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U.S. President official visit to Canada

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U.S President Joe Biden and Prime Minister Justin Trudeau agreed to tackle a number of cross-border irritants, after a day of meetings on Parliament Hill, emphasising how important shared values are to shared prosperity and longstanding liberty.

“I can’t think of a challenge we haven’t met together,” Biden said during a joint press conference standing next to Trudeau. “Today as we stand… at an inflection point in history, our nations are once again called upon to lead, and together I believe we’re answering the call.”

In a joint statement the two leaders announced plans to further bolster Norad, expand the Safe Third Country Agreement to unofficial ports of entry to address irregular migration, launch a one-year energy transformation task force, and offer more support to Haiti.

Another major cross-border point of contention heading into Friday’s meetings were Biden’s “Buy-America” approach and Canada’s need to compete with his Inflation Reduction Act.

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On this, the joint statement indicates that the United States and Canada will work together “toward an integrated North American approach that benefits U.S. and Canadian workers, suppliers, and products.”

Here are the highlights of what Canada and the U.S. have agreed to.

  • “Catalzye” clean energy and strengthen the critical mineral sector: This commitment includes $250 million going towards Canada’s semiconductor industry and US$50M in related Defence Production Act funding, bolstering and diversifying the North American supply chains, and IBM expanding a facility in Quebec. The joint statement also notes the launch of a new energy task force that will be chaired by the U.S. Special Presidential Coordinator for Global Infrastructure Amos Hochstein and Deputy Prime Minister Chrystia Freeland with a mandate to “accelerate cooperation on critical clean energy opportunities… and to avoid and reduce disruptions to our integrated and mutually supportive supply chains.”
  • “Manage” migration by revising the Safe Third Country Agreement: This move seeks to address the influx of irregular migration stemming from a loophole in the 20-year-old cross-border asylum pact. In addition to almost immediately closing all irregular points of entry like Roxham Road by permitting border officers to return irregular crossers to the closest port of entry, Canada will welcome an additional 15,000 migrants from the Western Hemisphere over the course of the year and both sides vow to focus on promoting legal pathways.
  • “Protecting” shared waters: This includes Canada spending $420 million to protect and restore the Great Lakes over the next decade, working together on a modernized treaty regime related to the Columbia River Basin, reach by this summer an agreement around reducing water pollution in the Elk-Kootenay watershed, in partnership with tribal nations and Indigenous people.
  • “Bolstering” global alliances and offering more to Haiti, Ukraine: This portion of the agreement will see Canada sent $100 million in additional equipment and support for the Haitian National Police to bolster Haitian-led solutions to the crisis and support peace and security.” Both countries reaffirmed their unwavering support for Ukraine and intent to impose economic costs on Russia. They both acknowledged a desire to condemn China, while finding ways to be competitive against its economy and collaborative on issues like climate change.
  • “Invest” in collective defence and security: When it comes to security issues, Canada is committing to spend an additional $7.3 billion in infrastructure for the arrival of F-35 fighter jets, from the $38.6-billion Norad modernization plan and another $6.96 billion on surveillance system modernization in the North. Stitched into this, the two countries also note plans to disrupt the illicit production and distribution of synthetic opioids like fentanyl and build a global coalition against these drugs.

“In this serious time, with all the challenges we face, we’re doubling down on our partnership, and our friendship,” Trudeau said during the joint press conference. “We’ll also continue to work together as partners to keep our people safe. Keeping people safe also includes keeping asylum seekers safe, keeping our borders secure, and keeping our immigration system strong.”

The visit, Biden’s first to Canada since taking office, was largely an effort to reaffirm the strength of the Canada-U.S. relationship after rocky years under the previous Trump administration, and to speak in-person about ways the two world leaders can work together to tackle the big challenges both countries and the world are facing.

“Our enduring partnership is based on a mutual commitment to shared security, shared prosperity, and shared democratic values,” reads part of a joint statement issued by Biden and Trudeau on Friday afternoon. “As the closest of friends and allies, we remain committed to making life better for people on both sides of our shared border and to building a more free, equitable, secure, and prosperous world.”

‘AN AGE OF POSSIBILITIES’: BIDEN’S SPEECH

The Biden-Trudeau press conference came on the heels of the main event of Biden’s visit: his address to Parliament.

Becoming the ninth U.S. president to deliver a speech to Parliament, POTUS delivered a warm and affable speech in the glass-ceiling temporary House of Commons chamber, which he said Canada had done “a hell of a job” on. “Really beautiful.”

“Bonjour Canada,” was how he started. Then, for nearly 40 minutes, the U.S. president spoke to an audience of hundreds of MPs, senators, dignitaries, diplomats, Indigenous leaders, former prime ministers and governors general, and business stakeholders.

There were also everyday Canadians whose stories spoke to some of the core themes of the visit, from a Ukrainian woman to a steel worker.

The most notable guests that all in the chamber were clearly moved to see were Michael Kovrig and Michael Spavor, who captured the attention of citizens on both sides of the border and sparked a massive diplomatic effort, after they were imprisoned in China from 2018 to 2021. They received numerous standing ovations and rounds of applause during various pre-Biden welcoming speeches, and during the main address.

U.S. President Joe Biden, accompanied by first lady Jill Biden, Prime Minister Justin Trudeau and his wife Sophie Gregoire Trudeau, waves as he arrives to speak at the Canadian Parliament, Friday, March 24, 2023, in Ottawa. (AP Photo/Andrew Harnik, Pool)

Inviting them to take part was a clear indication of how pressing China is on the minds of both delegations. That played out in Biden’s remarks, seeing him at one moment misspeak by saying he applauded China, but meant to say Canada.

“Excuse me… you can tell what I’m thinking about China, I won’t get into that yet,” he said, before saying with sincerity how “very glad” he was to see the two Michaels home and well.

Broadly Biden used the speech to drive home how important the Canada-U.S. partnership is, how closely tied the two countries are, and how much potential there is for both nations if that collaboration continues into the future.

“Americans and Canadians are two people, two countries, in my view, sharing one heart. It’s a personal connection. No two nations on Earth are bound by such close ties: friendship, family, commerce and culture. Our labour unions cross borders, so do our sports leagues,” Biden said before quipping about how he likes Canadian hockey teams with the exception of the Toronto Maple Leafs.

In addition to making some early news about the policy agreements reached on Friday, Biden spoke about the “scourge” of the opioid epidemic, his support for unions, how he took after Trudeau in appointing a gender-balanced cabinet, and how the two countries worked well together to get through the COVID-19 pandemic.

“After two years of COVID, people began to even wonder, ‘can we still do big things?’ Big things. We sure in hell can,” Biden said. “I believe with every fibre of my being that confidence can make most audacious dreams reality.”

Clean energy and growing the green economy was another enduring theme through both Biden’s speech and Trudeau’s introductory remarks, and on a few occasions when topics like semiconductors were spoken to, Freeland could be seen fist-bumping Industry Minister Francois-Philippe Champagne.

“It has never been more clear that everything is interwoven. Economic policy is climate policy is security policy,” Trudeau said, restating this sentiment a few times in his address.

Referring to Canada as a reliable ally and steady friend, Biden got one of a few standing ovations when he said: “You will always be able to count of the United States of America.”

“Our destinies are intertwined and are inseparable … because it’s a choice we’ve made,” Biden said.

Both first lady Jill Biden and Sophie Gregoire Trudeau attended the speech, after spending the morning off the Hill meeting with young curlers to talk about mental health in sport and visiting the National Gallery of Canada for a luncheon and to see an exhibit focused on Canadian women artists.

BIDEN’S BIG DAY ON THE HILL

The U.S. president arrived on Parliament Hill Friday morning to a lot of fanfare and with “a lot to talk about,” during his first official visit to Canada since taking office.

Rolling up onto Parliament Hill in “The Beast” nearly an hour behind schedule, Biden was met by a backdrop of American flags lining the street and extremely tight security.

The U.S. President was welcomed in West Block by House and Senate representatives, and opposition party leaders. Among those who greeted him were Conservative Leader Pierre Poilievre, who Biden later had a pull-aside meeting with.

According to Poilievre, the pair discussed defence, Norad, exemptions for Canada in Buy American, and vaccine mandates.

“President Biden was very receptive. He wants to be a good friend and neighbor to Canada. And that’s why I was so encouraged,” he said.

Green Party leader Elizabeth May also made a bit of a moment for herself, handing Biden a “Peace by Chocolate” bar from a Syrian refugee-turned Nova Scotia chocolatier.

After the handshakes, Biden signed the House and Senate guest books, and then moved as swiftly as his sizeable entourage could, one floor up for a bilateral meeting with Trudeau inside his office.

Offering brief remarks for the gathered media pool before the doors were closed for their private, roughly-30 minute chat, Biden said it was great to be in Canada.

He said that he always tells other world leaders how lucky America is to have Canada to the north at a time with so many geopolitical challenges, and while the two nations disagree occasionally, there is no difference when it comes to the democratic values they share.

“What a real pleasure it is to welcome President Biden to Ottawa, back to Ottawa. It’s so great to see you Joe,” Trudeau said.

This tete-a-tete was followed by an expanded meeting with cabinet ministers and members of Biden’s delegation.

While there was extensive pre-trip policy preparation between officials on both sides, this meeting was where the visit’s substantial policy conversations would have transpired, and the details of the aforementioned tangible commitments that came out of the visit would have been finalized.

In attendance for these high-level talks from the Canadian government were top-level PMO staffers, Trudeau’s national security adviser Jody Thomas, as well as several cabinet ministers. Sitting on either side of the prime minister were Freeland, and Foreign Affairs Minister Mélanie Joly.

Among the American officials in the meeting were Secretary of State Antony Blinken, Energy Secretary Jennifer Granholm, Assistant to the President for National Security Affairs Jake Sullivan, Homeland Security Adviser Liz Sherwood-Randall, and Press Secretary Karine Jean-Pierre.

GALA DINNER CAPS OFF WHIRLWIND VISIT

Once the substantive portion of the day was behind them, Biden, the first lady and the American delegation got ready for a gala dinner hosted by Trudeau and his wife, alongside 350 guests at the Canadian Aviation and Space Museum.

Kicking off the evening, the prime minister gave a toast in which he noted the museum was a fitting location as in the coming years, a Canadian will be heading towards the moon as part of the Artemis II mission. He referenced the Canadian talent in the room, and the nation’s diversity in languages and cuisines, before raising his glass.

“To shared history and shared hope, to shared prosperity, and to the shared peace and security that binds Canada and the United States together as allies as neighbors, and most importantly, as true friends,” Trudeau said.

Canadian Prime Minister Justin Trudeau takes his seat as President Joe Biden gets up to speak during a gala dinner at the Canadian Aviation and Space Museum, Friday, March 24, 2023, in Ottawa, Canada. (AP Photo/Andrew Harnik)

Here’s what was on the very flavours-of-Canada inspired menu.

And, here’s a full rundown of who was on the guest list, a topic that sparked much political back-and-forth over Poilievre’s invitation.

Many in Ottawa were waiting to see whether Biden would make any impromptu visits that would put him in a public setting with Canadians, but that did not transpire.

Still, the capital was on high alert all day with a heightened police and first responder presence around the parliamentary precinct, military aircraft in the skies, and rolling road closures each time POTUS’ Secret Service motorcade was on the move, something some locals gathered to see.

Biden and the first lady’s whirlwind overnight visit began on Thursday evening with a warm welcome from Canadian cabinet ministers and foreign affairs officials, followed by a brief meeting with Gov. Gen. Mary Simon and her husband Whit Fraser. The Bidens then had an intimate meeting with Trudeau and Gregoire Trudeau and their three children at their Rideau Cottage home, where a special locally-made “Friend-chip Goals” ice cream was scooped.

Biden’s scheduled departure time from the Ottawa Airport was 9:25 p.m. on Friday night.

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

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The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain – CBC.ca

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A chorus of Canadian entrepreneurs and investors is blasting the federal government’s budget for expanding a tax on the rich. They say it will lead to brain drain and further degrade Canada’s already poor productivity.

In the 2024 budget unveiled Tuesday, Finance Minister Chrystia Freeland said the government would increase the inclusion rate of the capital gains tax from 50 per cent to 67 per cent for businesses and trusts, generating an estimated $19 billion in new revenue.

Capital gains are the profits that individuals or businesses make from selling an asset — like a stock or a second home. Individuals are subject to the new changes on any profits over $250,000.

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The government estimates that the changes would impact 40,000 individuals (or 0.13 per cent of Canadians in any given year) and 307,000 companies in Canada.

However, some members of the business community say that expanding the taxable amount will devastate productivity, investment and entrepreneurship in Canada, and might even compel some of the country’s talent and startups to take their business elsewhere.

WATCH | The federal budget hikes capital gains inclusion rate: 

Federal budget adds billions in spending, hikes capital gains tax

3 days ago

Duration 6:14

Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.

Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.

“There were definitely some other stars in the budget that were interesting,” he said. “However, the … capital gains piece really is the sun, and it’s daylight. So this is really the only thing that innovators can see.”

The CCI has written and is circulating an open letter signed by more than 1,000 people in the Canadian business community to Trudeau’s government asking it to scrap the tax change.

Shopify CEO Tobi Lütke and president Harley Finkelstein also weighed in on the proposed hike on X, formerly known as Twitter.

Former finance minister Bill Morneau said his successor’s budget disincentivizes businesses from investing in the country’s innovation sector: “It’s probably very troubling for many investors.”

Canada’s productivity — a measure that compares economic output to hours worked — has been relatively poor for decades. It underperforms against the OECD average and against several other G7 countries, including the U.S., Germany, U.K. and Japan, on the measure. 

Bank of Canada senior deputy governor Carolyn Rogers sounded the alarm on Canada’s lagging productivity in a speech last month, saying the country’s need to increase the rate had reached emergency levels, following one of the weakest years for the economy in recent memory.

The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.

A challenge for investors, founders and workers

The change could have a chilling effect for several reasons, with companies already struggling to access funding in a high interest rate environment, said Bergen.

He questioned whether investors will want to fund Canadian companies if the government’s taxation policies make it difficult for those firms to grow — and whether founders might just pack up.

The expanded inclusion rate “is just one of the other potential concerns that firms are going to have as they’re looking to grow their companies.”

A man with short brown hair wearing a light blue suit jacket looks directly at the camera, with a white background behind him.
Benjamin Bergen, president of the Council of Canadian Innovators, said the proposed change could have a chilling effect for several reasons, with companies already struggling to access and raise financing in a high interest rate environment. (Submitted by Benjamin Bergen)

He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm’s stock options grow in value.

But Lindsay Tedds, an associate economics professor at the University of Calgary, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country’s talent has been overstated.

“This is not a major innovation-biting tax change treatment,” Tedds said. “In fact, when you talk to real grassroots entrepreneurs that are setting up businesses, tax rates do not come into their decision.”

As for productivity, Tedds said Canadians might see improvements in the long run “to the degree that some of our productivity problems are driven by stresses like housing affordability, access to child care, things like that.”

‘One foot on the gas, one foot on the brake’

Some say the government is sending mixed messages to entrepreneurs by touting tailored tax breaks — like the Canada Entrepreneurs’ Incentive, which reduces the capital gains inclusion rate to 33 per cent on a lifetime maximum of $2 million — while introducing measures they say would dampen investment and innovation.

“They seem to have one foot on the gas, one foot on the brake on the very same file,” said Dan Kelly, president of the Canadian Federation of Independent Business.

WATCH | Could the capital gains tax changes impact small businesses?: 

How could capital gains tax increases impact Canadian small businesses? | Power & Politics

2 days ago

Duration 12:18

Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.

A founder may be able to sell their successful company with a lower capital gains treatment than otherwise possible, he said.

“At the same time, though, big chunks of it may be subject to a higher rate of capital gains inclusion.”

Selling a company can fund an individual’s retirement, he said, which is why it’s one of the first things founders consider when they think about capital gains.

LISTEN | What does a hike on the capital gains tax mean?: 

Mainstreet NS7:03Ottawa is proposing a hike to capital gains tax. What does that mean?

Tuesday’s federal budget includes nearly $53 billion in new spending over the next five years with a clear focus on affordability and housing. To help pay for some of that new spending, Ottawa is proposing a hike to the capital gains tax. Moshe Lander, an economics lecturer at Concordia University, joins host Jeff Douglas to explain.

Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says he was disappointed by the change — and that it sends the wrong message to Canadian industries like his own.

He wants to see the government commit to more tax credit proposals like the Canada Carbon Rebate for Small Businesses, which he said would incentivize business owners to stay and help make Canada competitive with the U.S.

“We’ve had a lot of difficulties attracting investment over the years. I don’t think this will make it any better.”

Tech titan says change will only impact richest of the rich

A man sits on an orange couch in an office.
Ali Asaria, the CEO of Transformation Lab and former CEO of Tulip Retail, told CBC News that the proposed change to the capital gains tax is ‘going to really affect the richest of the rich people.’ (Tulip Retail)

Toronto tech entrepreneur Ali Asaria will be one of those subject to the expanded capital gains inclusion rate — but he says it’s only fair.

“It’s going to really affect the richest of the rich people,” Asaria, CEO of open source platform Transformer Lab and founder of well.ca, told CBC News.

“The capital gains exemption is probably the largest tax break that I’ve ever received in my life,” he said. “So I know a lot about what that benefit can look like, but I’ve also always felt like it was probably one of the most unfair parts of the tax code today.”

While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren’t the most major problem.

“I think that the biggest central issue to the reason why people will leave Canada is bigger issues, like housing,” he said.

“How do we make it easier to live in Canada so that we can all invest in ourselves and invest in our companies? That’s a more important question than, ‘How do we help the top 0.13 per cent of Canadians make more money?'”

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

300x250x1

The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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