Trade

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) 

 

Wednesday August 2, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday August 2, 2017

Saudi Arabia reportedly using Canadian military trucks against its own civilians

The Canadian government is investigating reports that Saudi Arabia is using armoured vehicles made in Canada against its own civilians – allegations that have prompted renewed scrutiny over Ottawa’s recent decision to sign off on a billion-dollar arms deal with the kingdom.

October 23, 2015

Videos and photos posted on social media in recent days allegedly show Riyadh using Canadian equipment in a violent crackdown on minority Shia dissidents in eastern Saudi Arabia. Last week at least five people were killed as security forces flushed out suspected militants in the town of Awamiya.

Several sources told the Canadian newspaper the Globe and Mail that the vehicles being used appeared to be Gurkha RPVs made in Ontario by Terradyne Armoured Vehicles.

Canadian officials said they were deeply concerned by the reports. “We are looking at these claims very seriously … and have immediately launched a review,” Justin Trudeau told reporters.

June 13, 2017

In 2016, Saudi Arabia ranked among the largest importers of Canada-made military goods, purchasing more than C$142m worth of goods – nearly 20% of all Canadian military exports that year.

The ministry of global affairs said it was concerned over the escalating violence in eastern Saudi Arabia. In a statement issued last week, it highlighted the causalities among civilians and security forces and urged Riyadh to confront its security challenges in “a manner that abides by international human rights law”.

Days later, the ministry said the government was actively seeking more information about the reports of civilian casualties and claims that Canadian-made vehicles were involved. “If it is found that Canadian exports have been used to commit serious violations of human rights, the minister will take action,” a spokesperson for department told the Guardian. He did not answer questions around what kinds of actions this could entail.

Terradyne Armoured Vehicles did not respond to a request for comment. (Source: The Guardian) 

 

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Tuesday July 17, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday July 17, 2017

Trump administration poised to reveal goals for NAFTA talks

United States Trade Representative Robert Lighthizer is expected to release today his negotiating objectives ahead of talks to revise the North American Free Trade Agreement next month.

April 20, 2017

The goals for the renegotiation, as well as the Trump administration’s rationale for how these objectives will lead to an agreement beneficial to the U.S., must be published on the USTR website, as required by Congress in accordance with the trade promotion authority granted to the White House for renegotiating a standing agreement like this.

Formal talks to revise NAFTA are expected to start next month. Such objectives must be published 30 days in advance.

The Canadian government is not required to publish its negotiating objectives ahead of the formal talks, expected to start on or shortly after Aug. 17. The location for these talks has not been finalized yet.

While Canada has been consulting formally and informally — an official consultation period expires Tuesday — politicians, officials and negotiators have been talking to affected industries for weeks to prepare Canada’s bargaining positions.

June 2, 2017

They’re expected to continue to do so throughout the process, although Parliament does not require the kind of transparency Congress does.

“The other NAFTA parties — Canada and Mexico … their position has been: the U.S. wanted to re-open this and modernize it. We’re just coming along,” International trade lawyer Dan Ujczo told CBC News last week. “So I think in some ways the U.S. is going to set the agenda.”

“If it comes out really short and sweet with a very narrow set of lists, that’s indicating that they want to get this done as quick as possible,” he said. But if it isn’t a deep dive, Ujczo expects Congress to demand more specifics. (Source: CBC News) 

 

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Wednesday May 24, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday May 24, 2017

Justin Trudeau heads to Europe for NATO and G7 summits, where Trump’s ‘fireworks’ remain an expectation

May 25, 2016

Prime Minister Justin Trudeau heads to Europe this week for the NATO and G7 summits, where global leaders are trying to figure out exactly how the world works now that U.S. President Donald Trump is at the table.

The future of military alliances, the fight against climate change and even free trade all hang in the balance as the new man in the White House sits down and lets them all know his plans — or maybe not.

“Predicting what this president does would be virtually impossible,” said David Perry, a senior analyst with the Canadian Global Affairs Institute, delivering a common answer to the question of what to expect this week.

March 25, 2014

“Fireworks would be the baseline expectation of some sort.”

On Thursday, Trump, in the midst of his first foreign trip as U.S. president, will sit down with Trudeau and other leaders at the NATO summit at the group’s new headquarters in Brussels.

On Friday and Saturday, Trudeau and Trump will be in Taormina, a resort town in Sicily, for the G7 Summit.

John Kirton, director of the G8 Research Group at the Munk School of Global Affairs at the University of Toronto, said this smaller forum with lots of opportunities for face-to-face talks is made for someone like Trump, who professes his passion for making deals.

July 27, 2006

Kirton said he expects the talks to focus on trying to convince Trump not to go through with his pledge to back out of the UN Paris Agreement on climate change, the role of China in the world and international trade.

But Kirton said the tenor of these talks might depend on how things go in Brussels. If things don’t go well at the NATO summit, the G7 meeting will have to be rapidly reconfigured into a repair job, he said. (Source: Toronto Star)

Regina Leader-Post, May 25, 2017

Wednesday April 26, 2017

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday April 26, 2017

Canada pursues possible trade deal with China as softwood lumber dispute with U.S. heats up

December 7, 2005

Exploratory free trade talks are underway this week as Canadian and Chinese officials visit one another’s countries to discuss what a potential agreement might look like.

Chinese officials are gathering at the offices at Global Affairs Canada, while two federal ministers, International Trade Minister Francois-Philippe Champagne and Finance Minister Bill Morneau, are in China.

In Washington on Friday, Morneau said his China trip will focus on furthering relationships with his Chinese counterparts and key industry players, while Champagne works to promote the use of Canadian lumber in home construction.

Minister of Natural Resources Jim Carr will travel to China in June with forestry leaders to further look for new markets.

This broad diplomatic push comes as the U.S. looks set to impose new duties on Canadian softwood.

September 2, 2016

Joel Neuheimer, the senior director of International Trade for the Forest Products Association of Canada, said the last time the softwood industry faced duties from the U.S. — more than a decade ago — the push to find new markets in China paid off.

“If you look back to 2006 versus 2016, from a percentage point of view, we’ve really tripled our exports in forest products to the Chinese marketplace, going from five per cent of our exports to 15 per cent of our exports,” Neuheimer told CBC News.

That initial effort focused primarily on single-family home construction, he said, but looking to the future the effort will need to be expanded to selling lumber for the construction of larger buildings such as schools, libraries and apartment buildings.

“We’re looking at doing even more going forward, again taking into consideration what we’re bracing ourselves for here going forward with the United States and the harmful duties they’re about to impose on our wood products,” Neuheimer said. (Source: CBC News)

The Western Star, Corner Brook, Nfld., April 28, 2017