OTTAWA —
In their first face-to-face virtual bilateral meeting, Prime Minister Justin Trudeau and U.S. President Joe Biden have agreed to prioritize the fight against COVID-19, economic recovery following pandemic strain, and the global climate threat.
Dubbed the new “Roadmap for a Renewed U.S.-Canada Partnership,” Trudeau said these priorities are based on the two countries’ “shared values” and will guide efforts in the coming years.
“In the face of COVID-19, of climate change, of rising inequality, this is our moment to act,” said Trudeau following the meeting on Tuesday. “Job one remains keeping people safe and ending this pandemic.”
Biden also pledged to help free Canadians Michael Spavor and Michael Kovrig from a Chinese prison. The two men have been detained in China since Dec. 10, 2018, following the arrest of Huawei executive Meng Wanzhou at the request of the U.S. in Vancouver days prior.
“Human beings are not bartering chips,” he said. “We’re going to work together until we get their safe return,” Biden said after the meeting, although he did not offer specifics on how the U.S. would help beyond reaffirming his commitment to stand out against human rights abuse.
COVID-19 AND ECONOMIC RECOVERY
Biden underlined the need for enhanced support to the World Health Organization to prevent future pandemics, a complete shift in approach from the former White House administration, which cut funding to the body.
“Both our nations getting COVID-19 under control at home and around the world is an immediate priority,” he said.
Trudeau echoed this sentiment and reiterated the need to support the international bodies leading the fight.
Both leaders agreed economic relief must target those the pandemic has hit hardest.
Biden said the two countries would use resources available in the existing trade pact to “support women and minority-owned businesses.”
While there was no direct mention of the president’s “Buy American” executive order and how it might impact Canada, in the post-meeting statements Trudeau did reinforce the shared reliance of both economies.
“Just take the energy industry — Canadian energy workers power homes on both sides of the border. It goes to show that we’re all better off for this partnership. Today, the president and I discussed leveraging supply chains and support for businesses to create good, well-paying jobs,” Trudeau said.
CLIMATE
The prime minister kicked off the meeting by making a point of welcoming back American leadership on files like climate change, saying “U.S. leadership has been sorely missed over the past years.”
Biden has recommitted the U.S. to the Paris climate agreement, after former President Donald Trump announced it would withdraw from the international pact four years ago.
“We intend to demonstrate our leadership in order to spur other countries to raise their own ambitions. Canada and the United States are going to work in lockstep to display the seriousness of our commitment at both home and abroad,” said Biden.
Their promise to meet Paris targets and cut greenhouse-gas emissions more intentionally is captured under what’s being deemed a new “High Level Climate Ministerial.”
STRENGTHENING ‘HISTORIC TIES’
In a summary of the meeting issued Tuesday evening, the Prime Minister’s Office said the discussion also touched on: systemic racism, discrimination, the digital economy, defence and security issues – including modernizing NORAD, NATO missions, cybersecurity threats, and firearms – and China more broadly.
“Today’s meeting with President Biden further strengthens our two countries’ strong and historic ties. I look forward to continue working together to end COVID-19, and build back better to grow the middle class and create good jobs,” the statement from Trudeau reads.
The virtual meeting lasted about two hours, with top cabinet officials from both countries participating, including Deputy Prime Minister Chrystia Freeland and U.S. Vice President Kamala Harris.
During her opening statement Freeland restated her congratulations to her counterpart Harris for her historic win as the first female vice-president.
“Your election has been such an inspiration for women and girls across Canada,” Freeland said, adding that after the 2020 U.S. election both countries have a responsibility “to show that democracy can deliver.”
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
