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Automotive

Mexico pushing labour reform, won’t ratify new NAFTA with U.S. tariffs in place

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OTTAWA — Mexico’s Congress will be asked to approve a major labour-reform bill this spring as a necessary step to ratifying the new North American free-trade pact later this autumn, say Mexican officials.

But unless the Trump administration lifts the punishing tariffs it has imposed on Mexican steel and aluminum imports — duties it also imposed on Canada — Mexico is prepared to keep the status quo with the 25-year-old North American Free Trade Agreement.  

The push to improve workers’ rights in Mexico was a key priority for Canada and the United States during the rocky NAFTA renegotiation because they wanted to level the playing field between their workers and lower-paid Mexican workers, especially in the auto sector.

When Mexico and the U.S. reached their surprise bilateral agreement last August, forcing the Trudeau government to quickly forge a deal with the Trump administration, Foreign Affairs Minister Chrystia Freeland lauded Mexico for making labour concessions.

But a senior trade official in the new government of socialist reformer Andres Manuel Lopez Obrador suggested in an interview it wasn’t a huge sacrifice because elevating the status of country’s workers was a key plank in the platform that brought their Morena party to power.

Lopez Obrador made it clear in his election campaign that he wanted to strengthen the rights of workers and labour unions, which made a good fit with Canada’s bargaining position, Luz Maria de la Mora, Mexico’s deputy trade minister, said in an interview.

“With the agreement or without the agreement, this is something central to President Lopez Obrador — strengthening workers’ rights and strengthening trade deals in Mexico,” said de la Mora.

She said the new government wants a package of labour reform ratified in Mexico’s Congress before its April 30 adjournment “so we can reflect the commitments that we’ve made under the new U.S.-Mexico-Canada agreement in domestic legislation.”

That means the new agreement will be sent to the Mexican Congress for ratification after reconvenes in Sept. 1, she said.

But that won’t happen unless the United States lifts its so-called section 232 tariffs on steel and aluminum exports, said de la Mora.

U.S. President Donald Trump imposed tariffs of 25 per cent on steel and 10 per cent on aluminum from Mexico and Canada, using the controversial national-security clause in U.S. trade law — “Section 232,” as it’s called in shorthand — that both countries say was illegal.

Canadian Transport Minister Marc Garneau recently told Trump’s top economic adviser, Larry Kudlow, during a public panel in Washington that the tariffs are “a serious impediment to us moving forward on what is the best trade deal in the world.”

On Nov. 30, Prime Minister Justin Trudeau, Trump and former Mexican president Enrique Pena Nieto, who was on his last day in office, signed the new trade agreement. It now faces ratification by the legislatures of all three countries.

Trudeau spoke to Trump on Thursday and “raised the issue of steel and aluminum tariffs and expressed the need for the removal of tariffs,” the Prime Minister’s Office said.

If the tariffs aren’t lifted, de la Mora suggested Mexico is fine with the current version of NAFTA that remains in force.

“We hope to have this new agreement in place. But in the absence of the new agreement, we know that NAFTA is good enough,” she said.

Mexico would prefer the updated agreement “for the relations we have with the U.S. and Canada but we are OK with the current NAFTA.”

Mexican senators, who were in Ottawa the past week to conference with their Canadian parliamentary counterparts, echoed de la Mora’s assessment.

“We are going to approve it, but right now our government is trying to deal with this (the tariffs),” Sen. Antares Guadalupe said in an interview.

“We’re not in a rush. Trade right now, it’s working,” she added. “We have many things to do but we want to take it slowly because it is very important to have it in a very good way for Mexico.”

Sen. Hector Vasconcelos, the head of the Mexican Senate’s foreign-affairs committee, said the ratification of the new agreement is also subject to the domestic political situations in all three countries. That includes the ongoing turmoil in the Trump administration and Canada’s legislative clock, which will see the House of Commons adjourn in June until after the October federal election.

Asked what happens if the new agreement is not ratified, Vasconcelos laughed.

“Life goes on, I assure you,” he said, referring to the current NAFTA. “It’s good enough and we will try to get it better. That’s what we are going to do. We have to discuss a lot in Mexico.”

Mike Blanchfield, The Canadian Press




Alberta

Insurance rate increases absolutely unacceptable: NDP Critic for Service Alberta

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This post was submitted by Jon Carson, NDP MLA for Edmonton-West Henday, Opposition Critic for Service Alberta

Thirty per cent.

That’s how much auto insurance rates skyrocketed by for some Albertans at the end of this year, after Premier Jason Kenney and the UCP removed the five per cent cap on rate increases that our NDP government brought in, taking a “no limit” approach to how much insurance companies could actually raise rates.

The jump was immediate.

Albertans saw a wave of premium increases bordering on price gouging. Over 90% of car insurance companies filed for rate increases as soon as the cap was lifted, and rushed to bill drivers as soon as they could. Of the companies that received approved rate changes, the increases ranged from 4.9 per cent to an eye-popping 29.8 per cent.

It was a nice gift from Jason Kenney, who already slammed families for hundreds of dollars of new costs in his fall budget, including hikes to income tax, property tax, as well as more in school fees, prescription drugs and college tuition.

As usual, Finance Minister Travis Toews trotted out the UCP’s one-trick pony and blamed the NDP, claiming that insurance companies were set to pack their bags and flee the province if he didn’t let them jack up premiums beyond five per cent.

The lobbying effort came out in full force. The brokers, the insurance companies, and the Insurance Bureau of Canada are working overtime to sell quite the sob story: a massive spike in claims costs, not enough options for drivers, etc, etc. It’s tough times for the poor, little ol’ car insurance company.

What a load. These are some of the biggest and most profitable companies in Canada, and they simply want back the power they had to jack up premiums hand over fist.

The truth is that claims costs over the past few years are level, a fact that’s supported by the Insurance Bureau of Canada‘s own data. In fact, an actuarial analysis by Fair Alberta Injury Regulators, an organization made up of concerned Albertans, doctors and legal experts, found that injury payouts have stabilized in the last few years, and even started to dip in 2019. Their actuary specifically found evidence that claims are “not skyrocketing.”

This is further supported by the Alberta Superintendent of Insurance, responsible for all regulatory oversight of insurers operating in Alberta with a specific duty to ensure that insurance companies treat Albertans fairly. In his annual report for 2018, he found on average that the claims ratio for car insurance was 80 per cent across all companies in Alberta. Not the 120 per cent figure the insurance companies trot out on TV.

And while the UCP Government continues to claim they have documents to prove the cap made the car insurance industry unsustainable, they haven’t provided a single piece of paper showing any of these companies would bail if they could–GASP–only raise premiums five per cent every year.

So why remove the cap? Well, in politics, it’s who you know. And Jason Kenney knows an awful lot of people in the insurance industry. Namely, his former chief of staff and campaign director Nick Koolsbergen, who was hired to lobby the Premier on behalf of the car insurance industry just last year. He has Kenney’s cell phone number.

Sounds like a good guy to have on your side… if you’re a car insurance company.

The fact is, these companies turn a profit of tens of millions of dollars each year. They’re used to having carte blanche in Alberta, and they want it back.

Under the thinly-veiled guise of “red tape reduction”, the UCP has struck a panel looking at more regulatory changes that the insurance lobby itself has said “could also change the rate regulation framework that governs how insurers set premiums.”

If costs are going to go up even more, who will Jason Kenney look out for? His friends and interests in big insurance? Or everyday Albertans driving to work?

Knowing Jason Kenney, Albertans should brace for impact.

Jon Carson is the MLA for Edmonton-West Henday and the Alberta NDP Opposition Critic for Service Alberta.

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Automotive

Is it time for a Wheel Alignment?

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Bad roads can be your wheels’ worst enemy. If you drive down poorly maintained roads, drive through potholes, or even hit a curb, your alignment can be greatly affected. This can cause even the slightest, tiniest alignment issue, which can accelerate uneven tire wear. Make sure you have your alignment checked every 9,500 km or every other oil change. Your tires and your wallet will thank you later. Uneven tire wear is a symptom of bad wheel alignment. Ideally, tires should wear evenly across the tread. If you’re noticing excessive wear on the rear inside tires, you may have too much junk in the trunk or need an alignment adjustment.

Uneven tire wear can also result in less KPL’s and more pain at the gas pump. How will a wheel alignment help my vehicle? Repeat after us: A wheel alignment ensures optimal drivability. It will help your tires last longer, your vehicle drive smoother, ultimately keeping your wheels pointed in the right direction. And, when it drives more smoothly, it’s smooth sailing—or should we say cruising—ahead. Plus, your car will require less energy to keep going, potentially saving a ton of fuel depending on how much alignment was required. Tires are expensive. Keeping them aligned isn’t.

How will a wheel alignment help my vehicle?

Repeat after us: A wheel alignment ensures optimal drivability. It will help your tires last longer, your vehicle drive smoother, ultimately keeping your wheels pointed in the right direction. And, when it drives more smoothly, it’s smooth sailing—or should we say cruising—ahead. Plus, your car will require less energy to keep going, potentially saving a ton of fuel depending on how much alignment was required. Tires are expensive. Keeping them aligned isn’t.

How can I tell if my car’s alignment is off?

There are some noticeable signs that could indicate a misalignment. Just use your eyes, ears and hands. Your senses (and even the good old personal hunch) are good human capital for spotting poor alignment. Here are some common signs that you are dealing with wheels with poor alignment:

• Vehicle pulling to the left or right

• Uneven or rapid tire wear

• Your steering wheel is crooked when driving straight

• Squealing tires

Call to book 403.343.6633 or book your appointment at kippscott.ca

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september, 2020

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