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Ottawa’s proposed ‘food packaging’ ban will harm Canadians without helping the environment

Published

1 year ago

5 minute read

From the Fraser Institute

The Trudeau government, which recently banned plastic bags nationwide, is now considering a ban on plastic “food packaging” in support of its ambitious “Zero Plastic Waste by 2030” goal. However, if the government bans plastic food packaging, it will impose real economic costs on Canadians and jeopardize their health, for virtually no discernible environmental benefit.

First, let’s put plastic pollution in perspective. Canada contributes an estimated 0.4 per cent of all plastic waste in the world, including just 0.02 per cent of all plastic waste in the world’s oceans. Five countries—China, the United States, Germany, Brazil and Japan—generate nearly 50 per cent of global plastic waste. And 90 per cent of the world’s ocean plastic waste comes from Asia and Africa. Even if the government achieved “Zero Plastic Waste by 2030,” the effect on global plastic waste would be undetectable.

Before these bans, Canada’s track record on managing plastic waste was outstanding, ranking 49th out of 158 countries for minimizing mismanaged plastic waste (measured on a per-person basis). The federal government acknowledges this fact in its own report where it also states that 99 per cent of the country’s plastic waste is already disposed off safely through recycling, incinerating and environmentally-friendly landfills.

And plastic bans pose real risks to human health and the environment. For example, according to a recent study in the Journal of Food Additives and Contaminants, like plastic straws, straws made from plant-based materials such as paper, wood and glass (common substitutes for plastic straws) also contain a class of chemicals known as per- and polyfluoroalkyl substances (PFAS), which can persist for thousands of years and migrate through the soil, potentially contaminating sources of drinking water. This contamination exposes both wildlife and humans to potential negative effects on the immune system, thyroid function, liver and other adverse effects that are yet to be fully understood.

In other words, we don’t fully know how plastic alternatives will affect our health and the environment.

There are other costs. For example, plastic wrapping, which could soon be banned, is instrumental in food preservation, food transit and the reduction of food waste by protecting against contamination and spoilage throughout the food supply chain. And any type of plastic packaging can increase the time food lasts from days to weeks, allowing families to cut their grocery spending. In addition, plastic is the most cost-effective among common packaging materials, so forcing the food industry to transition to pricier alternatives will raise the cost of food packaging and these added expenses will be passed on to consumers through higher food prices.

To make matters worse, eliminating plastic food packaging could also negatively impact the environment from an emission standpoint. Why? Because food production emits greenhouse gases (GHG) and the process of replacing spoiled food requires additional production, transportation and refrigeration, resulting in higher overall emissions.

Plastic substitutes such as paper are also heavier, require more energy to transport, present higher smog formation and ozone depletion potential, demand more water and energy to be produced, and ultimately result in higher greenhouse gas emissions. Researchers in Switzerland found that opting for plastic packaging for baby food, instead of glass, could reduce emissions by up to 33 per cent, mainly due to reduced weight when being transported. So, the ban on plastics can have a detrimental, rather than a beneficial impact on the environment.

Overall, the pursuit of a “zero plastic” waste goal by banning more plastic products will jeopardize the health of Canadians, negatively impact the environment, and burden the already strained finances of Canadians.

Authors:

Elmira Aliakbari
Director, Natural Resource Studies, Fraser Institute
Julio Mejía
Junior Policy Analyst
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China’s economy takes a hit as factories experience sharp decline in orders following Trump tariffs

Published on April 30, 2025

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Quick Hit:

President Trump’s tariffs on Chinese imports are delivering a direct blow to China’s economy, with new data showing factory activity dropping sharply in April. The fallout signals growing pressure on Beijing as it struggles to prop up a slowing economy amid a bruising trade standoff.

Key Details:

  • China’s manufacturing index plunged to 49.0 in April — the steepest monthly decline in over a year.
  • Orders for Chinese exports hit their lowest point since the Covid-19 pandemic, according to official data.
  • U.S. tariffs on Chinese goods have reached 145%, with China retaliating at 125%, intensifying the standoff.

Diving Deeper:

Three weeks into a high-stakes trade war, President Trump’s aggressive tariff strategy is showing early signs of success — at least when it comes to putting economic pressure on America’s chief global rival. A new report from China’s National Bureau of Statistics shows the country’s manufacturing sector suffered its sharpest monthly slowdown in over a year. The cause? A dramatic drop in new export orders from the United States, where tariffs on Chinese-made goods have soared to 145%.

The manufacturing purchasing managers’ index fell to 49.0 in April — a contraction level that underlines just how deeply U.S. tariffs are biting. It’s the first clear sign from China’s own official data that the trade measures imposed by President Trump are starting to weaken the export-reliant Chinese economy. A sub-index measuring new export orders reached its lowest point since the Covid-19 pandemic, and factory employment fell to levels not seen since early 2024.

Despite retaliatory tariffs of 125% on U.S. goods, Beijing appears to be scrambling to shore up its economy. China’s government has unveiled a series of internal stimulus measures to boost consumer spending and stabilize employment. These include pension increases, subsidies, and a new law promising more protection for private businesses — a clear sign that confidence among Chinese entrepreneurs is eroding under Xi Jinping’s increasing centralization of economic power.

President Trump, on the other hand, remains defiant. “China was ripping us off like nobody’s ever ripped us off,” he said Tuesday in an interview, dismissing concerns that his policies would harm American consumers. He predicted Beijing would “eat those tariffs,” a statement that appears more prescient as China’s economic woes grow more apparent.

Still, the impact is not one-sided. Major U.S. companies like UPS and General Motors have warned of job cuts and revised earnings projections, respectively. Consumer confidence has also dipped. Yet the broader strategy from the Trump administration appears to be focused on playing the long game — applying sustained pressure on China to level the playing field for American workers and businesses.

Economists are warning of potential global fallout if the trade dispute lingers. However, Beijing may have more to lose. Analysts at Capital Economics now predict China’s growth will fall well short of its 5% target for the year, citing the strain on exports and weak domestic consumption. Meanwhile, Nomura Securities estimates up to 15.8 million Chinese jobs could be at risk if U.S. exports continue to decline.

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Scott Bessent says U.S., Ukraine “ready to sign” rare earths deal

Published on April 30, 2025

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Quick Hit:

During Wednesday’s Cabinet meeting, Treasury Secretary Scott Bessent said the U.S. is prepared to move forward with a minerals agreement with Ukraine. President Trump has framed the deal as a way to recover U.S. aid and establish an American presence to deter Russian threats.

Key Details:

  • Bessent confirmed during a Cabinet meeting that the U.S. is “ready to sign this afternoon,” even as Ukrainian officials introduced last-minute changes to the agreement. “We’re sure that they will reconsider that,” he added during the Cabinet discussion.

  • Ukrainian Economy Minister Yulia Svyrydenko was reportedly in Washington on Wednesday to iron out remaining details with American officials.

  • The deal is expected to outline a rare earth mineral partnership between Washington and Kyiv, with Ukrainian Armed Forces Lt. Denis Yaroslavsky calling it a potential turning point: “The minerals deal is the first step. Ukraine should sign it on an equal basis. Russia is afraid of this deal.”

Diving Deeper:

The United States is poised to sign a long-anticipated rare earth minerals agreement with Ukraine, Treasury Secretary Scott Bessent announced  during a Cabinet meeting on Wednesday. According to Bessent, Ukrainians introduced “last minute changes” late Tuesday night, complicating the final phase of negotiations. Still, he emphasized the U.S. remains prepared to move forward: “We’re sure that they will reconsider that, and we are ready to sign this afternoon.”

As first reported by Ukrainian media and confirmed by multiple Ukrainian officials, Economy Minister Yulia Svyrydenko is in Washington this week for the final stages of negotiations. “We are finalizing the last details with our American colleagues,” Ukrainian Prime Minister Denys Shmyhal told Telemarathon.

The deal follows months of complex talks that nearly collapsed earlier this year. In February, President Trump dispatched top officials, including Bessent, to meet with President Volodymyr Zelensky in Ukraine to hammer out terms. According to officials familiar with the matter, Trump grew frustrated when Kyiv initially refused U.S. conditions. Still, the two sides ultimately reached what Bessent described as an “improved” version of the deal by late February.

The effort nearly fell apart again during Zelensky’s February 28th visit to the White House, where a heated Oval Office exchange between the Ukrainian president, Trump, and Vice President JD Vance led to Zelensky being removed from the building and the deal left unsigned.

Despite those setbacks, the deal appears to be back on track. While no public text of the agreement has been released, the framework is expected to center on U.S.-Ukraine cooperation in extracting rare earth minerals—resources vital to modern manufacturing, electronics, and defense technologies.

President Trump has publicly defended the arrangement as a strategic and financial win for the United States. “We want something for our efforts beyond what you would think would be acceptable, and we said, ‘rare earth, they’re very good,’” he said during the Cabinet meeting. “It’s also good for them, because you’ll have an American presence at the site and the American presence will keep a lot of bad actors out of the country—or certainly out of the area where we’re doing the digging.”

Trump has emphasized that the deal would serve as a form of “security guarantee” for Ukraine, providing a stabilizing American footprint amid ongoing Russian aggression. He framed it as a tangible return on the billions in U.S. aid sent to Kyiv since the start of Russia’s 2022 invasion.

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