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Monday, September 10, 2018

NAFTA negotiators try to "milk" a Canada-U.S. deal


   Canada column for Sunday, Sept. 9/18

   THE CANADIAN REPORT
   c By Jim Fox

   An agreement to settle the dispute over revamping the North American Free Trade Agreement remains elusive as Canadian and U.S. negotiators try to “milk” a new deal.
   Dairy rules remain the big issue as Canada continues to resist allowing more access by the U.S. to its market.
   “The word that continues to block the deal is m-i-l-k,” said Larry Kudlow, director of President Donald Trump’s National Economic Council.
   His comments came just before talks between U.S. trade czar Robert Lighthizer and Canada’s Foreign Affairs Minister Chrystia Freeland ended for the week in Washington.
   “Let go milk, dairy, drop the barriers, give our farmers a break and we can fix some other things,” he added.
   For the Canadian dairy industry, protecting its business is particularly politically charged in Ontario and Quebec.
   Prime Minister Justin Trudeau said Canada could be willing to be flexible on dairy but Kudlow said it wasn’t enough.
   Other differences include culture and the agreement’s dispute resolution mechanism.


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   Economists were surprised by a big loss of 51,600 jobs across Canada last month, driving the jobless rate to 6 percent, up from 5.8 in July.
   It had been predicted the economy would create an additional 5,000 jobs in August.
   Statistics Canada reported last month’s job losses amounted to 92,000 part-time positions while the number of full-time jobs rose by 40,400.
   Ontario had the largest decrease of all the provinces, dropping 80,100 jobs, almost all part time.

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   News in brief:
   - Alberta Premier Rachel Notley said the Canadian government is working quickly to resume construction on the stalled Trans Mountain pipeline expansion. The Federal Court of Appeal ordered the work to stop to consult with Indigenous groups about environment impacts and for the National Energy Board to review the potential impact of increased tanker traffic on marine life. The expansion would triple the capacity of the existing line taking oil products to the port in Burnaby from Edmonton.
   - Protecting Quebec’s French culture has entered the province’s election campaign. Francois Legault, leader of the Coalition Avenir Quebec party, said if elected his government would require new immigrants to learn French within three years or leave the province. The government would provide free language courses to the some 50,000 immigrants who arrive each year. They would then have to pass a basic French-language test.

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   Facts and figures:
   Canada’s dollar is lower at 76.01 cents U.S. from a week ago while the U.S. dollar returns $1.315 Canadian (before bank exchange fees).
   The Bank of Canada’s key interest rate remains at 1.5 percent while the prime-lending rate is 3.7 percent.
   Stock markets are lower, with the Toronto exchange index at 16,090 points while the TSX Venture index is 712 points.
   The average price for gas in Canada is higher at $1.318 a liter or $5 (Canadian) for a U.S. gallon.
   Lotto 6/49: (Sept. 5) 4, 6, 15, 32, 36 and 47; bonus 48. (Sept. 1) 8, 12, 15, 34, 37 and 44; bonus 45. Lotto Max: (Aug. 31) 2, 4, 18, 19, 20, 39 and 44; bonus 11.

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   Regional briefs:
   - The Canadian military has announced stringent restrictions on the use of recreational marijuana that becomes legal across Canada on Oct. 17. Gen. Jonathan Vance says military personnel must “make responsible choices” and abstain from using marijuana at least eight hours before going on duty. There will be a complete ban on marijuana use by personnel deployed on overseas missions or training as well as on military aircraft and ships.
   - An archeology team from Parks Canada is exploring the wreckage of the Franklin expedition ships that went down north of the Arctic Circle. They are trying to find out what happened to the HMS Erebus and HMS Terror during a scientific and exploratory mission in 1845. It is believed the ships got trapped in ice and were abandoned by the crew members.

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Jim Fox can be reached at canadareport@hotmail.com

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