Friday August 8, 2014

August 8, 2014 by Graeme MacKay

By Graeme MacKay, The Hamilton Spectator – Friday August 8, 2014

Russia retaliates after Canada imposes fresh sanctions, travel bans

Russian President Vladimir Putin has ordered restrictions on food imports to strike back at the U.S. and other countries that have imposed sanctions over the turmoil in Ukraine.

The move came on the same day that Prime Minister Stephen Harper imposed fresh economic sanctions and travel bans on some Russian and Ukrainian individuals and groups.

The impact of Putin’s move on Canadian agricultural exports to Russia was not immediately known.

Canada exported $1.7 billion worth of goods to Russia in 2012, led by exports of food, including pork and crustaceans, according to a government of Canada report.

The Canadian Pork Council said it was monitoring the situation closely Wednesday.

Russia was expected to release a list of restricted or banned goods on Thursday.

The Canadian sanctions and bans come amid reports that Russia is massing thousands of troops along the Ukrainian border.

The Canadian measures, aimed at some 19 people and 22 groups and banks, are similar to those imposed by the European Union and the United States a week earlier and come on top of previous sanctions by Canada.

Putin retaliated Wednesday by issuing an order that bans or restricts for a year the importation of agricultural produce, raw materials and food from countries that have imposed sanctions on Russia.

Russia was Canada’s 18th largest export destination in 2012, according to a federal government report called “Canadian Trade and Investment Activity: Canada-Russia.”

Russia is the third-largest market for Canadian pork exports, after China and the U.S.

Canadian pork producers, who have shipped $213 million worth of pork to Russia so far this year, said they’re monitoring events in Russia closely. (Source: Toronto Star)

This cartoon was posted to iPolitics.com.

Wednesday July 30, 2014

July 30, 2014 by Graeme MacKay

Wednesday July 30, 2014

Germans concerned about CETA investor protection rules: Ambassador

Germany is concerned about the hotly-disputed investor protection measures in Canada-European trade talks, German Ambassador Werner Wnendt says, but adds it’s not likely to derail the five-year-old negotiations.

Wnendt said a German newspaper report that Berlin would not sign a Canada-EU pact containing an investor protection clause was premature and “is not the position of the German government.”

“This is much too early at this point in time to say that because we still wait for the treaty as such as it’s been negotiated between the (European) Commission and the Canadian government,” he told CBC-TV Monday. “We haven’t seen the final proposal.”

Prime Minister Stephen Harper announced a tentative free-trade deal with the EU last October, but talks have yet to wrap up. Canada is hoping the next major hurdle in the negotiations can be cleared by September, with the two sides initialing a ready-to-be-approved agreement.

But rising European concerns about an investor-state dispute settlement (ISDS) mechanism in the Canada-EU deal could put its eventual ratification in doubt.
The Canadian government is silent on the details of the talks, but business sources say the issue of how to resolve disputes between foreign corporations and governments under a future pact is the last outstanding element in the negotiations.

ISDS provisions allow multinational corporations that believe they are being treated unfairly to sue a government before a special tribunal rather than the normal court system. While business says such measures ensure investor security, opponents say they allow corporations to thwart government attempts to regulate on behalf of the public.

“There are concerns among Germans that such a clause may mean that eventually legislation will have to be changed in Germany and other European countries,” Wnendt said. “It is something that needs to be taken seriously by the government, of course, and that’s being discussed.” He said it will need to be addressed by the European Commission and the European people once the ready-to-be-approved agreement is signed.

He noted that Germany believes special tribunals to adjudicate investor-state disputes are unnecessary in countries like Canada and those in Europe where the regular court systems are capable of handling such legal conflicts.

The Canadian government has dismissed the notion that ISDS issues might hold up the Canada-EU negotiations. “Excellent progress” is being made in the talks, a government spokesperson said.

But initialing the deal in September would be only one step in an approval process that could last another 18 months or longer. Besides being ratified in Ottawa, the Canada-EU pact, officially known as the Comprehensive Economic and Trade Agreement (CETA), will have to win final approval from the European Parliament, each of the 28 member states of the EU and the European Council, which brings together the heads of the 28 states and the European Commission president. (Source: Toronto Star)

Wednesday, March 12, 2014

March 12, 2014 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Wednesday, March 12, 2014

South Korea trade deal could hurt auto industry, Ontario warns

Prime Minister Stephen Harper failed to ensure “sufficient safeguards” to protect the domestic auto industry in his much-ballyhooed trade deal with Korea, warns Ontario’s trade minister.

While the province welcomes liberalized trading, concerns linger that Harper did not do enough to protect the key automotive sector, said Eric Hoskins, Minister of Economic Development, Trade and Employment Eric Hoskins.

To bolster the historic accord, the Ontario government wants a “task force to monitor the implementation of this agreement” over the next year or so.

“The trade deal announced . . . by the federal government between Canada and South Korea contains positive measures that will open new markets to a variety of industries, particularly the agriculture and food processing sectors, and we welcome these positive measures,” Hoskins said in a statement released Tuesday.

“Our government remains very concerned regarding the potential for serious negative impacts this agreement could have on Ontario’s auto sector and we have expressed this concern throughout the negotiation process,” he said.

“The province and the auto sector have repeatedly expressed that without sufficient safeguards, this agreement creates an unequal playing field between South Korean and Canadian car manufacturers.”

Hoskins complained Harper did not ensure “the longest-possible phase-out period for Canada’s tariff on imports of South Korea passenger vehicles.”

“We have concerns that the period accepted by the federal government will not provide our sector with sufficient time needed to adjust to the agreement,” the minister said.

Equally problematic is that Ottawa wasn’t as successful as Washington was in its 2012 trade accord with Seoul.

“I am . . . disappointed that the federal government, despite our repeated requests, was unable to secure the same ‘snapback provision’ that the U.S. negotiated through its deal with South Korea,” said Hoskins.

“Such a provision would have allowed Canada to reintroduce auto tariffs in the event South Korea imposes unfair non-tariff barriers that make it harder for Canadian autos to compete in the South Korean market.”

With some 93,000 direct auto jobs and five times as many ancillary posts at stake, Queen’s Park wants a panel of provincial, federal, and auto industry officials to monitor how the Korea pact is being implemented. (Continued: Toronto Star)

Wednesday, February 19, 2014

February 18, 2014 by Graeme MacKay

By Graeme MacKay, The Hamilton Spectator – Wednesday, February 19, 2014

Stephen Harper heads to Mexico for Three Amigos meeting

Canadian Prime Minister Stephen Harper is expected to discuss plans for new visa arrangements when he meets with his U.S. and Mexican counterparts in Mexico tomorrow and Wednesday for the so-called Three Amigos summit.

Harper, U.S. President Barack Obama, and Mexican President Enrique Pena Nieto are scheduled for three-way talks covering areas of mutual interest. Harper arrived in Mexico Monday night.

Three Amigos 2005

At the top of the agenda for Mexico are Canada’s visa requirements for Mexican visitors. While the prime minister isn’t expected to drop those barriers immediately, there may be some easing of the application process.

There are hopes that Canada and Mexico may agree sometime soon on “Nexus-style” travel permits that would allow legitimate travellers to visit participating countries with fewer restrictions.

Trade Minister Ed Fast, who is also travelling on Harper’s plane, has been authorized by the federal cabinet to sign an expanded airline access agreement with Mexico, The Canadian Press reported today.

That agreement would allow Mexican airlines greater access to more cities, and Canadians more direct flights to Mexico.

The expanded air access would likely be a precursor to the Conservative government eventually lifting the controversial visa it slapped on Mexican travellers in 2009 to combat an increase of bogus asylum seekers. Harper isn’t expected to announce a lifting of the visa this week, but the two countries are hopeful the issue can be ironed out in the coming months.

Mexico is said to be very frustrated with Canada’s refusal to drop visa restrictions for Mexicans visiting Canada.

“It’s an insult to the ‘new Mexico,'” Carlo Dade, director of the Canada West Foundation’s Director of the Centre for Trade & Investment Policy, told CBC News.

“It’s also against competitiveness. This isn’t about Canada and Mexico. This is about North American competitiveness.”

Harper could be in for disappointment, too, as Obama is unlikely to give him his long-awaited decision on the Keystone XL pipeline. (Source: CBC News)

Saturday, October 19, 2013

October 18, 2013 by Graeme MacKay

By Graeme MacKay, The Hamilton Spectator – Saturday, October 19, 2013

Canada-Europe free trade deal concluded, ratification two years off

Canada and the European Union have agreed to free the movement of goods, services, investment and labour with a pact-in-principle that challenges Canadian business to expand overseas.

“This is a big deal; this is the biggest deal Canada has ever made. Indeed, it is a historical achievement,” said Prime Minister Stephen Harper.

The prime minister announced the agreement-in-principle Friday with European Commission president Jose Manuel Barroso in Brussels.

But the text of the Comprehensive Economic and Trade Agreement or CETA remains a confidential document that still requires “drafting and fine tuning,” a Canadian official said in Brussels on condition he not be identified.

It could be another 18 to 24 months before final European approval is given, and Canada will likely proceed along a similar time frame, officials say.

Ottawa instead released a 44-page overview and other summary documents. The material is largely silent on what Canada had to cede to Europe, especially in sectors such as dairy and patent protection for pharmaceuticals.

The dairy sector’s farmers immediately accused the government of a “giveaway,” and the generic drug industry warned that health-care costs will rise.

Harper addressed their concerns head on, acknowledging there might be some pain. But he defended the deal as “excellent” for Canada in the long-term, and one that would be good for families looking for cheaper products and business seeking new opportunities in a huge market. (Source: CTV News)