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‘Canada First’ might make for good politics, but it’s bad economics

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It’s a no-brainer that Canada would and should be the top priority right now for Canada’s elected leaders. As such, there is likely plenty of fertile ground for a “Canada First” message.

Newly minted Conservative leader Erin O’Toole is clearly attuned to this. With the possibility of a fall election looming, O’Toole has been emphasizing his plans for a “Canada First” economic strategy.

O’Toole took to Twitter on Labour Day to make his case for an economic policy that “puts Canadian workers first.” An accompanying video elaborated on this idea, taking aim specifically at “corporate and financial power brokers” who “care more about their shareholders than their employees” and  “love trade deals with China that allow them to access cheap labour.”

 

It’s unclear exactly what this all means in terms of actual economic policy. Certainly the point about getting Canadians back to work is an important one. The pandemic caused unemployment to skyrocket and the recent job gains we’ve recorded still leave us well short of where we were back in March.

Furthermore, there’s good reason to be frustrated with the Chinese government at the moment, and the fact that we’ve had to rely on China for so much of our personal protective equipment (PPE) has been a source of frustration for many Canadians.

But while the idea of having Canadians manufacture that PPE might have seemed like a win-win early on in the pandemic (addressing our supply issues and putting people to work), it’s not a long-term economic strategy nor is it a solution to those supply issues.

Prior to the pandemic, low-cost PPE was widely available. Had we had the foresight to stockpile for a possible pandemic, we could have done so easily and cheaply. Insisting that such PPE be manufactured in Canada would have simply driven up the costs. And with unemployment having previously been at 40-year lows, there was not exactly a pressing need for those sorts of low-skill jobs.

There are other, more strategic reasons why we might want to re-think our trading relationship with China. Our involvement in the Trans Pacific Partnership (TPP) opens up other Asian markets, like Vietnam, that might be much better places to do business.

O’Toole’s impulse here seems to be more along the lines of the sort of protectionism and nationalism we’ve seen south of the border, the idea that we need to “fight” to “keep jobs here.” If so, we would do well to note the many ways in which that approach has been a failure. Conservatives have long understood the importance of free trade and open markets and hopefully they don’t lose sight of that in pursuit of political points.

For one thing, access to other markets is a huge boon for Canadian exporters and the Canadians they employ. Yes, there is “cheap labour” that can be found in other countries, and by extension, lower-cost goods. That, however, has the effect of improving the purchasing power of Canadians and the resulting additional disposable income supports all kinds of other Canadian businesses and jobs.

But if Canadian companies also having opportunities  to lower their input costs, that improves profitability, which in turn can lead to more jobs and to higher-paying jobs.

U.S. President Donald Trump once remarked that trade wars are “good” and “easy to win.” As we’ve seen, neither is true. A study released earlier this year by the Federal Reserve Bank of New York finds the cost of Trump’s trade war with China has been immense.

 

It found that American companies were the ones who bore almost all the cost of Trump’s tariffs and China’s tariffs meant lower profits for those companies that export to China. All told, the trade war meant a drop of $1.7 trillion in the market value of listed U.S. companies. A study released last fall by Moody’s found that the trade war had meant a loss of some 300,000 jobs on top of a 0.3 per cent drop in real GDP.

Tariffs are taxes, ultimately, and they mean higher costs for businesses and consumers. This kind of an approach will do very little to actually help Canadian families or Canadian businesses.

Conservatives deserve a lot of credit for their role in establishing Canada’s global trade opportunities, including the Trans Pacific Partnership and the Canada-European Union Trade Agreement. If we want to reduce our reliance on China — and build international coalitions to counter China — then we have a lot of potential partners to work with.

We can even call it a “Canada First” strategy if that will make everyone happy.

Rob Breakenridge is host of “Afternoons with Rob Breakenridge” on Global News Radio 770 Calgary and a commentator for Global News.

© 2020 Global News, a division of Corus Entertainment Inc.

Source: – Global News

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Quebec consumer rights bill to regulate how merchants can ask for tips

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Quebec wants to curb excessive tipping.

Simon Jolin-Barrette, minister responsible for consumer protection, has tabled a bill to force merchants to calculate tips based on the price before tax.

That means on a restaurant bill of $100, suggested tips would be calculated based on $100, not on $114.98 after provincial and federal sales taxes are added.

The bill would also increase the rebate offered to consumers when the price of an item at the cash register is higher than the shelf price, to $15 from $10.

And it would force grocery stores offering a discounted price for several items to clearly list the unit price as well.

Businesses would also have to indicate whether taxes will be added to the price of food products.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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Youri Chassin quits CAQ to sit as Independent, second member to leave this month

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Quebec legislature member Youri Chassin has announced he’s leaving the Coalition Avenir Québec government to sit as an Independent.

He announced the decision shortly after writing an open letter criticizing Premier François Legault’s government for abandoning its principles of smaller government.

In the letter published in Le Journal de Montréal and Le Journal de Québec, Chassin accused the party of falling back on what he called the old formula of throwing money at problems instead of looking to do things differently.

Chassin says public services are more fragile than ever, despite rising spending that pushed the province to a record $11-billion deficit projected in the last budget.

He is the second CAQ member to leave the party in a little more than one week, after economy and energy minister Pierre Fitzgibbon announced Sept. 4 he would leave because he lost motivation to do his job.

Chassin says he has no intention of joining another party and will instead sit as an Independent until the end of his term.

He has represented the Saint-Jérôme riding since the CAQ rose to power in 2018, but has not served in cabinet.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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‘I’m not going to listen to you’: Singh responds to Poilievre’s vote challenge

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MONTREAL – NDP Leader Jagmeet Singh says he will not be taking advice from Pierre Poilievre after the Conservative leader challenged him to bring down government.

“I say directly to Pierre Poilievre: I’m not going to listen to you,” said Singh on Wednesday, accusing Poilievre of wanting to take away dental-care coverage from Canadians, among other things.

“I’m not going to listen to your advice. You want to destroy people’s lives, I want to build up a brighter future.”

Earlier in the day, Poilievre challenged Singh to commit to voting non-confidence in the government, saying his party will force a vote in the House of Commons “at the earliest possibly opportunity.”

“I’m asking Jagmeet Singh and the NDP to commit unequivocally before Monday’s byelections: will they vote non-confidence to bring down the costly coalition and trigger a carbon tax election, or will Jagmeet Singh sell out Canadians again?” Poilievre said.

“It’s put up or shut up time for the NDP.”

While Singh rejected the idea he would ever listen to Poilievre, he did not say how the NDP would vote on a non-confidence motion.

“I’ve said on any vote, we’re going to look at the vote and we’ll make our decision. I’m not going to say our decision ahead of time,” he said.

Singh’s top adviser said on Tuesday the NDP leader is not particularly eager to trigger an election, even as the Conservatives challenge him to do just that.

Anne McGrath, Singh’s principal secretary, says there will be more volatility in Parliament and the odds of an early election have risen.

“I don’t think he is anxious to launch one, or chomping at the bit to have one, but it can happen,” she said in an interview.

New Democrat MPs are in a second day of meetings in Montreal as they nail down a plan for how to navigate the minority Parliament this fall.

The caucus retreat comes one week after Singh announced the party has left the supply-and-confidence agreement with the governing Liberals.

It’s also taking place in the very city where New Democrats are hoping to pick up a seat on Monday, when voters go to the polls in Montreal’s LaSalle—Émard—Verdun. A second byelection is being held that day in the Winnipeg riding of Elmwood—Transcona, where the NDP is hoping to hold onto a seat the Conservatives are also vying for.

While New Democrats are seeking to distance themselves from the Liberals, they don’t appear ready to trigger a general election.

Singh signalled on Tuesday that he will have more to say Wednesday about the party’s strategy for the upcoming sitting.

He is hoping to convince Canadians that his party can defeat the federal Conservatives, who have been riding high in the polls over the last year.

Singh has attacked Poilievre as someone who would bring back Harper-style cuts to programs that Canadians rely on, including the national dental-care program that was part of the supply-and-confidence agreement.

The Canadian Press has asked Poilievre’s office whether the Conservative leader intends to keep the program in place, if he forms government after the next election.

With the return of Parliament just days away, the NDP is also keeping in mind how other parties will look to capitalize on the new makeup of the House of Commons.

The Bloc Québécois has already indicated that it’s written up a list of demands for the Liberals in exchange for support on votes.

The next federal election must take place by October 2025 at the latest.

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

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