Author: Anna Galvez

Categories
Economy

New federal measures to protect steel and aluminum industries

The Trudeau government is taking further steps to ensure that the Canadian and US steel and aluminum industries are not “unfairly” disrupted by foreign imports. This decision follows the Trump administration’s imposition of customs duties on imports of these two metals, for which Canada is exempt until May 1st.

According to a statement released Tuesday by the Prime Minister’s Office, the Canada Border Services Agency (CBSA) will be able to conduct “new anti-circumvention investigations” that will allow it to “identify and stop companies trying to avoid customs duties “in force in the country.

Foreign companies, it is argued, could, for example, seek to circumvent these rules by slightly modifying their products or having them assembled in Canada or in a third country.

In order to properly determine the applicable tariffs on steel and aluminum imports, the CBSA will also “find it easier to determine whether prices in the exporter’s domestic market, which are used for comparison purposes. , are reliable or distorted.

“We already have very strong measures in place, but we want to make sure of two things: that foreign steel is not unfairly dumped into the Canadian market, and that this steel does not find its way into the North American market. “summarized Public Safety Minister Ralph Goodale, who is responsible for the CBSA.

These measures are intended to ensure that there is no transshipment or diversion of low-priced steel from anywhere in the world to the Canadian market. We want to protect our industries from steel and aluminum and these measures are designed to ensure that there is no circumvention of Canadian laws and regulations.

Ralph Goodale, Minister of Public Safety

New committees with representatives of the federal government, provincial and territorial governments, and other interested parties will also be created to “ensure that imports do not harm jobs in Canada and North America,” says the firm. Prime Minister.

Unions will be granted the status to participate in trade remedy proceedings “to determine whether foreign exports are hurting producers” in the country, including hearings before the Canadian International Trade Tribunal.

“We have always assured the Americans that, compared to the diversion [misappropriation, Editor’s note] and these issues, we have always had good measures,” commented Prime Minister Justin Trudeau briefly in the corridors of Parliament. . “But it’s to show that we’re doing even more. This is a good thing. ”

According to the Prime Minister’s Office, no less than 71 trade remedy measures currently target imports of steel and aluminum, but it is important to improve them “even more” in order to “ensure uniformity of the rules of the game. “.

The regulatory changes will be further clarified in the Official Gazette and will be the subject of a 15-day consultation.

Intervention demanded by steel producers

In a letter to Prime Minister Trudeau dated March 13, Canadian Steel Producers Association President Joseph Galimberti urged the federal government to take action to counter the “significant” risk of steel “diversion” to Canada.

He pointed out that 90 countries had exported steel to the United States in 2017, and that the risk that tariffs imposed by the Trump administration would lead to such diversions could be “aggravated” if Mexico, the European Union or other countries were also adopting measures to protect their internal market.

“If only 15% of current US steel imports are diverted to Canada, prices will collapse and import market shares could double, which would provide nearly 50% of domestic demand, and would devastate Canadian steel producers, “wrote Mr. Galimberti.

Prime Minister Justin Trudeau himself launched attacks on China and its business practices during a Canadian tour of the sector’s businesses in mid-February. China is the largest steel producer in the world.

In Hamilton, on March 13, he said, for example, that China produces lower quality steel and sells it at a more attractive price to influence world prices.

“Their desire is to put in trouble facilities like this, that pay well to their employees and produce very good quality materials, but can not compete with a country that sells at a loss to control the market,” he said. launched.

Canada is, until further notice, exempt from customs duties of 25% on steel imports and 10% on aluminum imports imposed by the Trump administration until May 1st.

Categories
Economy

Canadian Retailers Could Benefit From US Imposed Tariffs On China

President Donald Trump’s intention to tax $60USD billion of Chinese imports could help Canadian retailers by cutting back on purchases made by Canadians in the United States. But a real trade war between the two superpowers would ultimately hurt the Canadian economy, experts say.

According to the Retail Council of Canada, US taxes would increase the price of Chinese goods sold in the United States, including electronics, which could lead to more Canadians shopping at home.

The United States purchases the equivalent of US $500 billion worth of goods from China each year, from toys to shoes to cell phones. The prices of these products could leap due to the imposition of taxes.

A list of products in two weeks

It is not clear for the moment what sectors will be affected; a list of products should be provided in two weeks. US officials have announced they will try to minimize the impact on US consumers by targeting corporate-owned goods, including computers, computer products, industrial machinery and aircraft parts.

But even if they do not impose taxes on consumer-bought Chinese products, companies could still pass the bill to customers, according to Council vice-president Karl Littler.

Falling demand for Chinese products may also help Canadian retailers get better prices from companies in China that will try to offset their losses.

In addition, to avoid tariffs, multinational retailers, including Costco, Best Buy and Walmart, could send their products directly to Canada rather than shipping them to the United States.

The president of the Canadian Association of Importers and Exporters, Joy Nott, also believes that Americans may be tempted to buy their products in Canada.

“It will not be in waves, but I think it will level cross-border activity,” she said in an interview.

Canadian products rather than Chinese

Canadian products that are similar to Chinese goods may also be preferred by US buyers.

A day after Donald Trump’s announcement, China announced that it could instead impose taxes on pork, apples and steel pipes.

Further retaliation by China could open the door for Canadian exporters to replace expensive US goods, particularly in agriculture.

This could help Canadian pork exporters. We could end up replacing the United States as China’s supplier if China imposes restrictions on US products.

CIBC Chief Economist Avery Shenfeld

Canada could suffer as well

However, a warming of tensions between the two countries could slow down the global economy, according to Shenfeld.

Given that Canada is a country that depends on commodity exports, a weaker Chinese economy would end up hurting its economy, as there would be fewer sales and lower raw material prices, the economist said. Chief Executive Officer of the Conference Board of Canada, Craig Alexander.

“Taxes as they are advertised are a bad thing, but what we are most concerned about is how it could get worse.”

If that happens, there is a risk that the entire global trading system will collapse, said Yves Tiberghien of the Asia Pacific Foundation of Canada.

“If the trading system really collapses, then we will suffer massively,” he said in an interview from Washington.

Mr. Tiberghien predicts that the Chinese will not let go. As a result, the US government will be distracted by China, which could benefit current negotiations on the North American Free Trade Agreement (NAFTA).

The United States has recently softened the tone for Canada, exempting it and Mexico from tariffs on steel and aluminum, and compromising on auto in the NAFTA talks.

“So the pitch is completely different from last week.”

Categories
Real Estate

A 14-storey housing co-op will be built in the shadow of the Bell Center

The Montagne verte cooperative will be built at the intersection of the streets of Montagne and Saint-Antoine in Montreal

The Montagne verte cooperative has 136 units in a single building. A project that has been going for 11 years, but whose construction has just been authorized by the City of Montreal.

The 14-storey building will be built right in the city center, just behind the Bell Center, at the intersection of the streets of La Montagne and Saint-Jacques.

There are certainly larger cooperatives. For example, that of Cloverdale Village, in the Pierrefonds-Roxboro borough, has 866 housing units in about fifty buildings built over a 20-year period.

A project in a single building, like the Montagne verte cooperative, is unheard of in Montreal.

The project changed location twice before reaching a site in the City of Montreal that adjoins a ramp off the Ville-Marie tunnel.

As a result, a lot of approvals from the Department of Transport and the City have been required because there is a large water pipeline nearby.

This explains in part the delays, explains the general director of the CDH Group, Alain Tassé, while emphasizing that this type of project always takes several years to materialize.

There are still some steps to be taken at the municipal planning committee, but the first shovel should be next winter. “If all goes well, February or March 2019. In this corner. The main thing is over, “says Tassé.

The cooperative’s construction budget is $19 million. Half comes from grants, mainly from the AccèsLogis program. The other half will come from a mortgage which will then be paid by the rents of the members of the coop.

Financing social housing is always a challenge in Quebec. The standards require that buildings have bedrooms that are often larger than what is built in the private sector. The buildings must also comply with NovoClimat standards, which the private sector is not obliged to do.

The scarcity of land in Montreal is also an important issue. For example, the Montagne verte cooperative will occupy all the land on which it will be built. There will be no court.

To compensate for this lack of space, the project architect, Douglas Alford, wanted to build a terrace on the roof of the building, but was told that it was not acceptable.

Categories
Economy Tech

Toys R Us Canada remains open despite the closure of US stores

Toys R Us continues to operate in Canada, although the toy chain is poised to close The Canadian giant toy company repeated Wednesday the same message it had communicated last week, when media reported that Toys R Us was preparing to liquidate its US stores.

According to Toys R Us Canada Vice President of Marketing, Clint Gaudry, the company’s 82 Canadian stores remain open and the company continues to honor all of its consumer policies and programs such as its Baby Gift Registry. gift cards and loyalty programs.

The Canadian division of Toys R Us shielded itself from its creditors last September, a day after the US division did the same.

Problems in the United States

In January, Toys R Us announced it would close 180 stores in the United States in the coming months.

On the night of Wednesday to Thursday, it was learned that the retailer was closing its 735 stores in the United States. Toys R Us was unable to find a buyer and was unable to enter into a multi-billion dollar US debt restructuring agreement.

CEO David Brandon himself announced the news to employees during a conference call at the group’s headquarters in Wayne, New Jersey. The company did not want to give interviews to the media.all its stores in the United States.

Sell ​​Canadian stores

It is not impossible that the chain keeps its most efficient stores opened after its liquidation.

One of the hypotheses explored by Toys R Us is to sell Canadian stores, which have a positive balance sheet, and 200 of its most profitable American stores. The company would then sell the rest of the stores, says CNBC.

US employees, who account for more than half of the group’s 65,000 employees, will keep their jobs for another 60 days, David Brandon told them, according to CNBC.

Isaac Larian, the president and chief operating officer of MGA Entertainment, a California-based toy company, plans to bid for the retailer’s Canadian operations.

In a brief statement sent by e-mail to the Canadian Press, he explains that Toys R Us Canada’s activities are working well, that they are well run and that at a reasonable price, it’s a good deal.

The boss of MGA Entertainment, who already owns brands such as LOL Surprise !, Little Tikes and Num Names, did not say whether he wanted to buy the whole chain in Canada or only a part.

Toys R Us declared bankruptcy in September 2017, under the protection of Chapter 11 , a US provision that allows a company to continue to operate normally safe from its creditors.

Elsewhere in the world

In the United Kingdom, the company was placed at the end of February under administration, which could lead to the liquidation of its 105 stores and the loss of 3200 jobs.

The toy retailer is likely to liquidate its stores in France, Spain, Poland and Australia, according to David Brandon reported by the Wall Street Journal .

As for the facilities in Asia and Central Europe, the group would consider selling them, according to the newspaper.

Toys R Us is only the latest victim of a series of physical store chains that are struggling at a time when e-commerce is gaining popularity and consumers are changing their habits.

Sears Canada, which had protected itself from its creditors last June, ended up liquidating all of its stores .

Categories
Personal Finance

Consumer debt in Canada reaches a new high

Canadian consumer debt levels continued to reach new heights in the fourth quarter, although 46% of people reduced their personal debts, the Equifax Canada credit monitoring agency said on Monday.

In its most recent report on consumer credit trends, the agency says the average debt of Canadians has risen 3.3% to $22,837 per person.

The part of the population that increased its debt level, 37%, did so with larger sums, she said.

Among the largest cities in Canada, per capita debt was $17,444 in Montreal, by far the lowest in the country. The average debt in Quebec was the second lowest in Canada at $19,123, slightly higher than Manitoba’s.

Taking into account mortgages, Canadian consumer debt totaled $1821 billion in the fourth quarter of 2017, up 6% from $1718 billion in the same period of 2016.

Compared with the fourth quarter of 2016, installment loans, auto loans and mortgages posted increases of 10.3%, 6.5% and 6.2% respectively.

Canada’s delinquency rate of 90 days and over dropped 6.4% from the previous year, while consumer bankruptcies also declined 1.7%.

Despite the high debt, mortgage payments are generally made on time, which could be due to low unemployment and interest rates on mortgages and auto loans that are still at historic lows and low levels. reasonable.

Regina Malina, Senior Director of Decision-Making at Equifax Canada

These new figures are unveiled as an international financial group held by the world’s central banks revealed that certain ratios calculated from data on Canada betrayed early signs of potential risk to its financial system in the coming years.

According to the most recent report of the Bank for International Settlements, the ratio of credit to gross domestic product and debt service suggests some vulnerabilities.

However, the group stresses that these indicators should not be considered as formal stress tests, but as a first step in a broader analysis.

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