U.S. senators call for trade crackdown on Canada over dairy quotas, digital policies
WASHINGTON — A pair of senior U.S. senators is urging the Biden administration to get tough with Canada for “flouting” obligations to its North American trade partners.
Democrat Sen. Ron Wyden of Oregon and Republican Sen. Mike Crapo lay out their concerns in a letter to U.S. Trade Representative Katherine Tai.
The letter says American dairy producers still aren’t getting the access to the Canadian market they’re entitled to under the U.S.-Mexico-Canada Agreement.
It also describes Canada’s planned digital services tax as discriminatory and raises similar concerns about new legislation to regulate online streaming and news.
All three, the senators say, would give preferential treatment to Canadian content and deny U.S. tech companies fair access to the market north of the border.
The letter comes after meetings this week in San Diego between U.S., Canadian and Mexican trade emissaries, as well as the North American Leaders’ Summit in Mexico City earlier this month.
The USMCA, referred to in Canada as CUSMA, has been at the centre of a number of bilateral and trilateral disputes since it went into effect in the summer of 2020.
“Three years later, it is disappointing that Canada and Mexico have failed to come into full compliance with the agreement — and, in some cases, have flouted their obligations,” the senators write.
“USTR must take decisive action to ensure full compliance with the agreement and with dispute settlement panel findings. It is critical to ensure that every chapter of USMCA is fully and timely enforced.”
Canada and Mexico have their own issues with how the U.S. is interpreting the deal, which was signed in 2018 after protracted trilateral efforts to replace NAFTA.
As the Mexico City summit wrapped up, a dispute panel ruled against the U.S. over how it interprets the rules that determine the origin of core automotive components.
It remains unclear whether the U.S. plans to comply with that decision.
This report by The Canadian Press was first published Jan. 27, 2023.
The Canadian Press
‘A crisis’: Calgary charity seeks one-month homes for Ukrainian refugees after influx
Ukrainian evacuees Dmytro Syrman, left, his wife, Anastasiia, centre, and their four-year-old daughter Varvara attend a news conference highlighting the need for temporary housing in Calgary on Wednesday, March 29, 2023. THE CANADIAN PRESS/Jeff McIntosh
By Bill Graveland in Calgary
After six months under Russian occupation, Dmytro Syrman and his family decided to flee Ukraine for a safer life abroad and are now in Calgary.
The family lived in Dniprorudne, a mining city of 17,000 in southern Ukraine. Syrman worked as a human resources manager at an iron factory.
In August, Syrman, his wife, Anastasiia, and four-year-old daughter Varvara embarked on a six-day, 3,000-kilometre drive to Poland.
“On the 24 of February, when the Russian army attacked Ukraine and occupied our city in March 2022, we lost everything,” Syrman said Wednesday.
He said they began planning their escape when they realized Russian soldiers weren’t leaving their city.
“We started all of this because we were scared for Varvara,” he said. “When Russian bombs were falling near our city it was really scary.”
Their home is still under Russian occupation.
For the past year the family stayed in Poland, sent in their paperwork to come to Canada, and two weeks ago arrived in Calgary.
They’re now staying with a host family for a month while they look for long-term accommodation and to find jobs.
“We are here and starting a new life. We can’t believe about people who don’t know us and many helped us. We’re really shocked,” Syrman said.
The Syrmans were helped by Calgary’s Centre for Newcomers, which started a campaign to find 100 hosts for Ukrainian families or individuals for a month while they find housing of their own.
Kelly Ernst, chief program officer with the centre, said there has been a flood of Ukrainians trying to take advantage of a federal program that allows them to temporarily resettle in Canada.
The Canada-Ukraine Authorization for Emergency Travel program has been extended until July and Ernst said he expects people will continue to flee the war-torn country.
“We’re in a desperate, dire need at the moment for host homes to try to accommodate the evacuees coming from Ukraine. It’s reaching the proportions of being a crisis moment,” said Ernst.
He said people arriving elsewhere in Canada are migrating to Calgary because the rents are lower than in larger cities such as Toronto and Vancouver.
Ernst said approximately 450 people have been arriving in Calgary every week from Ukraine and his organization has helped people staying nights in the airport, off the street and at homeless shelters.
Natalia Shem, who is the manager of housing for the Ukrainian evacuees, said it’s difficult for the newcomers to find somewhere to live before arriving.
“It’s almost impossible to find long-term rent being outside of Canada and people who come here need one month of stay,” Shem said. “It’s an average time a family can find long-term rent, job and settle down here in Canada.”
This report by The Canadian Press was first published March 29, 2023.
Budget measures unlikely enough to spur major carbon capture investments: Experts
Deputy Prime Minister and Minister of Finance Chrystia Freeland delivers the federal budget in the House of Commons on Parliament Hill in Ottawa, Tuesday, March 28, 2023. Industry watchers say Tuesday’s federal budget likely won’t be enough to convince Canadian oil and gas companies to pull the trigger on expensive, emissions-reducing carbon capture and storage projects. THE CANADIAN PRESS/Sean Kilpatrick
By Amanda Stephenson in Calgary
A question mark continues to hang over the future of carbon capture and storage projects in Canada, in spite of a pledge in Tuesday’s federal budget to deliver more investment certainty for major emissions-reducing projects.
“Look, we have set some very aggressive climate targets in Canada. You can’t kick the can down the road,” said carbon capture advocate James Millar, arguing that’s exactly what the federal government did Tuesday when it provided no additional details around its previously stated intention to reduce the risk of investing in pricey emissions-reduction projects by essentially guaranteeing the future price of carbon.
“The difference comes down to investment certainty in the U.S., versus the promise of investment certainty in Canada.”
As president and CEO of the International CCS (carbon capture and storage) Knowledge Centre, a non-profit organization based in Regina, Millar had been closely watching Tuesday’s budget in hopes of obtaining more federal support for the expensive technology that can be used to trap harmful greenhouse gas emissions from industrial processes and store them safely underground.
Heavy emitters — in particular, the oil and gas sector — have identified carbon capture and storage technology as key to helping the sector meet its emissions reduction targets and have been looking for government incentives akin to what is being offered south of the border, where the U.S. Inflation Reduction Act promises to pay companies a guaranteed US$85 price for each tonne of injected carbon.
While Canada has already announced an investment tax credit that will help to offset some of the up-front capital costs of carbon capture projects, companies have so far been hesitant to pull the trigger and go ahead with proposed large-scale projects.
The Pathways Alliance, for example, a consortium of oilsands companies, has proposed building a $16.5-billion carbon capture and storage transportation line to combat emissions from existing oilsands infrastructure in northern Alberta.
But the group has not yet made a final investment decision, saying it needs to know its project will be competitive with those in the U.S. before proceeding.
One thing the oil and gas sector has said will help with that is some kind of mechanism that would reduce the risk to companies that the federal price on carbon could be lowered or eliminated. If a new government were to be elected and remove or change Canada’s carbon pricing system, investing in expensive carbon-reducing technology could suddenly become uneconomical.
On Tuesday, the federal government reiterated that it intends to create such a mechanism through a so-called carbon contracts for difference system — but disappointed many who were hoping for details. Instead, the government announced it plans to begin consultations around the development of such a program.
Millar said while he doesn’t doubt the government’s good intentions, companies that have proposed large-scale projects need to get moving now if they have any hope of meeting Canada’s goal to reduce this country’s overall emissions by 40 per cent below 2005 levels by 2030 looms.
“We’re already in 2023, we’re seven years out. The consultations that were announced yesterday will take months,” he said. “I think it will take at least a year because it’s going to take time to set up the process.”
The Pathways Alliance itself took a diplomatic tone Tuesday, issuing a statement after the tabling of the budget saying it was “encouraged” by the signal that more policy certainty is coming, and adding it looks forward to a “better understanding” of the government’s intentions.
But Greg Pardy of RBC Capital said in a research note that in spite of some enhancements to the previously announced investment tax credit, budgetary support for carbon capture and storage was “somewhat limited — perhaps even disappointing.”
“In our view, Canada’s federal government needs to shift into much higher gear when it comes to incentivizing decarbonization investment if it is to achieve its bold climate change ambitions,” Pardy said.
A report from BMO Capital Markets published just before the release of Tuesday’s budget said Canada’s policy framework for large-scale deployment of carbon capture and storage disadvantages producers here compared to the U.S., “despite claims to the contrary from some proponents of the environmental lobby.”
Environmentalists have been critical of any additional federal support for carbon capture, calling it akin to a subsidy for oil and gas companies that enables them to increase production when the world should be scaling down fossil fuel usage.
But the BMO report said carbon capture is an essential part of the energy transition, and without offering improved incentives to keep up with the U.S., Canada risks not meeting its 2030 emissions reduction targets.
“Canada’s market-based carbon price systems are much too uncertain to act as ‘incentive’ for industry to invest in major decarbonization projects,” the BMO report stated.
“Emitters need financial supports that are tangible and recognized by financial institutions to underwrite bank financing.”
This report by The Canadian Press was first published March 29, 2023.
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