The United Kingdom has revised its global tariff strategy, laying out for Canada and other trading partners the rates that will apply to their exports as of Jan. 1, 2021 — and in the process, setting out Britain’s starting position for future bilateral trade talks.
The new list published Tuesday replaces a temporary regime announced a year ago that would have cut tariffs on nearly all (an estimated 95 per cent) of what the U.K. imports — a hastily-developed scheme designed to the cushion the blow to British consumers of a sudden no-deal Brexit that, in March of 2019, appeared possible.
Under the new regime, Most Favoured Nation (MFN) tariff rates higher than zero will apply to about half of the products imported by the U.K. from around the world, or about 60 per cent of the value of its global trade, once it completes its transition out of the European Union trading bloc.
The U.K. continues to negotiate the final terms of this exit.
Many trading partners, Canada included, want clarity on exactly how future trade between the EU and its former member will work before proceeding with their own bilateral talks with the U.K.
Canada has had preferential trading terms with the U.K., its third-biggest export market, under its Comprehensive Economic and Trade Agreement (CETA) with the EU.
The CETA will continue to apply until the end of this year, but beyond that, the terms of Canada–U.K. trade are uncertain.
“We’ve always paid particular attention to what is happening in the U.K., and of course they are in discussions with the European Union on their agreement,” International Trade Minister Mary Ng told CBC News Tuesday.
“We want to make sure that any negotiations are in the interests [of] and benefit … our Canadian exporters,” she said, adding that the U.K. is a “key trading partner” and the Canadian government expects to have more to say in the days to come.
What to expect if Canada has no deal
Tuesday’s tariff list adds more certainty to key industries’ preparations for the end of the year, when they begin to trade with Britain as an independent partner.
The British government considers its new list a simplified and more liberal version of the European Union’s MFN rates, which set out the tariffs that apply when World Trade Organization members trade with each other.
Canada has enjoyed better access to the EU market than that since September 2017, when the CETA took effect.
At first glance, the tariffs on many of Canada’s essential natural resource exports to the U.K. — gold, diamonds, uranium, other energy exports — remain at zero or are extremely low.
But some of Canada’s hard-fought gains in the CETA would be lost. Tariffs on popular Canadian seafood products, cut to zero under CETA, would be re-applied in the U.K. market, according to this list.
The U.K. is maintaining tariffs on lamb, beef and poultry to protect its domestic farmers. It also will continue to maintain a ten per cent tariff on imported cars, something that was cut under the CETA.
In general, the new list aims to reduce tariffs on inputs for British supply chains, so it does not deal a blow to the manufacturing sector in this already-uncertain Brexit period.
It has cut tariffs on identifiable consumer products that may come from Canada in the future, like Christmas trees. It also cut tariffs on over 100 products that support a green economy, from LED lamps to bicycle tire tubes.
In response to the COVID-19 pandemic, the U.K. became one of several countries that also have cut tariffs temporarily on essential medical products and supplies.
Analysis continues on all sides to determine what the overall impact on Canada–U.K. trade would be if a bilateral trade agreement is not concluded between now and Jan.1.
Build on CETA, or replace it?
Both sides say they want to keep trading on preferential terms. That means Canada and the U.K. have two options in the coming months.
They could agree to “roll over” the terms of the CETA and come to an understanding on how it might continue to apply to trade between the two countries, with some minor adjustments. Beyond its preferential tariff rates, the 2017 CETA deal also removed other non-tariff barriers to trade and set out common standards that both sides may want to preserve.
The two sides also might opt to start from scratch and negotiate an entirely new “bespoke” arrangement between themselves, reflecting the unique aspects of their trading relationship separate from the EU priorities that drove the CETA talks.
Negotiations toward this latter option could take longer and become more complicated — at a time when British negotiators already are being stretched thin by multiple trade negotiations fundamental to the U.K.’s economic future.
Even though talks could not officially start until Brexit was complete, Canada was in discussions with the U.K. about rolling over the terms of the CETA. The two sides had nearly reached an agreement in early 2019 when Canada was caught off-guard by Britain’s sudden move to cut most of tariffs to zero.
The Canadian government then stepped back from these talks, uncertain it wanted to continue to offer the same concessions to the U.K. if, in fact, the entire world was about to have access to the same liberalized tariffs.
Since then, opinions have varied on the urgency of negotiating with the U.K. Opposition Leader Andrew Scheer once said he’d have been “eager to sign” and encouraged the Trudeau government to prioritize a deal.
Others, including former interim Conservative leader Rona Ambrose, argued there was “no point” in rushing to make a deal before the terms of Brexit had been worked out and before Canada had a good idea of how the U.K. intended to trade post-Brexit.
Russia bans Canadian media, sends 34 French diplomats packing
Both moves are a tit-for-tat following Canada’s decision to ban Russia Today in March and France expelling 41 people from Russian diplomatic institutions in April.
“With regret, we continue to notice open attacks on the Russian media from the countries of the so-called collective West who call themselves civilized. A decision has been taken to make retaliatory I emphasize, retaliatory measures in relation to the actions of Canada,” said Maria Zakharova, Russia’s Foreign Ministry spokesperson.
The government also revoked the visas and accreditations of CBC journalists and shut its offices in the capital.
Meanwhile, the Russian Foreign Ministry said in a statement that it has designated 34 employees of French diplomatic institutions persona non grata, “They are ordered to leave the territory of Russia within two weeks from the date of delivery of the corresponding note to the Ambassador.”
The Ministry also declared dozens of Italian and Spanish diplomats persona non grata in response to the expulsion of Russian diplomatic staff from the countries.
However, France and Italy castigated the move with Italian Prime Minister Mario Draghi calling the expulsions a hostile act and emphasizing the importance of diplomatic channels.
On Tuesday, Pyotr Tolstoy, the Deputy-Speaker of Parliament said Russia’s Lower House of Parliament, the State Duma, is planning to discuss the potential withdrawal of the country from the World Trade Organization (WTO) and the World Health Organization (WHO).
“The Ministry of Foreign Affairs sent a list of such agreements to the State Duma, and together with the Federation Council (Upper House of Parliament), we are planning to evaluate them and then propose to withdraw from them.
Russia withdrew from the Council of Europe, now the next step is to withdraw from the WTO and the WHO, which have neglected all obligations in relation to our country,” said Tolstoy.
First case of rare monkeypox in the U.S. was someone who recently travelled to Canada – CTV News
A rare case of monkeypox has been confirmed in a man in Massachusetts who recently travelled to Canada, according to the Massachusetts Department of Public Health.
A Wednesday press release stated that the adult male was tested late Tuesday and was confirmed by the U.S. Centers for Disease Control and Prevention.
“The case poses no risk to the public, and the individual is hospitalized and in good condition,” the release stated.
The Masschusetts case is the first case to be reported in the U.S. since the U.K. announced on May 7 that it had detected a case of monkeypox. Since that first case, the U.K. has identified eight more cases. Portugal has reported five cases and Spain is investigating eight potential cases.
The Public Health Agency of Canada (PHAC) said in an emailed statement to CTVNews.ca on Wednesday that they are monitoring the situation, and that Canada has no cases at this stage.
“PHAC is aware of and closely monitoring the current situation concerning the reporting of monkeypox cases in Europe,” a spokesperson said. “No cases have been reported to PHAC at this time.”
Monkeypox is a virus that is common in wild animals such as squirrels, with most cases occurring in Western and Central Africa. Human cases are rare, with the first one recorded in the Democratic Republic of Congo in the 1970s.
Generally, transmission to humans occurs through a bite or “direct contact with the infected animal’s blood, body fluids, or lesions,” according to Health Canada. Once a human is infected, it is possible for it to spread between humans, but it is not spread easily and has limited transmissibility.
The symptoms of monkeypox can include a fever, muscle aches and fatigue in milder cases. Most cases resolve in a few days, but if the case is more serious, it can progress to a two to four week period in which a rash spreads and develops into pustules on the body, with lesions potentially developing on the mouth, tongue and genitalia.
The virus is similar to smallpox, but is milder and involves the swelling of lymph nodes, which is not found in smallpox cases. In Africa, the case fatality rate is estimated to be around 1-10 per cent.
Bulldog willpower and work ethic: Jason Kenney led Alberta through COVID, oil crash
EDMONTON — Alberta Premier Jason Kenney, at the founding convention of his United Conservative Party in 2018, said he’d consider members’ input on policy but the bottom line was simple: “I hold the pen.”
Four years later, the membership took back the pen and made it clear to the driving force behind the reunification of conservatives in Alberta that the writing was on the wall and it was time for him to go.
Jason Kenney, the province’s 18th premier, told a shocked audience of invited guests and cabinet ministers Wednesday that 51 per cent support of party rank and file in his leadership review was not enough to quell internal dissension wracking his party.
He announced he would resign from the top job, saying that while his team had accomplished many things, a lack of unity put it all in jeopardy.
“We reunited the free enterprise movement in Alberta politics, and we won the largest electoral mandate in our province’s history,” said Kenney.
“We inherited profound fiscal and economic challenges. And then we went through three once in a century crises: the largest public health crisis in a century, the largest collapse of the world economy in nearly a century and for the first time ever we experienced negative oil prices.
“Despite all of that we got the job done.”
In his three years as premier, Kenney steered the province through the COVID-19 pandemic while seeking to expand the oil and gas sector, further diversify the economy and remake the public health system. On the strength of soaring oil and gas prices, he balanced the budget for the first time in years.
His trademark was bulldog willpower combined with work ethic and tenacity few could match.
His days often began early with a news conference, then meetings, question period, a speech in the house, party events, fundraisers and more phone calls long into the evening. There were Facebook townhalls and a radio show.
It was a brash, combative populist style that often sought to rally support by dividing Albertans against opponents, both real and perceived.
His favourite target was Prime Minister Justin Trudeau’s federal government. He blamed it for hamstringing the oil and gas industry through punitive legislation and a consumer carbon tax, but often ignored the fact Ottawa was paying the freight on the TransMountain pipeline to the B.C. coast.
He once publicly dismissed Trudeau as an “empty trust-fund millionaire who has the political depth of a finger bowl.” He characterized a pipeline-opposing U.S. governor as “brain dead.”
He picked fights with doctors, tearing up their master agreement just as the pandemic hit in full force in 2020. His government also tried to cut nurses’ wages.
He decried the folly of fixing the economy by “picking winners and losers” through targeted investments, only to lose $1.3 billion trying to revive the transcontinental Keystone XL pipeline.
His government fought with the Alberta Teachers’ Association and is still implementing a controversial school curriculum that almost all school boards have refused to test drive.
He created a so-called energy war room designed to fight with oil and gas foes. Instead, it stumbled through a series of gaffes, including a public fight with a children’s cartoon about Bigfoot.
His leadership, particularly during the pandemic, exposed contradictions that contributed to low poll ratings even as the economy started bouncing back.
He called for civility in public debate and then handed out earplugs in the house so his members wouldn’t have to listen to the Opposition NDP.
During COVID-19, Kenney tried to steer the province through the middle course, waiting until the last moment — as hospitals were reaching dangerous capacity — before imposing new health restrictions.
When the province reached dangerous levels last fall, to the point that patient triage might have been necessary, he accepted responsibility for not acting and then said he would have acted if the chief medical health officer had recommended it.
When he took over the health system, he blamed the former NDP government for problems he inherited. In recent weeks, as the system has continued to strain under COVID-19, he blamed Alberta Health Services, the front-line care provider.
The end came not from outside but from inside the caucus.
Backbenchers said Kenney had promised to bring them around the decision-making table but instead froze them out. Decisions, they said, were made by Kenney and a clutch of close advisers. Some dissenters found themselves kicked out of caucus.
With Kenney there was controversy. Always controversy.
He defeated Brian Jean in the inaugural 2017 party leadership race. It was later learned his team colluded with another candidate to try to scupper Jean’s chances. Kenney has said he didn’t know anything about it.
When the election commissioner investigated possible wrongdoing in that race, Kenney’s government, while he was away in Texas, introduced and passed a law to fire him. The RCMP continues to investigate allegations of voter identity fraud in that race.
This year, when Kenney’s justice minister, Kaycee Madu, was found to have tried to interfere in the administration of justice by calling Edmonton’s police chief to argue about a traffic ticket, Kenney simply moved him to another cabinet job.
Kenney, 53, has spent much of his adult life in the public eye, famous for saying he can’t help but march to the sound of rhetorical gunfire.
He has fought for conservative principles and the concept of ordered liberty, first as an anti-tax crusader and later as a key lieutenant in former prime minister Stephen Harper’s cabinet in portfolios that included immigration, employment and defence.
He is a Catholic and has spoken out against gay marriage and abortion in the past, but didn’t wade in on those issues as premier.
He is known for his drive, populist instincts and a nose for the political jugular.
To win the UCP leadership, he drove back and forth across Alberta in a blue pickup truck to meet and greet thousands of supporters and fence-sitters. In less than two years, he got 87 constituency associations and candidates running.
The blue pickup truck has become part of his persona.
Perhaps in a harbinger of what was to come, Kenney recently had that same truck at a news conference to announce a cut in gas taxes.
As the cameras rolled, Kenney filled up his tank, then pulled, yanked, yanked and yanked — at one point using two hands — in a failed attempt to pull out the hose.
Finally, he gave up, turned and looked sheepishly at the crowd.
The pickup was stuck.
And this time, there was no one to blame.
This report by The Canadian Press was first published May 18, 2022.
Dean Bennett, The Canadian Press
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