Give them Trudeau
Hell, let's give them both up - the CBC and PM pretty socks.
Give them Trudeau
What should Canada give up?
Trudeau!
There's been growing calls from both sides of the border for Canada to make concessions on its protected dairy sector in order to finally reach a new North American Free Trade Agreement with the United States.
Many argue that Canada has already made concessions in the sector to secure other trade agreements like the Trans-Pacific Partnership (TPP), and the dairy industry is a relatively small part of the economy.
But even if Canada does give in to U.S. President Donald Trump's repeated attacks on the country's tariffs on dairy imports and its supply management system, some economists south of the border say it will not be enough to seal a new trade deal.
"Even Canadian concessions on dairy may not be enough to make the U.S. keep the current dispute resolutions," said Carlos Capistran and Mingzi Yi, economists at Bank of America Merrill Lynch, in a note.
"Our baseline is that Canada will join the U.S.-Mexico agreement, making concessions on dairy, but that it likely will have to make some concession on dispute resolution as well."
The current NAFTA's dispute resolution mechanism, known as Chapter 19, allows companies that feel their products have been impacted by anti-dumping or countervailing duties to request arbitration.
Prime Minister Justin Trudeau said just last week that the process was needed, because Trump "doesn't always follow the rules."
But U.S. economists argue the dispute resolution is "on the balance."
They think Canada will make concessions on the mechanism to reach a trade deal with the U.S. this month.
Value of Chapter 19
However, there are questions over the value of a trade deal without the key resolution mechanism.
"Without Chapter 19, NAFTA is utterly useless as it would subject Canada and Mexico to the vagaries of the U.S. political system and its courts when determining trade policy actions," said Derek Holt, vice-president at Scotiabank Economics, in a note recently.
"Abandoning Chapter 19 is the Trump administration's way of attempting to gut NAFTA."
Holt adds that Mexico has left it entirely to Canada to stand up for a dispute resolution by agreeing to eliminate it, and only keep some safeguards. Canada has the right to oppose such an agreement, he said.
"Prime Minister Trudeau is right in that no deal — and waiting for more reason in future — is better than permanently signing onto a feature that guts NAFTA," Holt said.
And what is Ms. Freeland’s plan ?Scrapping NAFTA is just a political bone Trump is throwing his base.
Just like with Obamacare.
And just like with Obamacare the problem is that they have no replacement.
because she's the one that is tearing up nafta.And what is Ms. Freeland’s plan ?
WASHINGTON - Canadian negotiators are travelling to brief Prime Minister Justin Trudeau in person on the state of negotiations with the United States on a deal that would allow Canada to remain in a North American trade bloc.
Canada's envoy — Foreign Affairs Minister Chrystia Freeland — left a meeting with U.S. Trade Rep. Robert Lighthizer Tuesday night. She said the talks were at a point where discussing them face-to-face with the prime minister "is absolutely essential."
Trudeau and his ministers will hold a caucus retreat in Saskatoon, Saskatchewan, to plot their strategy.
The U.S. and Mexico last month reached a preliminary agreement to replace the 24-year-old North American Free Trade Agreement. But those talks excluded Canada, the third NAFTA country.
You figure that it's her fault that NAFTA is being torn up? This whole thing came about because Crazy Man convinced the hillbillies in Bugtussle, Pennsyltucky that ALL of their problems stem from "them furriners out thar", rather that their general obsolescence and that a perfectly good trading arrangement has been trashed because of it. We shouldn't be negotiating shit. The lunatic is the only one to blame.because she's the one that is tearing up nafta.
Yes I was being sarcastic.You figure that it's her fault that NAFTA is being torn up? This whole thing came about because Crazy Man convinced the hillbillies in Bugtussle, Pennsyltucky that ALL of their problems stem from "them furriners out thar", rather that their general obsolescence and that a perfectly good trading arrangement has been trashed because of it. We shouldn't be negotiating shit. The lunatic is the only one to blame.
What? Best two falls out of three?Trump beat Vince McMahon, he would make short work of Trudeau
Are you one of those o so superior Canadians ? And you ate still called George. .You figure that it's her fault that NAFTA is being torn up? This whole thing came about because Crazy Man convinced the hillbillies in Bugtussle, Pennsyltucky that ALL of their problems stem from "them furriners out thar", rather that their general obsolescence and that a perfectly good trading arrangement has been trashed because of it. We shouldn't be negotiating shit. The lunatic is the only one to blame.
Scrapping NAFTA is just a political bone Trump is throwing his base.
Just like with Obamacare.
And just like with Obamacare the problem is that they have no replacement.
The corporate tax cuts passed last year in the U.S. have been called fiscally irresponsible and even dangerous, but Canada's business leaders seem to be growing increasingly jealous of them — or maybe more accurately, spooked by them.
Numerous top Canadian executives have been arguing recently that Canada stands to lose its competitive advantage as a place to do business, thanks to lower corporate taxes south of the border.
Business leaders are putting pressure on Prime Minister Justin Trudeau to respond to the situation, and the latest tool in their arsenal is a new report from consultancy PricewaterhouseCoopers (PwC), which warns that, unless Canada takes action, the country stands to lose 650,000 jobs over the next 10 years as businesses shift activity to the U.S.
The report, prepared for the Business Council of Canada — a group comprised of top Canadian CEOs — estimated the U.S. tax cuts would reduce Canada's economic output by some $85 billion a year, in effect shrinking our economy by 4.9 per cent.
"The negative impact of U.S. tax reform on Canada's economy could be 10 times greater than the potential fallout from NAFTA termination," the Business Council said in a statement. It cited a Conference Board of Canada study which estimated that, if NAFTA were cancelled, it would cost Canada some 85,000 jobs.
Among many other measures, the U.S. tax reform package lowered the U.S.'s federal corporate tax rate to 21 per cent, from 35 per cent. Taking into account state taxes, the average statutory tax rate for businesses in the U.S. is estimated at 25.7 per cent, lower than Canada's average tax rate of 26.6 per cent.
(In both the U.S. and Canada, tax breaks and loopholes mean that corporations often pay far less in taxes than those rates would suggest.)
"This report underlines the need for the federal government to respond to U.S. tax reform with a comprehensive plan to strengthen Canada's economic competitiveness," said John Manley, the president and CEO of the Business Council of Canada and a former cabinet minister in the Liberal government of Jean Chretien.
"Failing to respond to U.S. tax reform puts Canadian jobs and prosperity at risk at a time when Canada is already wrestling with rising protectionism."
Lower taxes for corporations, higher taxes for the rest of us?
As possible solutions, the PwC report says Canada could cut its corporate tax rate gradually until the average federal/provincial rate sits at around 20 per cent. It also suggests aligning personal income tax brackets with those of the U.S., to reduce the "brain drain" effect of skilled Canadians moving to the U.S. for its lower taxes and higher salaries.
For some middle-income Canadians, that could actually mean higher taxes. For instance, the U.S. income tax rate is 22 per cent for single filers earning between $38,701 and $82,500. In Canada, the rate is 20.5 per cent for those earning between $46,605 and $93,208.
And to offset the cost of the tax cuts, the PwC report suggests gradually increasing the GST and "increas[ing] the personal income tax base.
Finance Minister Bill Morneau says Canada's response to the U.S. changes will be part of his government's fall economic update. He told reporters this week he hasn't ruled out any possibilities, including corporate tax cuts.
But a move to cut tax rates to match the U.S.'s would likely face opposition from critics arguing Canada is engaging in a "race to the bottom" on corporate taxes.
Canada has already shifted a considerable amount of its tax burden away from corporations, through a series of corporate tax cuts between 2000 and 2013. That has resulted in a long-term trend that has seen more and more of the country's tax burden falling on individual tax filers.
While some experts have credited Trump's tax cuts with the surprisingly strong economic performance the U.S. has put in this year, others argue they're fiscally irresponsible in the long run.
Forecasts say the bill will mean an additional $1.7 trillion in debt for the U.S. government between 2018 and 2027, ballooning the public debt to 97 per cent of the U.S.'s economic output by 2027, from around 77 per cent today.
Not much negative impact on Canada yet
The impact of the tax cuts on Canada so far is unclear at this early stage, but some data suggests the loss of competitiveness that business leaders fear hasn't materialized, at least so far.
If businesses are turning their backs on Canada, one place we would expect to see this reflected is in the data on foreign direct investment (FDI) into Canada.
As Bloomberg News noted recently, FDI into Canada has been much stronger so far this year than last, with $26.9 billion so far, compared to $10.96 billion during the same time last year -- though 2017 was a particularly weak year. All the same, FDI is above its long-run average this year.
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But that could change over time, as investors adjust to the new reality.
In a recent speech, CIBC CEO Victor Dodig said he is increasingly hearing from the bank's clients that investment opportunities are better in the U.S.
"That, to me, should be a siren call that that money is here. It will leave," he said, as quoted in the Globe and Mail.
Well, I'm a Canadian. You're ... something else ... Quisling, I believe is the term.Are you one of those o so superior Canadians ? And you ate still called George. .
Any response to my challenge yet ? Do you have any balls ?Well, I'm a Canadian. You're ... something else ... Quisling, I believe is the term.
What challenge is that, pigs? I must have missed something or perhaps you missed my response.Any response to my challenge yet ? Do you have any balls ?
Check your post 530 in the collusion thread , wimp .What challenge is that, pigs? I must have missed something or perhaps you missed my response.
Mexico is ready to move ahead with a “bilateral” free trade agreement with the U.S. and without Canada if necessary, the nation’s chief NAFTA negotiator said on Thursday in a tweet.
Although Mexico remains hopeful that the negotiations between Washington and Ottawa will prove successful in keeping the deal a trilateral agreement, Kenneth Smith Ramos, the director of the trade and NAFTA Office at the Embassy of Mexico, said a two-way agreement would still be positive for his country.
“We hope the U.S. and Canada will conclude their bilateral negotiation shortly. If that is not possible we are ready to advance bilaterally with the U.S.,” he wrote on Twitter. “The agreement in principle that we closed with the U.S. is positive for Mexico because it preserves free trade and modernizes our trade agreement in key areas for today's economy.”
Ramos’s comments echo those of Mexican Economy Minister Ildefonso Guajardo, who said on Wednesday that the Latin American nation needs a deal with the U.S., regardless of Canada’s decision.
"If in the end we see a scenario that we don’t expect nor hope for but can’t be ruled out -- that there’s no agreement between Canada and the U.S. – then Mexico needs to take the next step, advancing on a bilateral deal, if it’s necessary,” the minister said, BNN Bloomberg reported. However, Guajardo also said that Mexico hopes “the trilateral nature is maintained.”
Mexico and the U.S. reached a new trade agreement in late August. At the time, Mexican officials optimistically suggested that further negotiations with Canada could take another week to hammer out the details. But thus far, Washington and Ottawa have failed to come to terms, with Canadian Prime Minister Justin Trudeau repeatedly insisting that “no deal is better than a bad deal for Canada.”
During a Wednesday fundraiser, President Donald Trump told attendees that he wants to rename NAFTA to USMC, with “C” standing for Canada, according to The Wall Street Journal. However, the president also said the name could be changed to USM, if Canada doesn’t accept the terms of the treaty.
Previously, Trump made off-the-record comments in an interview with Bloomberg insulting and mocking Canada over the trade negotiations. Although Bloomberg did not report the comments, a source shared the information with The Toronto Star and the president later confirmed he had made the remarks. Among other statements, Trump said that every time a disagreement arises in the negotiations, he shows the Canadians “a picture of a Chevrolet Impala,” which is produced in an Ontario factory.
Despite the slower than hoped for progress, Canada’s Foreign Affairs Minister Chrystia Freeland has maintained an optimistic tone. On Wednesday, she told reporters that talks had “absolutely not” stalled, dismissing widespread speculation.
“In negotiations, you do work and resolve the issues that you can at the ministerial level and then you reach points where what is needed is continued technical work,” she said, the CBC reported. “Getting there is going to take goodwill, good faith and flexibility on all sides.”