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Trudeau expected to face tough questions on Canadian military spending at NATO summit

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MADRID — Prime Minister Justin Trudeau is expected to face tough questions at a major NATO summit this week as a new report released by the alliance ahead of the meeting shows Canada heading in the wrong direction when it comes to military spending.

Members of the 30-member military alliance agreed in 2014 to increase their defence spending to two per cent of their national gross domestic product, and the target is expected to be front and centre when the summit begins on Wednesday.

Trudeau met with NATO leaders Tuesday evening at a dinner hosted at the royal palace in Madrid by King Felipe VI, and will begin formal talks in the morning.

The new report released by NATO Secretary-General Jens Stoltenberg estimates Canadian defence spending will instead decline as a share of GDP to 1.27 per cent this year, down from 1.32 per cent last year and 1.42 per cent in 2020.

The report did not specify the reason for the expected decline, or whether it includes $8 billion in new military spending that was promised in April’s federal budget and whose purpose has not been clearly defined.

Asked about the report during a news conference at the end of this year’s G7 meeting in Germany, as he prepared to head to Madrid for the NATO leaders’ summit, Trudeau said the government has announced several “significant” new investments.

Those include $4.9 billion to upgrade Norad, the shared U.S.-Canadian system used to detect incoming airborne and maritime threats to North America, as well as plans to buy new fighter jets to replace Canada’s aging CF-18s.

The prime minister also said Canada has repeatedly proven its commitment to the NATO alliance by deploying troops and equipment on a variety of missions, including by leading a multinational NATO force in Latvia.

“Canada is always part of NATO missions and continues to step up significantly,” Trudeau said.

“We know how important it is to step up and we will continue to do so to make sure that the world knows that it can count on Canada to be part of advancing the cause of democracy, the rule of law and opportunities for everyone,” he added.

Successive Canadian governments have shown little appetite for meeting the two per cent spending target, which the parliamentary budget officer has estimated would require an extra $75 billion over the next five years.

They have instead emphasized Canada’s numerous other commitments to the alliance, including the provision of 700 Canadian troops to Latvia along with several naval warships to assist with NATO patrols in the North Atlantic and Mediterranean.

That is despite Canada having agreed to the target, as well as repeated exhortations from Stoltenberg and criticism from American officials in Washington calling on Ottawa to invest more in its military and collective defence.

The continuing decline in Canadian defence spending as a share of GDP will almost certainly lead to even more pointed questions for Trudeau in Madrid than was already expected, said defence analyst David Perry of the Canadian Global Affairs Institute.

This is particularly true given confusion surrounding the government’s announcement last week that it plans to invest in Norad modernization, with uncertainty around where the money is actually coming from, when it will be spent and on what.

“I would assume that they were hoping to send a message with the continental defence piece that irrespective of what’s happening in Europe, Canada’s got other defence commitments and that contributes to overall alliance security,” Perry said.

“But the mechanics of how the continental defence piece rolled out would take away from some of that.”

That defence spending is on a downward track when Canada is facing pressure to contribute more overseas and struggling with significant military personnel and equipment shortfalls is also a concern, said Robert Baines of the NATO Association of Canada.

“I’ve always been amazed that Prime Minister Trudeau has facility for dancing over the very serious situation Canada is facing when it comes to defence,” Baines said. “Trying to do so much, and then having so many resource issues and challenges.”

To that end, Trudeau sidestepped a question over whether Canada is prepared to send more troops to Latvia, as NATO seeks to double the size of its forces throughout eastern Europe in response to Russia’s invasion of Ukraine.

Latvia’s ambassador to Canada told The Canadian Press earlier this week that Canada is talking with allies about reinforcing the Canadian-led battlegroup in his country.

The battlegroup in Latvia is one of four established by NATO in 2017, with Germany leading another such unit in Lithuania and Britain and the United States responsible for forces in Estonia and Poland, respectively.

Germany and Britain have both said in recent weeks that they are ready to lead larger combat units in Lithuania and Estonia, but Canada has so far remained silent about its plans in Latvia.

Trudeau also wouldn’t say whether Canada is prepared to put more of the military on high readiness, as Stoltenberg announced on Monday that the alliance plans to increase the number of troops on standby from 40,000 to 300,000.

“We have been working closely with NATO partners, with the secretary-general of NATO, and especially with the Latvians, where Canada leads the (battlegroup) and is committed to making sure we continue to stand up against Russian,” Trudeau said.

“We, like others, are developing plans to be able to scale up rapidly,” he added. “And those are conversations that I very much look forward to having over the next couple of days in NATO.”

Baines predicted whatever additional troops and equipment are added to the Canadian-led battlegroup in Latvia will predominantly come from other NATO members as Canada only recently deployed more troops to the region.

The government announced in February that it was sending an artillery unit and 100 additional soldiers to bolster the 600 Canadian troops already in the Baltic state. It also recently deployed two additional warships to the region.

Perry said it remains unclear how much more the Canadian military, which is short about 10,000 service members, has to spare.

“Maybe there’s an ability to find some more at the back of the cupboard,” he said.

“But if the alliance is going to collectively be stepping up with some additional … troop and equipment commitments, then I’m sure there’d be lots of pressure on us to be part of that as well.”

This report by The Canadian Press was first published June 28, 2022.

— With files from Lee Berthiaume in Ottawa

 

Laura Osman, The Canadian Press

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Looking for the next mystery bestseller? This crime bookstore can solve the case

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WINNIPEG – Some 250 coloured tacks pepper a large-scale world map among bookshelves at Whodunit Mystery Bookstore.

Estonia, Finland, Japan and even Fenwick, Ont., have pins representing places outside Winnipeg where someone has ordered a page-turner from the independent bookstore that specializes in mystery and crime fiction novels.

For 30 years, the store has been offering fans of Agatha Christie’s Hercule Poirot or Arthur Conan Doyle’s Sherlock Holmes a place to get lost in whodunits both old and new.

Jack and Wendy Bumsted bought the shop in the Crescentwood neighbourhood in 2007 from another pair of mystery lovers.

The married couple had been longtime customers of the store. Wendy Bumsted grew up reading Perry Mason novels while her husband was a historian with vast knowledge of the crime fiction genre.

At the time, Jack Bumsted was retiring from teaching at the University of Manitoba when he was looking for his next venture.

“The bookstore came up and we bought it, I think, within a week,” Wendy Bumsted said in an interview.

“It never didn’t seem like a good idea.”

In the years since the Bumsteds took ownership, the family has witnessed the decline in mail-order books, the introduction of online retailers, a relocation to a new space next to the original, a pandemic and the death of beloved co-owner Jack Bumsted in 2020.

But with all the changes that come with owning a small business, customers continue to trust their next mystery fix will come from one of the shelves at Whodunit.

Many still request to be called about books from specific authors, or want to be notified if a new book follows their favourite format. Some arrive at the shop like clockwork each week hoping to get suggestions from Wendy Bumsted or her son on the next big hit.

“She has really excellent instincts on what we should be getting and what we should be promoting,” Micheal Bumsted said of his mother.

Wendy Bumsted suggested the store stock “Thursday Murder Club,” the debut novel from British television host Richard Osman, before it became a bestseller. They ordered more copies than other bookstores in Canada knowing it had the potential to be a hit, said Michael Bumsted.

The store houses more than 18,000 new and used novels. That’s not including the boxes of books that sit in Wendy Bumsted’s tiny office, or the packages that take up space on some of the only available seating there, waiting to be added to the inventory.

Just as the genre has evolved, so has the Bumsteds’ willingness to welcome other subjects on their shelves — despite some pushback from loyal customers and initially the Bumsted patriarch.

For years, Jack Bumsted refused to sell anything outside the crime fiction genre, including his own published books. Instead, he would send potential buyers to another store, but would offer to sign the books if they came back with them.

Wendy Bumsted said that eventually changed in his later years.

Now, about 15 per cent of the store’s stock is of other genres, such as romance or children’s books.

The COVID-19 pandemic forced them to look at expanding their selection, as some customers turned to buying books through the store’s website, which is set up to allow purchasers to get anything from the publishers the Bumsteds have contracts with.

In 2019, the store sold fewer than 100 books online. That number jumped to more than 3,000 in 2020, as retailers had to deal with pandemic lockdowns.

After years of running a successful mail-order business, the store was able to quickly adapt when it had to temporarily shut its doors, said Michael Bumsted.

“We were not a store…that had to figure out how to get books to people when they weren’t here.”

He added being a community bookstore with a niche has helped the family stay in business when other retailers have struggled. Part of that has included building lasting relationships.

“Some people have put it in their wills that their books will come to us,” said Wendy Bumsted.

Some of those collections have included tips on traveling through Asia in the early 2000s or the history of Australian cricket.

Micheal Bumsted said they’ve had to learn to be patient with selling some of these more obscure titles, but eventually the time comes for them to find a new home.

“One of the great things about physical books is that they can be there for you when you are ready for them.”

This report by The Canadian Press was first published on Sept. 15, 2024.



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Labour Minister praises Air Canada, pilots union for avoiding disruptive strike

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MONTREAL – Canada’s labour minister is praising both Air Canada and the union representing about 5,200 of its pilots for averting a work stoppage that would have disrupted travel for hundreds of thousands of passengers.

Steven MacKinnon’s comments came in a statement shared to social media shortly after Canada’s largest air carrier announced it had reached a tentative labour deal with the Air Line Pilots Association.

MacKinnon thanked both sides and federal mediators, saying the airline and its pilots approached negotiations with “seriousness and a resolve to get a deal.”

The tentative agreement averts a strike or lockout that could have begun as early as Wednesday for Air Canada and Air Canada Rouge, with flight cancellations expected before then.

The airline now says flights will continue as normal while union members vote on the tentative four-year contract.

Air Canada had called on the federal government to intervene in the dispute, but Prime Minister Justin Trudeau said Friday that would only happen if it became clear no negotiated agreement was possible.

This report from The Canadian Press was first published Sept. 15, 2024.

Companies in this story: (TSX:AC)

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As plant-based milk becomes more popular, brands look for new ways to compete

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When it comes to plant-based alternatives, Canadians have never had so many options — and nowhere is that choice more abundantly clear than in the milk section of the dairy aisle.

To meet growing demand, companies are investing in new products and technology to keep up with consumer tastes and differentiate themselves from all the other players on the shelf.

“The product mix has just expanded so fast,” said Liza Amlani, co-founder of the Retail Strategy Group.

She said younger generations in particular are driving growth in the plant-based market as they are consuming less dairy and meat.

Commercial sales of dairy milk have been weakening for years, according to research firm Mintel, likely in part because of the rise of plant-based alternatives — even though many Canadians still drink dairy.

The No. 1 reason people opt for plant-based milk is because they see it as healthier than dairy, said Joel Gregoire, Mintel’s associate director for food and drink.

“Plant-based milk, the one thing about it — it’s not new. It’s been around for quite some time. It’s pretty established,” said Gregoire.

Because of that, it serves as an “entry point” for many consumers interested in plant-based alternatives to animal products, he said.

Plant-based milk consumption is expected to continue growing in the coming years, according to Mintel research, with more options available than ever and more consumers opting for a diet that includes both dairy and non-dairy milk.

A 2023 report by Ernst & Young for Protein Industries Canada projected that the plant-based dairy market will reach US$51.3 billion in 2035, at a compound annual growth rate of 9.5 per cent.

Because of this growth opportunity, even well-established dairy or plant-based companies are stepping up their game.

It’s been more than three decades since Saint-Hyacinthe, Que.-based Natura first launched a line of soy beverages. Over the years, the company has rolled out new products to meet rising demand, and earlier this year launched a line of oat beverages that it says are the only ones with a stamp of approval from Celiac Canada.

Competition is tough, said owner and founder Nick Feldman — especially from large American brands, which have the money to ensure their products hit shelves across the country.

Natura has kept growing, though, with a focus on using organic ingredients and localized production from raw materials.

“We’re maybe not appealing to the mass market, but we’re appealing to the natural consumer, to the organic consumer,” Feldman said.

Amlani said brands are increasingly advertising the simplicity of their ingredient lists. She’s also noticing more companies offering different kinds of products, such as coffee creamers.

Companies are also looking to stand out through eye-catching packaging and marketing, added Amlani, and by competing on price.

Besides all the companies competing for shelf space, there are many different kinds of plant-based milk consumers can choose from, such as almond, soy, oat, rice, hazelnut, macadamia, pea, coconut and hemp.

However, one alternative in particular has enjoyed a recent, rapid ascendance in popularity.

“I would say oat is the big up-and-coming product,” said Feldman.

Mintel’s report found the share of Canadians who say they buy oat milk has quadrupled between 2019 and 2023 (though almond is still the most popular).

“There seems to be a very nice marriage of coffee and oat milk,” said Feldman. “The flavour combination is excellent, better than any other non-dairy alternative.”

The beverage’s surge in popularity in cafés is a big part of why it’s ascending so quickly, said Gregoire — its texture and ability to froth makes it a good alternative for lattes and cappuccinos.

It’s also a good example of companies making a strong “use case” for yet another new entrant in a competitive market, he said.

Amid the long-standing brands and new entrants, there’s another — perhaps unexpected — group of players that has been increasingly investing in plant-based milk alternatives: dairy companies.

For example, Danone has owned the Silk and So Delicious brands since an acquisition in 2014, and long-standing U.S. dairy company HP Hood LLC launched Planet Oat in 2018.

Lactalis Canada also recently converted its facility in Sudbury, Ont., to manufacture its new plant-based Enjoy! brand, with beverages made from oats, almonds and hazelnuts.

“As an organization, we obviously follow consumer trends, and have seen the amount of interest in plant-based products, particularly fluid beverages,” said Mark Taylor, president and CEO of Lactalis Canada, whose parent company Lactalis is the largest dairy products company in the world.

The facility was a milk processing plant for six decades, until Lactalis Canada began renovating it in 2022. It now manufactures not only the new brand, but also the company’s existing Sensational Soy brand, and is the company’s first dedicated plant-based facility.

“We’re predominantly a dairy company, and we’ll always predominantly be a dairy company, but we see these products as complementary,” said Taylor.

It makes sense that major dairy companies want to get in on plant-based milk, said Gregoire. The dairy business is large — a “cash cow,” if you will — but not really growing, while plant-based products are seeing a boom.

“If I’m looking for avenues of growth, I don’t want to be left behind,” he said.

Gregoire said there’s a potential for consumers to get confused with so many options, which is why it’s so important for brands to find a way to differentiate themselves, whether it’s with taste, health, or how well the drink froths for a latte.

Competition in a more crowded market is challenging, but Taylor believes it results in better products for consumers.

“It keeps you sharp, and it forces you to be really good at what you’re doing. It drives innovation,” he said.

This report by The Canadian Press was first published Sept. 15, 2024.



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