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Canada, U.K. trade talks break off as Trudeau government won’t extend temporary post-Brexit deal

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The two blame each other for a lack of progress, with Canada’s dairy-import quotas and the U.K.’s ban on hormone-treated beef and pork being two of the stumbling blocks

The U.K. has paused talks to strike a free-trade deal with Canada, with each side accusing the other of obstructing progress.

Britain will only negotiate trade deals that “deliver” for its people and reserves the right to pause talks that aren’t moving forward, a government spokesperson said Thursday.

“We remain open to restoring talks with Canada in the future to build a stronger trading relationship that benefits businesses and consumers on both sides of the Atlantic,” read a post published by Susannah Goshko, British High Commissioner to Canada, on X, formerly known as Twitter.
The two countries announced the formal start of negotiations on a new trade deal in 2022, seeking to replace an interim deal put in place following Britain’s departure from the European Union.The U.K. had pushed to extend a temporary arrangement that allowed exports of British cheese to Canada under low tariffs, similar to those enjoyed by European Union members. That deal expired Dec. 31.

The U.K. also wanted Canada to extend country-of-origin rules that allowed the nation to export products that contained parts from the EU. The expiration of the rules at the end of March could drive up the prices of British goods — such as vehicles — in Canada, unless the U.K. changes its supply chains.

The timelines for these measures were clear to both parties and were intended to ensure that the negotiations were prioritized, according to a Canadian government official familiar with the matter. The U.K. didn’t meet those timelines, the person said.

Trade Minister Mary Ng’s office blames “stalled negotiations” on a British “unwillingness” to offer something in return, such as budging on a dispute over Canadian meat.Canada’s cattle sector has been lobbying against a new deal with the U.K. over a long-standing dispute on hormone-treated beef and pork.

The U.K. has said it is unwilling to budge on its policy of banning imports of meats treated with certain hormones that are widely used by Canadian ranchers, who argue the Brits’ concern isn’t grounded in science.

The U.K. government’s decision to maintain market-access barriers for Canada’s agriculture industry and unwillingness to reach a mutual agreement stalled negotiations, said Shanti Cosentino, a spokesperson for Ng.

She said Ng had been in touch with her U.K. counterpart, Trade Secretary Kemi Badenoch, to express Canada’s disappointment.

Ng told reporters in Ottawa that the U.K. is Canada’s third-largest, single-country trading partner at over $46 billion a year.

“I’m disappointed that they have paused these negotiations,” Ng said. “I’m very confident that we will be able to get back to the table, and I would encourage my colleagues in the United Kingdom, let’s get back to the table.”

Agriculture Minister Lawrence MacAulay defended Canada’s dairy-import quotas, which have long been a source of tension with trading partners. The country has controlled dairy supplies for decades, limiting domestic production and applying heavy tariffs to imports, in an effort to stabilize incomes for local farmers.“When it comes down to signing the trade deal, we will sign a trade deal that’s good for Canadian farmers,” MacAulay said. “The supply-management sector is protected in this country, and will be.”

— With additional reporting from Dylan Robertson of The Canadian Press

 

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RCMP investigating after three found dead in Lloydminster, Sask.

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LLOYDMINSTER, SASK. – RCMP are investigating the deaths of three people in Lloydminster, Sask.

They said in a news release Thursday that there is no risk to the public.

On Wednesday evening, they said there was a heavy police presence around 50th Street and 47th Avenue as officers investigated an “unfolding incident.”

Mounties have not said how the people died, their ages or their genders.

Multiple media reports from the scene show yellow police tape blocking off a home, as well as an adjacent road and alleyway.

The city of Lloydminster straddles the Alberta-Saskatchewan border.

Mounties said the three people were found on the Saskatchewan side of the city, but that the Alberta RCMP are investigating.

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

Note to readers: This is a corrected story; An earlier version said the three deceased were found on the Alberta side of Lloydminster.

The Canadian Press. All rights reserved.



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Three injured in Kingston, Ont., assault, police negotiating suspect’s surrender

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KINGSTON, Ont. – Police in Kingston, Ont., say three people have been sent to hospital with life-threatening injuries after a violent daytime assault.

Kingston police say officers have surrounded a suspect and were trying to negotiate his surrender as of 1 p.m.

Spokesperson Const. Anthony Colangeli says police received reports that the suspect may have been wielding an edged or blunt weapon, possibly both.

Colangeli says officers were called to the Integrated Care Hub around 10:40 a.m. after a report of a serious assault.

He says the three victims were all assaulted “in the vicinity,” of the drop-in health centre, not inside.

Police have closed Montreal Street between Railway Street and Hickson Avenue.

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

The Canadian Press. All rights reserved.



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Government intervention in Air Canada talks a threat to competition: Transat CEO

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Demands for government intervention in Air Canada labour talks could negatively affect airline competition in Canada, the CEO of travel company Transat AT Inc. said.

“The extension of such an extraordinary intervention to Air Canada would be an undeniable competitive advantage to the detriment of other Canadian airlines,” Annick Guérard told analysts on an earnings conference call on Thursday.

“The time and urgency is now. It is time to restore healthy competition in Canada,” she added.

Air Canada has asked the federal government to be ready to intervene and request arbitration as early as this weekend to avoid disruptions.

Comments on the potential Air Canada pilot strike or lock out came as Transat reported third-quarter financial results.

Guérard recalled Transat’s labour negotiations with its flight attendants earlier this year, which the company said it handled without asking for government intervention.

The airline’s 2,100 flight attendants voted 99 per cent in favour of a strike mandate and twice rejected tentative deals before approving a new collective agreement in late February.

As the collective agreement for Air Transat pilots ends in June next year, Guérard anticipates similar pressure to increase overall wages as seen in Air Canada’s negotiations, but reckons it will come out “as a win, win, win deal.”

“The pilots are preparing on their side, we are preparing on our side and we’re confident that we’re going to come up with a reasonable deal,” she told analysts when asked about the upcoming negotiations.

The parent company of Air Transat reported it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31. The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

It attributed reduced revenues to lower airline unit revenues, competition, industry-wide overcapacity and economic uncertainty.

Air Transat is also among the airlines facing challenges related to the recall of Pratt & Whitney turbofan jet engines for inspection and repair.

The recall has so far grounded six aircraft, Guérard said on the call.

“We have agreed to financial compensation for grounded aircraft during the 2023-2024 period,” she said. “Alongside this financial compensation, Pratt & Whitney will provide us with two additional spare engines, which we intend to monetize through a sell and lease back transaction.”

Looking ahead, the CEO said she expects consumer demand to remain somewhat uncertain amid high interest rates.

“We are currently seeing ongoing pricing pressure extending into the winter season,” she added. Air Transat is not planning on adding additional aircraft next year but anticipates stability.

“(2025) for us will be much more stable than 2024 in terms of fleet movements and operation, and this will definitely have a positive effect on cost and customer satisfaction as well,” the CEO told analysts.

“We are more and more moving away from all the disruption that we had to go through early in 2024,” she added.

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

Companies in this story: (TSX:TRZ)

The Canadian Press. All rights reserved.



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