Prime Minister Stephen Harper welcomed the announcement by Trans-Pacific Partnership (TPP) members of their support for Canada joining the trade negotiations. “Opening new markets and creating new business opportunities leads to jobs, growth and long-term prosperity for all Canadians,” said Prime Minister Harper. Canada will proceed to enter the talks at the earliest opportunity.
Countries party to the negotiations are: Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and Vietnam.
A new study published by the Institute for Research on Public Policy notes that global value chains are changing the face of international trade. To reap their full economic benefits, author Ari Van Assch calls on Canada to broaden the scope of its trade policy to include factors such as human capital development and innovation.
Bombardier Transportation has signed a contract to manufacture 300 subway cars for New York City Transit in a deal valued at $599 million. The cars will be built at the Canadian firm’s manufacturing plant in Plattsburgh, N.Y. The Plattsburgh plant has produced more than 3,000 passenger rail cars and locomotives in service across the United States since 1995. Bombardier’s current North American orders include 706 new subway cars for Chicago.
Canada and the United States announced the mutual recognition of, and cooperation on, air cargo security in both countries. The Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities and Mr. James D. Nealon, Deputy Chief of Mission at the United States Embassy on behalf of Transportation Security Administration (TSA) Administrator John Pistole, made the announcement.
“With our vast geography, Canada’s economy relies on the safe and efficient movement of goods by air. Mutual recognition of air cargo security programs will improve efficiency and cut costs for businesses and consumers on both sides of the border,” said Minister Lebel.
The continuing global energy boom that began in the early 2000s has brought significant economic benefits to Canada in the form of strong growth in national income, relatively low unemployment and (until the recession) healthy public finances. But a booming energy sector may contribute to a strengthening of the currency, which in turn cause lower and unbalanced growth in trade-intensive sectors (particularly manufacturing).
There has been relatively little rigorous analysis of the linkages between energy prices, the exchange rate and manufacturing output in Canada. In this study, Mohammad Shakeri, Richard Gray and Jeremy Leonard of the Institute for Research on Public Policy examine these linkages for 80 different manufacturing industries using an empirical model that accounts for changes in global demand and competitive pressures as well as energy-induced strengthening of the dollar.
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, delivered a keynote speech today focused squarely on the Harper government’s pro-trade plan for jobs, growth and long-term prosperity—the broadest economic expansion plan in Canadian history—to more than 100 members of the Canadian/American Border Trade Alliance during its three-day conference in Ottawa.
“Trade is the new stimulus,” said Minister Fast. “We need more trade, more investment and deeper partnerships to help strengthen the financial security of hard-working Canadians and Americans alike. There is no better job creator or economic growth generator than deeper trade. That’s why our government is continuing to take steps to make the Canada-U.S. partnership—the world’s greatest free trade success story—even stronger in the years ahead.”
A CanWest representative stated that many companies are looking south of the border for workers. CanWest has recruited American workers for more than 5 years in order to meet project requirements. Welders, pipe fitters, iron workers, electricians and industrial insulators are among the most recruited trade groups.
This briefing by the Conference Board of Canada explores how value-added trade measures complement traditional measures, yielding unexpected insights into Canada’s real trade dependence, its trade with major trading partners, and on the importance of services to trade.
The value-added trade approach sheds light on Canada’s linkages into global value chains, showing them to be predominantly limited to the United States. It also demonstrates the interconnectedness of industries in creating the value of tradable goods and services. These findings have implications for both government policy-makers and businesses involved in trade, as detailed in this briefing.
Prime Minister Stephen Harper and Sebastian Piñera, President of Chile, today witnessed the signing of a more modern and expanded Canada-Chile Free Trade Agreement that will help deepen commercial ties between the two countries.
“The Canada-Chile Free Trade Agreement has been the cornerstone of our commercial relationship with Chile for the past 15 years,” said Prime Minister Harper. “The enhancements announced today will generate further economic growth and job creation in Canada by increasing commercial opportunities for our businesses.”