Brenda Bouw — MINING REPORTER
VANCOUVER— From Tuesday's Globe and Mail
Published
Last updated
A team of Asian buyers is paying $1-billion for Calgary’s Grande Cache Coal Corp (GCE-T9.820.040.41%)., betting on steady long-term demand for coal used in steel making despite a recent pullback in production amid growing global economic gloom.
China’s Winsway Coking Coal Holdings Ltd. and Japan’s Marubeni Corp. said Monday they will pay $10 a share in cash for the metallurgical coal producer, a 70-per-cent premium to the miner’s Friday closing price of $5.87 on the Toronto Stock Exchange.
Monday, 31 October 2011
Saturday, 29 October 2011
Sri Lankan Rights Abuses Obstruct Trade Efforts with Canada
By: Fawzia Sheikh
TORONTO, Oct 29 (IPS)Despite the crossfire of Canadian accusations of human rights violations by Sri Lanka at the end of its civil war and Colombo's corresponding counter-claims, the economically battered South Asian country aims to bolster its trading relationship with Canada and increase foreign direct investment.
A Sri Lankan trade delegation met with importers and exporters this week in Toronto and Montreal in
the first trade-related push regarding Canada since 2009, which saw the end of nearly three decades of
war between the Liberation Tigers of Tamil Eelam (LTTE) and the Sri Lankan army.
"We have to work hard to promote trade between Canada and Sri Lanka," said Buddhadasa Herath, the Sri Lankan deputy consul general and trade commissioner based in Toronto.
With the conflict now over, Herath anticipates a "bright future" between the two countries, which share more than a half-century of trade. He told IPS that he has received approximately 100 enquiries from Canadian importers and exporters over the last 14 months.
Still, two elements have overshadowed Sri Lanka's upbeat economic predictions.
One is the Canadian government's insistence that Sri Lanka advance its reconciliation process. The other is Ottawa's concern over the lack of accountability for human rights violations by both parties to the conflict; when the civil war wound down two years ago, allegations surfaced of abuses taking place during the last few months of fighting.
As a result, Canadian Prime Minister Stephen Harper has been uneasy about Sri Lanka's hosting the
Commonwealth Heads of Government Meeting in 2013 and has repeatedly called for an international
investigation. The current Commonwealth summit is taking place Oct. 28 to 30 in Australia.
Harper was pushed into action in part by a U.N. report issued in April that found "credible reports" of
war crimes by government forces and the LTTE during the war's dying days. The panel found valid
allegations of serious infringements by the government, including the killing of civilians through
widespread shelling and by denying humanitarian assistance.
Moreover, the documentary "Sri Lanka's Killing Fields", about a U.N. investigation into the country's
alleged war crimes, showed images of murdered and tortured bodies and semi-clad women thought to
be sexually abused prior to death.
Last year, Sri Lanka established the Lessons Learned and Reconciliation Commission, but its lack of
independence has been criticised.
................................................................................................................................................................................................................
Now, Sri Lanka's human rights record would appear to be a higher priority in Canada's overall foreign
policy, he added.
Certain governments, such as Canada's and the United Kingdom's, have argued they would refrain from participating in the 2013 Commonwealth meeting in Sri Lanka if that government fails to meaningfully address the allegations made in past reports, Anandasangaree told IPS.
He applauded the message but added that it must be clearer, such as a categorical objection to Sri
Lanka as host.
Herath, the Sri Lankan trade commissioner, was reluctant to discuss the economic impact of the current human rights controversy, instead referring queries to the Sri Lankan high commissioner.
The office of High Commissioner Chitranganee Wagiswara told IPS that it could not respond to
questions at this time, but in Canadian news reports earlier this month, Wagiswara accused Canada of
being swayed by terrorist "propaganda" as Ottawa pressed for an international inquiry.
Diversifying exports, with some difficulty
Samy doubted current contention between Canada and Sri Lanka would breed negative economic
fallout, as the two are not strong trading partners. In 2010, Sri Lankan exports to Canada totalled 124
million dollars, while Canadian exports to the country averaged 339 million dollars, Herath noted.
2009, however, had seen an 18 percent decline in export and import growth, according to the trade
commissioner, and total trade activities in 2010 rose by 17.2 percent from the previous year.
Sri Lanka's main export market is currently the United States, Herath told IPS. However, the South Asian nation is keen to expand trade and diversify its "export basket" with Canada, to which it mainly sells high-quality garments, tea, rubber gloves and tires, he said.
For the first time, this week's trade delegation featured a Sri Lankan company promoting jewellery such as semi-precious stones and another firm selling power cables for the electricity and
telecommunications industries, he said.
The recent series of claims and counter-claims documented in the media, however, may have an impact from the collective Commonwealth perspective, Samy noted. The accusations have "already damaged the reputation" of Sri Lanka, he added.
The widening spotlight on the war-wracked country, some argue, has also affected tourism policies.
Next year, Colombo plans to impose a fee of 50 dollars for an electronic entry permit to visitors from all countries other than Maldives and Singapore.
The Canadian Tamil Congress's Anandasangaree argued that this move will allow the Sri Lankan
government, which feels "genuinely threatened", to scrutinise Tamil diaspora members and human
rights activists entering the country.
The Congress predicts that the world's perception of Sri Lanka as a "little pet" will eventually change.
The international community has offered the government there a "great deal of deference and leeway
with respect to how they handle the post-war situation", Anandasangaree argued, but the accumulating
accusations will force Sri Lanka to act "more genuinely" on peace matters.
SOURCE: http://www.international.to/index.php?option=com_content&view=article&id=3049:sri-lankan-rights-abuses-obstruct-trade-efforts-with-canada&catid=80:politics&Itemid=120
TORONTO, Oct 29 (IPS)Despite the crossfire of Canadian accusations of human rights violations by Sri Lanka at the end of its civil war and Colombo's corresponding counter-claims, the economically battered South Asian country aims to bolster its trading relationship with Canada and increase foreign direct investment.
A Sri Lankan trade delegation met with importers and exporters this week in Toronto and Montreal in
the first trade-related push regarding Canada since 2009, which saw the end of nearly three decades of
war between the Liberation Tigers of Tamil Eelam (LTTE) and the Sri Lankan army.
"We have to work hard to promote trade between Canada and Sri Lanka," said Buddhadasa Herath, the Sri Lankan deputy consul general and trade commissioner based in Toronto.
With the conflict now over, Herath anticipates a "bright future" between the two countries, which share more than a half-century of trade. He told IPS that he has received approximately 100 enquiries from Canadian importers and exporters over the last 14 months.
Still, two elements have overshadowed Sri Lanka's upbeat economic predictions.
One is the Canadian government's insistence that Sri Lanka advance its reconciliation process. The other is Ottawa's concern over the lack of accountability for human rights violations by both parties to the conflict; when the civil war wound down two years ago, allegations surfaced of abuses taking place during the last few months of fighting.
As a result, Canadian Prime Minister Stephen Harper has been uneasy about Sri Lanka's hosting the
Commonwealth Heads of Government Meeting in 2013 and has repeatedly called for an international
investigation. The current Commonwealth summit is taking place Oct. 28 to 30 in Australia.
Harper was pushed into action in part by a U.N. report issued in April that found "credible reports" of
war crimes by government forces and the LTTE during the war's dying days. The panel found valid
allegations of serious infringements by the government, including the killing of civilians through
widespread shelling and by denying humanitarian assistance.
Moreover, the documentary "Sri Lanka's Killing Fields", about a U.N. investigation into the country's
alleged war crimes, showed images of murdered and tortured bodies and semi-clad women thought to
be sexually abused prior to death.
Last year, Sri Lanka established the Lessons Learned and Reconciliation Commission, but its lack of
independence has been criticised.
................................................................................................................................................................................................................
Now, Sri Lanka's human rights record would appear to be a higher priority in Canada's overall foreign
policy, he added.
Certain governments, such as Canada's and the United Kingdom's, have argued they would refrain from participating in the 2013 Commonwealth meeting in Sri Lanka if that government fails to meaningfully address the allegations made in past reports, Anandasangaree told IPS.
He applauded the message but added that it must be clearer, such as a categorical objection to Sri
Lanka as host.
Herath, the Sri Lankan trade commissioner, was reluctant to discuss the economic impact of the current human rights controversy, instead referring queries to the Sri Lankan high commissioner.
The office of High Commissioner Chitranganee Wagiswara told IPS that it could not respond to
questions at this time, but in Canadian news reports earlier this month, Wagiswara accused Canada of
being swayed by terrorist "propaganda" as Ottawa pressed for an international inquiry.
Diversifying exports, with some difficulty
Samy doubted current contention between Canada and Sri Lanka would breed negative economic
fallout, as the two are not strong trading partners. In 2010, Sri Lankan exports to Canada totalled 124
million dollars, while Canadian exports to the country averaged 339 million dollars, Herath noted.
2009, however, had seen an 18 percent decline in export and import growth, according to the trade
commissioner, and total trade activities in 2010 rose by 17.2 percent from the previous year.
Sri Lanka's main export market is currently the United States, Herath told IPS. However, the South Asian nation is keen to expand trade and diversify its "export basket" with Canada, to which it mainly sells high-quality garments, tea, rubber gloves and tires, he said.
For the first time, this week's trade delegation featured a Sri Lankan company promoting jewellery such as semi-precious stones and another firm selling power cables for the electricity and
telecommunications industries, he said.
The recent series of claims and counter-claims documented in the media, however, may have an impact from the collective Commonwealth perspective, Samy noted. The accusations have "already damaged the reputation" of Sri Lanka, he added.
The widening spotlight on the war-wracked country, some argue, has also affected tourism policies.
Next year, Colombo plans to impose a fee of 50 dollars for an electronic entry permit to visitors from all countries other than Maldives and Singapore.
The Canadian Tamil Congress's Anandasangaree argued that this move will allow the Sri Lankan
government, which feels "genuinely threatened", to scrutinise Tamil diaspora members and human
rights activists entering the country.
The Congress predicts that the world's perception of Sri Lanka as a "little pet" will eventually change.
The international community has offered the government there a "great deal of deference and leeway
with respect to how they handle the post-war situation", Anandasangaree argued, but the accumulating
accusations will force Sri Lanka to act "more genuinely" on peace matters.
SOURCE: http://www.international.to/index.php?option=com_content&view=article&id=3049:sri-lankan-rights-abuses-obstruct-trade-efforts-with-canada&catid=80:politics&Itemid=120
Friday, 28 October 2011
Minister Fast Highlights Harper Government’s Pro-trade Plan in Speech to Vancouver Board of Trade
Deeper trade a win-win for Canada and its trading partners, says Minister
Minister Fast concluded his speech by identifying anti-trade forces that continue to oppose Canada’s job-creating, pro-trade plan, and by stating that only a commitment to free and open trade will improve the prosperity and standard of living of both hard-working Canadians and residents of our country’s trading partners.
(No. 322 - October 28, 2011 - 4 p.m. ET) The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today reiterated in a speech to members of the Vancouver Board of Trade the Harper government’s commitment to deepening Canada’s trading relationships in priority markets around the world. Minister Fast also promoted Canada’s competitive advantages through the Asia-Pacific Gateway and noted that with increased trade comes improved prosperity, strengthened financial security and a higher standard of living in both developed and developing countries.
“The benefits of trade to our country, as well as to countries that trade with us, are clear,” said Minister Fast. “Canadians get good jobs, deepened prosperity and consumer benefits. In turn, many of our international partners that represent developing economies share in the benefits from an ever-expanding middle-class and improved standard of living that is lifting more of the world’s population out of poverty. At the same time, we are able to share with those emerging from troubled histories our best practices for creating better social conditions, improved governance and greater respect for human rights and the rule of law, all of which go together with a rise from poverty to prosperity.”
In addition to strengthening Canada’s economic ties with the United States and the Americas—and along with ongoing trade negotiations with the European Union, the world’s largest single common market, foreign investor and trader—the Harper government’s plan to deepen Canada’s trade and investment ties in high-growth Asian markets includes:
- Ongoing negotiations with China, Canada’s second-largest trading partner, toward a Foreign Investment Promotion and Protection Agreement;
- Continued negotiations toward a comprehensive economic trade agreement with India, a market with 1.2 billion consumers;
- A trade and investment framework with the Association of Southeast Asian Nations, Canada’s seventh-largest trading partner; and
- An ongoing joint study toward a possible economic partnership agreement with Japan.
In the keynote address, Minister Fast also highlighted Canada’s competitive advantages in reaching rapidly expanding Asian markets, thanks to the Harper government’s strategic investments and partnerships in the Asia-Pacific Gateway and Corridor Initiative, a world-class transportation network that provides an efficient, reliable and cost-effective connection between Asian and North American markets.
“These investments are already paying off, positioning Canada as the gateway of choice between Asia and North America,” added Minister Fast. “Canada’s ports here on the west coast are more than two days closer to Asian markets than are any other ports in North America. Easing the movement of goods, services and people is helping Canadian businesses expand and succeed abroad, which is creating jobs and prosperity here at home.”
Between 2006 and 2010, Canada’s market share of North American west coast container traffic increased by almost 30 percent. In one year alone—from 2009 to 2010—using Asia-Pacific Gateway infrastructure, Canadian exports to China increased by almost 19 percent, reaching $13.2 billion. And recently, Wood Resource Quarterly, a U.S. industry publication, forecasted that Canadian lumber exports to China are on track to reach a record US$1.2 billion in 2011.
British Columbia’s annual exports of wood products to China have also soared in value: sales more than tripled from about $179 million in 2008 to $669 million in 2010. A number of sawmills in B.C., including operations in Quesnel, Vavenby and Mackenzie, have reopened to help meet the growing demand from China for B.C. wood products—protecting and creating jobs for hard-working Canadians in the process.
Minister Fast concluded his speech by identifying anti-trade forces that continue to oppose Canada’s job-creating, pro-trade plan, and by stating that only a commitment to free and open trade will improve the prosperity and standard of living of both hard-working Canadians and residents of our country’s trading partners.
“Anti-trade forces represent a real and present danger—not only to our own prosperity as a nation in a global economy increasingly interconnected by global supply chains and trading blocs—but also to the future prosperity of the people in the world’s emerging economies. In order to protect and strengthen the financial security of hard-working Canadians, we must pursue policies based on practical, pro-trade realism over those based on outdated and long-discredited anti-trade ideology.”
SOURCE: http://www.international.gc.ca/media_commerce/comm/news-communiques/2011/322.aspx?lang=eng&view=d
SOURCE: http://www.international.gc.ca/media_commerce/comm/news-communiques/2011/322.aspx?lang=eng&view=d
Tuesday, 25 October 2011
Canada Sees South Korea Lifting Beef Ban by Year-End
Source: Reuters Canada | Posted: Oct 25, 2011
By: Louise Egan
Ritz said that with the beef dispute resolved, broader free trade talks could continue.
"We've always said that the free trade talks - we're more than amenable to kick those off again. We wanted to get the beef situation out of the way," he said.
http://ca.reuters.com/article/topNews/idCATRE79N5CU20111024
By: Louise Egan
Canada is optimistic South Korea will open up its market to Canadian beef by the end of this year and is willing to kick-start stalled free trade talks with the country, Agriculture Minister Gerry Ritz said on Monday.
"It looks like we're still on time for the end of this calendar year to move forward on beef," Ritz told reporters, referring to South Korea's promise in June to lift a ban by year-end on Canadian beef imports that it had put in place due to concerns about BSE disease (bovine spongiform encephalopathy) in Canadian cattle.
"Certainly that's a good, solid signal to us that they're serious about the Canada-Korea free trade agreement. We're more than happy to sit down and expedite that process," he said.
Ritz warned earlier this month that if South Korea did not lift its ban on schedule, Ottawa would take the matter back to the World Trade Organization.
South Korea is the last major beef importing country to resume imports of Canadian beef after BSE was discovered in a Canadian cattle herd in 2003.
Canada is the world's third-largest exporter of pork and beef. In 2002, before the ban, South Korea was Canada's fourth biggest beef market.
Canadian cattle and hog industry groups said on Friday that Ottawa must resume broader free trade negotiations with South Korea or risk losing export opportunities to the United States, which has already ratified a bilateral trade deal with Seoul.
"It looks like we're still on time for the end of this calendar year to move forward on beef," Ritz told reporters, referring to South Korea's promise in June to lift a ban by year-end on Canadian beef imports that it had put in place due to concerns about BSE disease (bovine spongiform encephalopathy) in Canadian cattle.
"Certainly that's a good, solid signal to us that they're serious about the Canada-Korea free trade agreement. We're more than happy to sit down and expedite that process," he said.
Ritz warned earlier this month that if South Korea did not lift its ban on schedule, Ottawa would take the matter back to the World Trade Organization.
South Korea is the last major beef importing country to resume imports of Canadian beef after BSE was discovered in a Canadian cattle herd in 2003.
Canada is the world's third-largest exporter of pork and beef. In 2002, before the ban, South Korea was Canada's fourth biggest beef market.
Canadian cattle and hog industry groups said on Friday that Ottawa must resume broader free trade negotiations with South Korea or risk losing export opportunities to the United States, which has already ratified a bilateral trade deal with Seoul.
Ritz said that with the beef dispute resolved, broader free trade talks could continue.
"We've always said that the free trade talks - we're more than amenable to kick those off again. We wanted to get the beef situation out of the way," he said.
http://ca.reuters.com/article/topNews/idCATRE79N5CU20111024
Harper Government Helps New Brunswick Attract International Investment to Secure Jobs, Growth and Prosperity in the Region
OTTAWA, ONTARIO, Oct 25 2011 (Marketwire via COMTEX) —
Rodney Weston, Member of Parliament for Saint John, on behalf of the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced that five organizations in New Brunswick will receive Government of Canada funding to attract, retain and expand foreign direct investment.
“All of these organizations play important roles in identifying and attracting job-creating foreign direct investment,” said MP Weston. “The funding announced today will help ensure that investors from around the world look to New Brunswick communities as destinations of choice for new investment opportunities. This will help to create jobs and prosperity for hard-working New Brunswickers.” The funding is provided under the Invest Canada – Community Initiatives (ICCI) program, which helps communities attract, retain and expand foreign direct investment (FDI). Across Canada, ICCI is providing funding to 99 organizations to support their efforts to attract FDI.
“It is important that Saint John position itself for future growth and prosperity,” said Stephen Carson, Chief Executive Officer of Enterprise Saint John. “ICCI has enabled us to undertake a study on how to attract foreign investment in the health and life sciences sectors, areas of potential high growth for our region.” Foreign investment directly benefits Canadian citizens by creating jobs, raising incomes and strengthening Canada’s competitive position. This federal support will help Canadian communities successfully attract, retain and expand FDI.
“In these globally challenging times, Canadians remain concerned about their jobs and their children’s futures,” said Minister Fast. “Our government has an economic plan to meet these challenges-a plan with deeper trade and low taxes as its centrepiece. Thanks to our government’s support for local communities, our low tax policies, our strong economic fundamentals, and our skilled, innovative workforce, Canada remains an excellent destination for new investment.” In New Brunswick, the community investment program will help fund the following initiatives: — The City of Miramichi’s online interactive asset map for its region — Enterprise Fredericton’s social media strategy for international investment and investment training — Enterprise Greater Moncton’s life sciences strategy and investment training — Enterprise Saint John’s life sciences and health study to attract investment to the city — Enterprise Kent’s development of an enterprise commercial real estate website and investment training.
The Invest Canada – Community Initiatives program, one of the components of the Government of Canada’s Global Commerce Support Program, funds up to 50 percent of community-based activities aimed at developing and executing local investment-attraction strategies. Applications are evaluated based on the proposed strategy, project components, performance measures, work plan and the level of public-private-sector partnership. Funding amounts this year range from $3,780 to $252,500.
Eligible communities can apply for funding once per year following the guidelines found at Invest Canada – Community Initiatives (ICCI).
http://www.marketwire.com/press-release/harper-government-helps-new-brunswick-attract-international-investment-secure-jobs-growth-1576918.htm
Rodney Weston, Member of Parliament for Saint John, on behalf of the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced that five organizations in New Brunswick will receive Government of Canada funding to attract, retain and expand foreign direct investment.
“All of these organizations play important roles in identifying and attracting job-creating foreign direct investment,” said MP Weston. “The funding announced today will help ensure that investors from around the world look to New Brunswick communities as destinations of choice for new investment opportunities. This will help to create jobs and prosperity for hard-working New Brunswickers.” The funding is provided under the Invest Canada – Community Initiatives (ICCI) program, which helps communities attract, retain and expand foreign direct investment (FDI). Across Canada, ICCI is providing funding to 99 organizations to support their efforts to attract FDI.
“It is important that Saint John position itself for future growth and prosperity,” said Stephen Carson, Chief Executive Officer of Enterprise Saint John. “ICCI has enabled us to undertake a study on how to attract foreign investment in the health and life sciences sectors, areas of potential high growth for our region.” Foreign investment directly benefits Canadian citizens by creating jobs, raising incomes and strengthening Canada’s competitive position. This federal support will help Canadian communities successfully attract, retain and expand FDI.
“In these globally challenging times, Canadians remain concerned about their jobs and their children’s futures,” said Minister Fast. “Our government has an economic plan to meet these challenges-a plan with deeper trade and low taxes as its centrepiece. Thanks to our government’s support for local communities, our low tax policies, our strong economic fundamentals, and our skilled, innovative workforce, Canada remains an excellent destination for new investment.” In New Brunswick, the community investment program will help fund the following initiatives: — The City of Miramichi’s online interactive asset map for its region — Enterprise Fredericton’s social media strategy for international investment and investment training — Enterprise Greater Moncton’s life sciences strategy and investment training — Enterprise Saint John’s life sciences and health study to attract investment to the city — Enterprise Kent’s development of an enterprise commercial real estate website and investment training.
The Invest Canada – Community Initiatives program, one of the components of the Government of Canada’s Global Commerce Support Program, funds up to 50 percent of community-based activities aimed at developing and executing local investment-attraction strategies. Applications are evaluated based on the proposed strategy, project components, performance measures, work plan and the level of public-private-sector partnership. Funding amounts this year range from $3,780 to $252,500.
Eligible communities can apply for funding once per year following the guidelines found at Invest Canada – Community Initiatives (ICCI).
http://www.marketwire.com/press-release/harper-government-helps-new-brunswick-attract-international-investment-secure-jobs-growth-1576918.htm
Monday, 24 October 2011
Harper Government Helps Local Communities Attract International Investment to Secure Jobs, Growth and Prosperity for Canadian- NEWS RELEASE
Minister Fast announces funding for 99 organizations and promotes Canada as an investment destination of choice
“In these globally challenging times, Canadians remain concerned about their jobs and their children’s futures,” added Minister Fast. “Our government has an economic plan to meet these challenges—a plan with deeper trade and low taxes as its centerpiece. Thanks to government support for local communities, low-tax policies, strong economic fundamentals and a skilled, innovative workforce, Canada remains an excellent destination for new investment.”
http://www.international.gc.ca/media_commerce/comm/news-communiques/2011/318.aspx?view=d
(No. 318 - October 24, 2011 - 12:30 p.m. ET)
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced that the Government of Canada is providing funding to 99 organizations across Canada to support their efforts to attract, retain and expand foreign direct investment in their local communities.
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced that the Government of Canada is providing funding to 99 organizations across Canada to support their efforts to attract, retain and expand foreign direct investment in their local communities.
“In today’s global economy, foreign direct investment is a key driver of economic growth and prosperity,” said Minister Fast at an event in Toronto hosted by the Greater Toronto Marketing Alliance (GTMA), one of the recipient organizations. “The funding announced today will help ensure that investors from around the world look to Canadian communities as destinations of choice for new business opportunities.”
The funding is provided under the Invest Canada - Community Initiatives (ICCI) program, which helps communities across the country attract, retain and expand foreign direct investment. The program supports non-profit and public-private groups at the local level and works through partnerships and cost-sharing arrangements.
In Ontario, 20 organizations will benefit from funding under this program. Besides the GTMA, other recipients include the Niagara Economic Development Corporation, the Ottawa Centre for Research and Innovation and the Dryden Development Corporation. These organizations are developing strategies and tools to attract foreign investment in key sectors of the economy such as the automotive, medical, defence and energy sectors.
“In order for Canada to succeed globally, we need to have strong regions that are investment ready and well positioned for global competitiveness,” said George Hanus, GTMA President and Chief Executive Officer. “There is no better example than here in the Greater Toronto Area, where ICCI has created enormous economic benefits by supporting our regional international investment attraction programs. This, in turn, has created over 3,200 direct jobs, $5 million in annual property taxes and has conservatively added over $300 million to the local economy.”
Since 2006, the ICCI program has helped create jobs and prosperity, while growing Canada’s economy, by supporting 380 organizations through 779 projects.
“In these globally challenging times, Canadians remain concerned about their jobs and their children’s futures,” added Minister Fast. “Our government has an economic plan to meet these challenges—a plan with deeper trade and low taxes as its centerpiece. Thanks to government support for local communities, low-tax policies, strong economic fundamentals and a skilled, innovative workforce, Canada remains an excellent destination for new investment.”
http://www.international.gc.ca/media_commerce/comm/news-communiques/2011/318.aspx?view=d
Friday, 21 October 2011
Free Trade Agreements
Background
Cattlemen support expanding export opportunities for U.S. beef and are grateful to Congress for ratifying and President Obama for signing the free trade agreements with South Korea, Panama and Colombia. NCBA has been working for five years to bring these agreements to fruition and established its reputation in Washington as a key player on the trade agreements. On Oct. 12, 2011, the House and Senate voted overwhelmingly in support of all three trade agreements. All three agreements were signed into law by President Obama on Oct. 21, 2011.
Summary of Free Trade Agreements
The free trade agreements offer great potential to increase market share in key markets for U.S. beef in Asia and South America. In fact, according to the International Trade Commission, the three agreements translate into 250,000 jobs. For cattlemen, the trade agreements increase beef demand and profitability. CattleFax reports the average per head value of exports to live cattle to exceed $200.The agreement with South Korea could result in a more than $1 billion market for U.S. beef once implemented. Now that the free trade agreements have been signed with Colombia and Panama, the U.S. will ultimately have free trade for U.S. beef with approximately two-thirds of the population in the Western Hemisphere.
South Korea
- Demand for U.S. beef is skyrocketing in Korea. U.S. beef sales in Korea exceeded $518 million in 2010, and increase of 140 percent from 2009.
- Unfortunately, beef from the United States is slapped with a 40 percent tariff before it reaches Korean markets, which represents the greatest hindrance for U.S. beef sales in Korea.
- U.S. beef exports to South Korea added $25 in value to each of the 26.7 million head of steers and heifers produced in 2010.
- According to U.S. International Trade Commission, annual exports of U.S. beef are expected to increase as much as $1.8 billion once the agreement is fully implemented.
- Implementation of the KORUS FTA would phase out over 15 years South Korea’s 40 percent tariff on beef imports, one of the highest in the world, with $15 million in tariff benefits for beef in the first year of the agreement alone and about $325 million in tariff reductions annually once fully implemented.
Competing for Korean Market Share
- The United States is not the only country negotiating a free trade agreement with Korea.
- Korea reached an agreement with the European Union that took effect July 1, 2011.
- U.S. beef’s biggest competitor in the Korean market is Australia. In 2010, Australia had 53 percent of Korean market share compared to 32 percent by the United States.
- Should the U.S.-South Korea agreement take effect before an Korea-Australia agreement, our beef producers will have a 2.67 percent competitive advantage over Aussie beef for 15 years allowing Korean consumers to buy U.S. beef at a lower price.
- Korea may open its market to Canadian beef by the end of 2011.
Colombia
- Colombia is an important market for U.S. beef and beef variety meat exports. Unfortunately, Colombia places an 80 percent tariff on U.S. beef imports today, making it one of the highest tariffs U.S. beef faces anywhere in the world.
- Once the CTPA is implemented, this agreement immediately provides duty free access for high quality U.S. beef, reduces tariffs on all other beef and beef products over 15 years, and for the first time ever, puts American beef on a competitive footing with beef imports from Brazil and Argentina.
- In 2009, the United States exported approximately $436,000 of beef and beef products to Colombia, a paltry sum considering the 80 percent duties.
- Another important part of the CTPA is this agreement provides assurances for a stable export market through plant inspection equivalency. It also fully reopens the Colombian market to U.S. beef by assuring that Colombia adheres to the World Organization for Animal Health (OIE) guidelines related to BSE.
Competing for Colombian Market Share
- Other countries are also competing with the United States for market share in Central and South America.
- Canada’s free trade agreement with Colombia took effect on August 15, 2011.
Panama
- The United States and Panama concluded negotiations on a free trade agreement on Dec. 19, 2006. Panama agreed to accept imports of all U.S. beef and beef products.
- Additionally, the 30-percent tariff on prime and choice cuts would be immediately eliminated and the duties on all other cuts would be phased out over 15 years.
- Like the CTPA, the agreement with Panama provides assurances for a stable export market through plant inspection equivalency and Panama also modified its import requirements related to BSE to be consistent with international standards.
Thursday, 20 October 2011
Uranium rules may face challenge
By: Peter Koven, Financial Post · Oct. 20, 2011 | Last Updated: Oct. 20, 2011 3:09 AM ET
Rio Tinto Ltd.'s takeover bid for Hathor Exploration Ltd. throws out a potential challenge to a federal government policy that limits foreign ownership in Canada's uranium sector.
On Wednesday, the London-based mining giant made a friendly, $578-million offer for Hathor, trumping a hostile bid from Cameco Corp. and triggering speculation of a prolonged takeover battle. Hathor's Roughrider project, in Saskatchewan's Athabasca Basin, is considered one of the world's best undeveloped sources of uranium.
The policy has never been seriously tested, and there has been plenty of talk about liberalizing it. In 2008, Canada's Competition Policy Review Panel recommended just that, but it demanded "reciprocity" from other countries that also limit foreign investment in their uranium sectors.
Edward Sterck, an analyst at BMO Capital Markets, thinks Cameco could raise its bid to around $4.25 a share, though that level may be dilutive to net present value.
Rio Tinto has been building a position in Hathor shares since the Fukushima disaster crushed uranium equities, and now owns 5.7% of the company. Mr. Wensley said the Cameco bid "forced the pace," but Rio Tinto already saw Roughrider as a way to get into the Athabasca Basin.
Rio Tinto Ltd.'s takeover bid for Hathor Exploration Ltd. throws out a potential challenge to a federal government policy that limits foreign ownership in Canada's uranium sector.
On Wednesday, the London-based mining giant made a friendly, $578-million offer for Hathor, trumping a hostile bid from Cameco Corp. and triggering speculation of a prolonged takeover battle. Hathor's Roughrider project, in Saskatchewan's Athabasca Basin, is considered one of the world's best undeveloped sources of uranium.
There is nothing preventing Rio Tinto from owning 100% of Roughrider as long as it is an exploration play. But once Roughrider develops into a mine, it would be subject to a federal policy that caps foreign ownership at 49% unless a Canadian partner cannot be found. Other countries have similar rules, which date back to Soviet-era concerns about nuclear-weapons proliferation.
Simon Wensley, chief commercial officer of Rio Tinto Energy, expressed confidence that Rio can deal with these issues with the federal government when the time comes. The company has been studying a potential acquisition of Hathor since 2009. "We're not going to speak for government, but we're encouraged by the dialogue, the statements that have been made in the recent past about foreign investment. And we look forward to joining that conversation in the near future," he said in an interview.
The policy has never been seriously tested, and there has been plenty of talk about liberalizing it. In 2008, Canada's Competition Policy Review Panel recommended just that, but it demanded "reciprocity" from other countries that also limit foreign investment in their uranium sectors.
The Saskatchewan government has also called for the policy to be eliminated. Mike Gunning, Hathor's chief executive, said in a recent interview that Saskatchewan has "continually" expressed concern the policy could harm development of the Athabasca Basin, where the uranium business is dominated by just two companies (Cameco and the French firm Areva Group).
"It's never good to have that kind of control. I would say the government is well aware of what's at stake here in terms of broadening industry development of uranium beyond two companies that have had control since day one," he said.
"It's never good to have that kind of control. I would say the government is well aware of what's at stake here in terms of broadening industry development of uranium beyond two companies that have had control since day one," he said.
None of this will matter if Cameco outbids Rio Tinto, and many analysts and investors anticipate a higher offer from the Saskatoon-based miner. Rio Tinto's all-cash offer of $4.15 a share is only 10.7% higher than Cameco's original bid of $3.75 a share, and the stock closed Wednesday at $4.40.
"We believe there is a high degree of probability that Cameco could make a competing bid," Desjardins Securities analyst John Hughes said in a note.
Edward Sterck, an analyst at BMO Capital Markets, thinks Cameco could raise its bid to around $4.25 a share, though that level may be dilutive to net present value.
"Cameco may view the acquisition of Hathor as essential for allowing the company to meet its strategy of doubling production by 2018. In this case, economics may take a back seat to securing the acquisition and delivering on the company's commitments to the market," he wrote.
Rio Tinto has been building a position in Hathor shares since the Fukushima disaster crushed uranium equities, and now owns 5.7% of the company. Mr. Wensley said the Cameco bid "forced the pace," but Rio Tinto already saw Roughrider as a way to get into the Athabasca Basin.
"All in all, if you want to be in uranium, the Athabasca is certainly somewhere you need to seriously consider," he said.
http://business.financialpost.com/2011/10/19/rio-tinto-trumps-cameco-bid-for-hathor/
http://business.financialpost.com/2011/10/19/rio-tinto-trumps-cameco-bid-for-hathor/
Wednesday, 19 October 2011
Rio Tinto tops hostile Cameco bid for Hathor
By: brenda bouw — MINING REPORTER
VANCOUVER— From Thursday's Globe and Mail
Published
London-based Rio has struck a friendly deal to buy Hathor Exploration Ltd. (HAT-T4.530.010.22%) for $578-million or $4.15 a share, topping Cameco’s hostile offer of $3.75 a share made in late August.
With the long-range belief that nuclear energy will expand in key growth countries such as China and India, Rio is looking to expand its existing uranium operations in Australia and Africa. Its offer for Hathor is the first Rio has made for a Canadian company since its ill-timed purchase of Montreal-based aluminum producer Alcan in 2007, on the eve of the global recession.
Rio claims its bid is not subject to the Investment Canada Act’s “net benefit” test, because it is below the $312-million threshold based on book value of the assets. It also says the bid is not subject to the Non-Residential Ownership Policy imposed on producing mines, since Hathor’s assets are years away from production.
Rio acknowledged that ownership of Hathor could become a factor when its flagship Roughrider deposit begins production, the timing of which has not yet been determined.
“We are aware of this issue, however we have a long-term interest in uranium mining,” the company said in a statement. “We’ve been encouraged by various public statements by government officials on attracting foreign investment and we look forward to joining the dialogue.”
Meantime, the company continues to increase its presence in Canada. Rio said last month it plans to explore for potash in Saskatchewan in a joint-venture with Russia’s JSC Acron. It also plans to focus more on its Canadian aluminum operations picked up in the $38-billion purchase of Alcan, after announcing this week it will divest operations outside the country valued at about $8-billion.
Analysts say Cameco needs Hathor to help meet its strategy of doubling production by 2018. Uranium is more central to the Saskatoon-based company than Rio, whose revenues are dominated by iron ore and aluminum.. That puts more pressure on Cameco to top Rio’s offer.
Other bidders may also surface, noted Dundee Securities analyst David Talbot. “We don't believe this game is over. Two of the uranium producing titans are now both in the running and suggests that there is strong probability of another competing offer.”
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/rio-tinto-makes-white-knight-bid-for-hathor/article2206323/
VANCOUVER— From Thursday's Globe and Mail
Published
A battle is shaping up between global mining giant Rio Tinto PLC (RIO-N50.442.525.26%) and Canada’s Cameco Corp. (CCO-T20.250.341.71%) over a promising uranium explorer in Saskatchewan, with Cameco under pressure to win as it seeks to double production of its single resource.
London-based Rio has struck a friendly deal to buy Hathor Exploration Ltd. (HAT-T4.530.010.22%) for $578-million or $4.15 a share, topping Cameco’s hostile offer of $3.75 a share made in late August.
The companies are vying for control of Hathor’s assets in the uranium-rich Athabasca Basin of Saskatchewan, where about 20 per cent of the world’s uranium is produced. Both bids come as the price of uranium, used to fuel nuclear power plants, struggles to recover from a slump since the nuclear crisis in Japan last March caused many countries to re-examine their nuclear power programs.
With the long-range belief that nuclear energy will expand in key growth countries such as China and India, Rio is looking to expand its existing uranium operations in Australia and Africa. Its offer for Hathor is the first Rio has made for a Canadian company since its ill-timed purchase of Montreal-based aluminum producer Alcan in 2007, on the eve of the global recession.
Hathor would give Rio “a proper and long-life third leg to our uranium business,” Rio Tinto Energy’s chief commercial officer Simon Wensley said in an interview Wednesday.
Rio claims its bid is not subject to the Investment Canada Act’s “net benefit” test, because it is below the $312-million threshold based on book value of the assets. It also says the bid is not subject to the Non-Residential Ownership Policy imposed on producing mines, since Hathor’s assets are years away from production.
Ottawa caps foreign ownership of producing uranium mines at 49 per cent, but higher levels are permitted if the project is considered Canadian-controlled or if a Canadian partner can’t be found.
Rio acknowledged that ownership of Hathor could become a factor when its flagship Roughrider deposit begins production, the timing of which has not yet been determined.
“We are aware of this issue, however we have a long-term interest in uranium mining,” the company said in a statement. “We’ve been encouraged by various public statements by government officials on attracting foreign investment and we look forward to joining the dialogue.”
Meantime, the company continues to increase its presence in Canada. Rio said last month it plans to explore for potash in Saskatchewan in a joint-venture with Russia’s JSC Acron. It also plans to focus more on its Canadian aluminum operations picked up in the $38-billion purchase of Alcan, after announcing this week it will divest operations outside the country valued at about $8-billion.
Still, Rio may have to fight for Hathor, given the expectation of a potential counteroffer from Cameco, one of the world’s largest uranium producers. Cameco said Wednesday it’s reviewing the rival offer and will update shareholders of its own bid “when appropriate.”
Investors appear to be counting on a contest for Hathor. The company’s shares jumped more than 10 per cent to a high of $4.47 on the Toronto Stock Exchange Wednesday before easing back to end the day up 9.2 per cent.
Analysts say Cameco needs Hathor to help meet its strategy of doubling production by 2018. Uranium is more central to the Saskatoon-based company than Rio, whose revenues are dominated by iron ore and aluminum.. That puts more pressure on Cameco to top Rio’s offer.
“In this case, economics may take a back seat to securing the acquisition and delivering on the company’s commitments to the market,” said BMO Nesbitt Burns analyst Edward Sterck.
A “meaningful increase” would be a bid of at least $4.25 a share, or $4.40 to include the impact of a $20-million break fee if Rio’s offer were to fail, Mr. Sterck noted.
Other bidders may also surface, noted Dundee Securities analyst David Talbot. “We don't believe this game is over. Two of the uranium producing titans are now both in the running and suggests that there is strong probability of another competing offer.”
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/rio-tinto-makes-white-knight-bid-for-hathor/article2206323/
Tuesday, 18 October 2011
‘Buy America’ provision won’t harm ‘strong’ U.S.-Canada relations
Oct 18, 2011 – 1:38 PM ET
David Jacobson delivered the message Tuesday in a speech designed to correct some misconceptions on this and two other developing issues: suggestions the U.S. is considering a new levy on cargo entering the U.S. from British Columbia, and the impact on people with dual citizenship of a new U.S. plan to crack down on people who create tax havens.
Mr. Jacobson went to great lengths to defend the “Buy American” initiative that U.S. President Barack Obama included in his administration’s jobs bill last month.
Canada had won an exemption from Buy America provisions in a $900-billion stimulus bill in 2009, but did not get such treatment in Obama’s second round of stimulus this fall.
Jacobson said this is “making some folks see coffins among the flowers of the Canada/U.S. relationship”, adding there is more to the issue than meets the eye.
“A small part of the bill relates to repairs of infrastructure and rebuilding of schools. It was to these parts — and these parts alone — to which Buy America applied. And, of course, most of these expenditures on infrastructure and schools would be for things like land and labour which Canada couldn’t supply anyway.”
And that is the purpose of Mr. Obama’s jobs bill.
“And in case you haven’t noticed, it’s not so easy for him to get things through Congress. So he had to make a tough call. He had to introduce a bill that had some chance of passing. Hence the Buy America Provision.”
“If the bill doesn’t pass, the U.S. economy — and the Canadian economy with it — continue to suffer.”
Finally, he noted that the bill in question — “Buy American or no Buy America” — was rejected last week by the U.S. Senate as part of a Republican filibuster.
“The president has said he will try to get parts of the Jobs Bill through Congress as separate measures. And for the sake of the United States economy — and for the sake of the Canadian economy — we should all hope he is successful.”
Meanwhile, Mr. Jacobson flatly rejected reports the U.S. was considering a levy on U.S.-bound cargo from British Columbia.
Mr. Jacobson said that led to a “hue and cry that the United States was contemplating imposing duties or taxes or some sort of fees on goods that were shipped through Canada and into the United States.”
By Mark Kennedy
OTTAWA — The Obama administration’s recent “Buy America” provision will not harm U.S.-Canada relations and was introduced as a political compromise to persuade Congress to pass a jobs bill that helps economies in both countries, says the American ambassador to Canada.
David Jacobson delivered the message Tuesday in a speech designed to correct some misconceptions on this and two other developing issues: suggestions the U.S. is considering a new levy on cargo entering the U.S. from British Columbia, and the impact on people with dual citizenship of a new U.S. plan to crack down on people who create tax havens.
“The relationship between our two countries is probably the strongest it has been in generations, perhaps ever,” said Mr. Jacobson, according to a written text of the remarks.
“I am here to tell you that the United States is unbelievably lucky to have Canada as our neighbour. But in the last few weeks three unrelated events have gotten a lot of attention. And some among us, on both sides of the border, have tried to draw the conclusion — sometimes without resort to the facts — that somehow there’s a funeral in our future.”
Mr. Jacobson went to great lengths to defend the “Buy American” initiative that U.S. President Barack Obama included in his administration’s jobs bill last month.
Here in Canada, Prime Minister Stephen Harper called it a “regrettable development” that would weigh down economic growth in North America, and International Trade Minister Ed Fast vowed to press Canada’s case in Washington against protectionist measures such as this.
Canada had won an exemption from Buy America provisions in a $900-billion stimulus bill in 2009, but did not get such treatment in Obama’s second round of stimulus this fall.
Jacobson said this is “making some folks see coffins among the flowers of the Canada/U.S. relationship”, adding there is more to the issue than meets the eye.
He said the latest Jobs Act is a $445-billion bill to help get the U.S. economy “back on track” and that most of the legislation consists of proposals for payroll tax cuts for the middle class, extensions of unemployment benefits, and education investment.
“A small part of the bill relates to repairs of infrastructure and rebuilding of schools. It was to these parts — and these parts alone — to which Buy America applied. And, of course, most of these expenditures on infrastructure and schools would be for things like land and labour which Canada couldn’t supply anyway.”
Mr. Jacobson said that, in fact, the “single most important” thing the U.S. can do to help the Canadian economy “is to get our own economy back on track.”
And that is the purpose of Mr. Obama’s jobs bill.
“And in case you haven’t noticed, it’s not so easy for him to get things through Congress. So he had to make a tough call. He had to introduce a bill that had some chance of passing. Hence the Buy America Provision.”
“If the bill doesn’t pass, the U.S. economy — and the Canadian economy with it — continue to suffer.”
Mr. Jacobson urged people to contrast the minimal consequences of the Buy American provision on Canadian commerce with the “vast benefits” to the Canadian economy if the bill is passed.
“With the benefits to the Canadian economy of the bill as a whole I suspect the vast majority of economists in Canada would say they’d take the bad with the good.”
“With the benefits to the Canadian economy of the bill as a whole I suspect the vast majority of economists in Canada would say they’d take the bad with the good.”
Mr. Jacobson also noted that the provisions in the bill will be interpreted in accordance with international trade obligations, such as NAFTA and the World Trade Organization.
“No two countries on Earth have a better track record of working out our trade differences than the United States and Canada.”
Finally, he noted that the bill in question — “Buy American or no Buy America” — was rejected last week by the U.S. Senate as part of a Republican filibuster.
“The president has said he will try to get parts of the Jobs Bill through Congress as separate measures. And for the sake of the United States economy — and for the sake of the Canadian economy — we should all hope he is successful.”
Meanwhile, Mr. Jacobson flatly rejected reports the U.S. was considering a levy on U.S.-bound cargo from British Columbia.
The reports surfaced in the media several weeks ago after two U.S. senators asked the government to look into how a harbour maintenance fee in Seattle meant a lot of North-American-bound shipping was being diverted to Vancouver.
Mr. Jacobson said that led to a “hue and cry that the United States was contemplating imposing duties or taxes or some sort of fees on goods that were shipped through Canada and into the United States.”
He said that he personally inquired and was assured that all that is occurring is a study — nothing more.
“Among other reasons, the Federal Maritime Commission has no authority to impose duties, or taxes, or fees on goods entering the United States from Canada. So I’m here to give all of you — and all Canadians — comfort. We don’t plan to divert traffic to Seattle from Vancouver by imposing tariffs or taxes or fees on goods crossing into the United States from Canada.”..................................................................................................................................................................................
http://www.canada.com/business/America+provision+harm+strong+Canada+relations+Diplomat/5568105/story.html
http://www.canada.com/business/America+provision+harm+strong+Canada+relations+Diplomat/5568105/story.html
Monday, 17 October 2011
Canada looks to diversify trade via EU pact
By David Ljunggren, REUTERS
Last Updated: October 17, 2011 12:54pm
Canada, keen to reduce its dependence on a weak U.S. economy, is pressing ahead with talks on a free trade deal with the European Union, despite calls from critics who say such an agreement could cause long-lasting damage.
The two sides opened a ninth round of negotiations in Ottawa Monday on a treaty that both sides hope will be ready next year.
For Canada, the pact would be the biggest since it signed the landmark North American Free Trade Agreement with the United States and Mexico in 1994. Ottawa says a treaty with Europe would increase two-way trade by 20%.
“That is a huge opportunity for Canada to take advantage of,” International Trade Minister Ed Fast said last Thursday.
Diplomats say several major issues still have to be settled, such as how much to open up agricultural markets, how to protect foreign direct investment and increase access to government procurement, and whether to extend patents on pharmaceuticals.
“All of these issues are still very much open to discussion. There is still a lot of work to be done,” said one EU diplomat in Brussels.
Canada-EU bilateral trade in goods totalled $77 billion last year, far shy of the Canada-U.S. total of C$556 billion. Robert Wolfe, a political studies professor and trade expert at Queen’s University, said Canada needed to look beyond the United States.
“The U.S. is of course our biggest market and that’s not going to change any time soon ... but there’s not a lot of growth going to come in the U.S. market and the competition in that market is ferocious,” Wolfe told Reuters.
Fast and his officials say there are particularly promising opportunities for Canadian firms in the giant EU procurement market, which they say is worth $2.4 trillion a year.
However, critics fear that opening up trade with the EU could spell foreign domination of the Canadian provincial procurement market, which has some restrictions.
The left-leaning Council of Canadians parked a large model Trojan horse near the Parliament Buildings Monday to symbolize what they said were the dangers of a deal being negotiated in secret.
“There’s a lot more in it in than the government is saying — it’s not just about trade, it’s about internal economic reforms, and it’s about reforms a lot of people wouldn’t make I think if they had the choice,” said Stuart Trew, the council’s trade campaigner.
Other files raising Canadian concerns are pharmaceuticals and agricultural products.
The Canadian generic pharmaceutical industry says the EU’s demand that Canada extend its patent production on drugs would add about $2.8 billion annually to prescription drug costs.
Canada protects its agricultural producers through a system of supply management, which sets producer quotas and prices on farm commodities such as milk and poultry, and slaps stiff tariffs on imports. Ottawa insists it will not bow to pressure to dismantle or dilute its supply management regimes.
“Canada will not sign an agreement unless it is in the best long-term interest of Canada,” Fast said last week.
The European Union also wants greater assurances that Canada’s provincial liquor boards will ease the tax burden on European wines and spirits.
Skeptics wonder what the point of signing a deal is if both sides end up maintaining current restrictions.
“They’ll fudge .... they’ll conclude a very broad agreement but not a very deep agreement because a deep agreement would require them to take on the hard issues and there is no political appetite or political support for doing that,” said Carleton University professor and trade expert Michael Hart.
Canada’s lead negotiator, Steve Verheul, conceding there were “sensitivities” on both sides, told legislators recently that “I think it’s clear that neither side will get everything it wants.”
http://www.reuters.com/article/2011/10/17/canada-europe-trade-idUSN1E79D0MI20111017
Last Updated: October 17, 2011 12:54pm
Canada, keen to reduce its dependence on a weak U.S. economy, is pressing ahead with talks on a free trade deal with the European Union, despite calls from critics who say such an agreement could cause long-lasting damage.
The two sides opened a ninth round of negotiations in Ottawa Monday on a treaty that both sides hope will be ready next year.
For Canada, the pact would be the biggest since it signed the landmark North American Free Trade Agreement with the United States and Mexico in 1994. Ottawa says a treaty with Europe would increase two-way trade by 20%.
“That is a huge opportunity for Canada to take advantage of,” International Trade Minister Ed Fast said last Thursday.
Diplomats say several major issues still have to be settled, such as how much to open up agricultural markets, how to protect foreign direct investment and increase access to government procurement, and whether to extend patents on pharmaceuticals.
“All of these issues are still very much open to discussion. There is still a lot of work to be done,” said one EU diplomat in Brussels.
Canada-EU bilateral trade in goods totalled $77 billion last year, far shy of the Canada-U.S. total of C$556 billion. Robert Wolfe, a political studies professor and trade expert at Queen’s University, said Canada needed to look beyond the United States.
“The U.S. is of course our biggest market and that’s not going to change any time soon ... but there’s not a lot of growth going to come in the U.S. market and the competition in that market is ferocious,” Wolfe told Reuters.
Fast and his officials say there are particularly promising opportunities for Canadian firms in the giant EU procurement market, which they say is worth $2.4 trillion a year.
However, critics fear that opening up trade with the EU could spell foreign domination of the Canadian provincial procurement market, which has some restrictions.
The left-leaning Council of Canadians parked a large model Trojan horse near the Parliament Buildings Monday to symbolize what they said were the dangers of a deal being negotiated in secret.
“There’s a lot more in it in than the government is saying — it’s not just about trade, it’s about internal economic reforms, and it’s about reforms a lot of people wouldn’t make I think if they had the choice,” said Stuart Trew, the council’s trade campaigner.
Other files raising Canadian concerns are pharmaceuticals and agricultural products.
The Canadian generic pharmaceutical industry says the EU’s demand that Canada extend its patent production on drugs would add about $2.8 billion annually to prescription drug costs.
Canada protects its agricultural producers through a system of supply management, which sets producer quotas and prices on farm commodities such as milk and poultry, and slaps stiff tariffs on imports. Ottawa insists it will not bow to pressure to dismantle or dilute its supply management regimes.
“Canada will not sign an agreement unless it is in the best long-term interest of Canada,” Fast said last week.
The European Union also wants greater assurances that Canada’s provincial liquor boards will ease the tax burden on European wines and spirits.
Skeptics wonder what the point of signing a deal is if both sides end up maintaining current restrictions.
“They’ll fudge .... they’ll conclude a very broad agreement but not a very deep agreement because a deep agreement would require them to take on the hard issues and there is no political appetite or political support for doing that,” said Carleton University professor and trade expert Michael Hart.
Canada’s lead negotiator, Steve Verheul, conceding there were “sensitivities” on both sides, told legislators recently that “I think it’s clear that neither side will get everything it wants.”
http://www.reuters.com/article/2011/10/17/canada-europe-trade-idUSN1E79D0MI20111017
Foreign purchases of Canadian securities slows
Postmedia News, Postmedia News · Oct. 17, 2011 | Last Updated: Oct. 17, 2011 10:05 AM ET
The pace of purchases of Canadian securities by foreign investors slowed in August, with most of the investment focused on the bond market.
Statistics Canada said Monday non-residents bought a net $7.9 billion worth of securities during the month, down from $12.1 billion in July.
“These purchases totalled $31.6 billion for the first eight months of 2011,” it said. “However, this amounted to less than half of the inflows recorded over the same period in 2010, largely reflecting reduced foreign investment in federal bonds.”
Non-residents also bought $1.6 billion of Canadian money market instruments in August, as well as $306 million worth of Canadian securities.
The pace of purchases of Canadian securities by foreign investors slowed in August, with most of the investment focused on the bond market.
Statistics Canada said Monday non-residents bought a net $7.9 billion worth of securities during the month, down from $12.1 billion in July.
Economists had expected foreign purchases to total $10 billion in August.
The federal agency said foreigners added $6 billion of Canadian bonds to their portfolios in August, the largest investment in three months. The purchases were mainly of U.S. dollar-denominated new issues by federal government enterprises and provincial governments.
The federal agency said foreigners added $6 billion of Canadian bonds to their portfolios in August, the largest investment in three months. The purchases were mainly of U.S. dollar-denominated new issues by federal government enterprises and provincial governments.
“These purchases totalled $31.6 billion for the first eight months of 2011,” it said. “However, this amounted to less than half of the inflows recorded over the same period in 2010, largely reflecting reduced foreign investment in federal bonds.”
Non-residents also bought $1.6 billion of Canadian money market instruments in August, as well as $306 million worth of Canadian securities.
Meanwhile, Canadian investors purchased a net $2 billion in foreign securities during the month. The purchases were mainly of securities, totalling $3.7 billion.
Canadians sold $1.4 billion in foreign bonds in August, bringing the total since the start of 2011 to $10.8 billion. “U.S. government securities again led the reduction in holdings of foreign bonds.” Statistics Canada said. “Long-term interest rates in the United States have declined each month
since February to reach levels last seen at the end of 2008.”
SOURCE: http://www.canada.com/story_print.html?id=5561327&sponsor=
since February to reach levels last seen at the end of 2008.”
SOURCE: http://www.canada.com/story_print.html?id=5561327&sponsor=
Three charts to start your week
By: Bertrand Marotte From Monday's Globe and Mail
Published
Last updated
Canada’s commodity buffer
Solid energy prices have helped protect Canada from the worst of the global economic slump, but recent weeks have seen a sharp drop in commodity prices.
Oil prices, in particular, are flirting with presumed “break-even” levels for oil sands investment, says Mark Chandler of RBC Dominion Securities Inc.
If oil prices continue to fall and stay at relatively low levels for an extended period of time, there could be a negative impact on Canada’s oil patch, he writes in a recent report.
Looking out to 2015 and beyond, production growth will depend critically on new investment projects coming on stream, particularly in growing oil sands sector, he says.
Rising investment from China
Canada’s resource sector got a boost recently from Chinese energy giant Sinopec’s $2.2-billion bid for Alberta oil-and-gas company Daylight Energy.
“We think that China is about to go on a global shopping spree by unleashing a wave of foreign direct investments (FDI) that will most certainly include Canada,” he writes in a report.
China ranked fourth in the world in terms of FDI outflows in 2010, with a total of $68-billion. The rising global power surpassed Japan for the first time on record.
“Given the considerable upside for Chinese FDI and that country’s appetite for natural resources, we expect Canada to remain a magnet for such funds,” he writes.
Sinking loonie
The gloomy global economic outlook and decline in commodity prices over the past two months are reflected in the downward move of the Canadian dollar against the U.S. greenback.
The loonie’s sharp decline and lower long-term interest rates have helped offset the need for immediate easing of monetary policy to cope with the effects of the commodity price slump, says Capital Economics’ David Madani.
Expect the Canadian dollar to continue its downward trend, ending the year at 95 cents and falling to 90 cents by the end of 2012 as commodity prices continue to trend lower , he says in a recent analysis.
The loonie seems to have taken its knocks along with just about every other currency, except the Japanese yen, as investors rushed to the safety of the U.S. treasury market, he writes.
An eventual housing-market correction, coupled with the negative effects on trade from weak economic growth in the rest of the world, will further undermine Canada’s economic recovery next year, he adds.
“As such, the Canadian dollar is expected to be under downward pressure again next year, as interest-rate expectations are cut even further and commodity prices drift somewhat lower.”
http://investdb4.theglobeandmail.com/servlet/story/GAM.20111017.GITRIVEST1017ATL/GIStory/currencies/
Published
Last updated
Canada’s commodity bufferSolid energy prices have helped protect Canada from the worst of the global economic slump, but recent weeks have seen a sharp drop in commodity prices.
Oil prices, in particular, are flirting with presumed “break-even” levels for oil sands investment, says Mark Chandler of RBC Dominion Securities Inc.
If oil prices continue to fall and stay at relatively low levels for an extended period of time, there could be a negative impact on Canada’s oil patch, he writes in a recent report.
Looking out to 2015 and beyond, production growth will depend critically on new investment projects coming on stream, particularly in growing oil sands sector, he says.
“It is unlikely that these would be curtailed significantly on a modest price decline ... but it is worth noting that the decline in oil prices of some 40 per cent in 2009 to an average of $62 (U.S) per barrel saw a drop of some $20-billion (Canadian) in capital expenditures in the industry,” he writes.
Rising investment from ChinaCanada’s resource sector got a boost recently from Chinese energy giant Sinopec’s $2.2-billion bid for Alberta oil-and-gas company Daylight Energy.
The proposed takeover marks the acceleration of a growing Chinese trend toward exchanging its massive $3-trillion (U.S.) in foreign reserves for hard, tangible assets, says Stéfane Marion of National Bank Financial Group.
“We think that China is about to go on a global shopping spree by unleashing a wave of foreign direct investments (FDI) that will most certainly include Canada,” he writes in a report.
China ranked fourth in the world in terms of FDI outflows in 2010, with a total of $68-billion. The rising global power surpassed Japan for the first time on record.
Still, Mr. Marion notes that the stock of FDI held by China accounted for a tiny 5.1 per cent of its gross domestic product.
The stock of FDI held by China remains well below that of much smaller countries, such as Italy, Spain and the Netherlands, he points out.
“Given the considerable upside for Chinese FDI and that country’s appetite for natural resources, we expect Canada to remain a magnet for such funds,” he writes.
Sinking loonie
The gloomy global economic outlook and decline in commodity prices over the past two months are reflected in the downward move of the Canadian dollar against the U.S. greenback.
The loonie’s sharp decline and lower long-term interest rates have helped offset the need for immediate easing of monetary policy to cope with the effects of the commodity price slump, says Capital Economics’ David Madani.
Expect the Canadian dollar to continue its downward trend, ending the year at 95 cents and falling to 90 cents by the end of 2012 as commodity prices continue to trend lower , he says in a recent analysis.
The loonie seems to have taken its knocks along with just about every other currency, except the Japanese yen, as investors rushed to the safety of the U.S. treasury market, he writes.
Yet, with the possibility of a full-blown crisis in Europe, Canadian interest-rate cuts over the next 12 months can’t completely be ruled out, he says.
An eventual housing-market correction, coupled with the negative effects on trade from weak economic growth in the rest of the world, will further undermine Canada’s economic recovery next year, he adds.
“As such, the Canadian dollar is expected to be under downward pressure again next year, as interest-rate expectations are cut even further and commodity prices drift somewhat lower.”
http://investdb4.theglobeandmail.com/servlet/story/GAM.20111017.GITRIVEST1017ATL/GIStory/currencies/
Friday, 14 October 2011
Resources our trump card in trade talks
Derek H. Burney, Financial Post · Oct. 14, 2011 | Last Updated: Oct. 14, 2011 6:14 AM ET
Shortly after Canada and the United States launched free trade negotiations in 1986, the U.S. administration imposed, without warning, a 35% duty on cedar shakes and shingles imported from Canada. The U.S. lumber lobby simultaneously filed a countervailing duty petition seeking $1-billion in penalties on annual sales of $4-billion of softwood lumber, perpetuating what has since become the longest-running trade dispute between the two North American "partners." At the time, prime minister Brian Mulroney decried the U.S. actions, saying bluntly that "actions like this make it extremely difficult for anyone, including Canadians, to be friends with Americans."
http://www.nationalpost.com/Resources+trump+card+trade+talks/5548804/story.html
Shortly after Canada and the United States launched free trade negotiations in 1986, the U.S. administration imposed, without warning, a 35% duty on cedar shakes and shingles imported from Canada. The U.S. lumber lobby simultaneously filed a countervailing duty petition seeking $1-billion in penalties on annual sales of $4-billion of softwood lumber, perpetuating what has since become the longest-running trade dispute between the two North American "partners." At the time, prime minister Brian Mulroney decried the U.S. actions, saying bluntly that "actions like this make it extremely difficult for anyone, including Canadians, to be friends with Americans."
Recent U.S. actions, such as the reinstatement of "Buy America" in the President's job legislation, evoke a similar sentiment. There is also the uproar over a Canadian pipeline intended to bring oil to Texas refineries. The protracted permitting process is giving vent to emotional protests and threatens to sideswipe pragmatic policy considerations. Taken together these actions directed against Canada are, most certainly, unwelcome distractions from the two countries' fundamental objective in launching a North American Perimeter Initiative to enhance security.
Everyone knows that these are difficult times for America. Its economy is sputtering and policy consensus on anything in Washington is rarely evident. The raw impulse to protect and lash out at anything "foreign" can overwhelm the logic of practical initiatives that would actually enhance economic growth.
Given the power imbalance, Canada does not have scope for "tit for tat" retaliation, despite its instinctive, emotional appeal. But there are things we can and should do. First, it would be a mistake to abandon the perimeter and regulatory negotiations in a fit of pique over ham-handed measures. Instead we need to forge ahead with tangible results from these negotiations. Shrill public outbursts are not much good; stern messages delivered in private actually carry more weight. Better still are actions that demonstrate, in concrete terms, that these bilateral negotiations are not the exclusive priority for our government.
Canada should move expeditiously to streamline the permitting process for West Coast pipelines, for oil and for natural gas, enabling exports of both commodities to Asia. Having additional markets at our disposal is the most effective leverage we can exercise vis-à-vis the United States. Relying on a single market poses unnecessary risks. We also need to act in a concerted fashion, and with more than press releases, to enhance trade and investment relations with major emerging markets like China, India and Brazil. We should kick-start the free trade negotiations with South Korea - an agreement that has been hamstrung for too long by myopic pressures from the auto sector.The time squandered on these negotiations allowed the United States to move out front and conclude its own deal. That puts at risk not only the opportunity for Canada to improve its access to the Korean market but also some portion of our current market, notably for agricultural exports. Korea, like other Asian growth economies, is actively investing in the resource base of Western Canada. Elementary reciprocity suggests that we try to turn that interest to our advantage. Access to our natural resources should be a trump card for Canada in any negotiation.
The best antidote to confusion and protectionism from Washington is not retaliation but smart moves that safeguard access to our most vital market while providing greater access to markets where what we produce is in strong demand.http://www.nationalpost.com/Resources+trump+card+trade+talks/5548804/story.html
Thursday, 13 October 2011
Canada edges closer to investor deal with China
By: Carolynne Wheeler
BEIJING— Globe and Mail Blog
Posted on Thursday, October 13, 2011 10:53AM EDT- After nearly two decades of off-again, on-again talks, Canadian negotiators seem to finally be getting somewhere in their quest for an agreement to protect Canadian investors in China.
Trade minister Ed Fast, on a week-long trip in China, said Thursday he believes “significant” progress has been made in negotiations for a foreign investment protection and promotion agreement, which is meant to create a level playing field for foreign and domestic investors and guard against expropriation of investments.
A foreign investment protection agreement has been under negotiation with China since 1994, though talks were set aside until after China’s accession to the WTO in 2004. By January, 2010, some 12 rounds of talks had failed to produce an agreement.
However Chinese direct investment has skyrocketed in recent years, jumping 69 per cent from 2008 to 2009 alone, largely because of Chinese interest in Canadian energy and other natural resources. Last year Chinese direct investment in Canada reached $14.1-billion. Canadian direct investment in China is also growing, though not at such an impressive rate, hitting $4.8-billion in 2010.
BEIJING— Globe and Mail Blog
Posted on Thursday, October 13, 2011 10:53AM EDT- After nearly two decades of off-again, on-again talks, Canadian negotiators seem to finally be getting somewhere in their quest for an agreement to protect Canadian investors in China.
Trade minister Ed Fast, on a week-long trip in China, said Thursday he believes “significant” progress has been made in negotiations for a foreign investment protection and promotion agreement, which is meant to create a level playing field for foreign and domestic investors and guard against expropriation of investments.
Mr. Fast, who met his Chinese counterpart, Commerce Minister Chen Deming, earlier this week said Thursday both sides recognize the importance of such a deal, which would lay out clear, legally binding rights and obligations for both sides.
“I believe we are making significant progress in bringing these negotiations to a conclusion and I hope to report further in the coming months,” Mr. Fast said, calling such an agreement “highly advantageous” to both sides. “China wants to see more Canadian investment, certainly we want to see more Chinese investment in Canada. Having a clear set of rules under which those investments take place serves both parties.”
A foreign investment protection agreement has been under negotiation with China since 1994, though talks were set aside until after China’s accession to the WTO in 2004. By January, 2010, some 12 rounds of talks had failed to produce an agreement.
However Chinese direct investment has skyrocketed in recent years, jumping 69 per cent from 2008 to 2009 alone, largely because of Chinese interest in Canadian energy and other natural resources. Last year Chinese direct investment in Canada reached $14.1-billion. Canadian direct investment in China is also growing, though not at such an impressive rate, hitting $4.8-billion in 2010.
“Given the significant new investment in Canada from China, investor protection is not just a story of how you protect Canadian investment in China, but the reverse as well,” said Peter Harder, president of the Canada-China Business Council, in a telephone interview from Ottawa. “This is a significant step forward in ensuring the economic relationship is secured.”
http://www.theglobeandmail.com/report-on-business/international-news/global-exchange/globe-correspondents/canada-edges-closer-to-investor-deal-with-china/article2199845/
http://www.theglobeandmail.com/report-on-business/international-news/global-exchange/globe-correspondents/canada-edges-closer-to-investor-deal-with-china/article2199845/
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