Christopher Reynolds, The Canadian Press
Published Wednesday, January 19, 2022 2:54PM EST
Last Updated Wednesday, January 19, 2022 4:05PM EST
MONTREAL – Canadian airlines say flights to the U.S. remain unaffected by the rollout of new 5G wireless technology that has sparked blowback from many large carriers.
Several international airlines cancelled flights to the United States this week over concerns that 5G mobile phone service could interfere with aircraft technology.
On Tuesday, telecommunications giants Verizon and AT&T announced last-minute delays to Wednesday’s service launch near key U.S. airports – the third postponement since early December – after U.S. carriers warned that the wireless frequency could cause widespread flight disruptions.
Critics say the new C-band 5G service operates in a frequency range that could interfere with radio altimeters, which measure an aircraft’s height above the ground and help pilots land in low visibility.
Air Canada, WestJet Airlines Inc. and Transat A.T. say no flights to the U.S. have been cancelled due to the issue.
“WestJet has not identified any material risk to our operations regarding the rollout of 5G across Canada,” spokeswoman Denise Kenny said in an email.
Airlines for America, a trade association representing 10 U.S. airlines and Air Canada, warned in a letter to the U.S. government Monday that “the vast majority of the travelling and shipping public will essentially be grounded” if the rollout goes ahead as initially planned. The 50 biggest American airports would have been subject to flight restrictions, prompting cancellation of some 1,100 flights, the organization said.
Canada’s 5G rollout faces no such hurdles.
Last fall, the federal Industry Department established protective measures, including so-called exclusion zones near airports, to reduce any interference with radio altimeters while allowing deployment of 5G systems in the 3,500-megahertz band in Canada. (The planned 5G rollout by American telecoms falls between 4,200 and 4,400 megahertz.)
It also imposed a “national antenna down-tilt requirement” on telecoms to protect helicopters and planes used in low-altitude military and search and rescue operations as well as medical evacuations, “which by nature do not fly predictable routes into and out of major airports,” the department’s Nov. 18 decision reads.
“It is expected that as new information and studies become available, and as new radio altimeter standards are developed internationally, these measures may be modified or relaxed,” Industry Department spokesman Hans Parmar said in an email.
John Gradek, head of McGill University’s aviation management program, said 5G networks in Canada run at lower wireless speeds that would not interfere with landings, and that only some older planes whose technology has not been upgraded pose a risk in the U.S.
“The question you have to ask yourself is, are the airlines investing in what I would call hardening the radio altimeter equipment so it no longer gets interfered with by C-band 5G?” he said in a phone interview.
“People knew this was coming. The airlines could have done something to invest in their airplanes to get the equipment in place, but they have not. We all know it’s money – airlines are kind of short on money these days.”
Robert Kokonis, president of consulting firm AirTrav Inc., says U.S. President Joe Biden’s administration should shoulder more blame for the “debacle” than cash-strapped carriers, pointing to a “lack of co-ordination and communication.”
“Between the commissioners of the Federal Aviation Administration – the FAA – and the Federal Communications Commission – the FCC – there’s an abject failure of decision making on behalf of the Biden administration,” he said in a phone interview.
“This is the biggest aviation market in the world. For this to happen – after the Boeing 737 Max oversight issue – you’ve got to scratch your head and wonder: what is going on in that country?”
The wave of cancellations by some airlines will carry “ripple effects” for carrier schedules around the world, he added.
On Wednesday, Emirates announced it would halt flights to several U.S. cities due to “operational concerns associated with the planned deployment of 5G mobile network services” at certain airports. It said it would continue flights to Los Angeles, New York and Washington.
Emirates president Tim Clark pulled no punches when discussing the issue. He told CNN it was “one of the most delinquent, utterly irresponsible” situations he’d ever seen as it involved a failure by government, science and industry.
Of particular concern appears to be older Boeing 777 wide-body jetliners. Emirates only flies that model and the Airbus A380 jumbo jet – and it was among one of the most affected airlines.
Japan’s All Nippon Airways cancelled 20 flights to cities such as Chicago, Los Angeles and New York after the U.S. Federal Aviation Administration “indicated that radio waves from the 5G wireless service may interfere with aircraft altimeters,” the carrier said. Along with Japan Airlines, it said Boeing announced restrictions on airlines flying its 777s.
Air India also announced on Twitter it would cancel flights to Chicago, Newark, N.J., New York City and San Francisco because of the 5G issue. But it also said it would try to use different aircraft on U.S. routes – a course several other airlines took.
In Canada, the industry and transport departments are working with the telecom and aviation sectors “to ensure that appropriate rules are in place to protect the critical operations of radio altimeters” and minimize potential interference, Transport Canada spokeswoman Sau Sau Liu said in an email.
Transport Canada also issued a civil aviation alert on Dec. 23 offering recommendations on how to fly an airplane “in a 5G environment,” she noted.
This report by The Canadian Press was first published Jan. 19, 2022.
Companies in this story: (TSX:AC, TSX:TRZ)
– With files from The Associated Press
US stocks rally as Fed minutes meet expectations – Al Jazeera English
Investors fear that overly aggressive interest rate hikes by the Fed could tip the economy into recession.
Wall Street closed higher Wednesday, boosted after minutes from the Federal Reserve’s latest monetary policy meeting showed policymakers unanimously felt the United States economy was very strong as they grappled with reining in inflation without triggering a recession.
The minutes from the Federal Open Market Committee’s May meeting, which culminated in a 50-basis-point rise in the Fed funds target rate – the biggest jump in 22 years – showed most of the committee’s members judged that further such rate hikes would “likely be appropriate” at its upcoming June and July meetings.
“The uniformity of opinion is a good thing,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “There’s a lack of uncertainty of what needs to be done in the near term.”
“By the time [the Fed] gets to September, they will have plenty of economic data to make their move from there, so they continue to maintain optionality,” Mayfield added.
All three major US stock indexes gyrated earlier in the day amid increasing jitters stemming from business and consumer surveys, economic data and corporate earnings reports suggesting a cooling American economy – even as the Fed prepares to toss a bucket of cold water on it to tackle decades-high inflation.
Fears that overly aggressive interest rate hikes by the Fed could tip the economy into recession despite evidence that inflation peaked in March has driven those concerns.
“There’s some credence to the idea that inflation is doing [the Fed’s] job for them,” Mayfield said. “There’s already a cooling occurring, and financial conditions have tightened over the last month because of dollar strength and equity market weakness.”
On Thursday, the Department of Commerce is due to release its second take on first-quarter GDP, which analysts are expected to show a slightly shallower contraction than the 1.4 percent quarterly annualised drop originally reported.
The Personal Consumption Expenditures report will follow on Friday, which will provide further clues regarding consumer spending and whether inflation peaked in March, as other indicators have suggested.
The Dow Jones Industrial Average rose 191.66 points, or 0.6 percent, to 32,120.28, the S&P 500 gained 37.25 points, or 0.95 percent, to 3,978.73 and the Nasdaq Composite added 170.29 points, or 1.51 percent, to 11,434.74.
Nine of the 11 major sectors in the S&P 500 rose, with consumer discretionary stocks leading the pack with a gain of 2.8 percent.
Amazon.com Inc and Tesla Inc provided the strongest lift to the S&P 500 and the Nasdaq, rising 2.6 percent and 4.9 percent, respectively.
Department store operator Nordstrom Inc surged 14.0 percent on the heels of its upbeat annual profit and revenue forecasts.
Fast-food chain Wendy’s Co jumped 9.8 percent after a regulatory filing revealed that shareholder Nelson Peltz was considering a potential takeover bid for the company.
Shares of Nvidia Corp fell more than 8 percent in after-hours trading after the company’s second-quarter revenue forecast missed expectations.
Gas Up Nearly 4 Cents; Price Freeze Lifts in Labrador – VOCM
Despite predictions to the contrary, the regulated price of gas is up in most parts of the province.
Gasoline is up by 3.9 cents a litre, except along the coast of Labrador. Diesel on the island is up by 1.3 cents while diesel in Labrador has dropped by 11.6 cents a litre. Furnace oil costs over a cent a litre more on the island while stove oil on the island up by the same amount. Stove oil in Labrador is down by 23.70 cents a litre.
Propane meanwhile is down by just under 2 cents.
The suspension of maximum price adjustments on the coast of Labrador lifts as of today as fuel deliveries resume for the season—that means significant increases, in some cases by about a dollar a litre, for some fuels.
Cheese not on the table in Canada-U.K. trade talks as Britain seeks market access
OTTAWA — The British foreign secretary has often been mocked for her preoccupation with cheese. It started eight years ago when Liz Truss expressed outrage in a speech to her party’s annual conference.
“We import two thirds of our cheese,” she raged. “That is a disgrace.”
Now Truss is facing another battle over cheese, this time with Canada.
Britain wants greater access to Canadian markets for more than 700 varieties of cheese including Stilton, Cheshire, and Wensleydale, a crumbly variety originating from Yorkshire.
But Ottawa has made it clear it does not want to see more British cheddar, let alone artisan varieties such as stinking bishop, renegade monk and Hereford hop, on Canadian fridge shelves.
During the first round of negotiations of the U.K.-Canada trade deal, Canada told Britain that a larger quota for British cheese is not on the negotiating table.
When it was a European Union member, Britain was part of the Comprehensive Economic and Trade Agreement with Canada, giving it some access to Canada’s cheese market.
After the U.K. left the EU, a “continuity agreement” with Canada was swiftly put in place to maintain the CETA arrangement until a bilateral trade deal could be struck.
Ralph Goodale, Canada’s high commissioner to the U.K., said if Britain wants more access to Canadian markets for its cheese as part of a bilateral free-trade agreement, it will have to knock on Brussels’ door and get its part of the dairy quota back.
“The point is we have already provided that volume in the EU deal and the British left it there without taking it with them,” he said in an interview. “That’s an issue they need to resolve with the Europeans because the Europeans have their quota.”
Goodale said the U.K.’s request for extra access for British cheese — on top of the access given to the EU — is “what the Canadian negotiators consider to be pretty much a dead end.”
“You are talking about a double concession — one we have already made to the EU and the request is being made by the U.K. for yet another one on top of that,” he said.
The high commissioner said Canada values its trading relationship with the U.K., adding that he is confident that a mutually-beneficial trade deal will be reached.
But if Canada allows the British to export more of their cheese it would involve “a major commitment of compensation to dairy producers” in Canada to make up for lost incomes.
In 2018, after the United States-Mexico-Canada Agreement gave the U.S. fresh access to the Canadian dairy market, Prime Minister Justin Trudeau said he would compensate Canadian dairy farmers.
Canada’s dairy industry was worth over $7 billion in 2020, according to the Canadian Dairy Commission’s annual report.
There are over 10,000 dairy farms in Canada — most of them in Quebec and Ontario — with an average of 92 cows per farm, it said.
Until at least the end of next year, Britain will be able to keep exporting its cheese to Canada under the trade continuity agreement, the U.K.’s trade department said.
This allows U.K. cheese exporters to access the Canadian market tariff-free under the EU portion of Canada’s World Trade Organization cheese tariff rate quota.
As part of the 1995 WTO agreement on agriculture, Canada established tariff rate quotas for cheese and other dairy products. The quotas set out quantities of dairy that could enter Canada with little or no duty.
For Britain, a fully fledged free trade deal with Canada is crucial after Brexit left it looking for fresh tariff-free markets.
“We want to negotiate an ambitious and comprehensive new agreement with Canada that will strengthen our close and historic bilateral trade relationship,” said a U.K. government trade spokesman in a statement, adding the relationship was worth about $34.5 billion in 2021.
In March, U.K. Trade Secretary Anne-Marie Trevelyan flew to Canada to announce with Canada’s Trade Minister Mary Ng that bilateral negotiations had officially begun.
In a speech in the House of Lords in London earlier this month, Goodale reported on progress in the talks, saying that “both sides are optimistic that, as good as CETA and the continuity agreement were, we can do better still when Canada and the U.K. negotiate a deal face-to-face, directly with each other.”
Like Goodale, Ng said Canada is confident a free-trade deal with Britain will be reached, enhancing co-operation in a number of areas, including on renewables, sustainability and the digital economy.
“Canada values the relationship with the United Kingdom. They are … an important trading partner and a trade agreement with the U.K. will be very good for Canadian businesses,” she said in a phone interview from Thailand last weekend.
But she was also firm about the need to protect Canada’s dairy producers, and that means keeping more British cheese out.
“I have been very clear, our government has been very clear, that we will not provide access to our supply-managed sector,” she said. “We have been clear about that from the get-go.”
The Canadian dairy sector now produces 1,450 varieties of cheese, including ewe, goat and buffalo varieties, as well as the cheese curds used in the Québécois dish poutine.
At least half of Canada’s cheese is made in Quebec, which is home to a number of artisan varieties including bleu l’ermite, or blue hermit, and Oka, a popular semi-soft rind cheese.
Pierre Lampron, president of the Dairy Farmers of Canada, has made it clear he will fiercely protect Canadian cheese from British interlopers.
Lampron said he had “validated that the issue of access to the Canadian dairy market was not on the agenda of these trade talks.”
Canada’s protectionist stance toward its dairy industry may have pleased farmers. But it has caused some tension with close allies.
Earlier this month, New Zealand launched a formal trade dispute against Canada, accusing the federal government of breaking promises to give access for dairy imports under the Trans-Pacific Partnership agreement.
The Biden administration also recently said it was asking for a second dispute settlement panel under the U.S.-Mexico-Canada Agreement to review a trade dispute with Canada over dairy import quotas.
This report by The Canadian Press was first published May 26, 2022.
Marie Woolf, The Canadian Press
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