Trade

Friday April 30, 2021

April 30, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday April 30, 2021

Cabinet’s ability to award Buy American exemptions ‘strenuously limited,’ Biden says

President Joe Biden set some Canadian pulses racing again Wednesday with more tough Buy American talk, telling Congress he has “strenuously limited” cabinet members from granting exemptions to the 88-year-old protectionist doctrine. 

February 23, 2021

In the same breath, however, the speech marking Biden’s first 100 days as commander-in-chief offered a measure of comfort by suggesting Buy American would not offend the terms of trade deals like the U.S.-Mexico-Canada Agreement. 

“American tax dollars are going to be used to buy American products, made in America, to create American jobs. That’s the way it’s supposed to be, and it will be in this administration,” Biden declared. 

The notion of keeping U.S. government spending on American soil, a philosophy that dates back to 1933, will be the “one principle” guiding the $2.2-trillion infrastructure package dubbed the American Jobs Plan, he added. 

“I might note, parenthetically, that does not violate any trade agreement. It’s been the law since the ’30s,” Biden said through sustained applause in the House chamber, where COVID-19 allowed only a relative handful of lawmakers to attend. 

September 17, 2020

“I’ve made it clear to all my cabinet people: their ability to give exemptions has been strenuously limited. It will be American products.”

Much of what Biden said on the subject, including mention of trade agreements and cabinet members, did not appear in the prepared version of his remarks distributed to reporters before the speech. 

And it offered little solace or clarity for Canadian stakeholders still smarting from the punishing steel and aluminum tariffs imposed by Biden’s stridently protectionist predecessor, Donald Trump. 

“Those policies continue to concern us — ‘Made in America’ failed to embrace the integrated nature that we have in the steel business,” said Catherine Cobden, head of the Canadian Steel Producers Association. 

“Protectionism between neighbours and allies hurts everyone. We’re really hopeful that that’s not the way this plays out.”

The picture is likely to become more clear by midsummer, when an internal review of the existing rules — including how domestic content is defined and whether information and communication technology should be covered — is due. (Canadian Press) 

 

Friday March 12, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 12, 2021

Summer Dreaming

New variants of the coronavirus are spreading rapidly in Ontario and unless they are better controlled, the province risks facing a third wave of the COVID-19 pandemic, an expert panel advising the province’s government said on Thursday.

February 17, 2021

It warned that the next few weeks are critical as the progress made in bringing the coronavirus under control in the province has stalled.

“Variants of concern continue to spread across Ontario. Our ability to control the rate of spread will determine whether we return to normal or face a third wave of infection,” the panel said in briefing material.

While mutations in viruses are inevitable, strains identified as “variants of concern” have worrisome changes that may give the virus advantages, increasing transmissibility or reducing the effectiveness of vaccines, according to the briefing materials released by the province’s science advisory and modeling consensus tables.

Graphs published online ahead of the briefing showed cases of the new variants in Ontario have jumped from below 5 per 100,000 residents each week in early February to nearly 20 per 100,000 residents each week in early March.

That increase has been balanced to some extent by a decline in cases of earlier variants of the virus. (Reuters) https://www.reuters.com/article/us-health-coronavirus-canada-ontario/coronavirus-variants-could-cause-third-wave-in-ontario-expert-panel-idUSKBN2B32WV

April 18 2020

Meanwhile, as vaccine rollout continues to ramp up in Canada and the United States, some American politicians are calling on the Biden administration to reopen the Canada-U.S. land border by this summer.

In a letter addressed to U.S. President Joe Biden, Rep. Brian Higgins of New York asked that Biden work with Prime Minister Justin Trudeau for “a partial re-opening of the Northern Border by Memorial Day of this year with a full re-opening by July 4.”

Higgins, who also chairs the congressional Northern Border Caucus, wrote that the current border restriction between the two countries “tears at the fabric of our community and is a critical problem for individuals, families, and businesses.” (CTV) 

 

Tuesday February 2, 2021

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday February 2, 2021

No written guarantee on EU vaccine shipments, says international trade minister

January 28, 2021

Minister of International Trade Mary Ng said she has received assurances that export controls on vaccines introduced by the European Union will not affect Canada’s COVID-19 vaccine orders. 

Testifying at the House of Commons trade committee Monday, Ng said the government received verbal assurances in phone conversations with EU officials that Canada’s shipments will not be disrupted.

Opposition MPs asked Ng why the government had not secured a more formal, written guarantee from the EU.

Ng said she spoke with EU Trade Commissioner Valdis Dombrovskis, while Prime Minister Justin Trudeau discussed the issue with European Commission President Ursula von der Leyen.

“I reiterated that Canada has advanced purchase agreements with vaccine manufacturers in Europe, and we expect that those agreements be respected,” Ng said.

January 7, 2021

“Vice-President Dombrovskis provided strong reassurances that this mechanism will not delay vaccine shipments to Canada, and we both committed to continue to work together, as we have since the beginning of the pandemic.”

On Jan. 29, the European Commission introduced new export controls for the 27-member bloc, which requires member states to get authorization before they can export vaccine doses out of the EU.

The export controls have raised concerns that Canada’s advance purchase agreements may not be honoured, which would threaten the supply of vaccines coming into the country. Canada is not on a list of countries exempted from the controls.

While Ng said Canada would prefer to get on that list, she did not elaborate on a pathway to do so. She repeatedly brought up that other countries such as the United States and Australia are also not exempt.

Ng said she spoke with the Deputy Prime Minister of Belgium Sunday, Sophie Wilmès, who gave similar assurances that Canada’s advanced purchase agreements would be honoured.  The Pfizer vaccines Canada has ordered are being manufactured at a facility in Puurs, Belgium.

Conservative MP Ziad Aboultaif said the government should have pushed for a written guarantee. 

“There’s a term here — if it’s not in writing, [it] never happened. Do you agree?” Aboultaif asked.

Ng responded that she was confident in the assurances she had received.

“What I would say is that assurances by a vice-president and commissioner of the European Union, as well as the European Union president, to a prime minister, is a … good thing,” Ng said. (CBC) 

 

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 January 16, 2020

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Thursday January 16, 2020

‘Canada should be worried’: Canadian exporters may become collateral damage of U.S-China trade deal

June 28, 2019

The signing of a “Phase One” U.S.-China trade deal this week is expected to create a brief respite from uncertainty for the global economy — but that’s unlikely to last as long as President Donald Trump is in the White House, analysts say.

What’s more, Canadian exporters could become collateral damage of a deal that will see China commit to purchasing vast amounts of U.S. agricultural products and other goods.

Top officials are slated to sign the pact in Washington on Wednesday following two years of trade strife in which the U.S. slapped tariffs on nearly two-thirds of Chinese imports and Beijing targeted more than half of all goods purchased from the U.S.

May 11, 2019

Though the official text of the deal has yet to be released, U.S. Trade Representative Robert Lighthizer has said China will purchase an additional US$200 billion in American goods over the next two years, including US$40 to US$50 billion in agricultural products.

The upending of trade flows as a result of such a commitment could create painful headaches for Canadian agricultural producers.

“The reason Canada should be worried about this is what is China actually agreeing to do?” said Chad Bown, a senior fellow at the Peterson Institute for International Economics in Washington. “Are they agreeing to open their market for everybody? Or are they agreeing to reorient their purchases away from everybody else and toward American purchases? That matters.”

Animated!

Indeed, Canadian canola producers are already experiencing the chill of lost sales to the powerful Chinese market — which once accepted 40 per cent of their exports — after Beijing blocked all purchases of the oilseed. Though officials cited pest concerns, the move was widely viewed as retaliation for the arrest of Huawei executive Meng Wanzhou in Vancouver on a U.S. extradition request. Meantime, Canadian soybean producers, having experienced a brief but dramatic spike in sales after China placed tariffs on U.S. beans, also saw sales to the superpower bottom out after the Wanzhou arrest.

Though Lighthizer has said the pact will be compliant with World Trade Organization rules, the Chinese purchasing commitments have also raised concerns about discrimination against some markets in favour of the U.S. The WTO’s “most favoured nation” rule requires all trading partners to be treated equally unless a full free trade agreement is forged. The U.S.-China deal covers only a limited range of goods. (Financial Post)