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Malcolm

All About Canada and Trade

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LOL

Documentaries?

From out here it seems pretty clear that you have a strong preference for fiction.

  • Haha 1

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https://www.thestar.com/business/2018/10/17/america-is-drowning-in-milk-nobody-wants.html

The amount of milk dumped by farmers in the Northeastern U.S. reached almost 145 million pounds through July, including 23.6 million pounds that month alone. Dairy co-operatives will likely be forced to heavily discount milk prices in the coming months as a result, going below the current futures price for benchmark Class III milk, which goes into making cheese, and is currently under $16 per 100 pounds

Nevertheless, limiting supply — the ultimate solution to the glut — isn’t on the table. “Dairy farmers are free market guys — they don’t want to be told how much to produce,” Ball said, even as supply management programs like those in Canada gain traction among U.S. farmers. For now, though, the state will stick to investing in ways to sell all of this extra milk.

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If you produce a product you can't sell and then destroy it, you're going to go bankrupt.

In time the tried and true supply versus demand paradigm will prevail and all will be well. 

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Finally I agree with you.  But only because you agree with my point.

The U.S. government has been subsidizing it's dairy farmers to the point that they have nowhere to sell their milk.

So the question is,,,,,

Why should Canada give up it's system for their failings?

Seems the U.S. dairy industry is more socialist than Canada's! 😉

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The quota system should be abandoned because it encourages less than solid performance at all levels of the industry and leaves the consumer paying more in the end. 

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Canada doesn't subsidize though.  Supply management means that there will be a market for them to sell their product to.  It is then up to the farmer to be as efficient as he can.

Unlike those socialist subsidies in the U.S. which makes for overproduction to try and maximize profit.

https://albertamilk.com/ask-dairy-farmer/how-many-subsides-do-alberta-dairy-farmers-get-fro/

Alberta dairy farmers receive $0 in subsidies from the Government. This is thanks to our marketing system, supply management.

In fact, Canadian dairy farmers do not receive government subsidies. Interestingly, European dairy farmers receive $55 billion Euros in subsidies per year and Americans paid $4 billion in dairy subsidies in 2009 – or about 31 cents per litre – in addition to retail prices. In Canada you pay once for your milk – at the grocery store till – and don’t pay again through your taxes.

Edited by deicer

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Protections, yes.  From hurting themselves through overproduction.

Makes our whole market much more efficient.  Having a place to sell your product is as important as producing it.

Otherwise, you have to dump product.  Like they try to do in the U.S.   Isn't that illegal as well?

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ask an american Dairy farmer.  They want a supply management system like CAnada.

 

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A view from experience...

https://www.nytimes.com/2018/10/23/business/dealbook/paul-volcker-federal-reserve.html?smid=fb-nytimes&smtyp=cur

But there is something more worrisome affecting policy than fear, he told me. Money.

Over the din of traffic outside an open window, Mr. Volcker hoarsely sounded an alarm on the power it has to shape our culture and our politics.

The central issue is we’re developing into a plutocracy,” he told me. “We’ve got an enormous number of enormously rich people that have convinced themselves that they’re rich because they’re smart and constructive. And they don’t like government, and they don’t like to pay taxes.”

Washington, when he arrived, “was a city filled with bureaucrats,” he said. “It didn’t make them bad.” At the time, civil servants — like his father, the township manager of Teaneck, N.J. — were respected. “I grew up in a world in which good government was a good term,” he said.

But things have changed. Today, he said, Washington is overrun by lobbyists and think tanks. Mr. Volcker, who started a nonprofit to improve education for public service, contends that our educational system has been perverted by money.

Today, Mr. Volcker is already starting to worry about the next financial crisis. Asked about the stability of the banks, he said, “They’re in a stronger position than they were, but the honest answer is I don’t know how much they’re manipulating.”

That, he said, is the real challenge facing economic policymakers. “Everybody talks about monetary policy,” he said, “but the lesson of all this is we need better, stronger supervisory powers.”

Edited by deicer

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October 29, 2018 3:00 am

Donald Trump’s trade war is hurting the people he promised to help

 There’s no question that dairy is Wisconsin’s most famous industry.
 

In the town of Plymouth, a giant statue of a Holstein stands in the middle of the “cheese capital of the world.” An astonishing 15 per cent of all the cheese in America passes through this part of Wisconsin’s Dairyland.

But Plymouth has a problem: the product at the centre of the economy is under assault as a result of President Trump’s trade wars.

The uncertainty starts on dairy farms, like the one belonging to Josh Goeser.

He says farmers were initially encouraged when Trump promised to stand up for them and win access to Canada’s protected dairy industry as part of a renegotiated NAFTA, but then reality set in.

READ MORE: Trump tariff backlash grows in U.S. as major companies take financial hit

“It was good that he wanted fair deals and it was bad about how he approached it,” Goeser said.

That’s because Trump didn’t just pick one trade fight, he picked several at the same time.

When the U.S. added tariffs to imported steel and aluminum, Canada, Mexico, China and the European Union fought back with their own reciprocal tariffs.

Suddenly Wisconsin found itself at the centre of an international trade war.

Trump administration continues to take steps to prepare for global trade war

Trump administration continues to take steps to prepare for global trade war 
 

Those foreign tariffs were targeted to send a message; Wisconsin is home to Republican speaker of the house Paul Ryan, and the state helped propel Trump to the White House.

The tariffs took direct aim at Wisconsin-made goods from cheese to milk products to Harley Davidson motorcycles.

Farmers like Goeser saw the price of milk plummet almost overnight.

“We had to cut people,” he said. “And we had to watch out and make sure we’re not over-budgeting or spending money on stuff we didn’t need.”

Dairy farmers say the price of their milk plummet almost overnight as other countries responded to Donald Trump’s tariffs with tariffs of their own. Jackson Prokow/Global News

Jackson Proskow/Global News

All of the milk from Goeser Dairy is bought by another Plymouth company: Sartori Cheese.

Sartori has been hit hard by Mexico’s tariffs on imported cheese.

“Until those tariffs are alleviated we’re in a much harder position,” Blair Wilson, Sartori’s vice-president of marketing and global markets, said.

READ MORE: Facing Quebec dairy farmers, Trudeau says ‘they’re right’ about being pressed to give more

The problem is that in the cheese business, there are no quick turnarounds.

Aged cheese has to be produced months in advance. So Sartori has been trying to sell cheese to Mexico that it made long before the tariffs kicked in. In the process, they’ve had to eat a 25 per cent cost increase themselves, wary of turning off consumers if they were to pass along a price hike.

They’ve also kept buying the same amount of milk and for now, they’re still producing just as much cheese.

“We really just need to understand what the landscape is going to look like,” Wilson explained. “Uncertainty is very difficult in a business like this.”

READ MORE: Canada has made almost $300M from retaliatory tariffs on U.S.

Asked what happens if the tariffs aren’t lifted soon, Wilson responded: “We’ll need to make more dramatic decisions.”

It seems ironic that the very people and industries Trump promised to help have been hurt by his policies, but the pain isn’t limited to the dairy sector.

In a suburb of Madison, there’s trouble brewing for Wisconsin’s second-most-famous export.

<img class="story-img" src="https://shawglobalnews.files.wordpress.com/2018/10/octopi-brewery.jpg?quality=70&strip=all&w=512" alt="A worker at Octopi Brewing in Waunakee, Wis. Jackson Proskow/Global News">

 

 

Octopi Brewing is a rapidly growing craft brewery.

As a canning line whirred away, owner Isaac Showaki explained that the cost of every can has gone up by nearly 25 per cent.

“We’ve had four price increases this year,” he said. “We used to get a two to three per cent annual increase.”

The reason, according to his suppliers, is Trump’s tariffs on imported aluminum.

READ MORE: Steel tariffs ‘staying’ despite new trade deal: Trump

The impact has been twofold. Consumers have seen the cost of a six-pack of beer rise by as much as $2, while Showaki estimates his business has lost nearly $300,000 to higher costs.

“We could have easily hired six more people, given raises, we had a big plan to start a big 401K, so all that stuff had to be pushed another year because of price increases,” he explained.

The struggles of Wisconsin’s prominent industries are in stark contrast to the health of the overall economy.

Trump criticizes Canadian tariffs on U.S. dairy products

The unemployment rate in the state hovers below three per cent, and many businesses face a labour shortage.

That means that trade may not be top of mind for most voters or politicians during the midterm elections, even as tales of economic woe become more commonplace.

“It is complicated both for candidates and voters to wade through,” Barry Burden, a political science professor at the University of Wisconsin, Madison, said. “It’s finding a middle ground that says I understand the concerns of people in those industries who export but also saying I see the value in playing hardball with other countries.”

It’s complicated for the industries at the centre of Trump’s trade war, too.

Farmer Josh Goeser says it’s tough to talk politics with his friends, given the current climate.

Standing among his 1,100 head of dairy cattle, he admits “we try not to talk politics because we don’t want to frustrate each other.”

 

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More possible negative impacts for the US caused by the tariff war started by their POTUS

China's tariff on US natural gas delays Louisiana LNG project

  • Australia's LNG Limited said it will not make a final investment decision this year on its natural gas export terminal in Louisiana due to problems lining up Chinese customers.
  • China slapped a 10 percent tariff on U.S. liquefied natural gas, retaliating against the Trump administration for taxing Chinese imports.
  • Terminal developers rely on contracts with buyers to finance their projects, and the tariffs make U.S. LNG less attractive to Chinese energy companies.
Published 2 Hours Ago Updated 1 Hour Ago CNBC.com
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
An LNG (liquified natural gas) container of CNPC (China National Petroleum Corporation) is under construction next to others at the Yangkou Port in Rudong county, Nantong city, east China's Jiangsu province.
Imaginechina | AP
An LNG (liquified natural gas) container of CNPC (China National Petroleum Corporation) is under construction next to others at the Yangkou Port in Rudong county, Nantong city, east China's Jiangsu province.

A company behind a multibillion-dollar project to export liquefied natural gas from Louisiana is delaying its investment decision due to problems lining up Chinese buyers amid the ongoing U.S.-China trade dispute.

Donald Trump has championed. Trump has pitched U.S. LNG — natural gas chilled to liquid form — to trade partners from China to Poland.

Australia's LNG Limited on Monday said it will not make a final investment decision this year on its Magnolia LNG terminal near Lake Charles, Louisiana. The company previously told investors it expected to announce a decision by year-end.

 

"We made that statement prior to the trade tensions that have manifested over the past months, which have caused headwinds for LNG transactions," LNG Limited CEO Greg Vesey said in a letter to shareholders. "We remain hopeful in our ability to bring a final investment decision for Magnolia LNG to the Board of Directors in the first part of 2019."

China slapped a 10 percent tariff on American LNG exports in September after the Trump administration imposed an equal levy on $200 billion in Chinese goods. The White House is reportedly preparing to place tariffs on all remaining Chinese imports — about $257 billion in products — if trade talks between Trump and Chinese President Xi Jinping fail to deliver a breakthrough.

Vesey, a former natural gas and power executive at Chevron, held out hope that the world's two biggest economies would settle their dispute before Magnolia finds buyers beyond China for its supplies.

"There are varying opinions on how and when the trade issues with China will be resolved," he said. "Considering that, our communications with potential Chinese offtakers remain robust with the intent to complete agreements if trade tensions abate before Magnolia is fully sold out."

The Magnolia LNG project is estimated to cost $6 billion, according to energy and ship brokers Poten & Partners. LNG terminal developers secure financing for their projects by lining up buyers for their supplies.

China's LNG consumption is growing rapidly as Beijing aims to replace coal in the nation's energy mix, making the country a prime target for terminal developers looking to ink contracts. Analysts previously told CNBC that China's tariffs on U.S. LNG could delay some projects in the second wave of LNG terminals expected to start up in the coming years.

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Do we have a Minister of Trade?  I thought we did but it appears that our PM has taken on that role.  Good or bad?

On 18 July 2018, Prime Minister Justin Trudeau changed the title to Minister of International Trade Diversification and appointed Jim Carr the new Minister.

Quote

Trudeau looks Beyond U.S. in trade junket

Will meet Asian and European representatives

  • Calgary Herald
  • 10 Nov 2018
  • JORDAN PRESS

• Prime Minister Justin Trudeau is setting off on a 10-day voyage across Europe and Asia to pursue his oft-stated goal of finding markets for Canadian goods and services beyond the United States.

Trudeau travels first to France, then on to summits with other world leaders in Singapore and Papua New Guinea, looking to push trade across the Pacific.

Observers say Trudeau’s biggest test will be in the last two stops.

Canada has shown repeated interest in trading with Asian nations on the Pacific Rim over the years, but has failed to make sustained progress in a region where trade deals often depend on personal relationships.

International Trade Minister Jim Carr will join Trudeau there, where he will have face-time with leaders from a 10-nation bloc known as the Association of Southeast Asian Nations (ASEAN) and then with a larger group of world leaders at the annual APEC leaders’ summit.

“For a domestic audience, the prime minister and other ministers will have to demonstrate that this trip advances the trade diversification agenda in a significant way,” said Sen. Yuen Pau Woo, an independent appointed by Trudeau and an expert on the Asia-Pacific region.

“What our counterparts will want to hear is that Canada is not retreating into a fortress North America with the signing of NAFTA 2.0, that the trade diversification agenda is sincere and has teeth and resources and determination behind it.”

Foreign-policy experts who keep track of Canada’s trade interests in Asia caution that Trudeau is likely to return home with a series of project agreements rather than any major new trade treaties.

Combined, the ASEAN countries would be Canada’s sixth-largest trading partner and exploratory free-trade talks with them are going slowly — though some are included in a larger trade treaty with Pacific Rim countries that Canada just ratified, meaning it will soon come into force.

Canada already has a trade deal with Europe, most of which kicked in last year, eliminating tariffs on numerous goods. But a small part of the deal still needs to be ratified by each member of the European Union.

Former Quebec premier Jean Charest, who now specializes in international business with law firm McCarthy Tetrault, said if enough countries approve the remaining portions, the deal becomes irreversible. A large player such as France, Germany or Italy would likely seal the deal.

The unsteady political situation in Italy and German Chancellor Angela Merkel’s recent move toward retirement leave France as Canada’s only option to nail down the agreement quickly before European elections in the spring, Charest said.

“If you get a new parliament that is voted and campaigned against this, then you’re in a new political zone,” Charest said. “Trudeau should be pressing (French President Emmanuel) Macron — who controls his majority in the national assembly — to move ahead with this as rapidly as possible.”

France’s ambassador to Canada, Kareen Rispal, said it is better to let Europeans see the benefits of the deal, known by the acronym CETA, slowly instead of rushing into a debate about its merits before the EU elections.

European elections often turn into a protest vote and are “a call for all the populists,” Rispal said.

“It’s a very tricky campaign,” she said. “If we have CETA in the campaign, we think it’s not a good idea.”

Before all the trade talk, Trudeau is to mark the 100th anniversary of the end of the First World War, first at Vimy Ridge on Saturday where he will meet with veterans and tour the monument built to memorialize the “War to End All Wars.”

TRUDEAU SHOULD BE PRESSING MACRON TO MOVE AHEAD WITH THIS.

 

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The boy needs to rethink when dealing with other countries on trade.

 Ivison: When it comes to China, Trudeau needs to stop lecturing and start selling

Trudeau’s idealism has no place in a realistic vision of foreign policy, particularly since the finger-wagging has already proven counter-productive with prospective trading partners

1115_col_ivison_11-e1542237459506.jpg?quCanadian Prime Minister Justin Trudeau meets with Chinese Premier Li Keqiang before the Canada-China Annual Leaders dialogue in Singapore on Wednesday November14, 2018.Adrian Wyld/The Canadian Press
 

OTTAWA — You wonder if Liberal ministers believe the balderdash they spin or whether it’s so deeply programmed that it is instinctive, like the mammalian diving reflex or blushing.

Ottawa is on a big trade diversification push in Asia, with the prime minister talking to leaders at the Association of Southeast Asian Nations meeting in Singapore, while International Trade Minister Jim Carr and Finance Minister Bill Morneau have been flying the flag in Beijing.

Carr told reporters that the government remains interested in striking a deal with China, if it helps female entrepreneurs, Indigenous peoples and promotes other Canadian values.

Anyone seen this movie before? If not, spoiler alert — the plot-line sees a callow Canadian politician wander wide-eyed into the capital city of a nascent Asian superpower and propose opening his market, as long as said ancient civilization adopts “Canadian values” like labour and environmental protections, gender equity and Indigenous rights. Suffice it to say, it doesn’t end well — they do things differently over there.

As Justin Trudeau found out in the Great Hall of the People last December, the culmination of his trip was a stark lesson in power politics

As Justin Trudeau found out in the Great Hall of the People last December, the culmination of his trip was a stark lesson in power politics, when the Chinese reinforced the point that their century or more of humiliation is over and that foreign visitors to Beijing are expected to kowtow, not issue demands.

 

When Trudeau was in China last year, one Canadian businessman who has been there a while told me the golden rule of doing business is: Never try to impose your own values.

trudeau_freeland.jpg?quality=60&strip=allPrime Minister Justin Trudeau speaks as Chrystia Freeland, minister of foreign affairs, applauds during the Global Affairs Canada Trade and Negotiations Branch meeting at the John G. Diefenbaker building in Ottawa on Wednesday, Oct. 17, 2018. David Kawai/Bloomberg

Trudeau thought he had an agreement with Premier Li Keqiang for parts of his identity trade agenda, only to find Li had no intention of signing on to anything that might one day herald more health and safety obligations, a minimum wage or collective bargaining.

The disconnect was apparent at Trudeau’s closing press conference, where he explained that “trade deals must benefit citizens, not just multinationals or a country’s bottom line.”

He said Canada was not seeking to create winners and losers in a trade deal.

The Chinese have the same zero-sum game philosophy as Donald Trump

Needless to say, the “citizens first” view is not shared in a country determined to shake off centuries of Western hegemony and chart its own course.

“We are not asking Ottawa to share the same ideas as us,” said an editorial in the state-owned English-language newspaper, the Global Times.

Nor does the view that trade can be “win-win” have much credence. The Chinese have the same zero-sum game philosophy as Donald Trump, which is going to make resolution of the current trade war between China and the U.S. particularly tough.

If Ottawa is still paying lip-service to its progressive trade agenda, it seems to have smartened up on the perils of negotiating a full-scale trade deal with the Chinese.Carr said Canada remains open to striking smaller sector-by-sector agreements. Trudeau met Li for an hour in Singapore on Wednesday and one of the aspirational goals laid out after the meeting was a doubling of agricultural exports to China by 2025.

The sectoral approach was the focus of a paper by the Public Policy Forum think tank last month. It suggested a strategy that would not set off the tripwire clause in the new United States Mexico Canada Agreement that appears to block the entry of any of the parties into a free trade deal with “a non-market country” — that is China.

The PPF said sectoral agreements in areas like agri-food, natural resources, education and tourism would not offend the new USMCA clause because they would not constitute a comprehensive agreement. It suggested sensitive areas like technology transfer and national security be avoided on security grounds.

But Forum president Ed Greenspon pointed out that being overly dependent on the U.S. has been a “train wreck” and any trade diversification strategy must include China — an $11-trillion economy still expanding at nearly 7 per cent a year.

Canada has to be smart, tough and cautious when dealing with the Chinese. As a recent report by the Macdonald Laurier Institute noted, China is conducting what author J. Michael Cole called a “sharp power” campaign to influence countries like Canada that includes co-option, bribery, disinformation and censorship. If the U.S. has been less benign of late, that should be set against the context of an authoritarian Chinese regime that Cole said is becoming “increasingly Orwellian.”

Then there are the problems of trying to strike a deal with a country whose state-owned enterprises enjoy advantages with which real market economies cannot compete.

Yet Canada’s national interest requires clear-eyed engagement with China when it comes to, in Greenspon’s words, “selling lobsters, filling hotel rooms and shipping timber or oil and gas.”

Trudeau’s feel-good idealism has no place in this realistic vision of foreign policy, particularly since the finger-wagging has proven counter-productive with prospective trading partners ranging from the Philippines to India.

The government should park its brazen attempt at pandering to progressive voters and focus on giving a leg-up to all Canadian businesses — not just its favoured client groups.

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‎Today, ‎November ‎15, ‎2018, ‏‎7 minutes ago
 

Canada had concerns over Muslim rights in China. China said they are unwarranted

 
‎Today, ‎November ‎15, ‎2018, ‏‎7 hours ago | The Associated Press

BEIJING — China said Thursday that 15 foreign ambassadors exceeded their diplomatic roles by issuing a letter expressing concern about the incarceration of hundreds of thousands of members of the country’s Muslim minorities in re-education camps.

Foreign Ministry spokeswoman Hua Chunying told reporters at a daily briefing that it would be “problematic” if the diplomats were attempting to put pressure on local authorities in the northwestern region of Xinjiang, where the detentions have taken place.

Hua said the letter violated the terms of the Vienna Convention governing diplomatic relations and that the ambassadors should not “interfere in the internal affairs of other countries.”

“As ambassadors, they are supposed to play positive roles in promoting mutual understanding, mutual trust and co-operation … rather than making unreasonable requests to the countries where they are based,” Hua said.

She said the letter issued this week and reportedly spearheaded by Canada was based on hearsay, despite widely distributed reports from detainees, relatives and officials documenting the sweeping and seemingly arbitrary detentions.

Inmates and relatives say the camps impose military-style discipline and punishments and force detainees to renounce their religion and culture while swearing fealty to President Xi Jinping and the ruling Communist Party.

Asked about the letter, Prime Minister Justin Trudeau said he had “highlighted the questions and concerns that we have” surrounding the issue in his bilateral meeting with Chinese Premier Li Keqiang on the sidelines of the annual summit of the Association of Southeast Asian Nations in Singapore.

“Canada will continue to look for ways to advance and promote human rights in partnership with our likeminded allies everywhere around the world,” Trudeau said at a news conference Thursday.

The letter to the Chinese government has not been made public, but the Reuters news agency said it was signed by 15 Western ambassadors, including the Canadian, British, French, Swiss, European Union, German, and Australian envoys.

Hua’s comments came as a bipartisan group of U.S. lawmakers is bringing a measure to urge President Donald Trump to help Chinese Muslims respond to the crackdown.

The legislation would urge Trump to condemn “gross violations” of human rights in Xinjiang, where the U.N. estimates that as many as 1 million Uighurs and other predominantly Muslim minorities are being held in arbitrary detention.

It would also support an existing push for sanctions against Xinjiang Communist Party chief Chen Quanguo and other officials under the Magnitsky Act, which prevents foreign officials from entering the U.S. and freezes any assets they have in U.S. banks.

Other sanctions raised for consideration by the act include a ban on sales of U.S.-made goods or services to Xinjiang state agents such as those that could be used for surveillance and suppression.

Chinese authorities have denied that the internment camps exist, but say petty criminals are sent to “employment training centres.” The Xinjiang government has revised regulations to officially permit the use of “education and training centres” to reform “people influenced by extremism.”

The rules direct the centres to teach the Mandarin language, occupational and legal education, as well as “ideological education, psychological rehabilitation and behaviour correction.”

Xinjiang’s native Uighur and Kazakh ethnic groups are culturally, religiously and linguistically distinct from China’s Han majority and the region has been home to a low-intensity rebellion against rule from Beijing. Many of the region’s natives say their culture is under threat from Chinese policies aiming to assimilate them and that they face disadvantages in education and employment from Han migrants from other parts of China.

Members of the Muslim Hui ethnic group — culturally and linguistically closer to the Han — have also been ensnared in the campaign that has drawn comparisons to Mao Zedong’s radical 1966-76 Cultural Revolution.

Also on Thursday, China’s Cabinet released a report entitled “Protection and Development of Xinjiang Culture,” that stressed the importance of adopting Mandarin Chinese among ethnic groups and referred to their Islamic faith as “religious culture.”

“Xinjiang adheres to the historical tradition of the Sinosization of religion and actively adapts religion to socialist society,” the report said.

 

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Will the dipshit ever figure out his social agenda and Trade are two separate different things?

Killing Canada one step at a time!

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Contract given to Siemens and the trains will be built in California.  I guess using US Steel and Aluminum.  Hmmmm But Siemens employs over 4500 spread across several provinces (see end of story below)

Via Rail places $989M train order with German company instead of Bombardier

Via Rail has selected Germany's Siemens over Bombardier Inc. for a $989 million contract to build new rolling stock as the Canadian passenger rail service renews its fleet of locomotives and cars for the rail corridor between Quebec City and Windsor, Ont.

Germany company Siemens will build the trains in its California facility

The Canadian Press · Posted: Dec 12, 2018 1:28 PM ET | Last Updated: 14 minutes ago
 
via-rail-flotte-quebec-windsor-20181212.
Via Rail has selected German manufacturer Siemens to deliver the 32 new trains it needs to maintain capacity between Quebec City and Windsor, Ont. (Adrian Wyld/Canadian Press)
 

Via Rail has selected Germany's Siemens over Bombardier Inc. for a $989-million contract to build new rolling stock as the Canadian passenger rail service renews its fleet of locomotives and cars for the rail corridor between Quebec City and Windsor, Ont.

The company confirmed the contract, which will see trains built in at its North American manufacturing hub in Sacramento, Calif.

Deliveries will begin in 2021 for entry into service the following year.

Via Rail and Siemens also announced a 15-year technical services and parts agreement valued at $355.5 million.

"As we are initiating the gradual withdrawal of the current fleet, the timely delivery of the new fleet will allow Via Rail to maintain the current levels of service in the Québec City – Windsor Corridor, while significantly improving the quality of its passenger experience," said Via Rail chief executive Yves-Desjardins-Siciliano in a statement.

Siemens's light rail systems are in use in Edmonton and Calgary. 

Fair game with fair trade rules

The Canadian rail company requires 32 new trains to maintain its current capacity of 9,100 seats. The equipment must be able to run on electricity once that is installed along the route.

Federal Transport Minister Marc Garneau has said the decision to bypass Bombardier and workers at its plant in La Pocatiere, Que., is justified, because Canada's free trade agreements with the European Union and the United States don't allow Via Rail to favour Bombardier in the awarding of contracts.

Although the trains will be made in the United States, the deal is with the company's Canadian division, Siemens Canada, which the company says employs 4,300 people at 44 Canadian locations.

Siemens says its trains will offer passengers a quieter, smoother and more accessible ride, with carbon emissions as much as 80 per cent lower than the current fleet.

Canada Headquarters

1577 North Service Road East

Oakville, ON L6H 0H6

Tel: (905) 465-8000

To locate a Siemens office in Canada, select from your province of interest from the navigation located below:

British Columbia

Richmond

Siemens Canada Limited

4011 Viking Way, Unit #150, Richmond, BC V6V 2K9

Tel: (604) 233-1700 -- Fax: (604) 233-0144
 

Alberta

Calgary

Siemens Canada Limited

24-1930 Maynard Rd. S.E., Calgary, AB T2E 6J8

Tel: (403) 252-2278 -- Fax: (403) 253-1323

 

Dresser-Rand Canada ULC

140-4th Avenue SW, Calgary, AB T2T 0A4

 

Dresser-Rand Canada ULC

302, 1300 8 ST SW, Calgary, AB T2R 1B2

Tel: (403) 299-2560

 

Edmonton

Siemens Canada Limited

6652-50th. St. N.W., Edmonton, AB T6B 2N7

Tel: (780) 450-6762 -- Fax: (780) 450-6553

 

Dresser-Rand Canada ULC

9330-45 Avenue, Edmonton, AB T6E 6S1

 

Fort McMurray

Siemens Canada Limited

Bay 4, 9707 Main St.,  Fort McMurray, AB T9H 1T5

Tel: (780) 743-0786  -- Fax: (780) 743-2264
 

Manitoba

Winnipeg

Siemens Canada Limited

Building Technologies Division

657 Berry St., Winnipeg, MB R3E 0L4
 

Ontario

Ajax

Siemens Postal, Parcel & Airport Logistics Ltd.

274 Mackenzie Avenue, Suite 350

Ajax, ON, L1S 2E9

 

 

Burlington

Siemens Canada Limited

1550 Appleby Line, Burlington, ON L7L 6X7

Tel: (905) 319-3600

Fax: (905) 315-7923, (905) 315-7926

 

Cambridge

Siemens Canada Limited

520 Thompson Drive, Cambridge, ON N1T 0A6

 

Siemens Hearing Instruments

320 Pinebush Rd., Unit 7, Cambridge ON N3C 2V3

Tel: (519) 622-5200 -- Fax: (519) 622-2460

 

 

Concord

Siemens Canada Limited

300 Applewood Crescent, Concord, ON L4K 5C7

Tel: (905) 856-5288

 

Kanata

Siemens Canada Limited

340 March Rd., Suite 301, Kanata, ON K2K 2E4

 

 

Mississauga

Siemens Canada Limited

#4-1705 Tech Ave., Mississauga, ON L4W 0A2

Tel: (905) 564-7333 -- Fax: (905) 795-4499

 

Dresser-Rand Canada ULC

3397 America Drive, Mississauga, ON L4V 1T8

Tel: (905) 677-8610

 

Oakville

Siemens Canada Limited Headquarters

1577 North Service Road East, Oakville, ON L6H 0H6 Tel: (905) 465-8000

 

Ottawa

Siemens Canada Limited

3030 Conroy Road, Suite 100, Ottawa, ON K1G 6C2

Tel: (613) 733-9781 -- Fax: (613) 737-4985

 

Peterborough

Siemens Milltronics Process Instruments Inc.

1954 Technology Dr., PO Box 4225,

Peterborough, ON K9J 7B1

Tel: (705) 745-2431 -- Fax: (705) 741-0466

 

Pickering

Trench Limited

1856 Clements Rd., ON L1W 3R8

 

Sarnia

Dresser-Rand Canada ULC

396 McGregor Road, Sarnia, ON N7T 7H5

519-346-2650

 

Scarborough

Trench Limited

71 Maybrook Dr., Scarborough ON M1V 4B6

Tel.: 416-298-8109

 

330 Finchdene Sq., Scarborough, ON M1X 4C2

 

Stoney Creek

Siemens Canada Limited

735 South Service Rd., Unit 2-3,

Stoney Creek, ON L8E 5Z2

Tel: (905) 227-1020 -- Fax: (905) 227-9227

 

 

Thunder Bay

Siemens Canada Limited

635 Mountdale Ave. S., Thunder Bay, ON P7E 6E5

Tel: (807) 475-0375 (24 hr) -- Fax: (807) 475-0966

 

 

Toronto

Siemens Financial Services

First Canadian Place

100 King Street West, Suite 5600, Toronto, ON M5X 1C9

Tel: (416) 363-5188
 

Quebec

Dorval - Lachine

Aero Derivative Gas Turbines

Main Office:

9545 Côte-de-Liesse, Dorval, QC H9P 1A5

Tel : (514) 828-3400 -- Fax: (514) 828-7200

 

Aero Derivative Gas Turbines

9501-9505 Côte-de-Liesse, Dorval, QC H9P 1A5

Tel : (514) 828-3400 -- Fax: (514) 828-7200

 

Aero Derivative Gas Turbines

2200A rue Courval -Trent Building, Lachine, QC H8T 3H1

Tel: (514) 631-3541 ext. 2409 -- Fax: (514) -828-1612

 

Aero Derivative Gas Turbines

2200 rue Courval, Lachine, QC H8T 3H1

Tel: (514) 631-3541 ext. 2413 -- Fax: (514) -828-1612

 

Drummondville

Siemens Canada Limited

1500 Janelle St., Drummondville, QC J2C 3E5

Tel: (819) 472-1155 -- Fax: (819) 472-7478

 

Jonquiere

Siemens Canada Limited

2427 boul du Royaume, Jonquiere, QC G7T IA2

 

Pointe Claire

Trench Limited

6600 Trans Canada Hwy., Pointe Claire, QC H9R 4S2

 

Quebec City

Siemens Canada Limited

155 rue Fortin, Bureau 180, QC G1M 3M2

 Tel: (418) 622-2991 -- Fax: (418) 687-8054

 

St. Laurent

Siemens Canada Limited

5005 Levy Street, QC H4R 2N9

Tel: (514) 338-3000

 

Siemens Industry Software Ltd.

5005 Levy Street, QC H4R 2N9

Tel: (514)  338-3000

 

Trois Rivieres

Siemens Canada Limited

1020 Albert Durand, Trois Rivieres, QC G8Z 2M7

Tel: (819) 372-1880 (24 hr) -- Fax: (819) 372-5426

 

Siemens Transformers Canada

3400 Bellefeuille, PO Box 1115,

Trois-Rivieres, QC G9H 5K4

Tel: (819) 374-4651

 

Siemens Transformers Canada

625 Pere-Daniel, Trois Rivieres, QC G9A 5Z7

 

Verdun

Aero Derivative Gas Turbines

1001 rue Dupuis, Verdun, QC H4G 3L4

Tel: (514) 828-3986

New Brunswick

Fredericton

Siemens Canada Limited

40 Crowther Lane, Fredericton, NB E3C 0J1

 

Moncton

Siemens Canada Limited

80 Enterprise St.,  Moncton, NB E1E 3P7

Tel: (506) 855-1096 -- Fax: (506) 858-9483

 

Nova Scotia

Dartmouth

Siemens Canada Limited

130 John Savage Avenue, Unit 8, Dartmouth, NS B3B 0C9

Tel: (902) 468-9791 -- Fax: (902) 468-7929

 

Building Technologies Division

Tel: (902) 835-8316 -- Fax: (902) 835-6682

Newfoundland

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4 minutes ago, Jaydee said:

:Scratch-Head: Bombardier loses this contract and their stock goes up ...go figure

Based on where Siemens has employees in Canada, this purchase could be of benefit to Canada as a whole.  I guess only time will tell.

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if Bombardier was actually capable of delivering on time and on budget then perhaps there would be more contracts.

 

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Quote

International trade in 2018: making sense of a 'tarrifying' year

CBC News surveyed a dozen Canadian and American researchers, lecturers, lawyers and business advocates to sum up this complicated and often frustrating year in international trade. Here are a few highlights from what they shared with us.

'Genuinely shocking' - and other ways to sum up a game-changing 12 months on the trade front

 
janyce-mcgregor.jpg
Janyce McGregor · CBC News · Posted: Dec 28, 2018 4:00 AM ET | Last Updated: 3 hours ago
 
usa-trump.jpg
U.S. President Donald Trump's ability to shape and dominate international trade news was unmatched in 2018. That wasn't good news for Canada. (Jim Young/Reuters)
 

CBC News surveyed a dozen Canadian and American researchers, lecturers, lawyers and business advocates to sum up this complicated and often frustrating year in international trade.

Here are a few highlights from what they shared with us.

What was the biggest surprise?

"The fact that Donald Trump carried through with steel and aluminum tariffs," said Mark Agnew, director of international policy for the Canadian Chamber of Commerce.  "People thought, 'Surely he's not going to do this against Canada.'"

They thought wrong.

"That really shocked me," agreed Debra Steger, a former Canadian trade official now on the University of Ottawa's law faculty, adding that Trump's escalating tariff strategy over the last year caused a "ripple effect" of consequences — including retaliatory tariffs from other countries, Canada among them.

"Everything has been driven by the initial tarrifying actions that were deliberately taken by the United States as a cudgel over everyone's heads to negotiate," she said.

(Her use of the word 'tarrifying' serves double-duty as a pun. Trump's indiscriminate use of tarrifs is terrifying for those who believe in international trade law.)

The new level of bullying was a surprise, she said. "We had never seen U.S. administrations behave that way before."

"I thought this government was too pro-business to allow (the tariffs) to stay in place," said Todd Tucker, a fellow at Washington D.C.'s Roosevelt Institute. "I underestimated the way Republicans rallied around Trump."

Inu Manak, a Canadian trade researcher who now works at the Cato Institute, said she was caught off-guard by the level of Trump's hostility toward Canada.

"At first I thought maybe he's just joking around, and it's a negotiating tactic," she said.

But the tariffs persist, even after the revised North American trade agreement was signed.

"It was genuinely shocking, and genuinely negative for the bilateral relationship," said Meredith Lilly, the Simon Reisman chair at Carleton University's Norman Paterson School of International Affairs.

What don't people get?

"I don't think the average person understood how completely integrated we are with the U.S. economy, and how foolish the idea that we would tell the Americans to bugger off would be," said Flavio Volpe, president of the Automotive Parts Manufacturer's Association.

Trump's presidential powers became a topic of fierce legal debate in 2018. Can he just terminate NAFTA if Congress won't ratify the revisions he wants?

The U.S. presidency has been given a lot of authority over trade matters over the years, Manak said, but "the fact that this Congress has not pushed back a lot on a lot of stuff he's done, doesn't mean they can't."

"There's the strong impression that he can just just unilaterally go back to pre-NAFTA tariffs on Canada and Mexico," Tucker said. "I don't know any constitutional law professor that thinks that."

The public and partisan debate over Trump's powers has generated more "heat than light," he said, by not properly acknowledging that Congressional authority over tariffs.

Brian Kingston, vice-president for international and fiscal policy with the Business Council of Canada, said he thinks the Canadian public hasn't properly grasped the role of Congress in trade deals, either.

But the Canadian government gets it, he said, "hence their very comprehensive lobbying and advocacy campaign" — especially important as long as Congressional ratification remains uncertain.

Trade lawyer Mark Warner doesn't buy the argument that Trump can't unilaterally terminate a trade treaty and throw everything into chaos.

The Canadian negotiators, Warner said, should have agreed to a deal earlier in the year, before the tariffs landed — even if that meant conceding more.

He said he thinks Ottawa misjudged the dynamics of the NAFTA negotiations from the start.

"The idea that Mexico was joined at the hip with Canada and wouldn't go out on its own ... it just didn't make a lot of sense," he said. "Our interests are not completely aligned and it's something that we have now learned."

What stories were overblown?

Lilly said she found the NAFTA negotiations were generally overhyped, with a lot of "false drama" coming from the Canadian side before the talks ended with a deal that turned out to be quite predictable.

"Much ado about very little change," agreed Monica de Bolle, senior fellow at the Peterson Institute for International Economics. "Very anticlimactic."

Her office did a lot of work trying to anticipate the disruption Trump's threatened auto tariffs might trigger. But despite the hype, those tariffs haven't materialized.

At least, not yet. (The U.S. Commerce Department report on whether automotive imports are a "national security" threat is due by February.)

"We were all concerned about 'carmageddon,'" Volpe said, "but I wonder if the Americans would have pulled that trigger, because the bullet would have gone through both of us."

The room was a bit tense as the revised North American trade agreement was signed Nov. 30. Outgoing Mexican president Enrique Pena Nieto's decision to announce a deal with the U.S. before Canada had concluded its negotiations made the final weeks difficult for Prime Minister Justin Trudeau's government. (Kevin Lamarque/Reuters)

Agnew said the debate over Canada insisting on a cultural exemption also offered more drama than substance.

"In the end it was the dog that didn't bark, with the retention of the exemption."

Another new feature in NAFTA 2.0 — article 32.10 on negotiating a trade deal with a "non-market economy" (read: China) — will have "very little impact," said Carlo Dade, director of the trade and investment centre at the Canada West Foundation.

"I don't think it's a total nothing, but it's certainly not going to take away Canadian sovereignty and Canada's ability to negotiate with China in the future," Steger said.

What warranted more discussion?

"If there is a Russian strategy to undermine multilateralism and U.S. leadership of the global economy, it's really more about economics than it is about defence," said George Washington University's Susan Aaronson.

The most competitive Canadian and American exports in the future will be agricultural commodities and services. But for both export sectors to succeed, they need trusted partners in world markets and a strong global consensus on what constitutes appropriate behaviour, Aaronson said.

Trump undermined all this, she said, which hurt Canada's integrated economy — and left the Trudeau government little choice but to diversify its trade through other deals.

"It's a good thing Canada's doing that," Aaronson said, "but in the long run, it's a bad thing." North America, she said, is more competitive when it works together. Plus, the world will miss U.S. leadership on trade — and it might not like what replaces it.

"We haven't talked enough about what happens to Latin American relations in the middle of the confusion over the China-U.S. relationship," said de Bolle, an expert on the region. "The region is very complicated right now."

The new left-leaning, nationalist Mexican administration, for example, has closer ties to China, de Bolle said. The foreign policy of Brazil's new government, a major economic player, is "crazy to me," she added. And the Chinese are also securing key oil resources in Venezuela, as that country's economy continues to implode.

Trade lawyer Cyndee Todgham Cherniak said she thinks businesses are only just beginning to wake up to the consequences of politicians escalating economic sanctions against countries like Iran and Saudi Arabia. The arrest of a Huawei executive in Vancouver, she said, may be only the beginning.

Canada's new Magnitsky Act — a law allowing Canada to go after the assets of foreign officials implicated in human rights violations — should get more attention, she added, particularly if it's applied to Saudi Arabia. "It will have a significant effect on companies carrying on business worldwide."

Long-term consequences?

The effects of what unfolded over the last year may be felt for years to come.

"The hardening American consensus around Chinese trade practices is something that is here to stay," Warner said, "even if Trump is defeated in 2020."

"You would have seen Hillary Clinton do some of the same things" on China, said Tucker.

But what the history books will emphasize is Trump's use of "national security" as an excuse for protecting domestic steel and aluminum industries, Tucker argues. Other countries already have started to follow suit, bringing unprecedented instability to the global trade system Americans once fought to establish.

Chinese President Xi Jinping and U.S. President Donald Trump had a "working dinner" after the G20 leaders summit in Buenos Aires, Argentina earlier this month. They announced a 90-day "truce" in their tariff war while officials attempt to work out a deal to de-escalate the conflict. (Kevin Lamarque/Reuters)

Dade calls Trump's ongoing tariff war "the nuclear option."

"The unthinkable has become normalized," he said.

That puts a lot of pressure on countries like Canada, which are now being forced to pick a side.

"It's going to affect every trade discussion that we have from now on," Volpe said. "You're going to have to know what the American position is before you even attempt a discussion with us."

The American insistence on a sunset clause for NAFTA (even if it was watered down in the final text) reflects an increasing climate of protectionism in the U.S. that "isn't a cyclical trend. That's here to stay," said Kingston.

"The very negative rhetoric and some of the missteps along the way have created the conditions that we may look back in 20 years and say this fundamentally changed the Canada–U.S. relationship," Lilly said.

"Down the road we're going to look back and say, 'I wish this never happened,'" Manak said. "I'm a little nervous."

 

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""Down the road we're going to look back and say, 'I wish this never happened,'" Manak said. "I'm a little nervous.""

Conservatives from Ontario along with other Canadians already feel that way, but the rest will come to as well when they look back at the elections of Wynn & trudeau.

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