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U.S. defeats Canada in first dispute under new North American trade pact – CBC News

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This item is part of Watching Washington, a regular dispatch from CBC News correspondents reporting on U.S. politics and developments that affect Canadians. 

What’s new

Canada has lost the first-ever dispute case under the new North American trade agreement, with a panel siding with the U.S. and saying Ottawa flouted part of its obligation to open the dairy market.

The three-member panel — made up of a Uruguayan diplomat who was once ambassador to Canada, a Canadian trade lawyer based in the U.S., and a U.S. trade lawyer named to the panel by Canada — agreed that Canada violated its promise to allow slightly more dairy imports by imposing unfairly complicated rules.

The U.S. says Canada now has a few weeks to comply with the ruling, or face the possibility of a trade penalty such as a tariff.

The finding comes amid a succession of trade disputes between the countries that risk souring the bilateral relationship. 

“We prevailed — as we thought we would,” a senior official in the U.S. Trade Representative’s office told reporters in a briefing Tuesday.  

“Now the goal is to work with Canada.… The end goal is not to put retaliatory tariffs in place.” 

The report was released to the countries in a full confidential version just before the holidays, on Dec. 20; a 53-page public version was released Tuesday.

The Canadian government also claimed a partial victory: It noted that the panel otherwise upheld Canada’s system of supply management of its dairy sector. 

What’s the context

Dairy was one of the hardest-fought issues in negotiating the new Canada-U.S.-Mexico Agreement on trade (CUSMA), and was resolved in the final days of negotiating.

The Canadian government worked to prevent new imports, under pressure from producers concentrated in Central Canada.

They argued that Canada’s tightly controlled system allows for stable farming communities without the wild price fluctuations that have periodically battered U.S. farms.

For the U.S., exporting more dairy was a top priority.

Its allies argued that the tight Canadian controls unfairly shut out competition, and innovation, and can lead to higher prices for consumers.

In the end, the U.S. gained a small opening.

A series of measures in Chapter 3 of the new trade agreement allowed the U.S. some additional exports to the tune of more than three per cent of Canada’s market.

But when it came time to implement the agreement, Canada left domestic processors in charge of allocating import permissions, known as tariff-rate quotas.

This angered the U.S. industry and government: both the Trump administration and the Biden administration moved forward with a case against Canada.

They argued that by giving Canadian producers control over 80 per cent of the import quotas they created an undue hurdle to cross-border sales.

One USTR official put it this way in Tuesday’s briefing: an American producer would hope to talk directly to their customer in Canada, say a grocery store, about import rights, instead of their competitors.

He said those buyers in Canada, and their customers, have an incentive to allow imports to flow — unlike the producers.

The first panel decision under the new trade pact agreed with the U.S.; it said Canada violated Article 3.A.2.11(b) of the agreement, which says tariff-rate quotas should not be allocated to producer groups. 

WATCH | Canada threatens U.S. with tariffs over EV tax credit dispute:

Canada threatens U.S. with tariffs over EV tax credit dispute

25 days ago

Duration 2:01

In a letter to top U.S. senators, Deputy Prime Minister Chrystia Freeland and Trade Minister Mary Ng threatened to impose tariffs on American goods and suspend parts of the USMCA trade agreement unless U.S. officials scrap a proposed electric vehicle tax credit. 2:01

What’s next

The U.S. says Canada has 45 days to comply, from the time it received the confidential panel report. In other words, until Feb. 3, 2022.

After that, the U.S. says it would have the right to impose penalties — perhaps a tariff. 

The scope of that penalty would have to be equivalent to the value of the damage allegedly done to American dairy producers.

It would be up to the U.S. to calculate that dollar amount, and if Canada disagrees it could further challenge the U.S. calculation.

“Of course we hope not to go down that path,” said a U.S. official at Tuesday’s briefing. “We obviously want to talk to them. And find a positive solution to the dispute.”

The Americans at the briefing stressed that the U.S. otherwise has a great relationship with Canada, in other areas.

However, this dispute decision comes at a stormy moment in the relationship.

Canada has, itself, threatened to suspend pieces of the new trade deal that are dear to the U.S.

Ottawa is furious about Buy American-type provisions related to electric vehicles in a large budget bill and promising retaliation if the idea proceeds.

That separate dispute is currently in limbo: one senator, Joe Manchin, has blown up talks over the budget bill and wants to start all over. 

The Canadian government said in a statement that it has “taken note” of the decision, takes its obligations seriously under trade agreements and will work with the Canadian dairy industry on next steps.

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Hundreds of thousands of Canadians are travelling abroad despite Omicron – CBC News

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Despite growing concerns across the globe last fall over the new COVID-19 variant, Omicron, Sandy Long and her husband departed on Nov. 28 for a 10-day vacation in Mexico. 

Long said they felt comfortable travelling, because they planned to take strict safety precautions. Plus, the couple hadn’t gone abroad for two years due to the pandemic and were yearning to get away.

“Life is short,” said Long, 58, of Richmond, B.C. “We needed to feel some warmth [and] we really missed Mexico.”

It appears many Canadians have a similar attitude toward travel these days despite Omicron’s fast and furious spread, which prompted Canada to repost its advisory against non-essential international travel last month.

Statistics Canada tallied 742,417 Canadian air-passenger arrivals returning home from abroad in December. 

When adjusted to account for recent changes in tracking air travel, that total is almost six times the number of arrivals for the same month in 2020, and more than half the total for pre-pandemic December 2019.

The increase in international travel is likely to continue: there were 216,752 Canadian air-passenger arrivals to Canada during the week of Jan. 3 to Jan. 9, according to the latest data posted by the Canada Border Services Agency. 

Lesley Keyter, owner of The Travel Lady Agency in Calgary, said clients are booking trips despite the threat of Omicron because they want to return to travelling. (submitted by Lesley Keyter)

Travel agency owner Lesley Keyter said that, since October, the number of clients booking trips has jumped by between 30 and 40 per cent compared to the same time last year. 

She said popular destinations for her clients, most of whom are aged 50 or older, include Europe, Mexico and Costa Rica. When Omicron cases started to surge in December, Keyter said some clients cancelled their trip, but most kept their travel plans. 

“People are saying, “Listen, we only have a limited time on this planet.… We’ve put off travel for two years now, I don’t want to put it off anymore,” said Keyter, owner of The Travel Lady Agency in Calgary.

She said travellers also feel confident with the added protection of their COVID-19 vaccine and booster shot. Because Omicron is so transmissible and more able to evade vaccines, even vaccinated people may get infected, however, they’re less likely to wind up in the hospital.

Risk of testing positive abroad

But even if infected travellers only experience mild symptoms, they’ll still face hurdles returning home.

To enter Canada, air passengers must show proof of a negative COVID-19 test taken within 72 hours of departure. If a traveller tests positive, they must wait at least 11 days before boarding a flight home.

Brennan Watson of Milverton, Ont., tested positive for COVID-19 while on vacation in Ireland. (submitted by Brennan Watson)

Brennan Watson, 26, of Milverton, Ont., tested positive on Dec. 28 while travelling in Ireland. 

He was set to fly home the following day, but instead had to find a place to self-isolate in Belfast. Due to Canada’s rules at the time — which have now changed — Watson had to wait 15 days before he could fly home. 

“It was very stressful in the beginning,” he said. “It was a bit of a panic just to think that I’m stuck here.”

Brennan said the delay cost him: he missed 11 days of work as an electrician and spent $2,000 in added expenses, including another plane ticket home. 

“There’s nothing you can really do about it,” he said. “It’s just something I didn’t even think would happen.”

WATCH | Canada once again advises against travel abroad:

Canada warns against non-essential travel abroad as Omicron spreads

1 month ago

Duration 3:14

The federal government is urging Canadians to stay home or, if they must travel, to plan ahead for quarantine and ensure they have travel insurance coverage. 3:14

Travel insurance broker Martin Firestone said travellers can avoid such unexpected costs by purchasing trip-interruption insurance. He said most of his clients now opt for the coverage that will reimburse travellers for some or all of their costs if they test positive and must extend their trip. 

“Trip interruption — which used to be a very rarely [purchased product] — is now being added to all the emergency medical plans, because clients worry terribly about testing positive,” said Firestone with Travel Secure.

“That’s the new world we live in right now with the pandemic.”

Flight cancellations

Another hurdle travellers may face is unexpected flight cancellations. 

Since December, thousands of flights in Canada and the U.S. have been cancelled for pandemic-related reasons including crew members out sick due to the virus. 

This month, Air Canada Vacations announced it will suspend some flights to sun destinations between Jan. 24 and April 30. After cutting 15 per cent of its January flights, WestJet announced on Tuesday it will cancel 20 per cent of its February flights.

Long said she and her husband enjoyed their trip to Mexico so much, they had planned to return again in the upcoming weeks. However, the couple recently nixed their plans due to concerns over flight cancellations.

“It’s the uncertainty right now,” said Long. “I don’t want to get down there and then be stranded.”

However, she’s still optimistic about a trip the couple has booked in May to Spain. 

Despite testing positive while travelling, Brennan hopes to return to Ireland this summer — even if the pandemic hasn’t waned by then.

“I spent a year and a half of my life not seeing family, not seeing friends,” he said. “I’m not going to stop living my life.”

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Immigration: Canada border tragedy a sign of what's ahead – CTV News

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PEMBINA, N.D. —
The discovery of four people who perished in the cold trying to cross the Canada-U.S. border could put a new twist on the immigration debate in the United States.

The group, which included an infant and a teen, were found Wednesday near Emerson, Man., just metres from the Canadian side.

U.S. officials allege they were part of a larger group of Indian migrants trying to cross into the U.S. from Canada.

Border expert Kathryn Bryk Friedman, a University at Buffalo law professor, calls it a troubling sign that the country’s immigration challenges are getting worse.

Friedman says the discovery is likely a “warning shot” that more people are willing to put their lives on the line to enter the U.S., even on foot in the dead of winter.

Florida resident Steve Shand is to appear in court Monday in Minneapolis to face human smuggling charges.

“I do think it’s a warning shot,” said Friedman, who remarked about the enduring appeal life in the U.S. seems to hold for people all around the world.

Indeed, the crush of South American migrants at the U.S.-Mexico border has become a defining characteristic of American politics in recent years, most notably during the tenure of former president Donald Trump.

Nor is Canada a stranger to the problem: thousands of asylum seekers crossed the border in Quebec each year while Trump was in office, though the numbers have dropped precipitously since then.

But an organized effort to sneak groups of people into the U.S. from Canada is a new one on Friedman.

“It just demonstrates the allure still — maybe the enduring allure — of trying to get to the United States. It’s really kind of fascinating,” she said.

But a single incident isn’t likely to prompt either country to seriously rethink the way they manage and defend their shared frontier, she added.

“This sounds terrible, but I think it’s going to take more than four people dying at the border to really galvanize action on the part of Canada and the United States.”

This report by The Canadian Press was first published Jan. 22, 2022.

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Omicron's potential peak has experts cautiously optimistic – CTV News

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Canada’s top doctor has said the latest wave of COVID-19 driven by the Omicron variant may have reached its peak.

But while the modelling appears encouraging, experts say the news should be interpreted with cautious optimism.

Chief Medical Officer of Health Dr. Theresa Tam told reporters on Friday that there are “early indications that infections may have peaked at the national level” based on daily case counts, test positivity, the reproduction number and wastewater data.

“I hope we’re at or nearing the peak, but the problem that I have is where we’ve got some uncertainty in the counting now since we don’t do as much PCR testing as we once did,” Dr. Ronald St. John, former director-general of the Public Health Agency of Canada’s Centre for Emergency Preparedness and Response, told CTV News Channel on Saturday.

Due to the shortages in PCR testing capacity, many people who develop COVID-19, particularly if they’re not in a high-risk group and have mild or no symptoms, have been unable to get PCR tests.

“We can’t count people who are asymptomatic, so we have to look at other datasets (like) wastewater concentration, things like that, to try to get an understanding of where we are.” St. John said.

Dr. Jason Kindrachuk, an infectious disease expert at the University of Manitoba, says the news shows “some optimism that things will slowly get back to normal, what they were like prior to Omicron.”

However, Tam said that hospitalizations and ICU admissions are still climbing across Canada and health systems remain under “intense strain.” Kindrachuk says it’s unclear how quickly we might start seeing hospitalizations and ICU admissions start to decrease.

“I think we’ve learned over and over again from the pandemic is that you know, cases rise and then hospitalizations lag behind … and that trend also stays in place when cases start to recede,” he told CTVNews.ca over the phone on Saturday.

“You may be able to slow down that hospitalization rate over time, but you are still going to have pressure on a health-care system that that has been pushed to its limits.”

Dr. Christine Palmay, a Toronto-based family physician, says the hospitalization and ICU data also leave out a lot of patients dealing with debilitating symptoms. She and her colleagues have seen numerous patients who have tested positive for COVID-19 and are struggling with the virus at home.

“They’re not captured by ICU stats. They’re not necessarily accessing ER, but they’re not functioning,” she said.

PROVINCES BEGIN EASING RESTRICTIONS

Several provinces have also reported that Omicron may be peaking or close to peaking. In Ontario, Health Minister Christine Elliott said cases are expected to peak this month, followed by a peak in hospitalizations and ICU admissions. Quebec also reported that hospitalizations declined for the third straight day on Saturday.

Wastewater data in B.C. and Alberta have also shown signs that the virus may have peaked. However, health officials in Manitoba and Saskatchewan say it’s too early to tell.

When COVID-19 cases began to reach unprecedented highs throughout Canada last month, provinces and territories imposed numerous health measures affecting restaurants, movie theatres, gyms, in-person schooling and more. Now, some provincial and territorial governments have plans to life some of these restrictions.

Kindrachuk says these restrictions, on top of the rollout of booster shots, appear to have helped plateau cases. However, as these restrictions start to ease, he notes that cases have the potential to rise again.

“When you start to remove those safety breaks, you have the potential that things could start to build back in the opposite direction. So, we have to do it very methodically and certainly with a lot of oversight,” he said.

St. John says he’s also worried about health measures being lifted too quickly.

“We have to wait and stick to our public health measures as long as possible until we can be absolutely sure that we’re coming out of the woods, and I’m not sure that we are yet,” he said.

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