Trade

Thursday May 16, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday May 16, 2019

Freeland renews push to remove steel, aluminum tariffs during Washington trip

July 27, 2018

Foreign Affairs Minister Chrystia Freeland is bound for Washington to meet with Trump trade czar Robert Lighthizer in a renewed push to get punitive steel and aluminum tariffs lifted.

The meeting at the United States trade representative’s Washington office is to take place on Wednesday but Freeland will also venture to Capitol Hill for a meeting with the influential Republican chair of the Senate finance committee, Chuck Grassley.

“We continue to lobby very assertively for the lifting of the tariffs. We’re at a point where we need to do everything we can and talk to everyone we can about why we see these as unjust,” a senior government source said Tuesday, speaking on the condition of anonymity because of the sensitivity of the ongoing dispute.

June 1, 2018

The meetings come after a pair of telephone calls on consecutive days late last week between President Donald Trump and Prime Minister Justin Trudeau, in which the controversial 25-per-cent duty on Canadian steel and 10-per-cent levy on aluminum was a major subject of conversation.

On Tuesday, Grassley suggested to reporters in a conference call that an end to the tariffs might be close. Last month, Grassley tweeted that Trump must remove the tariffs before the new North American trade deal can be ratified.

Trump imposed them in the first place using a section of U.S. trade law that gives the president powers to put duties on imports on national-security grounds.

Freeland, Trudeau and others in Canadian government have derided the tariffs as absurd, illegal and insulting.

But Freeland has said she’s heartened by the recent comments of both Republican and Democratic American lawmakers who say the new North American trade agreement that includes Mexico can’t be ratified with the “Section 232” tariffs in place. (Global)

 

Saturday May 11, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Saturday May 11, 2019

‘We won’t back down.’ Donald Trump talks tough on China trade ahead of high-stakes meeting

On the eve of high-stakes trade talks with China, President Donald Trump used a rally in Florida to ramp up his rhetoric about the prospects of a new agreement to de-escalate a widening tariff battle with Beijing.

“We won’t back down until China stops stealing our jobs,” Trump told the audience of a rally in Panama City Beach on Wednesday. “We don’t have to do business with them.”

While claiming earlier in the day that a Chinese trade delegation is “coming to the U.S. to make a deal,” Trump also said the trade rivals may be pulling back from an agreement in the hopes that a Democratic president will be elected in 2020.

November 30, 2018

“They broke the deal,” Trump told supporters. “They can’t do that.”

U.S. and Chinese negotiators are scheduled to meet Thursday, four days after Trump threatened new tariffs if China refused to sign onto a new trade agreement.

While Trump said China wants a deal, he has said he is also happy with tariffs that he claims put “over $100 Billion a year” in U.S. coffers – a claim most economists say is the wrong analysis because China retaliates with tariffs of its own, and both countries pass on the costs of tariffs to consumers.

Tariff revenue “is a transfer of wealth from Americans to the government, with new tariffs hitting more consumer goods and lower-income households,” said Riley Walters, a policy analyst for Asia’s economy and technology with The Heritage Foundation. “Chinese don’t pay American taxes.” (USA Today) 

 

Friday March 29, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 29, 2019

Canada’s canola conundrum has Trudeau pinned between China and U.S.

March 1, 2019

Trade diversification was supposed to make Canada less dependent on the U.S. But as the canola dispute shows, it has had a perverse effect. It has made this country more dependent on China.

Beijing’s decision to ban two major Canadian companies from exporting canola to China has Prime Minister Justin Trudeau’s government rattled.

Canola is Canada’s largest grain export after wheat. China is Canada’s number one market for canola. Last year Canadian canola seed exports to China were worth about $2.7 billion.

In short, the ban is a big deal — particularly since it is accompanied by a reluctance among Chinese importers to sign any new canola contracts with Canadians.

The ban has lowered canola prices and left Canadian farmers unsure of whether to plant a new crop this spring.

It wasn’t supposed to be this way.

Animated!

Until now, canola has been the poster boy for Canadian efforts to diversify trade away from the U.S. and toward the new markets of Asia. A rapeseed variant both developed in and named for Canada, canola is a hometown success story.

Appropriately perhaps, Canada is the world’s largest producer of canola. Virtually all of it is exported, with China, Japan and Mexico being the top three destinations.

When Finance Minister Bill Morneau wrote in his 2017 budget about focusing on technological change in Canada’s agri-food industry, canola was almost certainly one of the examples he had in mind. When Trudeau mused about free trade with China, canola was front and centre.

But as Canada’s long and complicated history with the U.S. shows, trade relations come at a cost. (Continued: Toronto Star) 

 

Wednesday February 6, 2019

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday February 6, 2019

Knuckling under pressure to the U.S. won’t win battle of steel tariffs

What was Ontario’s economic development and trade minister thinking when he publicly called on Canada to surrender in the trade war with the United States?

March 3, 2018

On Monday Todd Smith said Canada should remove tariffs put in place in response to Donald Trump’s imposition of 25 per cent tariffs on steel imports and 10 per cent on aluminum. Canada’s tariffs match those dollar for dollar, and are used in part to support companies and workers in the affected sectors.

Further, Smith said his boss, Doug Ford, wanted the same thing. “I know that the premier has suggested this to the federal government that they should remove their tariffs as a first step in removing tariffs overall.” As far as we know Ford hasn’t spoken on the matter, but if that’s how he feels, he should go public.

June 15, 2018

Why on earth would anyone, Ford or his minister, believe that Donald Trump would respect capitulation? Has Trump shown in past behaviour that he respects weakness? We must have missed that newscast.

Smith’s suggestion is so patently ridiculous it took only hours for steel and aluminum companies to pipe in with their support for Ottawa. A tweet from the Canadian Steel Producers Association, said: “The federal government’s retaliatory action against the U.S.A. is vital in protecting businesses and steelworkers.” The Aluminum Association of Canada said the Trudeau government should “maintain all tariffs on U.S. imports and support Canadian businesses as long as U.S. tariffs are in place.”

June 28, 2018

Analysts and pundits from all quarters were equally mystified and distraught. Why would the Ford government side with Trump against Canada? More than one suggested it might be linked to Ford’s oft-expressed respect and affection for Trump’s leadership. But suggesting Canada should surrender?

It turns out, if you believe the updated position of the province, that wasn’t behind Smith’s play. He really meant to say we should revisit tariffs on things other than steel and aluminum, like Kentucky bourbon and playing cards. That, he says, will demonstrate to Trump that Canada is willing to deal. This new position — if it can be called that — isn’t nearly as damaging, but it’s equally stupid. Do Smith and his boss really think Trump will come to the table based on bourbon and playing cards?

June 6, 2018

He won’t. He thinks his tariffs, broadly, have been a huge success and a sign of his historic greatness. Yes, they’re hurting Americans as they’re hurting Canadians, but Trump isn’t one to worry about his own citizens welfare. In his view, measures like these are signs of strength and dominance.

Tariffs are a real and growing problem for steel and aluminum companies. High steel prices have cushioned steel producers to some extent, but the impact of tariffs is already being felt in Sault St. Marie, and will eventually hit Hamilton as well.

Canada continues to work trade and diplomatic channels to see tariffs lifted. Some have suggested the prime minister shouldn’t give final approval to the new NAFTA agreement without resolution, and that might be worth considering. Trump sees NAFTA as a major accomplishment, and the fact that it might be stymied due to his nonsensical tariffs will trouble him. His own Congress has said it won’t support the new trade pact until tariffs have been lifted, and that might be worth Ottawa’s consideration, too. Much more work remains to be done.

But please, no more suggestions that Canada take a knee to the biggest bully in the free world. That’s embarrassing, and would only make dealing with Trump more difficult. The Trudeau government has walked a fine line to date between working with Trump and not being pushed around. That should continue to be its strategy. (Source: Hamilton Spectator Editorial) 

 

Friday November 30, 2018

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday November 30, 2018

USMCA signing could be overshadowed by larger divisions between nations at G20

Officials don’t know yet who will sign the pact. And they haven’t said exactly when, or where, it’s going to happen.

October 2, 2018

But when the G20 summit in Buenos Aires is over, the leaders of Canada, the United States and Mexico are supposed to be coming home with a newly signed trade agreement.

Prime Minister Justin Trudeau said Wednesday his government was “still in discussions” with Washington about the timing and circumstances of the official United States–Mexico–Canada Agreement signing event. At any rate, it may turn out to be a hold-your-nose moment for the Trudeau government, which had hoped to see U.S. tariffs on steel and aluminum lifted before signing day.

August 18, 2018

The chances that the tariffs will even be discussed at the summit, let alone lifted, are so slim that a source tells CBC News that Canada’s ambassador to the U.S. isn’t even going to Argentina.

David MacNaughton has been a key leader for the Canadian trade negotiating team, but he will not be present for the anticipated signing ceremony, or for any sideline talks with the Americans in Buenos Aires.

While the USMCA signing will be big news in Canada when it happens, it’s likely to be overshadowed by the larger global divisions on display at the G20.

June 9, 2018

The official agenda will see leaders discussing different approaches to sustainable and fair growth for the global economy. But these conversations come at a time when confidence in multilateral institutions is declining.

The Americans have been at the centre of two summits that ended in diplomatic disaster in this year alone.

Most recently, the APEC summit in Papua New Guinea ended without a communique, as trade frustrations between the U.S. and China flared.

In June, the G7 summit in Charlevoix, Quebec ended with President Trump pulling his support for the communique and lashing out at Prime Minister Justin Trudeau, calling him “weak.” (Source: CBC)