Tag Archives: Trade

QP: Bothered by bonuses

Posted on by

While a torrential downpour descended on the nation’s capital, he third-last week of the spring sitting got underway. Andrew Scheer led off in French, mini-lectern on desk, decrying the “failure” of the government to buy the Trans Mountain pipeline and the revelation that executives were getting million-dollar bonuses. Justin Trudeau took up a script to read about their decision to stand up for workers, but would not comment on the internal workings of a company. Scheer switched to English to repeat the question, with added verbosity. Trudeau had no script this time to reiterate the same thing, and adding that public investment has long been necessary to develop resources in Canada. Scheer switched topics, offering some revisionist history in saying that they immediately supported the government in retaliating against the imposition of US tariffs, but worried that our measures wouldn’t come into effect until July 1st. Trudeau reminded him that they wanted to consult to ensure that no Canadians would be inadvertently hurt by these measures. They went another round of the same, and Scheer switched topics again to Iran, and the recent tweets by the Supreme Leader, to which Trudeau took up a script to read some pro forma condemnation of Iran’s actions. Ruth Ellen Brosseau led for the NDP, reading some condemnation about those Kinder Morgan bonuses, and Trudeau, sans script, gave the response about the $15 billion Canada loses annually by not getting a world price for oil. Brosseau worried that the pipeline trampled on the rights of First Nations, to which Trudeau suggested that they did a lot of consulting on the issue. Georgina Jolibois reiterated the question in English, and Trudeau said that they listened to all First Nations, including those who disagreed with them, and they tried to do what they to allay concerns. Nathan Cullen got up to reiterate the question of Kinder Morgan bonuses with added sanctimony, to which Trudeau repeated the $15 billion talking point and the fact that it fit within their climate plan.

Continue reading →

Roundup: Wynne’s final gambit

Posted on by

The big news over the weekend was the extremely curious decision by Ontario premier Kathleen Wynne to essentially concede defeat of the election days before the vote and urge Liberal voters to return enough MPPs to Queen’s Park to hold the NDP or the Progressive Conservatives to a minority, ensuring that neither party gets a “blank cheque” come Friday. Wynne also stated that she wouldn’t be premier after Thursday, but that’s not quite correct – she may signal her intention to resign on Thursday, but she would still be in the job another two or three weeks during the transition period because as we know, Her Majesty must always have someone there to give her advice. That’s how Responsible Government works, after all.

This having been said, I’ve had a few people ask me what I think of the move, and I’ve had a hard time with it. So little about this election makes any kind of sense, but here we are. Some political scientists say that this is a clever long game to keep her personal unpopularity from sinking the party entirely, and that seems to be echoed by members of her own party who were blindsided by the move, but who say that it may help with people who feel that they want to still vote for the local Liberal MPP but not for a continuation of the Wynne-led government. And after some consideration, I do think this is part of the calculation – to reassure Liberal voters (particularly in safer-Liberal seats) that they can still vote for their MPP and still have an eye on the bigger picture that won’t necessarily mean a Liberal government, as opposed to the supposition that this is just about handing votes to the NDP in a bid to keep Ford out of office.

Andrea Horwath, meanwhile, is already ruling out any kind of Liberal support to in a minority situation, which is a) not wholly unexpected for someone who suddenly has a shot at forming government; but b) is also potentially a dangerous gambit should she be forced to walk back from those sentiments if she does rely on having Liberal seats to keep her government from falling in short order. And it really is up in the air right now as to where things are sitting, so I’m sure we’ll be having all kinds of conversations about government formation in the next week or two. (If you need a head start, read up in my book).

Continue reading →

Roundup: Justifying a belligerent tone

Posted on by

Two days after the American tariff announcements, and I found myself still struck by the tone that the federal Conservatives have adopted with this, squarely blaming Trudeau rather than the uncertainty engine known as Trump, and engaging in the same kind of disingenuous narrative-building to justify their stance. In particular, they have been trying to claim that when Trudeau made his tour of steel and aluminium plants earlier in the year, that it was a “victory tour,” which is vastly different from how I remember it. Back then, it was about reassurance and the prime minister wanting to tell them that he had their backs and given that the government was ready for these tariffs to happen and had a package of retaliatory measures ready to go, it means that they didn’t take the reprieve for granted – entirely negating the premise of the Conservatives’ attack lines. Not that facts matter. They are also insistent that the Trudeau government has allowed itself to get “distracted” by the feel-good chapters around labour and gender in NAFTA negotiations, which again, is novel if you pay the slightest amount of attention to what’s been going on. But this isn’t about truth – this is about building their narrative that Trudeau is a dilettante who is incompetent and that the Conservatives are the real grown-ups in the room (despite evidence to the contrary). And because people have let Scheer and company lie with impunity on all sorts of files for months now, they feel emboldened to take this course of action, despite how gauche or out of step with other conservative voices in the country it may be, because they see this as their long-term game plan. And we’ll see if any of those voices call them out on it.

As for the impact of the tariffs, it turns out that they could have a far less detrimental impact on Canada’s aluminium industry because it exports more product to the US than we do steel, and America’s own smelters are older and less efficient than Canadian ones, meaning that these tariffs won’t do anything to help support the US industry, and American producers say that they could do more harm than good. Steel, of course, is a different story. The whole tariff issue, meanwhile, could mean that the lock that the American arms industry has on our military procurement may be at an end, and that our Forces may start looking to Europe for equipment instead – something that may actually be more affordable, but the tendency had been to buy from American producers under the guise of “interoperability” with American forces. As for the American companies facing retaliatory tariffs, well, they’re still learning about them, but most don’t seem too concerned. At least not yet. And many Republicans and businesses are lashing out at Trump for the move – including anchors at Fox Business.

In further reaction, Andrew Coyne believes that the sheer size of the US economy means that our retaliation will come to nothing, and even if we coordinate with other countries, we’re unlikely to change Trump’s mind, so better to work to contain the US presidency. Susan Ariel Aaronson suspects that the tariffs will weaken America’s national security interests rather than strengthen them, as Trump has used as the excuse to enact them, while Andrew MacDougall thinks that Trump’s move may benefit Doug Ford, who pledges to lower taxes and cut red tape that may appeal to people who think this can help keep Ontario’s economy competitive.

Continue reading →

Roundup: The first salvo of a trade war

Posted on by

It looks like we’ll officially be in a trade war with the United States, thanks to the decision of the American government to slap steel and aluminium tariffs on us as a direct consequence of NAFTA not being renegotiated (under the guise of “national security” concerns), and the Canadian government has opted to retaliate. And we also learned that a NAFTA deal was on the table, but because we refused the five-year sunset clause (as well we should have because it would present too much uncertainty to industry), the Americans walked away from the deal. So that’s a pretty big deal.

The tariffs could have pretty big knock-on effects on our economy, and it won’t really help the American steel industry, which is already operating pretty much at capacity, so much of Trump’s justification evaporates. And Canada’s retaliatory measures, calculated to be dollar-for-dollar on the US-imposed tariffs may sound like an odd list that includes things like yogurt, candy, pizzas and pens, it’s all carefully calculated to target the industries of swing states and key American legislators as they start heading toward mid-term elections. The objective of course is to put pressure on them, who should in turn put pressure on Trump. In theory. We’ll see.

Meanwhile, Aaron Wherry looks at how Trump is ignoring the basics of statecraft and getting away with it with impunity. Paul Wells suspects it’s time to start snubbing Trump rather than appearing eager to get a deal accomplished, since that’s what he’s more focuse don in the first place. Stephen Saideman says that Canada needs to retaliate somehow, lest it feed Trump’s perception that “maximal pressure” works in negotiations.

https://twitter.com/dgardner/status/1002189314107703297

Continue reading →

QP: Cheap shots on a trade war

Posted on by

While Justin Trudeau had intended to show up for Question Period today, the new imposition of tariffs by the United States had him off at the National Press Theatre instead. Andrew Scheer was also away, off to Nova Scotia instead. Erin O’Toole led off, decrying the steel tariffs and called the prime minister a failure on the issue, which ushered in cries of “shame!” from the Liberal benches. Marc Garneau admonished him for being partisan on this issue, and stated that the tariffs were unacceptable and that Canada would be imposing retaliatory tariffs against American imports. O’Toole insisted that the PM didn’t get anything for months while the Conservatives were engaged on the file, and demanded action. Garneau reiterated his response, and when O’Toole invited the government to work with the Conservatives on the issue, Garneau relate his response for a third time. Luc Berthold took over to make the charge of incompetence in French, to which Garneau repeated his response in French, and when Berthold accused the PM of naïvely believing the president when he said there would be no tariffs, Garneau said that Berthold should be ashamed of his partisanship. Ruth Ellen Brosseau then picked up the same line of questioning for the NDP, demanding to know what the government would do to protect workers, and Garneau repeated that they are consulting on retaliatory measures and would protect workers. Tracey Ramsey took over in English, and over two questions asked the same thing and made more accusations that the government was unable to secure a deal, to which Garneau repeated his response yet again. Karine Trudel took over for a final attempt at the very same question, and got the same answer. Again.

Continue reading →

Roundup: On track for a final cannabis vote

Posted on by

Over in the Senate, some of the drama around the cannabis bill has resolved itself and we can look forward to some structured, orderly report stage and third reading debate leading up to the June 7thfinal vote. And yes, before you say anything, the Conservative senators are playing along and have been swearing up and down that they will respect this date and not try to play any games and delay it further. (They also know that they’ve burned a hell of a lot of political capital on unnecessary fights lately and aren’t keen to burn any more).

To recap, part of the drama has been that the Conservatives still plan to move amendments at Third Reading, which is their right. But they wanted this as part of the structured plan, and the Government Leader in the Senate – err, “government representative,” Senator Peter Harder, wasn’t playing ball, and wanted the Social Affairs Committee – which funnelled all of proposed amendments from the four other committees that studied the bill and voted on them there – to have a look at those amendments first. And the Conservatives, rightfully, refused. And then members of the Independent Senators Group started giving quotes to newspapers about how they were open to real amendments and not those that were “superficial, tactical, unenforceable, or would only serve to delay this bill.” That, and throwing more shade about how they believed the Conservatives were just playing games, because the modus operandi seems to be that anything the Conservatives do is partisan and therefore bad, but anything they do out of a shared belief is not partisan and just fine, which is a lot of bunk. And some of the Independent senators are getting downright condescending in trying to make that particular case. Suffice to say, peace has broken out after the ISG got over their issues about the amendments, and they now have a plan for debate that will carry them through to the vote on the 7th.

Meanwhile, there is talk about whether the amendments to C-46 – the impaired driving bill – will survive a full vote in the Senate after the likely unconstitutional provisions around random alcohol testing. ISG “facilitator” Senator Woo is hinting that they would vote to reinstate the provisions. I will add, however, that I am not absolutely not buying their supposition that senators were trying to simply embarrass the government by returning the omnibus transport bill to the Commons a second time because it was their own Independent senators who insisted on those amendments. Sometimes senators insist on amendments because they think they’re in the right – which is a novel concept, I’m sure.

Continue reading →

Roundup: Trans Mountain and Phoenix

Posted on by

The government announced yesterday morning that they were going to acquire the Trans Mountain pipeline and the project to twin it from Kinder Morgan – but that this would be a short-term acquisition if another buyer can’t be found before August. In the meantime, a loan would be extended to Kinder Morgan to begin construction immediately. Rachel Notley cheered and said that it’s time for Albertans to pick up tools and get to work on building it. Morneau, incidentally, won’t say what those construction costs will be, as that’s commercially sensitive information that could undermine the process for finding a buyer for the pipeline. As for who some of those buyers might be, here’s a look at that question. The buyout – if it happens – won’t eliminate opposition, but it changes the legal situation for BC in that federal paramountcy is even more prevalent than it was before. BC premier John Horgan says that his fight will carry on, but he’s suddenly saying that this is all because the federal oceans protection plan isn’t good enough, which is…new, and not terribly convincing. As for Indigenous activists, some say that the announcement is tantamount to a “declaration of war,” but other Indigenous communities are seeing this as an opportunity to buy a stake in the pipeline to benefit their communities.

https://twitter.com/InklessPW/status/1001476415815127041

https://twitter.com/kevinmilligan/status/1001481702470905857

https://twitter.com/kevinmilligan/status/1001486610729394176

The Conservatives immediately stated that this was all because of Liberal incompetence, that Kinder Morgan never said they wanted to sell, that they only wanted “certainty,” and then Andrew Scheer engaged in a bunch of revisionist history that falsely claimed that other pipeline projects never got government financing (it’s like he’s never read about the Trans Canada Pipeline construction in the 1950s, not to mention the development of the Hybernia offshore oilfield, or the development of the oilsands themselves). Oh, and Scheer’s definition of “certainty” that he would provide includes forgoing the current environmental assessment bill (has he talked to environmental lawyers or looked at the kinds of court challenges that the Conservative legislation has generated?) and his insistence that they could somehow “assert” federal jurisdiction by means of a declaration or a bill is ridiculous because they already had jurisdiction. The pipeline crosses a provincial boundary, thereby making it federal. Jurisdiction was never seriously in question. His MPs and other federal and provincial mouthpieces have been trying to spin this as some kind of conspiracy that Trudeau is only buying the pipeline in order to take control of it and shut it down so that they can shut down the entire oil sector. Seriously? You expect people to believe that, after Trudeau has staked an enormous amount of political capital on this very move? Really?

In other reaction, Andrew Coyne sees this as not all bad news (though I’m not sure how much more the Liberals could have done to avoid it), while John Ivison sees irony in the government “getting into the pipeline business” on the same day as the Auditor General blasted them for an inability to manage big projects. Tim Harper sees this as a potential precursor to tougher days ahead for Trudeau, while Jason Markusoff notes that this will make it hard for Albertans to sustain the narrative that Ottawa hates them (though by gods, the Conservatives in Ottawa are really trying). Andrew Leach also gives a very detailed analysis of the purchase in Twitter threads here, here, here, and here.

Continue reading →

Senate QP: MacAulay reminds us he’s a farmer

Posted on by

After a raucous Question Period in the Other Place, has it was a much more sedate affair in the Red Chamber as agriculture minister Lawrence MacAulay arrived to answer questions. Senator Larry Smith started off in French, asking about the cultivation of marijuana and land use, and what steps would be taken to avoid the diversion food land for large-scale outdoor grow ops. MacAulay first regaled us with tales about prohibition, and then noted that the bill was under the jurisdiction of the ministers of justice and health, but he was also concerned about the use of land, and eventually said he would assure senators that he would do anything he could to ensure that land would remain for farm use. Smith asked if he offered any advice to Health Canada officials on the use of outdoor growth, but MacAulay didn’t really offer any kind of assurance.

Continue reading →

Roundup: Trans Mountain decision day?

Posted on by

It looks like today will be the day we get some kind of answer on the Kinder Morgan Trans Mountain expansion pipeline, and everything will likely be confirmed in the morning as Cabinet meets earlier than usual. The three options on the table are the previously announced indemnification, as well as the option to either buy the pipeline outright (though I’m not sure if that means just the expansion or the original pipeline itself that the expansion twins) in order to sell it once the expansion completes construction, or temporarily buying it long enough to sell it to someone else who will complete construction. The word from Bloomberg’s sources is that the government is likely to buy it outright, on the likely option of buying it long enough to find someone who can guarantee its completion.

https://twitter.com/InklessPW/status/1001288600967827456

https://twitter.com/acoyne/status/1001294404836085760

As for what this will mean politically, you can bet that there will be no end to the howls of outrage from both opposition parties – from the Conservatives, we’ll hear that this never should have happened, and it’s only because of the federal government’s incompetence that it did. (While one can certainly question their competence in a number of areas, this is one where they had few good options, and no, a court reference or a pipeline bill would not have helped because they already have the necessary jurisdiction they need). The NDP, meanwhile, will howl that this is a betrayal of their promises on the environment and the rights of First Nations, and that it pays billions to “Texas billionaires” rather than Canadians, and so on (though one would imagine that the NDP should be all for nationalizing infrastructure projects). And one can scarcely imagine the invective we’ll hear from Jason Kenney, as helpful as that will be. Suffice to say, the next few days (and weeks) will likely be even more dramatic that they have been. Because this time of year isn’t crazy enough in Parliament without this.

Continue reading →

QP: Borders and pipeline taxes

Posted on by

While Justin Trudeau was present today after meeting with the prime minister of Estonia, Andrew Scheer was away. In his place, Lisa Raitt led off, worried about irregular border crossers, and the strain it was putting on housing. Trudeau stood to respond, script in hand, to say that they have robust processes, but the previous government left them backlogs that they were still cleaning up. When Raitt insisted that there were three separate problems as a result of his #WelcomeToCanada tweet, the lack of clarity from the immigration minister, and the international development minister welcoming those migrants because they helped with a labour shortage in her riding. Trudeau didn’t take up a script this time and reminded Raitt that they have a system that applies to everyone, and when Raitt tried a third time, Trudeau got more vociferous in his reiteration that there is a proper process, that they ensure that everyone goes through it, whether there are backlogs or not. Gérard Deltell took over in French, reiterating the previous question, to which Trudeau noted that while Canada welcomes people a from around the rule, the system is applied with integrity and that we are a country with a rule of law. On a second time around, Trudeau noted that they still had irregular migrants under their watch, and they cut their healthcare on top of resources to CBSA and the IRB. Guy Caron led off for the NDP, and accused Kinder Morgan of avoiding Canadian taxes, so why would the government give them a blank cheque. Trudeau started with the tired environment and the economy talking point before transitioning to the fact that without the pipeline, our economy is losing out of a $15 billion because of a lack of access to other markets. Caron tried again, and Trudeau doubled down on the need for a better price for our oil. Ruth Ellen Brosseau took over to ask the same again in English, and Trudeau reiterated his answer, and again on a second go around.

Continue reading →