There is absolutely no doubt that it acts as a check on some of the more abusive, arbitrary and discriminatory actions of the regulators on both sides of the border,” said Milos Barutciski, co-head of the international trade and investment law practice at Bennett Jones LLP in Toronto.

Softwood lumber has long been a flash-point in Canada-U.S. trade relations, and Canada has turned to Chapter 19, both under the original Canada-U.S. Free Trade Agreement and subsequently under NAFTA, to address what it sees as the unfair imposition of duties.

August 27, 2005

The U.S. lumber industry argues that the tariffs are necessary because provincial governments unfairly subsidize Canadian producers who log on crown land. Canadian companies argue the tariffs are improper because they pay provincial governments market rates for that timber.

“Chapter 19 has been a very important piece in every softwood lumber dispute since the original FTA was signed,” Barutciski said. (Source: Financial Post) 

 

Tuesday January 17, 2012

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday January 17, 2012

Federal Liberals endorse marijuana legalization

They overwhelmingly approved Sunday a resolution calling for the legalization and regulation of marijuana — a position immediately endorsed in principle by interim leader Bob Rae, although it remains to be seen how, or if, the resolution translates into a platform plank for the next election.

“Let’s face up to it, Canada, the war on drugs has been a complete bust,” Rae declared in a closing speech to a three-day Liberal renewal convention.

Until now, Liberals have called only for decriminalization of marijuana, as has the NDP. The new call to legalize it completely and regulate its production and sale, much as is done with alcohol, is in stark contrast to the governing Conservatives, who’ve included stiffer penalties for marijuanaÊpossession in their omnibus tough-on-crime bill.

The legalized pot resolution came on the heels of another potentially risky gamble for the Liberals. After a heated debate late Saturday, delegates agreed to invite all liberal-minded Canadians to take part in choosing the party’s next leader.

The party will create a new class of Liberal “supporters” — anyone willing to register as believers in core Liberal values — who will not have to pay a fee for a membership card to participate in leadership contests.

Wrapping up the convention, Rae heralded the two moves as a sign the chastened Liberal party is reaching out and renewing itself after last May’s humiliating rout, when the party was reduced to a third-party rump with only 34 seats.

“We Liberals have clearly and emphatically said to the people of Canada: ‘We embrace change and we embrace all Canadians as we rebuild this great national party.”‘ (Source: CTV News)