American Chamber of Commerce in Canada (Ontario Region) News

Canadian and U.S. ambassadors step outside their comfort zones to talk politics and relationships

Fri, 21 Sep 2012 13:16:26 GMT

According to Canada's Ambassador to the U.S, Gary Doer, it won't really matter to Canada who wins the upcoming Presidential election in November, and his U.S counterpart, David Jacobsen, feels the same way. "It's going to be good no matter who the next guy is," said Jacobsen.

Doer was recently at both the Republican and Democratic conventions, playing it safe and meeting both sides of the future U.S government. One thing that Doer hopes will happen is a green light for the Keystone XL pipeline, which Obama has currently put on hold.

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China files trade case against Washington

Thu, 20 Sep 2012 15:35:42 GMT

In an interesting turn of events, China has taken the initiative and filed its own trade case against the U.S with the WTO. The charges focus on the alleged anti-dumping measures on kitchen appliances, paper and other household goods that have cost China billions of dollars.

The two countries have a history of filing trade complaints through the WTO against each other, with such disputed goods including auto parts, solar panels, steel and even chicken. The most recent U.S complaint dealt with auto mobiles and auto parts.

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After abandoning nuclear, Japan aims to buy Canadian, U.S. LNG

Wed, 19 Sep 2012 14:42:26 GMT

As Japan continues to shut down its nuclear plants after the disastrous events of the Fukushima disaster, it is forced to import more and more to meet its high energy needs. Tokyo is hoping that Canada and the U.S may be able to supply it with all the plentiful, low cost natural gas that it needs. Tokyo electric is expected to buy around 25 million tonnes of natural gas this year, and just under that number the next.

Currently, natural gases are much cheaper in North America then they are is Asia, selling for as little as $3 per million thermal units compared to 13$ in Asia.

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Canadian auto parts makers won’t join sweeping U.S. trade case against China

Tue, 18 Sep 2012 14:53:39 GMT

The U.S filed a major trade case against China at the WTO on Monday, claiming that China had provided $1 billion of illegal subsidies to its auto industry. Canadian auto maker unions, however, say they will not be pressuring Ottawa to join their southern neighbour in exerting any diplomatic pressure against the Chinese.

The trade case appears to be at least partly political, as it coincides with the battle for key electoral states such as Ohio, which boasts 850,000 jobs in the auto industry.

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Obama to file trade complaint against China over cars

Mon, 17 Sep 2012 14:46:13 GMT

U.S President Obama is expected to file a new trade complaint against China aimed at its illegal subsidies of exported car and auto parts. The U.S views this as having contribute to forcing American auto companies into moving their business overseas. President Obama has claimed that the subsidies have totalled $1 billion between 2009-2011.

The U.S has previously filed complaints against China through the WTO about its restrictive policies on the export of rare earth metals. China has also been accused of imposing anti-dumping duties on U.S cars exported to China, making them more expensive.

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Mexico Denies Salmonella in Mangos Exported to Canada, U.S.

Sun, 16 Sep 2012 16:24:30 GMT

In the most recent furore over tainted crops shipped within NAFTA signatory countries, Canada and the U.S are accusing Mexico of having disregarded safety protocols and shipped several batches of mangoes contaminated with salmonella. Both the U.S FDA and the Canadian FDI initially reported their findings in August.

Mexico has continually denied the allegations, claiming that it had already run its own tests on the plant that processed the mangoes. It has, however, promised to launch another investigation if more evidence is presented by Canadian or U.S authorities.

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Canadian auto jobs could be shipped to U.S and Mexico without labour concessions

Sat, 15 Sep 2012 15:01:17 GMT

Canada's unionised auto workers are facing a tough decision. With the rising dollar value and low sales, Detroit Auto companies are giving the Canadian unions an ultimatum: either give us the concessions that we are looking for, or we'll pull our manufacturing back to the U.S and Mexico. In response to this, the Canadian Auto Workers Union has threatened strikes and protests on Sept. 17 if a compromise is not reached.

CAW employees currently earn $34 an hour, compared to their American counterparts who make $28 an hour. Mexican auto workers make a paltry $2 an hour in comparison.

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U.S Stimulus Gives Loonie Boost

Fri, 14 Sep 2012 16:03:04 GMT

Canada has proven one again that our economy is closely intertwined with the fate of our neighbours, as the U.S Central Bank launched another series of financial rescues for the shaky American economy. In direct response to this, Canadian stock markets began to climb and the Loonie rose to $1.03, surpassing another historic milestone.

This is both good and bad news for the Bank of Canada and its chairman, Mark Carney. On one hand, high currency values increase buying power for Canadian businesses, on the other hand, it makes Canadian exports more expensive and less attractive on the international market.

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Beef Industry at Tipping Point

Thu, 13 Sep 2012 13:58:32 GMT

The Canadian Agri-Food Policy Institute has released a scathing report on the Canadian beef industry, criticizing its members for failing to take advantage of the opportunities presented to it. It states that the Canadian industry is too dependant on U.S markets and is not only failing to plan for the future but also to take advantage of other, more lucrative overseas markets.

The Canadian beef industry generates over $6 billion in sales a year, representing 15% of overall agricultural production. Canada supplies 75% of its own beef needs, a percentage which has fallen as imports from the U.S have risen.

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APEC ministers put breaks on green trade pact

Wed, 12 Sep 2012 13:57:07 GMT

The ministers and representatives of 21 member of APEC (Asia-Pacific Economic Co-Operation) have failed to agree on the classification and tariffs of major environmental goods. The U.S and Canada were among other nations that insisted that over 75 different categories of "green" goods should receive the cut, while many developing countries such as Indonesia are proposing only 20 categories recieve the benefit.

If the proposed tariffs were to be put forward, already established U.S companies like General Electric would enjoy huge advantages in the production of solar panels, turbines and water treatment plants etc.

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Sharp trade slowdown set to wallop GDP

Tue, 11 Sep 2012 15:56:09 GMT

Canada has posted it's largest trade deficit since 1971, when Statistics Canada began keeping records. Both the high dollar and the global economic recession are main contributors to $2.3 billion deficit. All major exports fell by roughly 3.4%, while in the case of the U.S, Canada's largest trading partner, it fell by over 5%. Imports to Canada also fell by 2.2% in July.

The high dollar value gives Canadian companies more leverage overseas, but in the same stroke also makes investors more cautious about investing in Canadian markets.

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Canada-China deal belies APEC's fading role

Mon, 10 Sep 2012 14:34:24 GMT

Canada and China have entered into a bi-lateral trade and investment deal at the Asia-Pacific Economic Co-operation summit, with the signing witnessed both by Prime Minster Stephen Harper and President Hu Jin-tao. The signing heralds Canada's shift from solely relying on the U.S as a major trading partner and looking for new global powers, such as China, to expand its diplomatic and economic options.

Chinese based companies have invested heavily in the Canadian energy sector, with China National Offshore Oil Co. recently offering to buy Nexen Inc for $15.1 billion.

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Doer hobnobs with U.S. bigwigs

Sun, 09 Sep 2012 15:32:44 GMT

AS the U.S presidential race begins to heat up, Canada has ensured that it will have an active presence "flying the Canadian flag" with both parties. Ambassador Gary Doer has been present at both the Republican and Democratic conventions, observing events and keeping an eye on the potential new power brokers of Canada's biggest trading partner.

Doer mentioned that he was surprised by the amount of corporate, special interest lobbying going on, citing its vast difference to the political campaigns in Canada.

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Canada - U.S. toughen laws to protect Great Lakes

Sat, 08 Sep 2012 15:39:44 GMT

Canada and the U.S are working together to toughen laws dealing with pollution and invasive species in the Great Lakes. Environment Minister Peter Kent met with Lisa Jackson of the U.S Environmental Protection Agency in Washington to sign a new bilateral agreement. Some states are erecting electric fences to prevent invasive species from spreading, while others are updating ballast checks to curb the spread of polluted water and invasive barnacles and shellfish.

In the 1980's, one of two fish pulled from the lakes suffered from some kind of tumor of deformity, today, the number is less than 1 in 50.

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Canada August Employment Rose More Than Forecast 34,300

Fri, 07 Sep 2012 14:50:37 GMT

Canada has once again exceeded its dismal economic forecasts, creating 34,300 new jobs in July against a predicted 10,000. The gains can be partially attributed to the increasing availability of part time job, which rose by 46,700 in August while the full time sector lost 12,500. Canada's unemployment rate remains at a modest 7.3%.

The U.S economy experienced a rise of 96,000 workers in August, with its unemployment rate falling to 8.1%.

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Canada's economy outperforming U.S

Thu, 06 Sep 2012 15:00:59 GMT

In a surprising turn of events, the Canadian economy has enjoyed a higher annual growth rate than the U.S. Canada's economy rose 1.8%, higher than the predicted 1.6%, while the U.S rose with a trailing 1.7%. Finance Minister Jim Flaherty claimed that he was encouraged by the data, claiming that "While the growth is modest, it reinforces that Canada is on the right economic track compared to other countries."

Canadians businesses are currently sitting on record amounts of cash. While this is good for personal financial security, the money is essentially "dead money", doing nothing or little for bringing the economy further out of the recession.

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Chrysler sets sales record in Canada, U.S

Wed, 05 Sep 2012 14:29:21 GMT

As the North American Auto industry continues to recover from the financial crisis, car manufacturer Chrysler has reported its 33rd consecutive month of increased sales. This success can at least be partially attributed to its news "Dart" model, which helped bolster Chrysler's passenger car sales by 84% in August.

Both Ford and General Motors have seen their sales decrease, while Japanese manufacturers such as Toyota or Honda have seen theirs increase. This week also sees a second round of talks between CAW and Detroit Three, important auto worker unions from both sides of the border.

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Tasty trade war over cheap lobster continues between Canadian, American fishermen

Tue, 04 Sep 2012 14:58:23 GMT

Canadian fishermen are protesting in New Brunswick, angry about the high amounts of American caught lobster that are being processed there, driving down prices. Fishermen have blocked access to refineries and staged demonstrations outside Federal Fisheries Minsiter Keith Ashfields office in Fredericton, New Brunswick.

The government has offered subsidies to the tune of $2.50 a pound of processed lobster and $3.00 for fresh, but it has so far been rejected by the fishermen delegates. The issue has started to effect U.S-Canada relations, with Maine Senator Susan Collins contacting the Canadian Ambassador to complain.

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Trade expectations, and Canada’s new man in China

Mon, 03 Sep 2012 16:00:22 GMT

Guy Saint-Jacques, a veteran diplomat and fluent Mandarin speaker, has been appointed as the new Canadian ambassador to China. The posting was initially offered to both David Emerson and Stockwell Day, both experienced politicians themselves, but both turned down the posting for personal reasons.

Harper has recently shifted the focus of Canada's trade future from Europe and the U.S to China after the recent economic recessions there. China is now Canada's second biggest trading partner, after the U.S, importing $17 billion of Canadian goods in 2010 and exporting over $48.6 billion.

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A new chapter of NAFTA unfolds

Sun, 02 Sep 2012 14:56:49 GMT

Almost twenty years ago, the heads of Canada, the U.S and Mexico met in San Antonio, Texas to put forward one of the world most ambitious free trade agreements, now known as NAFTA. This agreement had since benefited each country to the tune of billions of dollars in trade and investment.

November will mark the 20 year anniversary of NAFTA's signing, and San Antonio will be hosting a summit aimed at further strengthening the ties between the three signatory countries.

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