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Canada backs down from crop chemical ban, adds restrictions

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Canada‘s pesticide regulator said on Wednesday that farmers could keep using the chemical imidacloprid to control crop-destroying insects under stricter conditions, softening an earlier proposal to ban it.

The chemical, made by Germany’s Bayer AG, is part of the neonicotinoid class of pesticides that farmers have sprayed on crops since the 1990s. Farmers use imidacloprid to protect fruits and vegetables from aphids and beetles.

Environmental groups, who criticized the ruling, say neonics harm beneficial aquatic insects when the chemicals accumulate in ponds and rivers. Those bugs are food for birds and fish.

The Pest Management Regulatory Agency (PMRA) proposed in 2016 phasing out imidacloprid due to those risks, before extending a feedback period.

Now in a statement with its final ruling, the agency said that such risks are acceptable within certain limits, after considering new water-monitoring data.

Farmers must reduce their application rates and not spray within buffer zones around sensitive areas, it said. Uses in certain situations are banned.

Canada imposed other restrictions to protect bees in 2019.

The agency’s decision to continue allowing use of imidacloprid is encouraging, as it has already imposed numerous restrictions, said Chris Duyvelshoff, crop protection adviser at the Ontario Fruit & Vegetable Growers Association.

PMRA said in March it would also limit use of two other crop chemicals, clothianidin and thiamethoxam, linked to the deaths of aquatic insects.

Canada‘s approach to managing the chemicals’ risk is not credible, a coalition of environmental groups said.

“The decision today means we must cross our fingers and hope for the best,” said Lisa Gue, senior policy analyst with the David Suzuki Foundation.

The European Commission banned outdoor use of all three neonicotinoids in 2018 to protect honeybees, although some countries have granted emergency authorizations. The U.S. Environmental Protection Agency is reviewing the chemicals’ use.

Bayer has two years to update Canadian product labels with new application instructions. A Bayer representative did not respond to a request for comment.

(Reporting by Rod Nickel in Winnipeg; Editing by Matthew Lewis and Peter Cooney)

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Brazil’s Vale says output begins at Reid Brook nickel deposit in Canada

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Vale’s Voisey’s Bay nickel mine in Northern Labrador has started the production at its Reid Brook deposit, the Brazilian miner said in a securities filing on Tuesday.

Vale said the Canadian Reid Brook and Eastern Deeps mines are likely to produce 40,000 tonnes of nickel by 2025.

 

(Reporting by Carolina Mandl; editing by Jason Neely)

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EU, U.S. agree to talk on carbon border tariff

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The United States and European Union agreed on Tuesday to hold talks on the bloc’s planned carbon border tariff, possibly at the World Trade Organisation, EU chief executive Ursula von der Leyen said.

U.S. President Joe Biden met European Commission President von der Leyen and European Council President Charles Michel on Tuesday for a summit tackling issues from trade to the COVID-19 pandemic.

The leaders also discussed climate change policy, including the EU’s plan to impose carbon emissions costs on imports of goods, including steel and cement, which the Commission will propose next month.

“I explained the logic of our carbon border adjustment mechanism,” von der Leyen told a news conference after the summit.

“We discussed that we will exchange on it. And that WTO might facilitate this,” she said.

Brussels and Washington are keen to revitalise transatlantic cooperation on climate change, after four fractious years under former president Donald Trump.

On Tuesday, they outlined plans for a transatlantic alliance to develop green technologies and said they will coordinate diplomatic efforts to convince other big emitters to cut CO2 faster.

But the EU border levy could still cause friction. A draft of the proposal said it would apply to some U.S. goods sold into the EU, including steel, aluminium and fertilisers.

Brussels says the policy is needed to put EU firms on an equal footing with competitors in countries with weaker climate policies, and that countries with sufficiently ambitious emissions-cutting policies could be exempted from the fee.

The United States and EU are the world’s second- and third- biggest emitters of CO2, respectively, after China.

A draft of the EU-U.S. summit statement, seen by Reuters, repeated commitments the leaders made at the G7 summit at the weekend to “scale up efforts” to meet an overdue spending pledge of $100 billion a year by rich countries to help poorer countries cut carbon emissions and cope with global warming.

It did not include firm promises of cash. Canada and Germany both pledged billions in new climate finance on Sunday, and campaigners had called on Brussels and Washington to do the same.

The draft statement also stopped short of setting a date for the United States and EU to stop burning coal, the most polluting fossil fuel and the single biggest of greenhouse gas emissions.

Brussels and Washington said they will largely eliminate their CO2 emissions from electricity production by the 2030s.

 

(Reporting by Kate Abnett, additional reporting by Valerie Volcovici; Editing by Marguerita Choy, Andrew Heavens and Barbara Lewis)

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U.S. fine Air Canada $25.5 milliom over delayed refunds

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The U.S. Transportation Department said on Tuesday it was seeking a $25.5 million fine from Air Canada over the carrier’s failure to provide timely refunds requested by thousands of customers for flights to or from the United States.

The department said it filed a formal complaint with a U.S. administrative law judge over flights Air Canada canceled or significantly changed. The penalty is “intended to deter Air Canada and other carriers from committing similar violations in the future,” the department said, adding Air Canada continued its no-refund policy in violation of U.S. law for more than a year.

Air Canada said it believes the U.S. government’s position “has no merit.” It said it “will vigorously challenge the proceedings.”

Air Canada obtained a financial aid package this spring that gave the carrier access to up to C$5.9 billion ($4.84 billion) in funds through a loan program.

The carrier said it has been refunding nonrefundable tickets as part of the Canadian government’s financial package. Since April 13 eligible customers have been able to obtain refunds for previously issued nonrefundable tickets, it said.

The Transportation Department disclosed it is also “actively investigating the refund practices of other U.S. and foreign carriers flying to and from the United States” and said it will take “enforcement action” as appropriate.

The administration said the Air Canada penalty sought was over “extreme delays in providing the required refunds.”

Refund requests spiked during the COVID-19 pandemic.

Since March 2020, the Transportation Department has received over 6,000 complaints against Air Canada from consumers who said they were denied refunds for flights canceled or significantly changed. The department said the airline committed a minimum of 5,110 violations and passengers waited anywhere from five to 13 months to receive refunds.

Last month, a trade group told U.S. lawmakers that 11 U.S. airlines issued $12.84 billion in cash refunds to customers in 2020 as the coronavirus pandemic upended the travel industry.

In May, Democratic Senators Edward Markey and Richard Blumenthal called on carriers to issue cash refunds whether flights were canceled by the airline or traveler.

($1 = 1.2195 Canadian dollars)

(Reporting by David Shepardson in WashingtonAdditional reporting by Allison Lampert in MontrealEditing by Matthew Lewis)

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