November 30, 2011 12:09 PM
By Community Team
Canadians should expect more competitive rates for their cell phone services after a decision on foreign ownership in the sector, indicated Industry Minister Christian Paradis.
But the minister said he needs more time to study the issues, despite speculation that he would make an announcement to an industry convention today.
The minister also said he wants rural customers to receive the same wireless service as those in large, urban centres.
Some analysts' predicted that Paradis would announce the removal of restrictions on foreign investment for smaller players - those with 10 per cent or less in market share - in the mobile playing field.
Globalive chief executive Tony Lacavera, operator of the Wind Mobile, speculated that the major telecom companies - Rogers Communications (TSX:RCI.B), Bell (TSX:BCE) and Telus (TSX:T) - would lobby against any changes to the current model due to their dominance in the field.
Currently, telecom operators in Canada are restricted to a maximum 46.7 per cent in direct and indirect foreign investment.
http://www.cbc.ca/news/yourcommunity/2011/11/should-the-government-take-steps-to-lower-your-cell-phone-bill.html
Wednesday, 30 November 2011
Tuesday, 29 November 2011
Ottawa sees wireless prices falling after upcoming call on ownership, auction
Canadians should expect lower prices after Ottawa announces its decision on foreign ownership in the wireless sector and sets ground rules for the next sale of broadband space, Industry Minister Christian Paradis indicated Tuesday.
But, despite wide speculation that Paradis was ready to announce those rules in a speech to an industry convention, the minister said he needed more time to study the issues.
“Some of you may be looking for an early Christmas present today, but I am afraid I am going to be a bit of a Grinch,” he told the conference.
“Given the importance and the serious impact this will have on the lives of Canadians for years to come, this is not a decision that I nor this government will be taking lightly.”
While Paradis did not say directly which way he was leaning, he did say he expected the decisions the government makes will lead to more competition.
“We expect that globally competitive prices for consumers will flow from these fundamentals,” he added.
The minister also said he wants rural customers to receive the same wireless service as those in large, urban centres.
Globalive chief executive Tony Lacavera, operator of the Wind Mobile startup established after the last spectrum auction in 2008, had scheduled a news conference in Ottawa after the minister’s speech.
Lacavera speculated that the government may be divided by intense lobbying from industry players, which have different interests and do not agree on the best way to proceed.
Many analysts had expected the government to announce that smaller players — those with 10 per cent or less market share — would be freed from any restrictions on foreign investment.
They also expected they would receive an effective set-aside in the new auction of 700 megahertz of spectrum. That would make it easier for small and new entrants to bid for spectrum to operate and compete in the sector dominated by Rogers Communications, Bell and Telus.
“If they don’t have a set-aside, we’re going to be forced to fold into one of the new incumbents and you’ll see all the new entrants do the same thing,” said Lacavera.
“We all saw what happened between 2003 and 2008, pricing in Canada rose to the highest level in the world when there wasn’t competitive pricing out there.”
Mobilicity head John Bitove, another new entrant, said in an interview that the government should go ahead with the auction anyway — if it hasn’t made up its on foreign ownership rules — because Canada is falling behind on the desirable 700-MHz frequency, which was vacated by the conversion of television signals to digital.
“The fact is you’ve got four new entrants soon to be five, and we’re all going to need more bandwidth,” he said.
Currently, telecom operators in Canada are restricted to a maximum 46.7 per cent in direct and indirect foreign investment.
Last year, Ottawa announced it was looking at three options on ownership. Removing all restrictions, removing restrictions for small players, or upping the foreign ownership limit to 49 per cent.
http://ca.news.yahoo.com/ottawa-sees-wireless-prices-falling-upcoming-call-ownership-222425054.html
Analysis: Rio Tinto faces new hurdles on Canadian uranium
By Julie Gordon
TORONTO | Tue Nov 29, 2011 12:05pm EST
(Reuters) - Rio Tinto's (RIO.AX) battle to secure its foothold in Canada's uranium-rich Athabasca region has only just begun now that it has apparently won a bidding war to gain control of Hathor Exploration (HAT.TO).
While the path is now clear for Anglo-Australian giant to acquire the exploration-stage company, a whole new set of rules will apply to Rio once Hathor's flagship Roughrider project nears production.
Under current Canadian law, foreign companies are barred from owning more than 49 percent of an operating uranium mine. That could throw a wrench in Rio's (RIO.L) plans to turn Roughrider into a producing asset.
"They have two options," said Salman Partners analyst Raymond Goldie. "Either they hope that the law changes, or they hope that they will find a Canadian partner to own 51 percent."
If it is the latter, that would be good news for Cameco Corp (CCO.TO), Canada's top uranium producer. Even though it backed out of the bidding war for Hathor, the company could end up owning half of Roughrider, located just 25 kilometers (15 miles) from its Rabbit Lake mill in Saskatchewan.
In partnering with Cameco, Rio could comply with ownership restrictions, while gaining access to a mill with spare capacity to process ore from Roughrider, said Goldie.
"I would be willing to make the bet that when the mine comes into production, Cameco will own more than half of it," he said.
But others feel uranium's days as a protected resource in Canada are numbered. The ruling Conservatives have already said they are reviewing the restrictions, and policy experts say the government will likely push to relax the legislation.
"Once upon a time there was a very clear reason for this (restriction), and there was also a climate of concern about foreign investment and foreign ownership in Canada," said Jeremy Rayner, a professor at the Johnson-Shoyama Graduate School of Public Policy at the University of Saskatchewan.
"It looks like an anomaly now," he said.
Canadian uranium first gained notoriety during the Second World War, when it was used to develop nuclear weapons as part of the Manhattan Project. In subsequent years, the government began to restrict uranium to safeguard domestic supply and to ensure it was only used for peaceful purposes. Today, Canadian uranium fuels nuclear power plants around the world.
Easing ownership restrictions on uranium mines would show that Canada is open to foreign investment, say experts, despite a controversial move last year to block a hostile $39 billion takeover of fertilizer producer Potash Corp (POT.TO) by BHP Billiton (BHP.AX), another Anglo-Australian mining giant.
"Both the federal and Saskatchewan governments are right-of-center governments that have declared that they are open for business," said Rayner. "They were, I think, frankly embarrassed by what they had to do with Potash Corp."
Rio's bid for Hathor has cleared the Competition Bureau, but still faces an Investment Canada review, required of all foreign purchases over a certain size. Because its projects are all exploration stage, there are no uranium-specific restrictions on ownership at this time.
BIG IN THE BASIN
While Rio's exact plans for Hathor remain unclear, analysts speculate the miner is using the explorer as a jumping-off point to gain a much larger foothold in the Athabasca basin.
France's Areva (AREVA.PA), which is undergoing a strategic review, could sell some of its uranium assets, including part of its Canadian mining portfolio.
"If the Areva rumors prove grounded, then Rio Tinto may end up with significantly more assets in the basin in short order," wrote Dundee Securities analyst David Talbot in a note to clients.
That could raise some alarm bells with groups that are opposed to foreign ownership of Canadian resources and become a "political hot potato," said Carmen Diges, a natural resources lawyer and partner with Miller Thomson.
"There's an overarching set of views that Canada - being so dependent on natural resource production - how much foreign ownership of our natural resources do we want?" she said.
Rio is already a major player in Canada's mining sector, producing diamonds, iron ore, titanium dioxide and aluminum from projects across the country. Other mining giants like Xstrata (XTA.L) and Vale (VALE5.SA) have taken over Canadian companies in recent years, often in face of public opposition.
But the Canadian government is eager to show it is open to business, and with a friendly deal with Hathor in place, Rio could be ideally positioned to challenge Canada's uranium ownership restrictions.
"Companies, if they want to be strategic players in an area, they'll figure out all possibilities to do that," said Diges. "Laws are a roadmap and creative business people have always been really good at getting to their destination using the road map in new and creative ways."
http://www.reuters.com/article/2011/11/29/us-riotinto-hathor-idUSTRE7AS1RB20111129
Monday, 28 November 2011
Canada May Be Ready To Ease Telecom Foreign-Investment Limits
By Paul Vieira and Ben Dummett Of DOW JONES NEWSWIRES
NOVEMBER 28, 2011, 11:30 A.M. ET
OTTAWA (Dow Jones)--The Canadian government could signal this week it's ready to accept increased foreign investment in the country's telecommunications industry, in an effort to spur competition in the fast-growing and profitable wireless sector.
Two government-commissioned panels have recommended liberalization in recent years, and the Conservative government of Prime Minister Stephen Harper has promised to boost competition, in order to lower prices. Canada's Industry Minister, Christian Paradis, has said recently the government hasn't yet made any decision on its plans for the sector, in which foreign ownership has long been circumscribed.
Still, industry watchers say that two high-profile appearances this week by Paradis could be opportunities for the government to signal its intentions. The minister is slated to deliver remarks at a major industry conference in Ottawa on Tuesday. He then meets with Wall Street analysts Friday. Representatives for Paradis didn't return requests for comment.
Telecoms is among a handful of industries--along with broadcasting and airlines--that are subjected to specific limits on foreign investment in Canada. Foreigners are prohibited from owning more than 46.7% of the voting shares of a telecoms company.
Senior Canadian executives say they expect the government to liberalize somewhat. They say rules could be eased to allow 100% foreign ownership in Canadian wireless companies with less than a 10% market share.
While such a move would go some way in fulfilling the government's pledge to boost competition, it would have limited impact on the country's big, incumbent telecom providers - BCE Inc. (BCE), Telus Corp. (TU) and Rogers Communication Inc. (RCI). Together, these giants control 95% of the wireless market. Easing foreign ownership rules - even for smaller companies - could pressure prices. New entrants in recent years have already driven down prices.
Small Canadian wireless players, such as Wind Mobile, Mobilicity and Public Mobile, argue they need greater access to foreign capital to compete against the incumbents, because Canada's available pool of capital is just too small.
"The system is built against new entry and loaded in favor of the incumbents," said Eamon Hoey, managing director at Hoey Associates, a consultancy that advises clients in Canada's C$41 billion (US$39.2 billion) telecoms sector.
Incumbents argue foreign-ownership restrictions should only be eased if applied equally to the industry as whole.
The Canadian government is under pressure to change its foreign telecoms investment rules following a clash in 2009 with the chief telecoms watchdog over Wind Mobile.
The Canadian Radio-Television and Telecommunications Commission initially ruled Wind Mobile didn't meet the country's ownership requirements because it had too much financial backing from Egypt's Orascom Telecom Holding S.A.E. (ORTE.CI)
The Conservative government overruled the CRTC's decision, arguing Wind Mobile met the ownership requirements because voting control rested with Canadians, and Canadians managed the company on a day-to-day basis. A Federal Court of Appeal upheld the government's decision. The Supreme Court of Canada has yet to decide whether it will hear an appeal.
The telecoms industry is also awaiting government details about its next wireless spectrum auction. Both big and small players want access to more spectrum, as they scramble to offer more video and other broadband services. New entrants want the government to set aside a portion of the spectrum for which only smaller firms can bid.
Without such a carve-out, they argue, they can't compete against the financially stronger incumbents. Incumbents say setting spectrum aside would create an unfair playing field.
http://online.wsj.com/article/BT-CO-20111128-709062.html
NOVEMBER 28, 2011, 11:30 A.M. ET
OTTAWA (Dow Jones)--The Canadian government could signal this week it's ready to accept increased foreign investment in the country's telecommunications industry, in an effort to spur competition in the fast-growing and profitable wireless sector.
Two government-commissioned panels have recommended liberalization in recent years, and the Conservative government of Prime Minister Stephen Harper has promised to boost competition, in order to lower prices. Canada's Industry Minister, Christian Paradis, has said recently the government hasn't yet made any decision on its plans for the sector, in which foreign ownership has long been circumscribed.
Still, industry watchers say that two high-profile appearances this week by Paradis could be opportunities for the government to signal its intentions. The minister is slated to deliver remarks at a major industry conference in Ottawa on Tuesday. He then meets with Wall Street analysts Friday. Representatives for Paradis didn't return requests for comment.
Telecoms is among a handful of industries--along with broadcasting and airlines--that are subjected to specific limits on foreign investment in Canada. Foreigners are prohibited from owning more than 46.7% of the voting shares of a telecoms company.
Senior Canadian executives say they expect the government to liberalize somewhat. They say rules could be eased to allow 100% foreign ownership in Canadian wireless companies with less than a 10% market share.
While such a move would go some way in fulfilling the government's pledge to boost competition, it would have limited impact on the country's big, incumbent telecom providers - BCE Inc. (BCE), Telus Corp. (TU) and Rogers Communication Inc. (RCI). Together, these giants control 95% of the wireless market. Easing foreign ownership rules - even for smaller companies - could pressure prices. New entrants in recent years have already driven down prices.
Small Canadian wireless players, such as Wind Mobile, Mobilicity and Public Mobile, argue they need greater access to foreign capital to compete against the incumbents, because Canada's available pool of capital is just too small.
"The system is built against new entry and loaded in favor of the incumbents," said Eamon Hoey, managing director at Hoey Associates, a consultancy that advises clients in Canada's C$41 billion (US$39.2 billion) telecoms sector.
Incumbents argue foreign-ownership restrictions should only be eased if applied equally to the industry as whole.
The Canadian government is under pressure to change its foreign telecoms investment rules following a clash in 2009 with the chief telecoms watchdog over Wind Mobile.
The Canadian Radio-Television and Telecommunications Commission initially ruled Wind Mobile didn't meet the country's ownership requirements because it had too much financial backing from Egypt's Orascom Telecom Holding S.A.E. (ORTE.CI)
The Conservative government overruled the CRTC's decision, arguing Wind Mobile met the ownership requirements because voting control rested with Canadians, and Canadians managed the company on a day-to-day basis. A Federal Court of Appeal upheld the government's decision. The Supreme Court of Canada has yet to decide whether it will hear an appeal.
The telecoms industry is also awaiting government details about its next wireless spectrum auction. Both big and small players want access to more spectrum, as they scramble to offer more video and other broadband services. New entrants want the government to set aside a portion of the spectrum for which only smaller firms can bid.
Without such a carve-out, they argue, they can't compete against the financially stronger incumbents. Incumbents say setting spectrum aside would create an unfair playing field.
http://online.wsj.com/article/BT-CO-20111128-709062.html
Saturday, 26 November 2011
Lemieux highlights support for supply management
Media Release
Office of MP Pierre Lemieux
Ottawa - November 26, 2011 - MP Pierre Lemieux highlighted the Conservative Government’s strong support for Canadian farmers and Supply Management, shortly after Canada expressed a formal desire to join the Trans-Pacific Partnership.
"Our position has not changed on supply management - we have always supported, and we will continue to support, the supply management system. It is good for farmers, it is good for consumers and it is good for Canada," said Mr. Lemieux. "This was clearly stated in our 2011 election platform, in our Throne Speech and in speeches given in Parliament by Conservative MPs"
Agriculture Minister Gerry Ritz reminded Opposition MPs that the current Conservative government has a "tremendous working relationship with the supply managed sector," and that they have successfully defended supply management in every trade deal that they have implemented since having been elected government.
Mr. Lemieux also emphasized the need for Canada to negotiate international trade deals, as these agreements strengthen the Canadian economy, including the agricultural sector.
He stated, "If the U.S. were to put in place a trade deal with Asia-Pacific countries that did not include Canada, then our Canadian farmers would be disadvantaged and they would lose access to these foreign markets because they could not compete against the favourable measures within the trade deal that would benefit U.S. farmers."
Mr. Lemieux explained that establishing a trade deal will offer Canada a strong competitive advantage: "These are challenging economic times and we need to strengthen our export markets for our farmers. Farmers know that we want to see farmers succeed."
He also clarified the process followed in trade negotiations by explaining that when Canada indicates its interest in a trade agreement, it is not prudent to categorically list all the sectors which are non-negotiable before it has even arrived at the negotiating table.
Mr. Lemieux commented, "Once Canada is at the table and the negotiations have commenced, then as part of those negotiations, Canada and the other countries involved in the negotiations identify the commodities or sectors they want to protect."
Mr. Lemieux went further by saying, "Rest assured that we will defend Canada’s interests - we always do."
Mr. Lemieux concluded, "The farmers of my riding know that I am a strong defender of Supply Management. They also know how strongly I and our Conservative government defend and promote supply management both here in Canada and internationally. We have a strong track record!"
http://www.ourhometown.ca/news/NL0797.php
"Our position has not changed on supply management - we have always supported, and we will continue to support, the supply management system. It is good for farmers, it is good for consumers and it is good for Canada," said Mr. Lemieux. "This was clearly stated in our 2011 election platform, in our Throne Speech and in speeches given in Parliament by Conservative MPs"
Agriculture Minister Gerry Ritz reminded Opposition MPs that the current Conservative government has a "tremendous working relationship with the supply managed sector," and that they have successfully defended supply management in every trade deal that they have implemented since having been elected government.
Mr. Lemieux also emphasized the need for Canada to negotiate international trade deals, as these agreements strengthen the Canadian economy, including the agricultural sector.
He stated, "If the U.S. were to put in place a trade deal with Asia-Pacific countries that did not include Canada, then our Canadian farmers would be disadvantaged and they would lose access to these foreign markets because they could not compete against the favourable measures within the trade deal that would benefit U.S. farmers."
Mr. Lemieux explained that establishing a trade deal will offer Canada a strong competitive advantage: "These are challenging economic times and we need to strengthen our export markets for our farmers. Farmers know that we want to see farmers succeed."
He also clarified the process followed in trade negotiations by explaining that when Canada indicates its interest in a trade agreement, it is not prudent to categorically list all the sectors which are non-negotiable before it has even arrived at the negotiating table.
Mr. Lemieux commented, "Once Canada is at the table and the negotiations have commenced, then as part of those negotiations, Canada and the other countries involved in the negotiations identify the commodities or sectors they want to protect."
Mr. Lemieux went further by saying, "Rest assured that we will defend Canada’s interests - we always do."
Mr. Lemieux concluded, "The farmers of my riding know that I am a strong defender of Supply Management. They also know how strongly I and our Conservative government defend and promote supply management both here in Canada and internationally. We have a strong track record!"
http://www.ourhometown.ca/news/NL0797.php
Thursday, 24 November 2011
Top court turns down U.S. Steel request for hearing over Investment Canada Act
OTTAWA - The Supreme Court of Canada has cleared the way for a Federal Court hearing on Ottawa's claims that U.S. Steel failed to live up to jobs and production promises it made in 2007 when it bought steelmaker Stelco.
The top court said Thursday it will not hear a U.S. Steel appeal seeking to overturn a lower court's decision supporting the constitutionality of the Investment Canada Act, which governs foreign investments. The Investment Canada Act, the company claimed, created a punitive environment that infringed upon its protections under the Charter of Rights and Freedoms.
In challenging the law, U.S. Steel argued then federal Industry Minister Tony Clement hadn't given a reason for rejecting company claims it couldn't meet promised Canadian levels of production and employment.
U.S. Steel said it couldn't live up to those promises made when it bought the Hamilton steelmaker because demand for its production had been destroyed by the recession that started in 2008.
It also argued the fact it could face contempt of court charges for not paying fines levied under the act entitled it to Charter protections not normally engaged in an administrative case such has this one.
The government's suit against the company seeks penalties of $10,000 a day retroactive to Nov. 1, 2009.
The decision Thursday followed a failed attempt by U.S. Steel at the Federal Court of Appeal to overturn the trial judge's decision upholding the Investment Canada Act.
When it was given Canadian approval to buy Stelco, U.S. Steel made a package of promises that included maintaining an average 3,105 jobs in its Canadian operations until Oct. 31, 2010.
Starting in March of 2009 it shut various parts of the Canadian plants in response to collapsing demand for steel. It later locked out its Lake Erie workers for eight months in a dispute over pensions.
Hamilton workers were locked out for 11 months in a similar dispute before a deal was reached last month.
If the steelmaker is found to have illegally broken promises it made to Ottawa when it bought Stelco in 2007, it could face a multimillion-dollar fine or be forced to sell its Canadian assets.
http://www.canadianbusiness.com/article/58735--top-court-turns-down-u-s-steel-request-for-hearing-over-investment-canada-act
Wednesday, 23 November 2011
Canada Min: No Decision On Telecom Foreign Ownership Rules
NOVEMBER 23, 2011, 3:18 P.M. ET
OTTAWA (Dow Jones)--Canada's industry minister said Wednesday the government has yet to decide on whether to liberalize the country's foreign-ownership rules as they apply to the telecommunications sector.
"No decisions with regard to the upcoming spectrum auction or on investment have been made yet," Christian Paradis told legislators during the daily question-period session in parliament. "Once a decision is made ... we will announce it clearly and directly."
He was responding to rumors and published reports that the Canadian government could issue a decision shortly on the future of Canada's foreign investment rules for telecom. Any changes to the rules would likely be accompanied by guidelines governing the sale of much-vaunted 700 megahertz of wireless spectrum.
Canadian law dictates foreigners cannot control more than 46.7% of voting rights in a telecom concern.
Paradis is scheduled next week to deliver a keynote address at a major telecom conference in Ottawa
http://online.wsj.com/article/BT-CO-20111123-712723.html
OTTAWA (Dow Jones)--Canada's industry minister said Wednesday the government has yet to decide on whether to liberalize the country's foreign-ownership rules as they apply to the telecommunications sector.
"No decisions with regard to the upcoming spectrum auction or on investment have been made yet," Christian Paradis told legislators during the daily question-period session in parliament. "Once a decision is made ... we will announce it clearly and directly."
He was responding to rumors and published reports that the Canadian government could issue a decision shortly on the future of Canada's foreign investment rules for telecom. Any changes to the rules would likely be accompanied by guidelines governing the sale of much-vaunted 700 megahertz of wireless spectrum.
Canadian law dictates foreigners cannot control more than 46.7% of voting rights in a telecom concern.
Paradis is scheduled next week to deliver a keynote address at a major telecom conference in Ottawa
http://online.wsj.com/article/BT-CO-20111123-712723.html
Tuesday, 22 November 2011
Canada bans exports used in Iran's energy sector
By David Ljunggren, Reuters| November 22, 2011
Canada will immediately ban the export to Iran of all goods used in the petrochemical, oil and gas industry, as part of an international sanctions package, the government said on Monday.
Canada, the United States and Britain are limiting contacts with Tehran over concerns about Iran's nuclear program.
The ban on exports of goods to the energy sector will not apply to contracts entered into before November 22 this year, Foreign Minister John Baird said in a statement.
"Iran's current leaders blatantly ignore their international obligations. They obfuscate Iran's nuclear activities and they block any international attempt to verify the country's claims," he said.
"Canada will continue to work with the growing list of like-minded countries in a bid to limit the ability of Iran's rulers to further undermine peace, prosperity and stability."
Baird also said Canada would "block virtually all transactions with Iran, including those with the central bank", making an exception for Iranian-Canadians to send money back home.
http://www.vancouversun.com/business/Canada+bans+exports+used+Iran+energy+sector/5750265/story.html
Investment promotion pact with Canada near
Updated: 2011-11-22 07:56
By Zhou Yan and Chen Jia (China Daily)
BEIJING - The long-stalled negotiation of a foreign investment promotion and protection agreement (FIPA) between China and Canada is expected to be rounded off "very soon", which will significantly boost their trade, officials from both countries say.
China and Canada have reached consensus and have only a few details left to be discussed by the Ministry of Commerce and its Canadian counterparts, Zhang Junsai, China's ambassador to Canada, said on Monday on the sidelines of the Annual General Meeting & Policy Conference held by the Canada China Business Council.
The agreement will be signed soon, which will help beef up the "comprehensive" cooperation between the two countries, Zhang said, without giving a timeline.
David Mulroney, ambassador of Canada to China, said at the conference that the conclusion of the negotiations will be an important next step for the two countries.
China and Canada began negotiating the agreement in 1994, but made little progress for years.
Martin Cauchon, a partner in the Montreal-based law firm Gowlings LLP, said that the FIPA negotiations have gone through more than 20 rounds so far and a final agreement is expected within about six months.
The main objective of the negotiations is to guarantee a "high-standard agreement" regarding issues such as "national treatment, most-favored-nation treatment, minimum standard of treatment", according to the website of Foreign Affairs and International Trade Canada.
A government relationship is key to doing business in the two countries, said Cauchon. He added that the conclusion of FIPA will be a significant step forward for Sino-Canadian trade and investments.
Canada is shifting more focus toward the Asian market to expand trade, especially in the high-tech and resources sectors, according to Cauchon. There is large room for the growth of the mutually beneficial collaboration between the two countries, he said.
Canada's Minister of Finance Jim Flaherty visited China in November after the APEC summit and had talks with top Chinese authorities. He expressed his expectation that Canada will seek opportunities for more cooperation to further strengthen ties with the world's second-largest economy.
According to Ambassador Zhang, the bilateral trade value between China and Canada increased by 28 percent year-on-year in the first 10 months of this year. "The whole-year trade value is likely to reach a record high," he said.
China's direct investment into Canada had exceeded $20 billion as of the end of October, Zhang added. Besides investment into natural resources sectors, China has also increased investment into areas such as technology, finance, tourism and education.
According to figures from China National Petroleum Corp's (CNPC) research arm, as of October, about half of the total overseas investment of $10 billion made by Chinese oil companies went to Canada.
CNPC Chairman Jiang Jiemin said earlier this year that Canada and Australia will be the major expansion targets overseas for the country's biggest oil company.
http://www.chinadaily.com.cn/cndy/2011-11/22/content_14137706.htm
China Daily
(China Daily 11/22/2011 page17)
By Zhou Yan and Chen Jia (China Daily)
BEIJING - The long-stalled negotiation of a foreign investment promotion and protection agreement (FIPA) between China and Canada is expected to be rounded off "very soon", which will significantly boost their trade, officials from both countries say.
China and Canada have reached consensus and have only a few details left to be discussed by the Ministry of Commerce and its Canadian counterparts, Zhang Junsai, China's ambassador to Canada, said on Monday on the sidelines of the Annual General Meeting & Policy Conference held by the Canada China Business Council.
The agreement will be signed soon, which will help beef up the "comprehensive" cooperation between the two countries, Zhang said, without giving a timeline.
David Mulroney, ambassador of Canada to China, said at the conference that the conclusion of the negotiations will be an important next step for the two countries.
China and Canada began negotiating the agreement in 1994, but made little progress for years.
Martin Cauchon, a partner in the Montreal-based law firm Gowlings LLP, said that the FIPA negotiations have gone through more than 20 rounds so far and a final agreement is expected within about six months.
The main objective of the negotiations is to guarantee a "high-standard agreement" regarding issues such as "national treatment, most-favored-nation treatment, minimum standard of treatment", according to the website of Foreign Affairs and International Trade Canada.
A government relationship is key to doing business in the two countries, said Cauchon. He added that the conclusion of FIPA will be a significant step forward for Sino-Canadian trade and investments.
Canada is shifting more focus toward the Asian market to expand trade, especially in the high-tech and resources sectors, according to Cauchon. There is large room for the growth of the mutually beneficial collaboration between the two countries, he said.
Canada's Minister of Finance Jim Flaherty visited China in November after the APEC summit and had talks with top Chinese authorities. He expressed his expectation that Canada will seek opportunities for more cooperation to further strengthen ties with the world's second-largest economy.
According to Ambassador Zhang, the bilateral trade value between China and Canada increased by 28 percent year-on-year in the first 10 months of this year. "The whole-year trade value is likely to reach a record high," he said.
China's direct investment into Canada had exceeded $20 billion as of the end of October, Zhang added. Besides investment into natural resources sectors, China has also increased investment into areas such as technology, finance, tourism and education.
According to figures from China National Petroleum Corp's (CNPC) research arm, as of October, about half of the total overseas investment of $10 billion made by Chinese oil companies went to Canada.
CNPC Chairman Jiang Jiemin said earlier this year that Canada and Australia will be the major expansion targets overseas for the country's biggest oil company.
http://www.chinadaily.com.cn/cndy/2011-11/22/content_14137706.htm
China Daily
(China Daily 11/22/2011 page17)
Monday, 21 November 2011
WTO panel rules against U.S. country-of-origin labels
Posted by John Kalkowski -- Packaging Digest, 11/21/2011 9:59:15 AM
(c Associated Press)
The world's top trade body ruled last week that U.S. "country-of-origin" labels on cattle and hog exports from Canada and Mexico violate international rules, a move that could lower prices on those exports.
In late 2009, the Geneva-based World Trade Organization opened an investigation into U.S. labeling rules at the request of Canada and Mexico.
The "country of origin" labeling regulation took effect in 2008. Canada and Mexico each claimed their livestock industries were hurt by a sharp drop in U.S. cattle and hog imports because the labeling raised the costs and discouraged imports of their produce.
Under country-of-origin labeling, foreign cattle and pigs had to be segregated in U.S. feedlots and packing plants, prompting some firms to deal only with American livestock.
Foreign animals also were required to have more documentation about where they came from and, in the case of cattle, had to have tags that indicated they were free of mad-cow disease.
Mexico joined Canada in opposing the country-of-origin labeling for fresh beef and pork by filing a trade complaint. The WTO panel said Friday that Canadian and Mexican livestock imports got "treatment less favorable than" U.S. domestic livestock.
The U.S. trade representative's office said it was considering all options, including appealing the decision. The Washington-based advocacy group Public Citizen denounced the ruling as another ill-advised WTO move against popular U.S. consumer and environmental measures, like the WTO's decisions on U.S. "dolphin-safe" labels and on a U.S. ban on some candy and flavored cigarettes.
Lori Wallach, director of the group's Global Trade Watch program, said the latest ruling would see "major agribusiness corporations being free to sell mystery meat in the United States" without adequate safeguards.
Canada, whose biggest foreign market for cattle and hogs is the United States, said its cattle exports dropped 23% and its hog exports dropped 36% from 2007 to 2009. Mexico also said its cattle exports to the United States - worth more than half a billion dollars a year - were hurt unfairly by what it called the "protectionist" labeling.
http://www.packagingdigest.com/article/520091-WTO_panel_rules_against_U_S_country_of_origin_labels.php
The world's top trade body ruled last week that U.S. "country-of-origin" labels on cattle and hog exports from Canada and Mexico violate international rules, a move that could lower prices on those exports.
In late 2009, the Geneva-based World Trade Organization opened an investigation into U.S. labeling rules at the request of Canada and Mexico.
The "country of origin" labeling regulation took effect in 2008. Canada and Mexico each claimed their livestock industries were hurt by a sharp drop in U.S. cattle and hog imports because the labeling raised the costs and discouraged imports of their produce.
Under country-of-origin labeling, foreign cattle and pigs had to be segregated in U.S. feedlots and packing plants, prompting some firms to deal only with American livestock.
Foreign animals also were required to have more documentation about where they came from and, in the case of cattle, had to have tags that indicated they were free of mad-cow disease.
Mexico joined Canada in opposing the country-of-origin labeling for fresh beef and pork by filing a trade complaint. The WTO panel said Friday that Canadian and Mexican livestock imports got "treatment less favorable than" U.S. domestic livestock.
The U.S. trade representative's office said it was considering all options, including appealing the decision. The Washington-based advocacy group Public Citizen denounced the ruling as another ill-advised WTO move against popular U.S. consumer and environmental measures, like the WTO's decisions on U.S. "dolphin-safe" labels and on a U.S. ban on some candy and flavored cigarettes.
Lori Wallach, director of the group's Global Trade Watch program, said the latest ruling would see "major agribusiness corporations being free to sell mystery meat in the United States" without adequate safeguards.
Canada, whose biggest foreign market for cattle and hogs is the United States, said its cattle exports dropped 23% and its hog exports dropped 36% from 2007 to 2009. Mexico also said its cattle exports to the United States - worth more than half a billion dollars a year - were hurt unfairly by what it called the "protectionist" labeling.
http://www.packagingdigest.com/article/520091-WTO_panel_rules_against_U_S_country_of_origin_labels.php
Saturday, 19 November 2011
Canada’s innovation window of opportunity
November 19th/2011
BARRIE McKENNA - The Globe and Mail
Canada boasts a stable government, sound finances, boundless resources and an educated work force. But for all of those strengths, there’s a dirty little secret about our economy.
We are underperformers – not compared with our overindebted G7 compatriots but compared with our economic potential. Canada’s record on productivity is poor, and the country suffers from a chronic innovation gap. Outside of the mining and energy sectors, the list of Canadian companies making a meaningful impact on a global stage is exceedingly short. The most innovative one of all, Research In Motion Ltd. of Waterloo, Ont., has been put on the defensive by foreign competitors that have been stealing market share with products that are more cutting-edge than the BlackBerry.
But with the threat of a decade of stagnation hanging over the global economy, there’s a campaign under way to revive some neglected ideas to make Canada a much more competitive place – and to do it now.
The sense of urgency is driven by a number of factors. One is the economic and political dysfunction of our largest trading partner, the United States, which is still hobbled by the after-effects of a consumer debt binge and a banking crisis. Another is the changed political climate of Ottawa since voters granted the Conservatives a majority in the May election. For the first time since 2004, a government can tackle some difficult economic problems, and make policy shifts, without fear of triggering an election.
Putting Canada on a more competitive footing will likely mean diversifying trade links beyond the U.S., converting corporate profits into world-beating innovation and pursuing big infrastructure projects. It also means welcoming more foreign investment from places such as China and the Middle East and deregulating a host of stodgy pre-Internet industries, such as telecommunications, cable and transportation.
“Anybody who asks me, I tell him look, we are the stupid investors that poured a billion dollars into Canada here and created 1,000 new jobs, please don’t do this mistake. Don’t come here,” Mr. Sawiris said. He also drew a direct link between the long-standing federal policy of limiting foreign investment and the lack of global presence of Canada’s major telcos.
A push for reform
In 2008, an expert panel set up by the Harper government to examine Canada’s competitiveness recommended a major shift in Ottawa’s approach to telecom, in favour of opening it up to far more foreign investment.
Three and half years later, the chairman of that panel, Red Wilson, looks back on his effort with a mixture of pride and regret. Pride because his panel’s findings are just as relevant today as they were then. But it’s tinged with disappointment because most of the 65 recommendations, including the one on foreign ownership of telecom companies, remain on the shelf even as the country’s innovation and productivity performance sputters.
“It’s fair enough for people to talk about all these things,” Mr. Wilson said. “But you’ve got to get some political initiative here. That’s the groundswell that’s still not there.”
The lead federal minister on the file – Industry Minister Christian Paradis – has promised to take a fresh look at the report. “We will continue to look to the panel report for inspiration in bringing forward further proposals,” spokesman Pascal Boulay said.
“The whole dynamic in Ottawa has changed. The [Harper government] no longer has to negotiate, item by item, with three opposition parties. They government is carrying the ball. They initiate and they can complete.”
The flurry of talk about competitiveness and innovation is carefully timed to coincide with the government’s preparations for its first budget with a secure majority, expected as early as February.
“There’s pent-up demand,” agreed David Stewart-Patterson, vice-president of public policy at the Conference Board of Canada, an independent think tank. “For six years, there was no opportunity to explore long-term strategic thinking at the federal level. That’s the political window.”
“We can’t have it both ways,” he wrote. “We either protect or we compete.”
That means rewarding companies that generate profits from their R&D and then offsetting part of their tax burden with credits. “Creating profits, that’s what we want to encourage,” he said
http://www.ctv.ca/generic/generated/static/business/article2242078.html
BARRIE McKENNA - The Globe and Mail
Canada boasts a stable government, sound finances, boundless resources and an educated work force. But for all of those strengths, there’s a dirty little secret about our economy.
We are underperformers – not compared with our overindebted G7 compatriots but compared with our economic potential. Canada’s record on productivity is poor, and the country suffers from a chronic innovation gap. Outside of the mining and energy sectors, the list of Canadian companies making a meaningful impact on a global stage is exceedingly short. The most innovative one of all, Research In Motion Ltd. of Waterloo, Ont., has been put on the defensive by foreign competitors that have been stealing market share with products that are more cutting-edge than the BlackBerry.
Were it not for an abundance of commodities that developing countries are demanding right now, such as potash and oil, our economic growth would be far weaker than it is.
But with the threat of a decade of stagnation hanging over the global economy, there’s a campaign under way to revive some neglected ideas to make Canada a much more competitive place – and to do it now.
The sense of urgency is driven by a number of factors. One is the economic and political dysfunction of our largest trading partner, the United States, which is still hobbled by the after-effects of a consumer debt binge and a banking crisis. Another is the changed political climate of Ottawa since voters granted the Conservatives a majority in the May election. For the first time since 2004, a government can tackle some difficult economic problems, and make policy shifts, without fear of triggering an election.
Putting Canada on a more competitive footing will likely mean diversifying trade links beyond the U.S., converting corporate profits into world-beating innovation and pursuing big infrastructure projects. It also means welcoming more foreign investment from places such as China and the Middle East and deregulating a host of stodgy pre-Internet industries, such as telecommunications, cable and transportation.
Such a campaign has a long way to go – as is highlighted by the comments of foreign investors like Naguib Sawiris, the Egyptian telecommunications tycoon. It was his money, controversially, that helped fund the startup of Wind Mobile in this country. In an interview with The Globe and Mail this week, he blamed Ottawa’s telecommunications policy for making it harder for new wireless companies to establish themselves.
“Anybody who asks me, I tell him look, we are the stupid investors that poured a billion dollars into Canada here and created 1,000 new jobs, please don’t do this mistake. Don’t come here,” Mr. Sawiris said. He also drew a direct link between the long-standing federal policy of limiting foreign investment and the lack of global presence of Canada’s major telcos.
“If they were that good, why are they just in Canada here? Why don’t we have Rogers in the U.K. or Germany? Why is Vodafone everywhere? Why is France Télécom everywhere? And this national champion Rogers is only in Canada? Because only in Canada it gets pampered and it can kill its competitors.”
A push for reform
In 2008, an expert panel set up by the Harper government to examine Canada’s competitiveness recommended a major shift in Ottawa’s approach to telecom, in favour of opening it up to far more foreign investment.
Three and half years later, the chairman of that panel, Red Wilson, looks back on his effort with a mixture of pride and regret. Pride because his panel’s findings are just as relevant today as they were then. But it’s tinged with disappointment because most of the 65 recommendations, including the one on foreign ownership of telecom companies, remain on the shelf even as the country’s innovation and productivity performance sputters.
“I was happy to see some of the things implemented. Others are still hanging,” Mr. Wilson, the 71-year-old former chairman of BCE Inc., says diplomatically.
He also laments that Ottawa never embraced his call to create a dedicated competition advocate to track the country’s progress on key measures such as productivity and to hold decision makers to account. General Electric chairman Jeffrey Immelt recently took on a similar post for U.S. President Barack Obama.
But Mr. Wilson’s agenda has plenty of converts. Bank of Canada Governor Mark Carney is talking up productivity at every opportunity – in speeches and private chats with chief executives. Software executive Tom Jenkins is out pushing his report on spurring innovation with an overhaul of federal research and development spending. And several eminent former ministers, top bureaucrats and policy experts, including Michael Wilson and John Manley, are prodding the Harper government to mount an ambitious economic agenda.
“It’s fair enough for people to talk about all these things,” Mr. Wilson said. “But you’ve got to get some political initiative here. That’s the groundswell that’s still not there.”
The lead federal minister on the file – Industry Minister Christian Paradis – has promised to take a fresh look at the report. “We will continue to look to the panel report for inspiration in bringing forward further proposals,” spokesman Pascal Boulay said.
What the campaign has going for it is a rare window of opportunity to complete an ambitious agenda. Canada’s fiscal position is relatively sound and its economy is healthier than most in the industrialized world. And for the first time in seven years, the country has a government stable enough to carry out even unpopular policies.
“It’s one of those rare times that Canada starts out with a policy advantage compared to most countries,” remarked former Liberal cabinet minister John Manley, who speaks for the heads of the country’s largest companies as president the Canadian Council of Chief Executives.
“The whole dynamic in Ottawa has changed. The [Harper government] no longer has to negotiate, item by item, with three opposition parties. They government is carrying the ball. They initiate and they can complete.”
Pushing ahead with deregulation and trade need not cost much. Indeed, in an environment of fiscal restraint, policies that come with small price tags are more likely to get done, Mr. Manley explained.
“The whole challenge at a time like this is to do the things that are going to pay off, that are going to create economic activity and jobs,” he said.
The flurry of talk about competitiveness and innovation is carefully timed to coincide with the government’s preparations for its first budget with a secure majority, expected as early as February.
And a majority government’s first budget is traditionally the time to launch big and potentially controversial ideas.
“There’s pent-up demand,” agreed David Stewart-Patterson, vice-president of public policy at the Conference Board of Canada, an independent think tank. “For six years, there was no opportunity to explore long-term strategic thinking at the federal level. That’s the political window.”
The cost of poor productivity
There’s a lot of work to do and a compelling reason to do it. Poor productivity is not just a theoretical problems. It saps government tax revenues and destroys wealth. The University of Toronto’s Institute for Competitiveness and Prosperity has estimated that low productivity costs Ottawa $112-billion a year in lost tax revenue. That’s money that isn’t available for health care, highways, tax cuts or investing in R&D. Poor productivity is also eroding Canadians’ prosperity. Per capita gross domestic product is a measure of the value created by workers and companies, and Canada has been steadily losing ground to its closest trading partner, the United States. In 2010, GDP per capita was $47,500 in Canada and $57,000 in the U.S. – a gap of $9,500. Three decades ago the gap was less than $3,000.
When the Canadian dollar was low in the 1990s, companies could mask their poor productivity – it made exports more competitive. But that’s no longer possible with a dollar that many economists believe could stay at or near par for years.
A key reason for Canada’s lagging productivity is that government regulation shields companies in some industries from global competition, Open Text Corp. chairman Tom Jenkins argued in a recent paper for the Institute for Research in Public Policy. The result is that Canadian cable providers, phone companies and airlines have little incentive to become more efficient because they can generate better returns simply by charging customer more, rather than becoming better at what they do. And those costs are passed along to Canadians.
“We can’t have it both ways,” he wrote. “We either protect or we compete.”
Mr. Jenkins, who recently chaired a federal panel investigating federal R&D incentives, applied a similar logic in recommending an overhaul of the generous tax breaks that Ottawa offers companies to do research. Offering billions of dollars in cash rebates to small companies that aren’t profitable may create jobs for scientists, but it doesn’t necessarily drive innovation or create wealth, he pointed out in a recent interview.
“The closer we can get to rewarding the outcome instead of the input, the better,” he said.
That means rewarding companies that generate profits from their R&D and then offsetting part of their tax burden with credits. “Creating profits, that’s what we want to encourage,” he said
http://www.ctv.ca/generic/generated/static/business/article2242078.html
Thursday, 17 November 2011
Wind Mobile backer threatens boycott of wireless auction
By: Iain Marlow and Rita Trichur
From Friday's Globe and Mail
Published Thursday, Nov. 17, 2011 7:06PM EST
The Egyptian billionaire who backs Wind Mobile has threatened to pull out of a coming government auction of wireless licences unless Ottawa sets some aside for new competitors and clarifies foreign ownership rules.
Naguib Sawiris, the brash telecom mogul who started an Egyptian political party after the revolution there, says he was misled by the Canadian government, regrets “totally” his decision to invest here and tells other international financiers not to invest in Canada.“I tell you we will not bid – unless they set aside the frequencies, unless they really show seriousness that they want to create competition,” Mr. Sawiris told The Globe and Mail’s editorial board Thursday. “But to say, ‘We want to create competition, we want your money.’ They take our money and they leave us to the dogs.”
In 2008, Mr. Sawiris bankrolled Wind’s chairman Anthony Lacavera to buy $442-million in government wireless licences, and then pumped hundreds of millions more into building a wireless network in major Canadian cities.
Canada’s wireless prices have dropped precipitously over all since Wind and other new entrants such as Mobilicity and Public Mobile launched and began offering cheaper plans than the incumbent providers. But the government now faces the possibility that Wind – the largest and most visible new entrant – might abandon wireless altogether, eroding Ottawa’s attempt to introduce competition into the Canadian telecommunications sector.
Wind’s lawyers have been tied up in courts ever since the company’s launch, defending Wind from accusations that Mr. Sawiris’s firm Orascom Telecom Holding – which has since merged with the Russian carrier VimpelCom Ltd., in which he’s now a major shareholder – exerted too much control.
The case has wound its way all the way to the Supreme Court, which has not yet decided whether to hear it.
“Anybody who asks me, I tell him, ‘Look, we are the stupid investors that poured a billion dollars into Canada here and created 1,000 new jobs, please don’t do this mistake. Don’t come here,’” Mr. Sawiris said. When asked whether he regretted his decision, he added, “Totally. I would actually, if they would give me my money back, minus 10 per cent, I would take it any day.”
Industry Canada responded that “foreign investment rules are being considered together with policies for upcoming wireless spectrum auctions,” as part of an “integrated approach.” It has yet to announce a policy on the auction of wireless licences expected to take place in 2012.
Michael Hennessy, senior vice-president for government and regulatory affairs at Telus Corp., (T-T52.97-0.24-0.45%) characterized Mr. Sawiris’s comments as “blackmail by media,” and “fundamentally wrong ... on the premise that it has to be either/or; that you either have a set-aside or three carriers will end up with everything.”
He said Telus has favoured an open auction for licences, but also supports a process whereby the number of licences any one company can buy would be capped.
Mobilicity chairman John Bitove said new wireless competitors will die off without government help because they cannot bid against the giants without licences set aside.
“The government helped birth these new entrants and if they don’t find a way to sustain our growth through the auction, it’s like throwing babies in the bathtub and turning the water on.”
Mr. Sawiris, who expanded Orascom Telecom in the Middle East and Africa, insinuated his Canadian rivals were coddled by foreign ownership restrictions.
“You have the most inefficient operators in the world. And why are they like that? If they were that good, why are they just in Canada here?” he asked. “Why don’t we have Rogers in the U.K. or Germany? Why is Vodafone everywhere? Why is France Telecom everywhere?”
Rogers Communications Inc.’s senior vice-president for regulatory affairs, Ken Engelhart, dismissed Mr. Sawiris’ criticism that Rogers is inefficient and said the company once operated a U.S. cable business but sold it in 1989 to invest further in Canada’s wireless sector. “The fact that we are very efficient is one reason why I think [Wind] and the other new entrants are finding it so difficult to compete in Canada.”
http://www.theglobeandmail.com/news/technology/tech-news/wind-mobile-backer-threatens-boycott-of-wireless-auction/article2240368/
From Friday's Globe and Mail
Published Thursday, Nov. 17, 2011 7:06PM EST
The Egyptian billionaire who backs Wind Mobile has threatened to pull out of a coming government auction of wireless licences unless Ottawa sets some aside for new competitors and clarifies foreign ownership rules.
Naguib Sawiris, the brash telecom mogul who started an Egyptian political party after the revolution there, says he was misled by the Canadian government, regrets “totally” his decision to invest here and tells other international financiers not to invest in Canada.“I tell you we will not bid – unless they set aside the frequencies, unless they really show seriousness that they want to create competition,” Mr. Sawiris told The Globe and Mail’s editorial board Thursday. “But to say, ‘We want to create competition, we want your money.’ They take our money and they leave us to the dogs.”
In 2008, Mr. Sawiris bankrolled Wind’s chairman Anthony Lacavera to buy $442-million in government wireless licences, and then pumped hundreds of millions more into building a wireless network in major Canadian cities.
Canada’s wireless prices have dropped precipitously over all since Wind and other new entrants such as Mobilicity and Public Mobile launched and began offering cheaper plans than the incumbent providers. But the government now faces the possibility that Wind – the largest and most visible new entrant – might abandon wireless altogether, eroding Ottawa’s attempt to introduce competition into the Canadian telecommunications sector.
Wind’s lawyers have been tied up in courts ever since the company’s launch, defending Wind from accusations that Mr. Sawiris’s firm Orascom Telecom Holding – which has since merged with the Russian carrier VimpelCom Ltd., in which he’s now a major shareholder – exerted too much control.
The case has wound its way all the way to the Supreme Court, which has not yet decided whether to hear it.
“Anybody who asks me, I tell him, ‘Look, we are the stupid investors that poured a billion dollars into Canada here and created 1,000 new jobs, please don’t do this mistake. Don’t come here,’” Mr. Sawiris said. When asked whether he regretted his decision, he added, “Totally. I would actually, if they would give me my money back, minus 10 per cent, I would take it any day.”
Industry Canada responded that “foreign investment rules are being considered together with policies for upcoming wireless spectrum auctions,” as part of an “integrated approach.” It has yet to announce a policy on the auction of wireless licences expected to take place in 2012.
Michael Hennessy, senior vice-president for government and regulatory affairs at Telus Corp., (T-T52.97-0.24-0.45%) characterized Mr. Sawiris’s comments as “blackmail by media,” and “fundamentally wrong ... on the premise that it has to be either/or; that you either have a set-aside or three carriers will end up with everything.”
He said Telus has favoured an open auction for licences, but also supports a process whereby the number of licences any one company can buy would be capped.
Mobilicity chairman John Bitove said new wireless competitors will die off without government help because they cannot bid against the giants without licences set aside.
“The government helped birth these new entrants and if they don’t find a way to sustain our growth through the auction, it’s like throwing babies in the bathtub and turning the water on.”
Mr. Sawiris, who expanded Orascom Telecom in the Middle East and Africa, insinuated his Canadian rivals were coddled by foreign ownership restrictions.
“You have the most inefficient operators in the world. And why are they like that? If they were that good, why are they just in Canada here?” he asked. “Why don’t we have Rogers in the U.K. or Germany? Why is Vodafone everywhere? Why is France Telecom everywhere?”
Rogers Communications Inc.’s senior vice-president for regulatory affairs, Ken Engelhart, dismissed Mr. Sawiris’ criticism that Rogers is inefficient and said the company once operated a U.S. cable business but sold it in 1989 to invest further in Canada’s wireless sector. “The fact that we are very efficient is one reason why I think [Wind] and the other new entrants are finding it so difficult to compete in Canada.”
http://www.theglobeandmail.com/news/technology/tech-news/wind-mobile-backer-threatens-boycott-of-wireless-auction/article2240368/
Foreigners buy Canadian securities in Sept
Nov 17 (Reuters) - Foreign investment in Canadian securities continued in September as nonresidents purchased C$7.35 billion ($7.18 billion) of Canadian instruments, compared to C$8.22 billion in August, led by federal Treasury bills, Statistics Canada said Thursday. Canadian investors bought C$718 million worth of securities abroad in September, down from C$2.05 billion in August, and continued to focus on the purchase of foreign stocks. Net foreign investment in Canadian securities (blns of Canadian dollars) Sept Aug(rev) Aug(prev) Total +7.350 +8.215 +7.920 Bonds -0.612 +6.011 +6.007 Stocks +0.721 +0.597 +0.306 Money markets +7.241 +1.607 +1.607 Net Canadian investment in foreign securities (blns of Canadian dollars) Sept Aug(rev) Aug(prev) Total -0.718 -2.049 -2.049 Bonds +0.469 +1.399 +1.399 Stocks -1.337 -3.680 -3.680 Money markets +0.151 +0.232 +0.232 NOTE: A minus sign indicates an outflow of money from Canada, for instance a withdrawal of foreign investment from Canada or an increase in Canadian investment abroad.)
http://www.bloomberg.com/news/2011-11-17/canada-september-international-securities-transactions-text-.html
Foreign buyers boost Canadian securities; Canucks slow foreign investment
By The Canadian Press | November 17, 2011
OTTAWA - Foreign investors added $7.4 billion of Canadian securities to their holdings in September, led by acquisitions of federal treasury bills.
Statistics Canada reports Canadian investment in foreign securities slowed to $718 million and remained focused on foreign stocks.
Non-residents acquired $7.2 billion of Canadian short-term securities in September, just short of the $7.4-billion high of July 2011.
For the third quarter, non-residents' investment in Canadian money market instruments was $16.2 billion, surpassing the high of $9.9 billion in the fourth quarter of 2008.
Non-residents removed $612 million from their holdings of Canadian bonds in September, following a $6-billion acquisition in August.
Canadian investors added $1.3 billion of foreign stocks to their portfolios, led by acquisitions of U.S. corporate shares.
Canadian investors reduced their holdings of foreign bonds by $469 million, mostly U.S. corporate bonds.
Canadians also reduced their holdings of foreign money market instruments by $151 million in September, all U.S. treasury bills.
http://www.canadianbusiness.com/article/57612--foreign-buyers-boost-canadian-securities-canucks-slow-foreign-investment
Tuesday, 15 November 2011
Tories move to enact free-trade deals with Jordan, Panama
By: Steven Chase
November 15th, 2011
The Harper government has introduced bills to enact free-trade deals with countries in the Middle East and Central America, part of a mad scramble to sew up preferential commercial relationships and spur economic growth.
International Trade Minister Ed Fast tabled legislation Tuesday that would implement trade liberalization agreements with Panama and Jordan.
“Free-trade agreements with Jordan and Panama are a key part of our government’s job-creating, pro-trade plan to protect and increase the prosperity of hard-working Canadians,” Mr. Fast said.
Existing trade with Jordan and Panama is paltry compared to commerce between Canada and the United States but the Harper government has taken an every-bit-counts approach to opening new markets.
The Conservatives have yet to sign a major trade deal, however, and talks underway to strike agreements with the European Union and India will be major tests of its ability to secure new opportunities for Canadian business.
Global efforts to sign a multi-country deal through the World Trade Organization have stumbled since 2003 and in recent years individual countries have instead hurried to ink one-on-one agreements that give each other special access to their markets.
Free-trade agreements with Jordan and Panama were signed back in June 2009 and May 2010 respectively and the new legislation will make them law.
In 2010, two-way merchandise trade between Canada and Panama totalled $213.7-million. That same year, bilateral goods trade between Canada and Jordan totalled $86-million.
After coming into force, the Canada-Jordan deal will eliminate tariffs on the vast majority of Canadian exports to Jordan. Key sectors that will benefit from duty-free access to the Jordanian market include forestry and manufacturing, as well as agricultural products and agri-foods such as frozen potato products and beef.
Similarly, the Canada-Panama agreement will cancel tariffs on over 99 per cent of Canadian non-agriculture exports. Investment provisions in the deal will increase protections for Canadian investors in Panama.
Plus, Canadians will be able to bid on Panama's government procurement market, including the $5.4-billion expansion of the Panama Canal.
In less than six years, the Harper government has concluded six free trade agreements with nine countries including Colombia, Honduras, Jordan, Panama, Peru and the European Free Trade Association states of Iceland, Liechtenstein, Norway and Switzerland.
http://www.theglobeandmail.com/news/politics/ottawa-notebook/tories-move-to-enact-free-trade-deals-with-jordan-panama/article2236773/
November 15th, 2011
The Harper government has introduced bills to enact free-trade deals with countries in the Middle East and Central America, part of a mad scramble to sew up preferential commercial relationships and spur economic growth.
International Trade Minister Ed Fast tabled legislation Tuesday that would implement trade liberalization agreements with Panama and Jordan.
“Free-trade agreements with Jordan and Panama are a key part of our government’s job-creating, pro-trade plan to protect and increase the prosperity of hard-working Canadians,” Mr. Fast said.
Existing trade with Jordan and Panama is paltry compared to commerce between Canada and the United States but the Harper government has taken an every-bit-counts approach to opening new markets.
The Conservatives have yet to sign a major trade deal, however, and talks underway to strike agreements with the European Union and India will be major tests of its ability to secure new opportunities for Canadian business.
Global efforts to sign a multi-country deal through the World Trade Organization have stumbled since 2003 and in recent years individual countries have instead hurried to ink one-on-one agreements that give each other special access to their markets.
Free-trade agreements with Jordan and Panama were signed back in June 2009 and May 2010 respectively and the new legislation will make them law.
In 2010, two-way merchandise trade between Canada and Panama totalled $213.7-million. That same year, bilateral goods trade between Canada and Jordan totalled $86-million.
After coming into force, the Canada-Jordan deal will eliminate tariffs on the vast majority of Canadian exports to Jordan. Key sectors that will benefit from duty-free access to the Jordanian market include forestry and manufacturing, as well as agricultural products and agri-foods such as frozen potato products and beef.
Similarly, the Canada-Panama agreement will cancel tariffs on over 99 per cent of Canadian non-agriculture exports. Investment provisions in the deal will increase protections for Canadian investors in Panama.
Plus, Canadians will be able to bid on Panama's government procurement market, including the $5.4-billion expansion of the Panama Canal.
In less than six years, the Harper government has concluded six free trade agreements with nine countries including Colombia, Honduras, Jordan, Panama, Peru and the European Free Trade Association states of Iceland, Liechtenstein, Norway and Switzerland.
http://www.theglobeandmail.com/news/politics/ottawa-notebook/tories-move-to-enact-free-trade-deals-with-jordan-panama/article2236773/
Monday, 14 November 2011
No guarantees on Pacific trade, despite Harper's 180
Laura Dawson
Special to Globe and Mail Update
Published Monday, Nov. 14, 2011 3:04PM EST
All it took, apparently, was a 25-minute walk with U.S. President Barack Obama in the gardens of Kapolei, Hawaii, for Prime Minister Stephen Harper to swing 180 degrees on the Trans-Pacific Partnership trade negotiations. The change was so abrupt that even International Trade Minister Ed Fast seems to have been caught unaware. Just the day before, Mr. Fast had declared that Canada was unwilling to move on a deal that did not let Canada keep its prohibitive tariffs on foreign dairy and poultry imports. But face-to-face meetings at the Hawaiian APEC session have apparently increased the Prime Minister’s confidence that Canada can meet the negotiating criteria.
What has changed? Has a majority government given Mr. Harper the mojo to dismantle Canada’s expensive but politically powerful supply-management system? Have the TPP parties lowered the bar from a year ago, when they told Canada it was “not ready” to join the agreement? Or has the growth of Asian markets, the failure of Doha and the addition of Japan and Mexico to the negotiations made the TPP too important for Canada to ignore?
All three are probably true to some extent. Mr. Harper must keep in mind that wishing does not make it so. Canada’s attempts to join the negotiations in late 2010 were rebuffed. New Zealand made no secret of the fact that it did not want Canada arguing in favour of restrictive dairy policies at the same negotiating table where it was trying to gain access to the lucrative U.S. dairy market. The United States, while not overtly opposed to Canada’s membership, was given little reason to advocate on its behalf with the other TPP parties, especially since Ottawa was showing little progress on upgrades to copyright legislation – an issue of high importance to Washington.
The original Trans-Pacific Strategic Economic Partnership Agreement was signed by Brunei, Chile, New Zealand and Singapore in 2005. Canada was invited to join negotiations, but declined them as small stuff. Five additional countries – Australia, Malaysia, Peru, the United States and Vietnam – were accepted by the original four to begin negotiations on an expanded agreement in 2010. The current nine negotiating parties account for about 28 per cent of global GDP. Before the weekend APEC meeting, Japan announced its willingness to roll back its agricultural supports in order to participate in the TPP talks, and Mexico also asked to join. There is speculation that South Korea and the Philippines may not be far behind.
The TPP is Canada’s best hope for short-term access to vital emerging markets in Southeast Asia. Canada has tried and failed to get a trade deal with South Korea, and the sclerotic negotiations with China for an investment protection agreement have stretched beyond seven years. But the TPP is not just about Asia; it is also about Canada’s relations with the United States and the importance of maintaining a competitive North American trading bloc within Asian and global markets. Secretary of State Hillary Clinton announced last month that the United States is embracing the Pacific century; ramped-up trade and investment agreements with Asia are top priority. If Canada is not at the table when the United States is negotiating the terms of its future economic relations in Asia, Canada will soon find itself passed over for foreign investment, paying too much for market access and governed by trade rules we had no hand in negotiating.
Mr. Harper’s sudden turnaround will not guarantee Canada a seat at the TPP table. The Department of Foreign Affairs tried this in 2010, when it sent a senior official to “observe” the negotiations in Brunei, hoping for an invitation that never came. Canada has failed to forcefully push the case that U.S. interests in Asia are better served with Canada at America’s side. Although Mr. Harper seems confident of a U.S. invitation, yesterday’s White House announcement simply says that that the U.S. negotiating team will “continue talks with [others] who have expressed interest.” Hardly a green light.
Canada gave up too soon last year. It failed to launch a serious advocacy campaign in the United States and it did little to build support and minimize opposition from other TPP negotiating parties, particularly Australia – a potential ally – and New Zealand.
If Canada is going to get a real seat at the table, it must be willing to show flexibility on issues of interest to key trading partners. It must also convince potential U.S. allies of the importance of a united front at the TPP on issues of importance to North American businesses and consumers.
http://www.theglobeandmail.com/news/opinions/opinion/no-guarantees-on-pacific-trade-despite-harpers-180/article2235760/
Special to Globe and Mail Update
Published Monday, Nov. 14, 2011 3:04PM EST
All it took, apparently, was a 25-minute walk with U.S. President Barack Obama in the gardens of Kapolei, Hawaii, for Prime Minister Stephen Harper to swing 180 degrees on the Trans-Pacific Partnership trade negotiations. The change was so abrupt that even International Trade Minister Ed Fast seems to have been caught unaware. Just the day before, Mr. Fast had declared that Canada was unwilling to move on a deal that did not let Canada keep its prohibitive tariffs on foreign dairy and poultry imports. But face-to-face meetings at the Hawaiian APEC session have apparently increased the Prime Minister’s confidence that Canada can meet the negotiating criteria.
What has changed? Has a majority government given Mr. Harper the mojo to dismantle Canada’s expensive but politically powerful supply-management system? Have the TPP parties lowered the bar from a year ago, when they told Canada it was “not ready” to join the agreement? Or has the growth of Asian markets, the failure of Doha and the addition of Japan and Mexico to the negotiations made the TPP too important for Canada to ignore?
All three are probably true to some extent. Mr. Harper must keep in mind that wishing does not make it so. Canada’s attempts to join the negotiations in late 2010 were rebuffed. New Zealand made no secret of the fact that it did not want Canada arguing in favour of restrictive dairy policies at the same negotiating table where it was trying to gain access to the lucrative U.S. dairy market. The United States, while not overtly opposed to Canada’s membership, was given little reason to advocate on its behalf with the other TPP parties, especially since Ottawa was showing little progress on upgrades to copyright legislation – an issue of high importance to Washington.
The original Trans-Pacific Strategic Economic Partnership Agreement was signed by Brunei, Chile, New Zealand and Singapore in 2005. Canada was invited to join negotiations, but declined them as small stuff. Five additional countries – Australia, Malaysia, Peru, the United States and Vietnam – were accepted by the original four to begin negotiations on an expanded agreement in 2010. The current nine negotiating parties account for about 28 per cent of global GDP. Before the weekend APEC meeting, Japan announced its willingness to roll back its agricultural supports in order to participate in the TPP talks, and Mexico also asked to join. There is speculation that South Korea and the Philippines may not be far behind.
The TPP is Canada’s best hope for short-term access to vital emerging markets in Southeast Asia. Canada has tried and failed to get a trade deal with South Korea, and the sclerotic negotiations with China for an investment protection agreement have stretched beyond seven years. But the TPP is not just about Asia; it is also about Canada’s relations with the United States and the importance of maintaining a competitive North American trading bloc within Asian and global markets. Secretary of State Hillary Clinton announced last month that the United States is embracing the Pacific century; ramped-up trade and investment agreements with Asia are top priority. If Canada is not at the table when the United States is negotiating the terms of its future economic relations in Asia, Canada will soon find itself passed over for foreign investment, paying too much for market access and governed by trade rules we had no hand in negotiating.
Mr. Harper’s sudden turnaround will not guarantee Canada a seat at the TPP table. The Department of Foreign Affairs tried this in 2010, when it sent a senior official to “observe” the negotiations in Brunei, hoping for an invitation that never came. Canada has failed to forcefully push the case that U.S. interests in Asia are better served with Canada at America’s side. Although Mr. Harper seems confident of a U.S. invitation, yesterday’s White House announcement simply says that that the U.S. negotiating team will “continue talks with [others] who have expressed interest.” Hardly a green light.
Canada gave up too soon last year. It failed to launch a serious advocacy campaign in the United States and it did little to build support and minimize opposition from other TPP negotiating parties, particularly Australia – a potential ally – and New Zealand.
If Canada is going to get a real seat at the table, it must be willing to show flexibility on issues of interest to key trading partners. It must also convince potential U.S. allies of the importance of a united front at the TPP on issues of importance to North American businesses and consumers.
http://www.theglobeandmail.com/news/opinions/opinion/no-guarantees-on-pacific-trade-despite-harpers-180/article2235760/
New deal eases free trade hurdles, work restrictions for India, Canada
Postmedia News Nov 14, 2011 – 8:24 PM ET
By Lee Berthiaume
OTTAWA — Canada and India are on the verge of signing an agreement that would make it easier and more financially viable for thousands of Indian professionals to work here, and vice versa.
The agreement also eliminates a significant hurdle to free trade talks between the two countries, which the Conservative government has pledged to complete by 2013.
The Agreement on Social Security has been in negotiations since 2009 and has been considered a key ask for the Indian side as Canada tries to cozy up with the emerging economic power.
Cabinet last month gave Foreign Affairs Minister John Baird permission to sign the agreement on behalf of the government, according to an order-in-council published on Oct. 27.
Under the agreement, Indians working in Canada on temporary visas and making social security and pension contributions back to India would be exempt from making similar contributions here.
The same will be true for Canadians working in India, who will only pay the Canadian government.
An official with Citizenship and Immigration Canada said there were more than 14,000 Indians working in Canada at the end of 2010.
Indian deputy high commissioner to Canada Narinder Chauhan said she expects that number to increase once the social security agreement is signed.
“Lots of Indian professionals are coming into Canada,” she said, “and this agreement actually facilitates the movement of those professionals.”
The same will be true of Canadians working in India, she added.
“So we are just basically looking at an opportune moment to sign it,” she said.
Puneet Kohli, vice-president of the Indo-Canada Chamber of Commerce, said the agreement is very important for Indian companies who want to expand into Canada, and its successful conclusion would represent a big step in the Conservative government’s effort to bring the two countries closer together economically.
“It’s one of those important steps toward achieving that ultimate goal, which is a formal free trade agreement,” he said.
Canada and India recently completed a third round of free trade talks, with a fourth round set to be held in Delhi next month.
With $6.6 billion invested in Canada, Indian businesses have established a huge presence here in a variety of sectors, and Kohli said the social security agreement will likely lead to more Indian money pouring into the country.
But while Kohli acknowledged the agreement will result in more Indians coming to work in Canada, he dismissed suggestions they do so at the expense of Canadian job-seekers because of the associated influx of foreign investment.
“Theoretically I can see that concern,” he said. “But usually when they set up Canadian branches, it always means employment for Canadians. It’s an expansion into our economy. And I think that’s the most relevant factor to keep in mind.”
The Canadian economy lost 54,000 jobs in October, the largest single-month loss since February 2009. That pushed the unemployment rate up from 7.1 per cent to 7.3 per cent.
http://news.nationalpost.com/2011/11/14/new-deal-eases-free-trade-hurdles-work-restrictions-for-india-canada/
By Lee Berthiaume
OTTAWA — Canada and India are on the verge of signing an agreement that would make it easier and more financially viable for thousands of Indian professionals to work here, and vice versa.
The agreement also eliminates a significant hurdle to free trade talks between the two countries, which the Conservative government has pledged to complete by 2013.
The Agreement on Social Security has been in negotiations since 2009 and has been considered a key ask for the Indian side as Canada tries to cozy up with the emerging economic power.
Cabinet last month gave Foreign Affairs Minister John Baird permission to sign the agreement on behalf of the government, according to an order-in-council published on Oct. 27.
Under the agreement, Indians working in Canada on temporary visas and making social security and pension contributions back to India would be exempt from making similar contributions here.
The same will be true for Canadians working in India, who will only pay the Canadian government.
An official with Citizenship and Immigration Canada said there were more than 14,000 Indians working in Canada at the end of 2010.
Indian deputy high commissioner to Canada Narinder Chauhan said she expects that number to increase once the social security agreement is signed.
“Lots of Indian professionals are coming into Canada,” she said, “and this agreement actually facilitates the movement of those professionals.”
The same will be true of Canadians working in India, she added.
“So we are just basically looking at an opportune moment to sign it,” she said.
Puneet Kohli, vice-president of the Indo-Canada Chamber of Commerce, said the agreement is very important for Indian companies who want to expand into Canada, and its successful conclusion would represent a big step in the Conservative government’s effort to bring the two countries closer together economically.
“It’s one of those important steps toward achieving that ultimate goal, which is a formal free trade agreement,” he said.
Canada and India recently completed a third round of free trade talks, with a fourth round set to be held in Delhi next month.
With $6.6 billion invested in Canada, Indian businesses have established a huge presence here in a variety of sectors, and Kohli said the social security agreement will likely lead to more Indian money pouring into the country.
But while Kohli acknowledged the agreement will result in more Indians coming to work in Canada, he dismissed suggestions they do so at the expense of Canadian job-seekers because of the associated influx of foreign investment.
“Theoretically I can see that concern,” he said. “But usually when they set up Canadian branches, it always means employment for Canadians. It’s an expansion into our economy. And I think that’s the most relevant factor to keep in mind.”
The Canadian economy lost 54,000 jobs in October, the largest single-month loss since February 2009. That pushed the unemployment rate up from 7.1 per cent to 7.3 per cent.
http://news.nationalpost.com/2011/11/14/new-deal-eases-free-trade-hurdles-work-restrictions-for-india-canada/
Sunday, 13 November 2011
Canada wants in to new Asia Pacific trade pact but won't pre-negotiate: minister
By Stephanie Levitz, The Canadian Press | November 13, 2011
HONOLULU, Hawaii - It's a trade deal being heralded as a model for the economic future, but Canada won't let go of its economic past to become a member.
Nine Pacific rim nations agreed Saturday to forge ahead with a new trade bloc that will fast-track trade between some of the most lucrative and potentially lucrative economies in the world.
"The (Trans Pacific Partnership) will boost our economies, lowering barriers to trade and investment, increasing exports, and creating more jobs for our people," U.S. President Barack Obama said in announcing the new framework ahead of the start of the formal APEC leader summit in Hawaii on Saturday.
But that won't be the case for Canada.
While Canada would like to be part of the TPP, it doesn't agree with the cost of membership, particularly the suggestion that it needs to signal a willingness to abandon decades-old supply management policies, International Trade Minister Ed Fast said Saturday.
"There has been some resistance and suggestions that we should be pre-negotiating our entry to the Trans Pacific partnership," Fast said.
"We have made it very clear that Canada will not pre-negotiate, we believe all of those issues should be discussed at the negotiating table."
Nor does Canada feel it needs to exchange farmers' interests for the greater economic interest, Fast said.
"We have free trade agreements with 14 countries, in each case we have been able to negotiate agreements that are acceptable and that allow us to continue to support our supply management system," he said.
Supply management policies for Canada's dairy, egg and poultry products have been in place for over 40 years to protect them from foreign competition via quotas and tariff controls.
The system has fallen out of favour internationally as it's believed to keep prices artificially high and restrict innovation.
But the Conservative government has been steadfast in its commitment to the affected farmers, the vast majority of whom live in Ontario and Quebec.
Fast wouldn't say who is resisting having Canada at the TPP talks, but one observer said Canada doesn't need to look very far.
"Washington has no interests in structuring a deal which will see their benefits diluted by Canada being on the same footing as U.S. exporters," said Peter Clark, a former Canadian trade negotiator.
Clark said there are other issues at play.
"The reason that we could not get to the table had much more to do with U.S. demands that we commit to liberalize in a number of other areas, for example delaying the introduction of generic medicine, more intrusive protection of intellectual property rights by Canadian customs officers, foreign investment reviews and foreign ownership of telecoms providers," Clark said.
The end goal of the TPP is to expand it among all the 21 member economies of APEC.
There is little wiggle room when it comes to the terms of membership, said U.S Trade Representative Ron Kirk.
"I want to make it absolutely clear that not only Japan, but any of the other economies, once they decide to engage us, we would expect them to meet the standards to which we all collectively agree," he told reporters.
Japan has signalled an interest in being part of the talks and China hasn't ruled it out either.
Analysts say that in the absence of the TPP Canada needs to beef up bilateral relations in the Asia Pacific.
The government estimated that Canada’s trade with Asia-Pacific Economic Co-operation economies grew from $374.6 billion in 1994 to $654.4 billion in 2010.Prime Minister Stephen Harper held a series of bilateral meetings in advance of the broader APEC summit to continue to push forward with bilateral deals.
"Asia is already an important part of the growth we’ve had in trade and the creation of jobs in recent years and obviously we are looking at ways of increasing that in the future," Harper said at a briefing early Saturday morning.
He sat down with the leaders of Indonesia, Chile and Peru.
Following his meeting with Peru, Harper announced Canada would contribute $4.8 million over four years towards a U.N. conflict prevention program that works in the South American country on issues that arise over natural resources.
Harper also announced an expansion of a science and technology development partnership with China.
His 30 minute meeting with the Chinese President was Harper's most formal bilateral of the day.
"You have repeatedly stated that you attach importance to our relationship and that you hope to forge an even closer relationship with China," Jintao told Harper through a translator.
"I appreciate that position."
Harper is also set to meet one-on-one with Obama on Sunday after the APEC summit wraps.
The two were originally meant to participate in the North American leaders summit with Mexican President Felipe Calderon on Sunday night.
But Calderon pulled out of the meetings after his interior minister was killed Friday in a helicopter crash.
http://www.canadianbusiness.com/article/56805--canada-wants-in-to-new-asia-pacific-trade-pact-but-won-t-pre-negotiate-minister
HONOLULU, Hawaii - It's a trade deal being heralded as a model for the economic future, but Canada won't let go of its economic past to become a member.
Nine Pacific rim nations agreed Saturday to forge ahead with a new trade bloc that will fast-track trade between some of the most lucrative and potentially lucrative economies in the world.
"The (Trans Pacific Partnership) will boost our economies, lowering barriers to trade and investment, increasing exports, and creating more jobs for our people," U.S. President Barack Obama said in announcing the new framework ahead of the start of the formal APEC leader summit in Hawaii on Saturday.
But that won't be the case for Canada.
While Canada would like to be part of the TPP, it doesn't agree with the cost of membership, particularly the suggestion that it needs to signal a willingness to abandon decades-old supply management policies, International Trade Minister Ed Fast said Saturday.
"There has been some resistance and suggestions that we should be pre-negotiating our entry to the Trans Pacific partnership," Fast said.
"We have made it very clear that Canada will not pre-negotiate, we believe all of those issues should be discussed at the negotiating table."
Nor does Canada feel it needs to exchange farmers' interests for the greater economic interest, Fast said.
"We have free trade agreements with 14 countries, in each case we have been able to negotiate agreements that are acceptable and that allow us to continue to support our supply management system," he said.
Supply management policies for Canada's dairy, egg and poultry products have been in place for over 40 years to protect them from foreign competition via quotas and tariff controls.
The system has fallen out of favour internationally as it's believed to keep prices artificially high and restrict innovation.
But the Conservative government has been steadfast in its commitment to the affected farmers, the vast majority of whom live in Ontario and Quebec.
Fast wouldn't say who is resisting having Canada at the TPP talks, but one observer said Canada doesn't need to look very far.
"Washington has no interests in structuring a deal which will see their benefits diluted by Canada being on the same footing as U.S. exporters," said Peter Clark, a former Canadian trade negotiator.
Clark said there are other issues at play.
"The reason that we could not get to the table had much more to do with U.S. demands that we commit to liberalize in a number of other areas, for example delaying the introduction of generic medicine, more intrusive protection of intellectual property rights by Canadian customs officers, foreign investment reviews and foreign ownership of telecoms providers," Clark said.
The end goal of the TPP is to expand it among all the 21 member economies of APEC.
There is little wiggle room when it comes to the terms of membership, said U.S Trade Representative Ron Kirk.
"I want to make it absolutely clear that not only Japan, but any of the other economies, once they decide to engage us, we would expect them to meet the standards to which we all collectively agree," he told reporters.
Japan has signalled an interest in being part of the talks and China hasn't ruled it out either.
Analysts say that in the absence of the TPP Canada needs to beef up bilateral relations in the Asia Pacific.
The government estimated that Canada’s trade with Asia-Pacific Economic Co-operation economies grew from $374.6 billion in 1994 to $654.4 billion in 2010.Prime Minister Stephen Harper held a series of bilateral meetings in advance of the broader APEC summit to continue to push forward with bilateral deals.
"Asia is already an important part of the growth we’ve had in trade and the creation of jobs in recent years and obviously we are looking at ways of increasing that in the future," Harper said at a briefing early Saturday morning.
He sat down with the leaders of Indonesia, Chile and Peru.
Following his meeting with Peru, Harper announced Canada would contribute $4.8 million over four years towards a U.N. conflict prevention program that works in the South American country on issues that arise over natural resources.
Harper also announced an expansion of a science and technology development partnership with China.
His 30 minute meeting with the Chinese President was Harper's most formal bilateral of the day.
"You have repeatedly stated that you attach importance to our relationship and that you hope to forge an even closer relationship with China," Jintao told Harper through a translator.
"I appreciate that position."
Harper is also set to meet one-on-one with Obama on Sunday after the APEC summit wraps.
The two were originally meant to participate in the North American leaders summit with Mexican President Felipe Calderon on Sunday night.
But Calderon pulled out of the meetings after his interior minister was killed Friday in a helicopter crash.
http://www.canadianbusiness.com/article/56805--canada-wants-in-to-new-asia-pacific-trade-pact-but-won-t-pre-negotiate-minister
Thursday, 10 November 2011
Surging energy exports restore Canada's trade surplus
By John Morrissy, Postmedia NewsNovember 10, 2011
OTTAWA - An unexpectedly strong month for energy exports returned Canada's trade balance to a surplus in September, breaking a strong of seven monthly deficits, Statistics Canada reported Thursday.
As a result of a 4.2 per cent advance in overall exports, Canada's trade balance rose to a surplus of $1.2 billion from a downwardly revised deficit of $487 million in August, the federal agency said. Imports, meanwhile, fell 0.3 per cent.
Economists polled by Bloomberg had called for a monthly trade deficit of $560 million.
The Canadian dollar rose after the report's release, and was up 33 basis points to 98.21 cents US in early afternoon trading.
``Even in times of uncertain global growth, Canadian exporters get the odd ray of hope,'' said CIBC World Markets economist Emanuella Enenajor.
She, like other commentators, said the trade figures will contribute meaningfully to a rebound in third-quarter growth, removing any doubt Canada would post two consecutive negative quarters and fall back into recession.
Enenajor forecast that third-quarter growth will come in at three per cent annualized, while economist Shahrzad Mobasher Fard at TD Economics said the report ``presents another upside risk to our economic growth forecast of two per cent in the third quarter.''
In the second quarter, growth contracted by 0.4 per cent.
Exports in September rose to $39.7 billion, the highest value since October 2008 as six of seven sectors posted gains in September, Statistics Canada said.
Energy exports rose 11.3 per cent to $9.6 billion, while automotive exports climbed 5.6 per cent to $4.8 billion and industrial goods and materials rose 3. 4 per cent to $10.47 billion.
Statistics Canada cautioned, however, that much of September's gains were a result of prices, which rose 3.9 per cent, while volumes edged up only 0.3 per cent.
Moreover, economists don't expect September's figures to carry through into the coming months.
Economist Derek Holt at Scotia Capital said much of the month's strength resulted from an end to temporary refinery shutdowns and the accompanying one- time surge in energy exports
``With the global economy slowing into Q4, don't expect trade to repeat its strong performance,'' added Sherry Cooper, chief economist at BMO Financial Group.
The report showed that Canada made progress in reducing its reliance on the U.S., the country's largest trading partner, as exports to countries other than the United States rose 2.3 per cent to $11.5 billion, the fifth consecutive monthly increase.
An accompanying 0.7 per cent rise in imports resulted in Canada's trade deficit with countries other than the United States falling to $3.1 billion in September from $3.3 billion in August, the lowest level so far this year.
Meanwhile, Canada's trade surplus with the United States rose to $4.4 billion in September from $2.8 billion in August as exports to the U.S. climbed five per cent to $28.2 billion, the highest value since January 2011. Imports from the United States decreased one per cent to $23.8 billion.
http://www.canada.com/business/Surging+energy+exports+restore+Canada+trade+surplus/5691726/story.html
OTTAWA - An unexpectedly strong month for energy exports returned Canada's trade balance to a surplus in September, breaking a strong of seven monthly deficits, Statistics Canada reported Thursday.
As a result of a 4.2 per cent advance in overall exports, Canada's trade balance rose to a surplus of $1.2 billion from a downwardly revised deficit of $487 million in August, the federal agency said. Imports, meanwhile, fell 0.3 per cent.
Economists polled by Bloomberg had called for a monthly trade deficit of $560 million.
The Canadian dollar rose after the report's release, and was up 33 basis points to 98.21 cents US in early afternoon trading.
``Even in times of uncertain global growth, Canadian exporters get the odd ray of hope,'' said CIBC World Markets economist Emanuella Enenajor.
She, like other commentators, said the trade figures will contribute meaningfully to a rebound in third-quarter growth, removing any doubt Canada would post two consecutive negative quarters and fall back into recession.
Enenajor forecast that third-quarter growth will come in at three per cent annualized, while economist Shahrzad Mobasher Fard at TD Economics said the report ``presents another upside risk to our economic growth forecast of two per cent in the third quarter.''
In the second quarter, growth contracted by 0.4 per cent.
Exports in September rose to $39.7 billion, the highest value since October 2008 as six of seven sectors posted gains in September, Statistics Canada said.
Energy exports rose 11.3 per cent to $9.6 billion, while automotive exports climbed 5.6 per cent to $4.8 billion and industrial goods and materials rose 3. 4 per cent to $10.47 billion.
Statistics Canada cautioned, however, that much of September's gains were a result of prices, which rose 3.9 per cent, while volumes edged up only 0.3 per cent.
Moreover, economists don't expect September's figures to carry through into the coming months.
Economist Derek Holt at Scotia Capital said much of the month's strength resulted from an end to temporary refinery shutdowns and the accompanying one- time surge in energy exports
``With the global economy slowing into Q4, don't expect trade to repeat its strong performance,'' added Sherry Cooper, chief economist at BMO Financial Group.
The report showed that Canada made progress in reducing its reliance on the U.S., the country's largest trading partner, as exports to countries other than the United States rose 2.3 per cent to $11.5 billion, the fifth consecutive monthly increase.
An accompanying 0.7 per cent rise in imports resulted in Canada's trade deficit with countries other than the United States falling to $3.1 billion in September from $3.3 billion in August, the lowest level so far this year.
Meanwhile, Canada's trade surplus with the United States rose to $4.4 billion in September from $2.8 billion in August as exports to the U.S. climbed five per cent to $28.2 billion, the highest value since January 2011. Imports from the United States decreased one per cent to $23.8 billion.
http://www.canada.com/business/Surging+energy+exports+restore+Canada+trade+surplus/5691726/story.html
Wednesday, 9 November 2011
Loonie lower as Italian debt worries send investors to U.S. Treasuries
By: Malcolm Morrison
The Canadian Press
TORONTO—The Canadian dollar fell more than a full U.S. cent Wednesday as investors nervous about the state of Italy’s economy sold off risk and bought into the safe haven status of U.S. Treasuries.
The loonie fell 1.3 cents 97.89 cents US.
Financial markets had reacted positively Tuesday after premier Silvio Berlusconi lost a confidence vote and his majority in parliament and said he would resign after his government’s new austerity budget is passed. There was little confidence that he could implement the tough measures that eurozone officials have demanded.
But pessimism returned to markets with a vengeance Wednesday as the country’s 10-year yield jumped above the seven per cent level amid uncertainty about who will steer the country through its debt crisis.
There was also unhappiness about the fact Berlusconi isn’t resigning immediately.
“The problem ... is that we are now entering a political interlude that is too long a timeframe for an already grumpy market,” said Mark Chandler, Head of Canada FIC Strategy at RBC Dominion Securities Inc.
“The transitional government dynamic could prove messy in the interim, especially given that elections would unlikely be held before February.”
Bond yields in the seven per cent range are considered to be unsustainable in the long run.
When Greece, Ireland and Portugal saw their ten-year borrowing rates rise above seven per cent, the markets concluded they had to be bailed out.
The dollar was also pressured by commodity prices forced lower on demand concerns and the rising U.S. dollar.
A stronger greenback usually helps depress prices for oil and metals, which are denominated in dollars, as it makes commodities more expensive for holders of other currencies.
Commodity prices headed lower Wednesday with the December crude contact on the New York Mercantile Exchange down $2.17 to US$94.63 a barrel.
Metals also fell back as the December copper contract in New York lost six cents to US$3.48 a pound.
The December gold contract in New York was off $6.70 to US$1,792.50 an ounce.
The Canadian Press
TORONTO—The Canadian dollar fell more than a full U.S. cent Wednesday as investors nervous about the state of Italy’s economy sold off risk and bought into the safe haven status of U.S. Treasuries.
The loonie fell 1.3 cents 97.89 cents US.
Financial markets had reacted positively Tuesday after premier Silvio Berlusconi lost a confidence vote and his majority in parliament and said he would resign after his government’s new austerity budget is passed. There was little confidence that he could implement the tough measures that eurozone officials have demanded.
But pessimism returned to markets with a vengeance Wednesday as the country’s 10-year yield jumped above the seven per cent level amid uncertainty about who will steer the country through its debt crisis.
There was also unhappiness about the fact Berlusconi isn’t resigning immediately.
“The problem ... is that we are now entering a political interlude that is too long a timeframe for an already grumpy market,” said Mark Chandler, Head of Canada FIC Strategy at RBC Dominion Securities Inc.
“The transitional government dynamic could prove messy in the interim, especially given that elections would unlikely be held before February.”
Bond yields in the seven per cent range are considered to be unsustainable in the long run.
When Greece, Ireland and Portugal saw their ten-year borrowing rates rise above seven per cent, the markets concluded they had to be bailed out.
The dollar was also pressured by commodity prices forced lower on demand concerns and the rising U.S. dollar.
A stronger greenback usually helps depress prices for oil and metals, which are denominated in dollars, as it makes commodities more expensive for holders of other currencies.
Commodity prices headed lower Wednesday with the December crude contact on the New York Mercantile Exchange down $2.17 to US$94.63 a barrel.
Metals also fell back as the December copper contract in New York lost six cents to US$3.48 a pound.
The December gold contract in New York was off $6.70 to US$1,792.50 an ounce.
Sunday, 6 November 2011
Quebec needs to move beyond simply smelting aluminum
For decades, Quebec’s foreign-owned aluminum sector has been a source of pride in a province that can use all the high-powered manufacturing might it can get.
Boosted by financial backing from the government and cheap hydroelectric rates, the sector has played a starring role in the province’s economic development. But the three major players in North America’s most aluminum-intensive region – the third largest in the world after China and Russia – struggle to make Quebec a centre of aluminum-product innovation.
Despite years of effort by the industry to update, including Alcoa’s confirmation of plans on Monday for a $2.1-billion expansion and modernization program at three Quebec facilities, the province remains for the most part a simple exporter of primary aluminum to the four corners of the world.
For the industry to continue to thrive, moving up the value chain is imperative. Powerful emerging players like China and Russia are already shifting in a big way from primary manufacturing to higher-margin products, part of a growing worldwide shift to the use of aluminum in non-traditional areas.
The lightweight industrial metal has long been a staple material in such products as window frames, juice and soft drink cans and cooking utensils. But its usage is being stretched into other areas, including building construction and aerospace.
“Aluminum is becoming a tremendous source for all sorts of applications – the auto sector for example,” says Jesus Villegas, senior analyst with Harbor Intelligence in Austin, Texas. “Cars are increasingly being made with aluminum parts.”
Companies such as Alcoa Inc. – the U.S.-based parent of Alcoa Canada – that are developing innovative uses for aluminum are benefitting to a much greater extent in foreign markets, notably Asia.
Alcoa Inc. is already working with a Chinese partner – Zhengzhou Yutang Bus Co., the country’s biggest bus manufacturer – to make environmentally friendly buses with aluminum chassis, turning out about 27,000 a year. The vehicles are 46 per cent lighter than a regular bus, so they use less fuel and emit fewer greenhouse gases.
“Why can’t we do that here?” asks Jean Simard, head of the Aluminum Association of Canada. “It’s not rocket science. It’s common sense.”
Canada produced 2.9-million tonnes of aluminum in 2010, about 7 per cent of global capacity. About 80 per cent of that is exported.
In Quebec, where 90 per cent of the Canadian industry is concentrated, aluminum production represented 10 per cent of the total value of manufactured exports last year. It employs an estimated 30,000 people directly and indirectly.
The three main players – Rio Tinto Alcan, Alcoa Canada and Aluminerie Alouette – are aware of the risks posed by more aggressive competitors. They plan to invest between $7-billion and $10-billion over the next 10 years to modernize and expand their Quebec facilities to produce more innovative, higher-margin products.
Some of that is earmarked for R&D and special projects. The companies, for example, have formed a consortium to develop a prototype for a 30-seat microbus made with aluminum parts. Aluminerie Alouette has a program to encourage its suppliers to come up with ideas for integrating aluminum in their products.
There are also plans for a public-private sector collaboration on the development of aluminum decking for bridges to replace steel.
But Lloyd O’Carroll, an aluminum-industry analyst with Davenport & Co. LLC in Virginia, says the Canadian industry faces significant challenges. Quebec’s competitive advantage has always been access to plentiful, cheap electricity – aluminum smelting requires massive amounts of electrical power – and that isn’t about to change overnight, Mr. O’Carroll said.
“Quebec and B.C. – where a major aluminum smelter is located – will always be centres of smelting because of the available and highly competitive power,” he said.
Setting up major value-added facilities – such as plants that make aluminum wheels – is difficult in Quebec because it is far from major centres such as Detroit and shipping costs are prohibitive, he said.
The fact that the leading aluminum producer in Quebec – Rio Tinto Alcan – is no longer in the business of making semi-fabricated products (it has sold off those divisions over the years) doesn’t help foster a transformational attitude, he said.
And there’s another key stumbling block – government regulations that limit the use of aluminum in construction and infrastructure projects, and thus hamper the development of homegrown expertise.
Alexandre de la Chevrotière, president and chief executive officer of Montreal-based aluminum design-and-build firm Maadi Group, finds it incredible that the provincial bidding process for infrastructure projects excludes the use of aluminum as a construction material.
Rules in the other provinces vary, but steel remains the No. 1 choice there as well, he said.
“On the one hand, the Quebec government pushes the big aluminum producers to create jobs in the transformation sector. And yet they shut out aluminum when they put out tenders,” he said.
That’s in stark contract to the attitude in Europe, where about 30 per cent of construction projects use some aluminum, says Mr. de la Chevrotière, whose company makes such products as all-aluminum pedestrian and bicycle bridges.
A spokesman for Sam Hamad, Quebec’s Minister for Economic Development, said the government is working on developing a new aluminum-transformation policy but the Minister won’t comment until the plan is completed and ready to be unveiled, some time in the next few months.
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/quebec-needs-to-move-beyond-simply-smelting-aluminum/article2228534/
Thursday, 3 November 2011
Why Chinese workers don’t hate the boss
By: Erin Millar
Special to Globe and Mail Update
Published Thursday, Nov. 03, 2011 5:00AM EDT
The light bulb moment occurred while Dr. Daniel Skarlicki was teaching an organizational behaviour class in Shanghai. Speaking with his MBA students during one of the many social events that are an essential part of doing business in China, the Sauder School of Business professor was struck by how differently they thought about employers compared to Canadians. Dr. Skarlicki’s research, which focuses on how employees react when treated unfairly by their employer, had until then been conducted exclusively in North America. But a global approach to human resources research that could account for cultural influences would be relevant not only for companies with global offices, but for anyone managing a diverse workforce, he realized.
And thus was born Dr. Skarlicki’s collaboration with researchers in Paris and Shanghai. “We found that the Chinese are highly collectivist,” he said. “They recognize ‘power difference,’ or leadership hierarchy, more than North Americans do. They tend to think, ‘If my boss mistreats me, he’ll just get it back in the next life.’”
Like the Sauder School of Business at the University of British Columbia, many Canadian business schools have set up satellite campuses or partnered with universities overseas in the past decade; while the initial motivation was to find new markets of potential students, the indirect benefits of these programs − such as collaborative research like Dr. Skarlicki’s − are more far-reaching than could have been expected.
“People sometimes say that business schools are out offering [international] programs just for the money, but that’s not enough reason,” says Dr. Harrie Vredenburg, a professor at the Haskayne School of Business at the University of Calgary. “We’re getting essential knowledge and collaborations. Our experience informs our research back home. We learn as much from [our students] as they learn from us.”
The benefits of offering international programs such as UCalgary’s Global Energy EMBA extend beyond academia, according to Dr. Vredenburg. “This isn’t just good for the university, but also for Calgary, being recognized as a global energy centre, and for Canada.”
By training a generation of up-and-coming business leaders in fast-growing economies such as China, business schools are paving the way for Canadian companies by forging key relationships, raising Canada’s profile and promoting Canadian business practices and values. “I regularly get calls from companies here thinking about growing their businesses in these markets,” says Dr. Vrendenburg. “They want to know about the business environment there. They want our contacts.”
Dr. Steven Murphy, associate dean at Sprott School of Business at Carleton University, believes Carleton’s presence abroad also benefits the countries in which it operates. In 2002, Carleton launched the first MBA and master of business programs available in Iran in partnership with Qeshm Institute of Higher Learning. That an Ottawa-based university has set up shop in a country with decidedly strained relations with Canada may come as a surprise, but Dr. Murphy sees the school as a positive influence. “We want to play a positive role in [Iranian] society by being there,” he says. “Politics will come and go, but we’re a neutral arbitrator of what Canadians stand for. We’re playing an important role by providing the skill set for Iranians to move forward as they choose to.”
When Carleton first began offering an MBA in China, the school was criticized for working in a country with such a dismal human rights record. Rather than boycotting certain countries, Dr. Murphy says Carleton “can make more of a difference on the ground.”
Now with hundreds of schools from all over the world offering business education in China, Carleton is looking farther afield for its next global undertaking. Plans are in the works to launch an MBA in Colombia with a partner university there. “We see Colombia as a gateway to Chile,” Dr. Murphy says, “but it also has its own story. Colombia is trying to attract foreign investment, and by us being there, we want to signal: Canada is here, we care about your business, we care about your people.”
Of course, there are many other concrete advantages enjoyed by business schools operating internationally. Professors say that the programs boost recruitment of international students to Canada-based programs. Canadian students are typically given the option of completing one or more courses towards their MBA at foreign campuses, giving them an invaluable experience studying alongside young business leaders from different cultures.
But perhaps the most significant, if unintended, bonus is the knowledge professors bring back to Canada after they’ve been sent to teach in Shanghai and Qeshm and Bogota. “You get a deep understanding of how these cultures do business,” Dr. Murphy says. “When you’re armed with that knowledge, you can present to your students a perspective on global business that is more informed.”
This knowledge is not limited to a deeper appreciation for the business cultures within which these schools are operating, but also insight into Canada.
“We’re like fish,” says Dr. Skarlicki. “A fish doesn’t know he’s in water until you take him out and return him. Like any travel, when you return home you notice what you took for granted.
“Teaching in other countries has made me see Canada differently.”
http://www.theglobeandmail.com/report-on-business/careers/business-education/why-chinese-workers-dont-hate-the-boss/article2222620/
Special to Globe and Mail Update
Published Thursday, Nov. 03, 2011 5:00AM EDT
The light bulb moment occurred while Dr. Daniel Skarlicki was teaching an organizational behaviour class in Shanghai. Speaking with his MBA students during one of the many social events that are an essential part of doing business in China, the Sauder School of Business professor was struck by how differently they thought about employers compared to Canadians. Dr. Skarlicki’s research, which focuses on how employees react when treated unfairly by their employer, had until then been conducted exclusively in North America. But a global approach to human resources research that could account for cultural influences would be relevant not only for companies with global offices, but for anyone managing a diverse workforce, he realized.
And thus was born Dr. Skarlicki’s collaboration with researchers in Paris and Shanghai. “We found that the Chinese are highly collectivist,” he said. “They recognize ‘power difference,’ or leadership hierarchy, more than North Americans do. They tend to think, ‘If my boss mistreats me, he’ll just get it back in the next life.’”
Like the Sauder School of Business at the University of British Columbia, many Canadian business schools have set up satellite campuses or partnered with universities overseas in the past decade; while the initial motivation was to find new markets of potential students, the indirect benefits of these programs − such as collaborative research like Dr. Skarlicki’s − are more far-reaching than could have been expected.
“People sometimes say that business schools are out offering [international] programs just for the money, but that’s not enough reason,” says Dr. Harrie Vredenburg, a professor at the Haskayne School of Business at the University of Calgary. “We’re getting essential knowledge and collaborations. Our experience informs our research back home. We learn as much from [our students] as they learn from us.”
The benefits of offering international programs such as UCalgary’s Global Energy EMBA extend beyond academia, according to Dr. Vredenburg. “This isn’t just good for the university, but also for Calgary, being recognized as a global energy centre, and for Canada.”
By training a generation of up-and-coming business leaders in fast-growing economies such as China, business schools are paving the way for Canadian companies by forging key relationships, raising Canada’s profile and promoting Canadian business practices and values. “I regularly get calls from companies here thinking about growing their businesses in these markets,” says Dr. Vrendenburg. “They want to know about the business environment there. They want our contacts.”
Dr. Steven Murphy, associate dean at Sprott School of Business at Carleton University, believes Carleton’s presence abroad also benefits the countries in which it operates. In 2002, Carleton launched the first MBA and master of business programs available in Iran in partnership with Qeshm Institute of Higher Learning. That an Ottawa-based university has set up shop in a country with decidedly strained relations with Canada may come as a surprise, but Dr. Murphy sees the school as a positive influence. “We want to play a positive role in [Iranian] society by being there,” he says. “Politics will come and go, but we’re a neutral arbitrator of what Canadians stand for. We’re playing an important role by providing the skill set for Iranians to move forward as they choose to.”
When Carleton first began offering an MBA in China, the school was criticized for working in a country with such a dismal human rights record. Rather than boycotting certain countries, Dr. Murphy says Carleton “can make more of a difference on the ground.”
Now with hundreds of schools from all over the world offering business education in China, Carleton is looking farther afield for its next global undertaking. Plans are in the works to launch an MBA in Colombia with a partner university there. “We see Colombia as a gateway to Chile,” Dr. Murphy says, “but it also has its own story. Colombia is trying to attract foreign investment, and by us being there, we want to signal: Canada is here, we care about your business, we care about your people.”
Of course, there are many other concrete advantages enjoyed by business schools operating internationally. Professors say that the programs boost recruitment of international students to Canada-based programs. Canadian students are typically given the option of completing one or more courses towards their MBA at foreign campuses, giving them an invaluable experience studying alongside young business leaders from different cultures.
But perhaps the most significant, if unintended, bonus is the knowledge professors bring back to Canada after they’ve been sent to teach in Shanghai and Qeshm and Bogota. “You get a deep understanding of how these cultures do business,” Dr. Murphy says. “When you’re armed with that knowledge, you can present to your students a perspective on global business that is more informed.”
This knowledge is not limited to a deeper appreciation for the business cultures within which these schools are operating, but also insight into Canada.
“We’re like fish,” says Dr. Skarlicki. “A fish doesn’t know he’s in water until you take him out and return him. Like any travel, when you return home you notice what you took for granted.
“Teaching in other countries has made me see Canada differently.”
http://www.theglobeandmail.com/report-on-business/careers/business-education/why-chinese-workers-dont-hate-the-boss/article2222620/
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