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Agriculture

Drive to ratify new North American trade deal gets lift from U.S. TV exposure

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OTTAWA — The push for the speedy passage of the new NAFTA is getting a boost from a big advertising campaign in the United States.

An alliance of U.S. companies, trade associations and lobbyists launched a series of TV commercials and digital ads Monday that it hopes will inspire more Americans to push their congressional representatives to ratify the continental trade agreement.

The United States-Mexico-Canada Agreement, if ratified, will replace the North American Free Trade Agreement. The deal, signed by the three countries’ leaders in November, must be approved by Congress before it comes into force.

U.S. President Donald Trump has called on Congress to support the new deal, which he argues will lift the American farm sector, bring back lost manufacturing jobs and reinvigorate the auto industry.

The campaign by the “Pass USMCA Coalition” promotes what the group sees as the deal’s economic benefits. It arrives as Trump’s trade czar, Robert Lighthizer, expands efforts to meet with Democrats in Washington to discuss their concerns about the agreement.

The coalition’s 16 members include the Canadian American Business Council, the National Association of Manufacturers, the National Chicken Council, Dow and Domino’s Pizza.

Its honorary co-chairs are former New York congressman Joe Crowley and Gary Locke, who served as U.S. ambassador to China, commerce secretary in the Obama administration and governor of Washington state. Both are Democrats, but Rick Dearborn, Trump’s former deputy chief of staff, is the coalition’s executive director.

The initial 30-second TV ad, set to run for three weeks in Maryland, Virginia and Washington, D.C., tells viewers that a “new era of economic and creative prosperity is within reach.”

“The U.S.-Mexico-Canada trade agreement will level the playing field for our workers, consumers and farmers with more free markets, fairer trade and robust economic growth,” says the ad, which cost just over US$1 million. “By increasing exports, raising wages and accelerating innovation, it will propel U.S. trade into the 21st century.”

It then calls on voters to contact lawmakers and urge the deal’s swift ratification.

Trump administration officials, including Lighthizer, have been meeting Democrats in hope of securing bipartisan support for the USMCA.

Democrats, empowered by their new majority in the House of Representatives, and some Republicans have said they won’t vote for NAFTA 2.0 in its current form.

Among the complaints, Democrats say the agreement lacks labour and environmental enforcement measures, and some don’t like its extended drug-patent protections. To enact the deal, U.S. officials say those congressional concerns will have to be dealt with in so-called side letters or in the bill Congress eventually votes on.

Last Friday, House Speaker Nancy Pelosi told the Economic Club of Washington that Lighthizer has been “really very respectful” in his efforts and has listened to members on both sides of the aisle.

Andy Blatchford, The Canadian Press

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Agriculture

PM worries China could target more Canadian goods as fears about soybeans rise

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OTTAWA — Prime Minister Justin Trudeau says he’s worried an ongoing diplomatic dispute could see China target imports of other Canadian agricultural products as concerns grow about soybean shipments in particular.

One industry leader said Thursday that, without a clear explanation, Canadian soybean exports to China plunged suddenly from 3.2 million tons over the final four months of 2018 to just 3,700 tons through the first four months of this year.

Relations between Canada and China have deteriorated since the December arrest in Vancouver of Huawei senior executive Meng Wanzhou at the behest of the United States.

China was outraged by Meng’s arrest and has since detained two Canadians on allegations of espionage and sentenced two other Canadians to death for drug-related convictions. 

Chinese authorities have also blocked imports of Canadian canola seeds, alleging they found pests in shipments, and have increased inspections and paperwork related to pork.

“When it comes to China, obviously, our top concern is the release of Canadians who are detained in an arbitrary way by the Chinese for political reasons,” Trudeau said in French on Thursday during a visit to France, where he marked the 75th anniversary of D-Day. “We are also concerned by their actions on canola and the potential of other actions on other products.”

Trudeau told reporters that he will see if it’s “appropriate or desirable” to have a conversation directly with Chinese President Xi Jinping about a number of bilateral difficulties later this month at the G20 summit in Japan.

Later Thursday, Agriculture Minister Marie-Claude Bibeau told a parliamentary committee that she’s heard concerns about shipments of Canadian soybeans to China.

Ron Davidson, executive director of Soy Canada, said in an interview that China’s purchases of Canadian soybeans collapsed at the end of last year following a run of very strong exports.

“It’s not a slowdown — it’s a virtual halt,” said Davidson, whose members have reported the drop to Bibeau. “We can see what’s happening, but we aren’t certain why.”

He said it’s not unusual to see soybean exports decrease during winter months, but the speed, magnitude and timing of the crash this time around has alarmed the industry.

Davidson said he’s received reports of Canadian soybean containers held up in Chinese ports for longer than usual as authorities there conduct additional tests. It’s possible, he added, that the drop is partly due to an increased reliance by China on soybeans from other parts of the world.

Soybeans are Canada’s third-most valuable agricultural export after canola and wheat, he said.

Any prolonged crackdown by Canada’s second-biggest trading partner on shipments of key products like soybeans and canola could deliver a blow to the national economy.

New data released Thursday from Statistics Canada showed overall exports of canola fell 14.7 per cent in April after China started turning away Canadian canola seed.

Conservative Leader Andrew Scheer’s spokesman said it’s not enough for Trudeau to be concerned because he’s not a casual observer when it comes to the dispute with China.

“He needs to actually do something,” Brock Harrison wrote in an email Thursday.

“Mr. Scheer has on several occasions urged him to take concrete steps to respond to China’s actions against Canada and send a message that Canada won’t be pushed around. He has refused to act.”

The federal government says it has tried unsuccessfully to send a delegation of inspectors to China to examine Chinese evidence of pests in canola shipments. Canada has also been unable to schedule high-level engagements on the matter despite multiple efforts.

Bibeau told MPs Thursday that Canadian scientists finally had a conversation Wednesday night with Chinese customs officials about their canola concerns.

“They agreed to have more sustained discussions, telephone conferences on the subject — and they did not close the door to the delegation,” she said. “We are still asking for that, but the conversation has been re-activated and yesterday we could feel that we were at a different level … This is encouraging.”

Earlier this week, China’s ambassador to Canada said in an interview that Chinese officials investigated Canadian canola based on regulatory and scientific principles, and provided “concrete” documents to Canada to justify their concerns.

Lu Shaye added that the relevant Chinese departments no longer maintained contact with their Canadian counterparts, suggesting the matter was closed.

—Follow @AndyBlatchford on Twitter

Andy Blatchford, The Canadian Press


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China-Canada differences go beyond Beijing’s critical, outgoing envoy: Carr

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OTTAWA — Canada’s trade minister is downplaying the forthcoming departure of China’s outspoken envoy to Ottawa, saying differences between the countries stretch beyond anything at the ambassador’s level.

In an interview Wednesday, Jim Carr said the federal government is awaiting China’s decision on its replacement for outgoing ambassador Lu Shaye, who has had harsh words for Canada during a tenure that began in 2017.

“I don’t think that personalities are what would be at the centre of the issue here,” Carr said when asked about Lu’s past criticisms.

“The job of the ambassador is to express the view of his government. I would only assume that whatever is being spoken by the Chinese ambassador to Canada has the full support of the government, so this is an issue that goes beyond the ambassadorial level.”

Sources say Lu, who appeared to be more comfortable speaking French than English, will leave his Ottawa post in the coming weeks for a new position in Paris. Lu, 54, has also served as China’s ambassador to Senegal and as a counsellor for its foreign service in France, according to a biography on the embassy’s website.

His departure comes at a time, as Lu himself described in an interview Tuesday, of “serious difficulties” between the two countries.

Canada’s relationship with its second-biggest trading partner has deteriorated rapidly since the December arrest of a senior Huawei executive in Vancouver following an extradition request by the United States.

China was outraged by the arrest of Meng Wanzhou and has since detained two Canadians on allegations of espionage, sentenced two Canadians to death for drug-related convictions and blocked key agricultural shipments such as canola.

Lu has used strong words when talking about the relationship — for example, he has called Meng’s arrest the “backstabbing” of a friend and evidence of white supremacism.

He also warned of unspecified “repercussions” if the federal government bars Huawei from selling equipment to build a next-generation 5G wireless network in Canada.

Lu was critical of Canada before Meng’s arrest. Soon after arriving in Canada, Lu said he was struck by the negative view of China that he saw taking shape. In a 2017 interview, he blamed the Canadian media for disseminating a negative portrait of his country that depicted it as an abuser of human rights and of lacking democracy.

He said Canadian politicians sometimes had to “bow before media.”

In Lu’s interview Tuesday with The Canadian Press, he said China was not to blame for the ongoing dispute.

“But the Chinese government is waiting to make a joint effort with the Canadian side and meet each other halfway,” he said without specifying the necessary steps toward a resolution.

When asked about the possibility of freeing Michael Kovrig and Michael Spavor — the Canadians detained in China on espionage charges — Lu said their fates are in the hands of Chinese authorities. On China’s rejection of Canadian canola imports over Chinese allegations of pests, he considers the matter closed.

Carr said the Liberal government still hopes to solve the bilateral differences by engaging China on many levels, not just through an ambassador.

“We will reach out to whomever is in that place and make the same arguments to him or her that we’re making now,” Carr said before leaving for Japan on a trade mission to find new markets for Canadian products, including canola.

Carr said Canada is still keen to send government inspectors to China to explore evidence of pests in the canola shipments. But, he added, China has not invited Canadian experts to do so, and there has been no high-level engagement on the matter despite Canada’s efforts.

This week, China increased inspections of Canadian pork products over its concerns about smuggling and African swine fever — an illness that can be devastating among pigs. It came in addition to previously stated Chinese complaints over the labelling of Canadian pork.

Asked Wednesday if the inspections were a sign the dispute had reached a new level, Agriculture Minister Marie-Claude Bibeau declined to speculate and said: “I don’t want to escalate the situation.”

Word of Lu’s departure comes at a time when Canada does not have an ambassador in Beijing. Last winter, Prime Minister Justin Trudeau fired Canada’s ambassador, John McCallum, for going off-script in the government’s efforts to win the release of Kovrig and Spavor. Before his posting to Beijing, McCallum was a longtime Liberal MP and cabinet minister.

Former Canadian diplomat Colin Robertson, who is now vice-president of the Canadian Global Affairs Institute, said Lu’s departure presents an opportunity to reset the relationship.

“We need to find a way to engage,” he said. “Not having ambassadors who are reliable or trusted is a major handicap.”

Lu did a good job of publicly reflecting the Chinese government’s positions and “seemed to take relish in putting it to us,” Robertson added.

“His words aggravated the situation. Behind closed doors ambassadors are also expected to find solutions and try to nuance divisions. Here I see no evidence of serious effort by Lu Shaye.”

Andy Blatchford and Mike Blanchfield, The Canadian Press

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