As the Canada-U.S.-Mexico Agreement (CUSMA) on free trade goes into force July 1, Prime Minister Justin Trudeau on Monday (June 29) was quick to dismiss rumblings from American officials on the potential for more aluminum tariffs.
Trudeau said the U.S. does not produce enough aluminum to fulfill domestic manufacturing needs and any tariffs against Canada imposed by the Americans would hurt the U.S. economy by adding additional costs to customers.
U.S. President Donald Trump originally hit Canada with aluminum tariffs in 2018, citing national security concerns.
Those tariffs were later rescinded, but Canada responded at the time with tariffs targeting some American goods.
Trudeau did not say if retaliatory measures would be in the card after CUSMA goes into effect on Canada Day.
The prime minister also took time during a media briefing to tout national COVID-19 modelling set to be unveiled later in the day as showing “things are moving in the right direction.”
The prime minister said the situation unfolding in the U.S., in which many jurisdictions are seeing significant spikes in the coronavirus, highlights the need for Canadians to stay vigilant with health protocols as the country’s economy begins to reopen.
He also announced the Canada Emergency Commercial Rent Assistance (CECRA) program would be extended by one month.
It was originally set to cover some rental expenditures for April, May and June.
Ottawa and the provinces will cover half the cost of rent for eligible businesses, landlords will have to absorb 25% and small businesses are on the hook for the remaining 25%.
This program is aimed at small businesses paying less than $50,000 per month in rent, with annual revenue of less than $20 million.
Applicants must attest to experiencing at least a 70% drop in pre-COVID-19 revenue.
Non-profit and charitable organizations are also eligible.
Trudeau said his media briefings would now become less frequent as Canada moves into the next phase of the economy reopening.
The prime minister began the pandemic in March with daily briefings but those have become more intermittent, especially over the past month.
He added chief public health officer Theresa Tam’s media briefings would also become less frequent.
Indian economy's medium-term outlook remains uncertain – RBI Governor – The Guardian
By Swati Bhat and Aftab Ahmed
NEW DELHI (Reuters) – The medium-term outlook for the Indian economy remains uncertain with supply chains and demand yet to be restored fully while the trajectory of the coronavirus spread and the length of its impact remain unknown, Reserve Bank of India Governor Shaktikanta Das said on Saturday.
According to most estimates, the Indian economy will register a record contraction of over 4.5% in the current fiscal year that started on April 1 due to the pandemic.
Starting late March, the country was placed under one of the strictest lockdowns in the world for over two months. Since early June, the government has started easing restrictions to help some revival in the economy even though the number of infections in the country continues to rise.
“The Indian economy has started showing signs of getting back to normalcy in response to the staggered easing of restrictions,” Das said in an address to an online forum.
“It is, however, still uncertain when supply chains will be restored fully. How long will it take for demand conditions to normalise and what kind of durable effects will the pandemic leave behind on our potential growth?” he said.
Das said that the 2008 global crisis and the current crisis show that such economic shocks have “fatter tails” than generally believed, and that the country’s financial system should have larger capital buffers.
A recapitalisation plan for Indian banks is necessary as the economic impact of the pandemic may result in higher bad loans and erosion of capital for banks, the RBI governor added.
The central bank has cut policy rates by 115 basis points in response to the pandemic, resulting in a total policy rate reduction of 250 basis points since February 2019, along with providing liquidity of 9.57 trillion rupees ($127.28 billion).
It has also eased some bad loan provisioning norms and allowed loan moratoriums for retail customers.
Das said that the central bank has to carefully unwind the unusual monetary and regulatory measures taken to cushion the economic shocks in the post pandemic world, as the financial sector should return to normal functioning without relying on the regulatory relaxations as the new norm.
India recorded 27,114 coronavirus cases in the last 24 hours, taking the total to 820,915 including 22,123 dead.
The RBI governor also said that inflation will continue to moderate going forward and investment activity will revive.
(Reporting by Swati Bhat and Aftab Ahmed; Editing by Raju Gopalakrishnan)
NWT says its economy is weathering Covid-19 better than others – Cabin Radio
The NWT’s economy will come out of Covid-19’s initial months damaged but in better shape than other parts of Canada, the territory said on Friday.
The territorial government is forecasting a 3.3-percent contraction in its economy this year, which it says is “significantly less than the national average of 8.2 percent forecast by the Conference Board of Canada,” an economic think-tank.
Despite steep declines in the tourism and transportation industries, the territory said “steps taken to keep the diamond mines and the public sector active” had softened the pandemic’s blow.
Mining and government are by far the territory’s largest employers. The Ekati mine has suspended activities but the Gahcho Kué and Diavik mines remain fully operational.
The private sector is in worse shape. A GNWT-commissioned survey of businesses showed that 81 percent of NWT companies had experienced a “significant decrease” in revenues.
Tourism and transportation industries were the hardest-hit, telling the government they saw revenues drop by an average of 71 percent.
On the other hand, more than 90 percent of businesses surveyed by the territory in April and May reported they expected to make it through the pandemic.
Consumer spending and small business spending has rebounded since May, the territory said, and 71 percent of NWT residents surveyed were planning to travel within the territory in the next six months.
The Department of Industry, Tourism, and Investment said the results of third survey – carried out in June to examine the impact on consumer demand – is coming soon.
According to the territory, the various surveys are “part of … ongoing work to better understand the effects of Covid-19 on the NWT and how best to respond to them.”
Saskatchewan economy adds 30,000 jobs in June as businesses open up again: Statistics Canada – CBC.ca
Saskatchewan added more than 30,000 new jobs in June as businesses began to open back up from the COVID-19 pandemic.
Saskatchewan’s unemployment rate dipped to 11.6 per cent in June from a high in May of 12.5 per cent, according to a Statistics Canada report on Friday.
At the national level Canada added almost one million jobs in June.
The national jobless rate fell to 12.3 per cent, down from the record-high of 13.7 in May. There are still 1.8 million fewer jobs in Canada today than there were in February.
Jason Childs, an associate professor of economics at the U of R, said he was pleasantly surprised by the employment gains.
“To be gaining 30,000 jobs provincially and nearly a million jobs nationally is some unexpected good news, which is nice for a change,” he said.
The growth in Saskatchewan was split between 22,000 full-time jobs and 10,000 part-time jobs.
Childs cautioned that the jobless rate in the province is still more than six per cent higher than it was at this time last year, when it was 5.2 per cent, and there still about 40,0000 fewer jobs than before the pandemic.
“[Some people] don’t appreciate how deep the hole we’re in is and this is not a hole we’re going to get out of quickly,” Childs said. “[Unemployment] has more than doubled from this time last year.”
All those job losses have not been evenly distributed throughout the population.
Young workers are taking the brunt of the job losses in the province.
One in five people 15 to 24 years old are without a job, compared to 8.6 per cent of workers over the age of 25.
Unemployment among First Nations is 18.4 per cent and the Métis jobless rate is 17.3 per cent.
Childs said both those groups already have higher unemployment and they will have a harder time getting back in the workforce.
“People looking for that first job are going to have a really tough time right now because anything that opens up you’re probably going to be competing with somebody who’s got a lot more experience,” he said.
The one sector hit hardest by the pandemic is food and accommodation, where an estimated 400,000 workers across the country are still without a job.
Childs said those jobs are dependent on consumer spending and tourism, and that people’s financial habits have changed during the pandemic.
“I still think we’re going to see a drag [on the economy] as we get what’s called the Paradox of Thrift,” Childs said.
“As people begin to save for their own protection we may see that drag on economic activity as consumption falls off.”
He said people are beginning to cut back on ‘luxuries’ like going out to eat or grabbing a cup of coffee.
“That’s a place where you can cut back fairly easy,” he said.
“People are dealing with a massive amount of uncertainty right now and uncertainty breeds caution and doesn’t breed spending.”
Childs said no amount of fiscal stimulus is going to solve this crisis without consumer confidence.
“You need to get people back to a place where they feel comfortable and safe spending in order to return to the previous level of economic activity,” he said. “Or we’re just gonna have to get used to this.”
The great PPE panic: How the pandemic caught Canada with its stockpiles down – CBC.ca
Media Advisory: TransAlta Second Quarter 2020 Results and Conference Call – Yahoo Finance
Catch a comet by the tail: a bright streak in Island sky – Times Colonist
Silver investment demand jumped 12% in 2019 – report – MINING.com
Iran anticipates renewed protests amid social media shutdown
Richmond BBQ spot speaks out about coronavirus rumours Vancouver Is Awesome
- Sports15 hours ago
Stoeten: Travis Shaw tweets prove the Blue Jays' Toronto plan is doomed to fail – The Athletic
- News23 hours ago
Canada added almost 1 million jobs in June but still almost 2 million down from pre-COVID level – CBC.ca
- Media24 hours ago
Reckoning With Ghosts of Social Media Past – The New York Times
- Tech13 hours ago
Apple warns customers not to close its laptops with a camera cover attached – The Verge
- Politics22 hours ago
How Biden Is Winning An Identity Politics Election So Far – FiveThirtyEight
- Business21 hours ago
Canada added almost 1 million jobs in June but still almost 2 million down from pre-COVID-19 level – CBC.ca
- Science22 hours ago
Comet streaking past Earth, providing spectacular show – CityNews Winnipeg
- Tech23 hours ago
Is Far Cry 6 a prequel to Far Cry 3? Is Vaas returning? – Polygon