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Canada, Ethiopia starting talks towards investment agreement

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ADDIS ABABA, Ethiopia — Prime Minister Justin Trudeau says Canada and Ethiopia are preparing to start negotiations towards a foreign investment protection agreement.

Trudeau is in Addis Ababa to meet with Prime Minister Abiy Ahmed and President Sahle-Work Zewde.

He spent more than two hours with Abiy, including more than an hour in a private tour of a new public park and zoo on the grounds of the prime minister’s residence.

He also had a working lunch with Zewde at Jubilee Palace.

Both meetings are part of Canada’s agenda to secure support from many African nations as it vies for a seat on the powerful United Nations Security Council in June.

However, Trudeau says this trip is about more than just the UN and told both Abiy and Zewde he sees immense potential for Canada and Ethiopia to help each other grow.

He says that’s why the two nations are about to start working towards an investment agreement.

“This visit is a chance for us to take our partnership and our friendship to the next level,” Trudeau said Saturday.

“We have an incredible opportunity before us.”

FIPAs, as they are often referred to in official circles, encourage investment between two nations. Canada already has at least two dozen FIPAs in place.

Ethiopia is not a big economic partner for Canada currently, with just $170 million in two-way trade in 2018, more than three-quarters of it Canadian exports.

However, Ethiopia is the fastest growing economy in Africa and one the five fastest in the world.

Trudeau also revealed a $10-million contribution to the African Union Commission for gender equality and women’s empowerment. He gave a speech at a breakfast hosted by the African Union and the funds were well-received by the mostly female audience. Trudeau is the first Canadian prime minister to attend an African Union event.

The breakfast was a side event to the African Union’s 33rd session in Addis Ababa on Saturday, but many African scholars in Canada say Canada’s efforts to advance its relationships in Africa comes very late in the game.

That was a feeling echoed by the head of one of Canada’s biggest challengers for two seats available in the group of countries Canada is in. Norwegian Prime Minister Erna Solberg said Norway and Canada are pursuing African support in similar ways but that Norway has been a steadier partner over the years.

“I think one of the differences, of course, is we have been on the steady same path for a very long time, so they know us,” Solberg said.

Canada’s economy is larger but Norway proportionately spends more on foreign aid and international efforts, she added.

Cabinet ministers accompanying Trudeau insist the relationship with Africa is not last-minute, nor is it solely because Canada needs many of Africa’s 54 votes at the UN to win the seat. There are two seats up for grabs and Canada is vying for them against Norway and Ireland.

“It’s not like we were absent and now we are showing up,” said Families Minister Ahmed Hussen. “Nothing could be further from the truth.”

Solberg also met with Abiy and Zewde on Saturday. She also was in Ethiopia a year ago when she had talks with Abiy. This is Trudeau’s first visit to Ethiopia.

Irish Taoiseach Leo Varadkar visited Ethiopia and met with Abiy in January.

Where Abiy’s vote will go at the UN is unknown but he was warm to Trudeau. They spent more than two hours together at a private meeting, an expanded bilateral meeting with officials and ministers from both countries, and the tour at Unity Park.

The pulic park and museum was previously private space and is one of Abiy’s pet projects. At the end of the tour, Abiy and Trudeau had coffee and shared some Ethiopian food, and continued talking for more than 20 minutes.

Abiy told Trudeau that Ethiopia is grateful for the diplomatic relationship between the two countries, which began more than 50 years ago. But he added that Canada’s influence actually began much earlier than that with missionaries and Canadian aid dollars.

“We are very much grateful about it,” he said.

Trudeau told Abiy he is “much more interested” in building economic partnerships going forward.

Trudeau also met with African Union Commission chair Moussa Faki Mahamat, Rwandan President Paul Kagame and Ulisses Correia e Silva, the prime minister of Cape Verde.

Later on Saturday, he was to attend an African Union panel discussion about the “blue economy” which refers to the use of water bodies for sustainable economic prosperity.

This report by The Canadian Press was first published Feb. 8, 2020.

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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