It would amount to what the federal government in Ottawa calls a 34 per cent tariff on vehicles built in Canada. The imbalance would brand foreign-made cars with a scarlet letter and send auto manufacturers and their roughly 125,000 jobs scrambling over the border.
It’s a worst-case scenario triggered by what Anastakis calls a “deintegration” of more than half a century of trilateral automaking, with companies abruptly pulling up stakes and cancelling plans they’re already making to spend billions on their Canadian and Mexican operations.
“You’d see a removal and rescinding of all those announcements that have already been made for investments, and probably no future investment on passenger vehicles at all,” he said, “which would obviously be the end of the industry as we know it.”
But Anastakis and others are confident it won’t come to that.
It doesn’t make economic sense for anyone — not consumers, not manufacturers, whether foreign or domestic, and not even the government that’s proposing it in the first place.
“The already-established manufacturers have a lot of money invested in Canada and Mexico, and they have a lot of benefit from an integrated industry,” Anastakis said.
“There’s all kinds of benefits to doing what they’ve been doing for the last 50 or 60 years — they make money off of this. There’s a reason that the Big Three have done their production decisions in the way that they have, because they’re trying to maximize (profits).”
It’s long been a core principle of Canada-U.S. relations that the only way to effect change in D.C. is to frame Canada’s priorities in terms of American self-interest. In other words: hurting us hurts you.
“Given the deep integration of our respective automotive industries, the proposal would have important repercussions in the U.S., affecting American production and jobs,” Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng wrote last week to key members of the U.S. Senate.
That letter laid out in stark terms that Canada would launch a barrage of targeted, retaliatory tariffs and suspend key portions of North America’s new trade agreement if the provision, nestled deep in Biden’s 2,135-page Build Back Better bill, wins the approval of Capitol Hill.
But we’re not there yet.
“There are solutions to this; this is not an intractable, unsolvable problem,” Prime Minister Justin Trudeau said Thursday in an interview with The Canadian Press, though he would not speculate on what solutions might be on the table.
“Canadian supply chains and Canadian interconnectedness with the United States is such that it could end up being extremely unpleasant for American workers, for American politicians, for the American economy, to have to fall into this kind of disagreement, this discord, with Canada.”
Canada offers a highly skilled, world-class manufacturing workforce with half a century’s worth of institutional knowledge when it comes to building cars and trucks, not to mention the cost benefits of a country with an 80-cent dollar and public health care. Union leaders like Bob White, the founding president of the Canadian Auto Workers after it split from its American counterpart, exploited those advantages at every opportunity.
“Bob White used to say that every Canadian car that rolled off the line, you might as well slap $1,500 in cash on the hood of that car, because that was the difference in health care costs alone,” Anastakis said.
“I cannot imagine that this is going to go through like this, because it’s going to be so disruptive for the industry.”
So why is it happening in the first place? Politics.
Biden is an old-school Democrat who remembers the glory days of the U.S. auto sector, not to mention the traditional base of his party: hardworking middle-class voters.
“He has this long-standing sort of blue-collar appeal that’s always been part of his political persona,” said Christopher Sands, director of the Canada Institute at Washington, D.C.’s Wilson Center.
“You get the sense from his campaign in 2020 that he thinks the blue-collar voters were essentially stolen from the Democratic party by Trump with a lot of nationalist language. And while he disagrees with Trump on a lot of things, he’s trying to appeal to that same group and rally votes for the Democrats to get those voters back.”
Like so much of what the Biden administration has done to shore up public support, it doesn’t seem to be working.
The president’s approval ratings have been plumbing new depths in recent months, despite a seemingly robust economy — COVID-19 notwithstanding — and two remarkable legislative victories in Congress: a $1.9-trillion pandemic relief bill and a $1.2-trillion infrastructure package.
Getting the $1.75-trillion Build Back Better bill passed, which now appears unlikely to happen before the new year, would complete a remarkable trifecta for a president who, despite being saddled with an evenly split Senate, has repeatedly demonstrated the consensus-building skills he honed during more than 40 years as a U.S. lawmaker.
Despite that, most political observers in the U.S. are predicting a Republican romp in next year’s midterms. That could ultimately work in Canada’s favour by forcing the president to tack more toward the centre.
“If you can just buy time, then maybe the political calculus changes,” said Sands. “Canada doesn’t want to burn its bridge for the future, and it doesn’t want to jump in too hard on this particular fight because it might not actually come to fruition.”
Even if the Senate does pass the bill, he added, a lot can change in the implementation process, when various federal agencies sit down to design the rules that will govern how the legislation’s various statutes are to be rolled out. That could mean expanding the definition of “assembled in the U.S.” to include North America, for instance, if the law as written doesn’t provide consumers with enough choice.
Duncan Wood, a senior adviser to the Wilson Center’s Mexico Institute, said he suspects the bill will eventually pass with some form of the tax-credit package still intact.
“And then I think that … we will see some kind of accommodation with the Mexicans and the Canadians,” Wood said. “But I think it’s going to be a long process.”
This report by The Canadian Press was first published Dec. 17, 2021.
James McCarten, The Canadian Press
Something strange happening in Canadian politics – The Hill Times
CHELSEA, QUE.—Something strange has been happening in Canadian politics since the Trump contagion to the south. Voters elect a mostly reasonable, often affable, Member of Parliament only to discover, as they watch their MP climb the leadership ladder, that they are not so reasonable, not so affable after all. That, in fact, some are drifting rapidly from the centre to the fringe, even to tinfoil-hat territory.
It is evident, most recently, with Conservative Leader Erin O’Toole, whose public appearances—tweets, videos, press conferences—have taken on an almost manic tone. One 40-second video has him bouncing around in front of the Parliament Buildings in -23 weather—“-37 in Yellowknife!”—accusing Liberal Environment Minister Steven Guilbeault of threatening to shut down Canada’s energy sector in 18 months, leaving us all freezing in the dark.
First, Guilbeault could never achieve such a coup even if he tried. Governments move too slowly. Second, even the most ardent environmentalists acknowledge that renewables are not ready to replace fossil fuels that quickly. But, more important, OToole’s claim is not true—and he knew when he said it that it wasn’t true, as The Toronto Star’s Althia Raj underscores in a recent column.
What Guilbeault has vowed to do—elaborating on an international commitment first endorsed by Stephen Harper in 2009—is end federal subsidies to fossil fuel companies by 2023. It’s a tall order, but it is no sneak attack: it was promised in the Liberals’ election campaign and now, at last, they are preparing to deliver. In an interview with The Narwhal, Guilbeault mentioned “eliminating fossil fuels” in a list of his government’s ambitions, an obvious error (he had spoken previously of eliminating fossil fuel *subsidies*.)
As Raj reports, O’Toole publicly acknowledged the minister “made a mistake” in a Zoom presentation, before an unusually animated O’Toole made his video, distorting Guilbeault’s intention. The Conservative leader apparently doesn’t care, because that is the way politics works these days. Hysterical exaggerations, often flatly untrue, advanced without a shred of shame or remorse.
Consider the Conservative leader’s recent condemnation of Justin Trudeau for “normalizing lockdowns” and single-handedly bungling the management of the pandemic, by failing to provide rapid tests and PPE. By now, everyone knows that lockdowns are determined by provinces and not by Ottawa— indeed, premiers are more inclined to ignore federal suggestions than embrace them.
As to rapid tests, some will recall stories a year ago of millions of rapid tests gathering dust in provincial storerooms, of premiers, like British Columbia’s John Horgan, reluctant to use them because they were seen to be not as reliable as lab-based PCR tests. In fact, as Trudeau underscored last week, his government has sourced 425 million rapid tests overall. Some 85 million were delivered to provinces before December, and the Omicron onslaught, and another 35 million last month. And, as O’Toole must surely know, another 140 million are arriving now and being distributed.
There have been, and still are, shortages in some provinces, but the problem can hardly be laid at the feet of the federal government—certainly, not entirely—as anyone following the news knows. But this distortion is of a piece with O’Toole’s incoherence on the pandemic.
He and his wife are both vaccinated, after an early bout of COVID, and he regularly urges everyone to get their shots. He supports mandatory vaccines for the Canadian Armed Forces—as a veteran and proud defender of the military—yet is ambiguous about his own caucus, playing with words to hide the fact that there are some vaccine resisters in the Conservative ranks.
He also took up the cause of long-haul truckers who were resisting mandatory vaccines to be imposed by the federal government this week. O’Toole claimed the requirement would disrupt crucial supply chains and called for rapid testing instead. Then, in a confusing climb-down, the government backed away from its vaccine deadline insisting that any unvaccinated Canadian drivers quarantine for several days before coming home. Unvaccinated American truckers will be turned back.
Vaccines, quarantines, rapid tests: any way this unfolds there will be (hopefully short-lived) supply chain disruptions and, ultimately, little daylight between O’Toole’s and Trudeau’s positions.
O’Toole also accuses the prime minister of characterizing all vaccine resisters as “racists” and worse, which is not what Trudeau said. In fact, he and O’Toole are in agreement that some who haven’t been vaccinated may be fearful, uninformed, or unable to manoeuvre the system. Trudeau’s target is the small minority of wilful resisters and protesters, with links to far-right movements who are also anti-immigrant, anti-feminist, and anti-government.
Yet O’Toole wants “reasonable accommodation” for all resisters and suggests frequent testing rather than vaccines—except, he must know the rapid tests are not as reliable when it comes to detecting Omicron. Meanwhile, the pandemic runs rampant, hospitals are overwhelmed and parents are worried sick for their school-age children.
To keep his ragged band of followers from splitting asunder, O’Toole—a formerly likeable, middle-of-the-road backbencher and junior minister in Harper’s government—is behaving like an unhinged bile-machine. It is particularly laughable when he accuses the prime minister of avoiding taking a stand on Quebec’s discriminatory Bill 21, of “attempting to play both sides” by leaving it to Quebecers to decide the issue, rather than forcefully defending the bill’s victims, notably Muslim women schoolteachers. Laughable, because that is exactly what O’Toole has been doing.
The brilliant political cartoonist, Michael de Adder, summed up public reaction to this new, hyperactive O’Toole with a depiction of a giant hand, labelled Public Opinion, flicking a tiny O’Toole away like an annoying fly.
For all that, O’Toole is a model of reserve compared to Maxime Bernier. Old-timers (guilty) remember Bernier as a dapper, friendly urban sophisticate with libertarian economic views—hence the sobriquet, Mad Max. However, he was thought to be socially liberal and displayed no overtly anti-immigrant, or social conservative views as a member of Harper’s cabinet.
That was then. Bernier, of course, has become a vehement anti-vaxxer, anti-masker, a critic of the immigration Quebec needs to fill jobs, and, since losing the leadership to O’Toole in 2019, a harsh critic of his former rival. He calls O’Toole #RedErin and “wet noodle” and vows NEVER to go back “to that morally and intellectually corrupt party.”
Bernier sees “fascists coming out from under rocks everywhere,” as he noted in a recent tweet, this one aimed at Alberta’s NDP health critic David Shepherd, who expressed cautious support for mandatory vaccines. He routinely calls Trudeau a fascist. The Toronto Star “is run by hateful fascists.” RCMP Chief Brenda Lucki is “gestapo” for asking Canadians to report suspicious internet activity.
Bernier also opposes the recently proposed Quebec tax on the unvaccinated— probably a trial balloon, rather than enforceable policy—and says Premier Francois Legault’s government “is responsible for the death of thousands of elderly Quebecers in nursing homes. Now it wants to force the unvaccinated to pay for its abysmal management of the pandemic.”
Bernier has his high-profile fans, including Dr. Jordan Peterson, the Canadian academic who made an international reputation opposing trans rights, or “radical trans ideology,” and taking on wokeism in all its manifestations. Peterson also likes Conservative finance critic, Pierre Poilievre, noting on Twitter last week: “It’s nice to see a politician with some courage. You should have run for the Conservative leadership, and maybe you could bring Max Bernier back on board. He has some spine, too.”
Poilievre was flattered by the vote of confidence from “an outstanding, world-renowned Canadian thinker.” When chided by Liberals for his praise of the discredited psychology professor, Poilievre replied, with typical subtlety: “There’s more brainpower in Dr. Peterson’s pinky finger than in all the bobbleheads in the Liberal caucus combined.”
So goes the debate within the new politics. (Rebel News Ezra Levant tweeted, after O’Toole posted a coded defence of “LIBERTY” last week, in a nod to anti-vaxxers: “You weird liar.”) It is steeped in vitriol, fuelled by resentment and untethered from facts. As Alberta Premier Jason Kenney once famously said of Trudeau, it has “the intellectual depth of a finger bowl.”
But it is dangerous and corrosive, nonetheless. Bernier is able to muster large crowds in downtown Montreal on a frigid January day. His People’s Party of Canada (PPC) is gaining strength in Alberta and Saskatchewan. As for Poilievre—shrewd, ambitious, coldly calculating, a master of the personal smear—he could well replace O’Toole when the time is right.
Many voters would not want these harsh, angry men—no matter their politics—sitting on the local school board, never mind running the country.
But there is no telling what will happen if Trudeau stumbles—as he inevitably will; as all long-serving prime ministers do.
O’Toole may look benign in retrospect.
Susan Riley is a veteran political columnist who writes regularly for The Hill Times.
The Hill Times
Poroshenko, Former President, Returns to Ukraine, Roiling Politics – The New York Times
Petro O. Poroshenko, a former president, returned to Kyiv on Monday facing possible arrest, adding internal political turmoil to a threat of Russian invasion.
KYIV, Ukraine — Ukraine’s former president and a leading opposition figure, Petro O. Poroshenko, returned Monday to Kyiv, where he faced possible arrest, adding internal political turmoil to the mounting threat of a Russian invasion.
Mr. Poroshenko’s return brought into focus Ukraine’s wobbly politics, which were mostly in the background in recent weeks as the United States and its allies in Europe scrambled to forestall Russian military intervention.
He arrived Monday morning at Kyiv’s Zhuliani airport, where a scene erupted at passport control. Mr. Poroshenko said border guards for some time refused to allow him to enter the country, though he was due to appear at a court hearing later in the day in Kyiv. He later passed the border control but said authorities had confiscated his passport.
Ukraine’s president, Volodymyr Zelensky, has been embroiled in a long-running feud with Mr. Poroshenko, who was president from 2014 to 2019. Mr. Poroshenko faces a court hearing late Monday morning on charges of high treason and supporting terrorism.
His appearance in the capital where he once governed comes after a week of mostly futile negotiations between Russia and the West seeking a solution to tense disagreements over the security of Eastern Europe.
In Kyiv, opinions differed on whether the threat of an arrest was just another maneuver in Ukraine’s typically byzantine politics at home, or something more ominous related to the Russian threat.
Analysts suggested that Mr. Zelensky might be seizing on the distraction of the Russian military buildup on the Ukrainian border to sideline an opponent, or that he hoped to tamp down possible opposition protests if he is forced to make unpopular concessions to Moscow to avoid an invasion.
“Maybe he thinks that with forces on the border, Ukrainians won’t protest” an arrest of the opposition leader, said Volodymyr Yermolenko, editor in chief of Ukraine World, a journal covering politics. If so, he said, it is a risky move.
“With the situation on the border, when everybody is yelling, ‘There will be a war,’ it’s very strange,” Mr. Yermolenko said of the spectacle of Ukraine’s two leading politicians squabbling despite the existential threat to their country. “It just seems ridiculous.”
Polls have consistently shown Mr. Zelensky and Mr. Poroshenko to be Ukraine’s most popular politicians. Mr. Poroshenko has a base of support in Ukrainian nationalist politics, particularly in the country’s western regions, which want closer ties with Europe, and he has criticized Mr. Zelensky for giving ground in peace negotiations with Russia to resolve the war in eastern Ukraine.
Mr. Poroshenko left Ukraine last month, saying he had meetings in Europe. Prosecutors say he left to avoid a court hearing.
Mr. Zelensky’s aides have said that the charges against Mr. Poroshenko are justified and that courts decided the timing of the arrest and other actions, including the freezing of Mr. Poroshenko’s assets earlier this month.
The former president was accused of missing a court hearing last month while traveling abroad. He returned to Ukraine on Monday despite reports in the Ukrainian news media that a court had issued a sealed order for his arrest.
Mr. Poroshenko left the presidency in 2019, when he lost an election to Mr. Zelensky, a former comedian who ran as an outsider to politics who would fight corruption and uproot the entrenched interests of Ukraine’s political class. Mr. Zelensky’s popularity has since slumped. Opinion polls today show only a slight advantage in a potential future election against Mr. Poroshenko, who is now a member of Parliament in the European Solidarity party.
In an interview before his return to Ukraine, Mr. Poroshenko said that his arrest might help Mr. Zelensky sideline a rival but that the political instability would play into the hands of President Vladimir V. Putin of Russia.
“He wants to undermine the stability in Ukraine,” Mr. Poroshenko said of Mr. Putin. “He analyzes two versions: One version is a military aggression through the Ukrainian-Russian or Ukrainian-Belarusian border. The second is just to undermine the stability inside Ukraine, and in this way just stop Ukraine from our future membership in NATO and in the E.U.”
Understand the Escalating Tensions Over Ukraine
Mr. Poroshenko offered no evidence of a Russian hand in the political turmoil and described internal Ukrainian feuds as the most likely cause of the legal pressure he faced. But he said Mr. Zelensky might hope to win concessions from Russia by arresting a politician aligned with the nationalist wing of Ukrainian politics.
“I am absolutely confident this is a very important gift to Putin,” Mr. Poroshenko said. “Maybe with this gift he wanted to launch a negotiation with Putin, as a precondition.”
After massing tens of thousands of soldiers on Ukraine’s border through the fall, Russia demanded last month that the United States and NATO pull back forces from countries in Eastern Europe and guarantee that Ukraine not join the Western alliance.
Diplomatic talks last week with Russia ended inconclusively, and Russian officials now say they are awaiting a written response to their demands from the United States.
As a contingency, in case diplomacy fails, Ukraine has also been quietly pursuing talks with Russia and proposed a bilateral meeting between Mr. Zelensky and Mr. Putin. On Friday, the Ukrainian presidential chief of staff, Andri Yermak, suggested a three-way video conference with the Russian and Ukrainian leaders and President Biden.
Mr. Poroshenko’s controversial return was not the first sign of political turmoil. In November, just as Russia was ramping up its deployments along the border, Mr. Zelensky told journalists that Russia was also planning a coup.
He said Russian operatives were seeking to draw one of Ukraine’s wealthy businessmen, Rinat Akhmetov, into a plot against his government. The businessman was “being dragged into a war against the Ukrainian state,” Mr. Zelensky said, but he provided no evidence and made no move to arrest Mr. Akhmetov.
Mr. Akhmetov vehemently denied any involvement in a plot to undermine Mr. Zelensky’s government.
New documents show census officials concerned about political interference from Trump's Commerce Department – CNN
(CNN)Newly released documents appear to show top career officials at the Census Bureau had drafted a memo of concerns during the Trump administration’s attempts to exert political pressure on the bureau during the 2020 population count.
Twitter expands feature allowing users to flag misleading tweets
Black and Racialized Artists, Musicians and Producers Join Forces For THE FREEDOM MARCHING PROJECT
Bitcoin investors dig in for long haul in ‘staggering’ shift
Silver investment demand jumped 12% in 2019
Europe kicks off vaccination programs | All media content | DW | 27.12.2020 – Deutsche Welle
Iran anticipates renewed protests amid social media shutdown
News16 hours ago
Back to school in 4 provinces as Omicron spreads – CTV News
Economy15 hours ago
China’s Economy Slowed Late Last Year on Real Estate Troubles – The New York Times
News22 hours ago
Omicron: 'Let it rip' not the solution, experts say – CTV News
News14 hours ago
Winter storm slams U.S. East Coast, Canada, thousands of flights canceled
Business22 hours ago
UK government to cut funding for BBC – Mail on Sunday report
Science15 hours ago
Roberta Bondar flew into space 30 years ago and never saw Earth the same after that – CBC.ca
Business23 hours ago
HVAC scams and how to stop them; why can't retail workers get N95 masks? CBC's Marketplace Cheat Sheet – CBC News
Tech22 hours ago
Wordle! and Wardle team up to donate proceeds from an unrelated app’s popularity spike – The Verge