1 octobre 2018 | Local, Naval

Canada and the U.S. reach 11th-hour trade deal

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After almost 14 months of tough bargaining, Canada and the United States have settled their trade differences and reached an agreement on a new North American free trade agreement. This one won't be called NAFTA, however.

The trilateral deal will now be known as the United States-Mexico-Canada Agreement (USMCA). The new name seems to be a nod to U.S. President Donald Trump, who has said he didn't like the name NAFTA.

The federal cabinet met at 10 p.m. Sunday for about an hour to discuss the agreement and, after it ended, the prime minister said it was “a good day for Canada” as he left the building. He said he'd have more to say on Monday.

Officials from the Prime Minister's Office said there will be another cabinet meeting in the morning and likely a news conference, too.

A joint statement was released by Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer.

“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA),” it stated.

“USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”

The two lead negotiators added: “We look forward to further deepening our close economic ties when this new agreement enters into force.”

They thanked their Mexican counterpart, Economy Secretary Ildefonso Guajardo, for his work on the deal.

On Twitter, Conservative Leader Andrew Scheer said “a good NAFTA deal is critical to Canada's economy.”

“Millions of Canadian jobs rely on having free trade with the U.S. and Mexico. We will take a close look at the agreement's provisions as soon as they're available to evaluate the deal Justin Trudeau and the Liberals have signed.”

Perrin Beatty, the president and CEO of the Canadian Chamber of Commerce, said that with a deal like this, it's important to see all the elements, but details are still scarce.

“However, if the broad lines are as reported, @cafreeland and the Canadian negotiating team have managed to preserve the most important elements of #NAFTA under very challenging circumstances,” he said on Twitter.

Canada and the United States have been working hard to resolve their NAFTA differences since the end of August, after American and Mexican officials reached a bilateral agreement of their own.

However, the prime minister has said throughout the process that his government would not sign a modernized NAFTA just to get a deal. Issues at the table have included the automotive industry, dairy, dispute resolution, cultural industries and intellectual property.

Canada's dairy industry, in particular, has been in American crosshairs for months, with the United States demanding more access to this country's market, as well as changes to parts of Canada's domestic milk-pricing system.

The U.S. has wanted access to about 3.5 per cent of Canada's dairy market, which is similar to what Canada granted under the Comprehensive and Progressive Trans Pacific Partnership. There were strong indications this was also part of the deal reached Sunday night. Media reports say farmers will be compensated. The Americans have also asked for changes to several dairy classes. iPolitics has learned that the contentious Class 7 has been eliminated in this deal. Class 7 is a domestic pricing class that governs milk ingredients such as skim milk powder and milk proteins.

The difficult politics of the trade deal were immediately on view with Parti Québécois Leader Jean-François Lisée saying on social media that Quebec dairy farms had been sacrificed by Trudeau. Quebec voters will elect a new government on Monday, with all parties saying the new trade deal could not touch Canada's dairy market.

The Toronto Star is reporting that Canada has been able to preserve the dispute-resolution mechanism known as Chapter 19. The federal government had wanted to hold onto that to avoid having disputes settled in U.S. courts.

Other reports say Canada has been able to maintain its exemption for culture.

Ministers had arrived for the cabinet meeting Sunday amid strong indications the end was in sight for a renewed NAFTA.

Freeland and Ambassador to the United States David MacNaughton had spent the day in Ottawa, taking part in an aggressive, long-distance, last-minute push to get Canada into a free trade deal.

Trudeau arrived at his downtown office, located directly across from Parliament Hill, around 7:30 p.m. He did not comment as he headed into the building, but media reports from the U.S. capital were indicating a deal was near.

While most ministers also stayed mum, Agriculture Minister Lawrence MacAulay said he's “always concerned about the agriculture industry.” He was joined in the meeting room by his deputy minister Chris Forbes.

With files from the Canadian Press

https://ipolitics.ca/2018/09/30/canada-and-the-us-reach-11th-hour-trade-deal/

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  • Erratic flight path: Canada’s fighter procurement plan

    4 octobre 2019 | Local, Aérospatial

    Erratic flight path: Canada’s fighter procurement plan

    by Alan Stephenson The path towards procuring a replacement fighter for the CF-188 Hornet has been one with many twists and turns due to political gamesmanship and strategic business marketing, causing much public misunderstanding. This short article aims to put a few things into perspective as the competitors complete their analysis and response to the government's request for proposal (RFP) issued July 23, 2019, for the Future Fighter Capability Project (FFCP). Eligible suppliers Of the original five qualifying suppliers, only the Boeing F/A-18 Super Hornet Block III, Lockheed Martin F-35A Lightning II, and Saab Gripen E fighters remain in the competition. The Dassault Rafale and Airbus Eurofighter Typhoon were both pulled from consideration, with company officials citing “that NORAD [North American Aerospace Defense Command] security requirements continue to place too significant of a cost on platforms whose manufacture and repair chains sit outside the United States-Canada 2-EYES community.” Given that the Canadian government identified the first two principal roles of the Canadian Armed Forces as ensuring Canadian sovereignty and the defence of North America, the requirement to be fully functional and integral within NORAD is mandatory. The reality today is that fighters are not simply weapons platforms, but flying computers that also function as airborne sensors that are designed to be integrated into command and control computer networks. Thus, the challenge for non-American manufacturers is to overcome both sensitive commercial and U.S. national security concerns when they are required to integrate and support U.S. information-sharing equipment in their platforms. A second reason given for Airbus's departure was the eleventh-hour modification to the RFP that relaxed the expected industrial technological benefits (ITB) obligations. To attract more than three suppliers and ensure a competition, the government originally stuck to its standing ITB policy of “requiring the winning supplier to make investments in Canada equal to the value of the contract.” However, this effectively eliminated the F-35 due to the Joint Strike Fighter (JSF) Program agreement – signed by Canada – that forbade such a demand. To provide latitude to all bidders, the final RFP was modified into a two-phased proposal to allow non-American companies to address 2/5-EYES challenges up front, while also applying rated criteria for economic offset potential of stated ITB requirements, to keep the F-35 within the bidding process. Additionally, five per cent was shifted from cost to economic criteria to compensate for changes in the original draft ITB policy. The proposals will now be assessed on 60 per cent technical merit, 20 per cent cost and 20 per cent economic benefits. Current bidders In recent years, the Saab Group expanded globally by offering industrial partnerships that combined local production and capital-heavy ventures with national customer partners. Saab's approach with the Gripen E bid in Canada follows this successful formula of maximizing national economic benefits with an economical product; however, Saab also faces the challenges that Airbus determined to be too difficult to overcome. Additionally, the Gripen E is still in development; its first production flight occurred on Aug. 26, 2019, meaning issues of proven performance and systems maturation need to be factored in during bid evaluation. According to the firm, this first fighter will be used as a test aircraft in a joint Swedish/Brazilian test program, the only two customers for the Gripen E to date. Given that the Eurofighter bid was sponsored by the U.K. government, a member of the 5-EYES community that decided it could not meet the information-sharing requirements, Saab will need to be innovative and cost-conscious in its proposal if it is to surmount this mission-critical criteria. As for the Super Hornet, Boeing promised to invest $18 billion in ITBs under the failed 2017 purchase agreement for 18 fighters, and it is anticipated that the company will follow its established approach to investing in Canada as per previous ITB commitments. Concern over the so-called Boeing Clause, “to allow only companies that it deems ‘trusted partners' to bid on major capital programs,” has faded away and Boeing is confident that it can mount a competitive bid, particularly now that the U.S. Navy's (USN) commitment to future purchases will keep the production line open until 2033. By incorporating leading-edge technology into the Block III to meet adversarial advances, Boeing has ensured the Super Hornet will meet Canadian requirements. Although still in development as well, a major question for government decision-makers has to do with sustainability. At present, only the USN and Kuwait will operate the Super Hornet Block III, while Australia has plans to upgrade their Block II version. As Australia expects to retire its fleet in the early 2040s and the USN in 2045, the challenge for Boeing will be in meeting the stated lifecycle expectancy of Canada's future fighter in a cost-effective manner. Since 2015, the much-maligned F-35 has proven itself in combat and counts Australia, Belgium, Denmark, Israel, Italy, Japan, the Netherlands, Norway, Poland, South Korea, the United Kingdom, and the three U.S. services as customers. As the only fifth generation fighter, it contains technological advances that are designed into the aircraft and cannot be replicated in fourth generation platforms. The overall architectural concept regards the F-35 as more than just a weapons platform, but also as a forward sensor that is fully integrated into the developing multi-domain command and control system. Initial airframe costs have been significantly reduced and early sustainment issues are being resolved; however, the F-35 remains the most costly platform to own and operate at the moment. With a projected lifetime production run of over 4,000 fighters, lifecycle support is guaranteed, and Canadian industry stands to gain substantially from Canada's early investment in the co-operative JSF Program. However, according to reports, manufacturers will lose points in the ITB element formula scoring system if they do not make a 100 per cent commitment to the contract value, which Lockheed-Martin is prohibited from doing by JSF contractual agreement. Arctic Interestingly, all remaining competitors can lay claim to being Arctic platforms. Canada has already proven the F/A-18's credentials in the high North, the U.S. will base two combat F-35 squadrons in Alaska, and Sweden has developed the Gripen with Arctic operations in mind. The issue of one versus two engines has never been a significant issue for Arctic operations except in Canada. Originally, two engines was one of the many discriminators used in choosing the F/A-18 over the F-16 in 1979. Recently, the Standing Committee on National Defence's shaping of the narrative in 2016 to promote the sole-source purchase of the Super Hornet reintroduced the idea that operations in the Arctic demanded two engines. As with commercial aviation where transatlantic flight once required four-engine passenger planes, the advancements in engine technology have led to standard two-engine models today. Engine reliability is not a concern with any of the competing fighters. However, operations in Canada's Arctic are unique and risky in an inhospitable region that is 11 times the size of Sweden. Other discriminators, such as continuous communications and tracking, become equally or more important to survival. Stealth One of the unfortunate aspects of American F-35 global marketing efforts with respect to the FFCP is the issue of stealth technology. Although the idea of penetrating, first strike operations sells well in the U.S., stealth is a much maligned and misappropriated concept in Canada. Stealth technology is all about maximizing self-protection and increasing survivability by disrupting the ‘kill-chain' through low observability. This concept is no different from the tactical advantages that I used while flying the CF-104 in Germany during the Cold War. The Starfighter had a one-square-metre cross-section nose-on, making the adversary's initial radar detection difficult and target acquisition and identification questionable, delaying force commitment to the target. This complicated the decision and order to attack the target, and finally upon weapons release, the low radar cross-section shrunk the available radar weapons envelope needed for destruction of the fighter. The CF-104's speed significantly exacerbated the adversary's kill-chain difficulties. The CF-188 Hornet I flew later required a Defensive Electronic Countermeasures suite that masked the larger aircraft radar cross-section, and electronically intervened and complicated a more advanced kill-chain. The advent of artificial intelligence (AI) will significantly decrease ambiguity and decision-making time in the near future. Whether built into the design or strapped on later, some form of self-protection is required to protect the pilot and the fighter asset that will either be defending Canadian territory or operate in foreign contested airspace when the government commits its fighter force. The question is one of application and the cost effectiveness of self-protection measures used by each platform and how they are expressed in the bid proposal. Costs Costing is a nebulous exercise outside evaluation of the final bids due to the many variables. Although airframe costs are most often thrown around, the government must consider the airframe, operating, infrastructure, sustainment and other related costs as a package, balanced against the capability being purchased. A good example of the intricacies involves the way the fighter fleet is bought. The Super Hornet must be purchased through the U.S. Foreign Military Sales (FMS) process, where the U.S. government acts as the broker. Generally, a 30 per cent mark-up is charged for research and development (R&D) and administrative fees. In the case of the F-35, as a JSF partner, these costs are reduced for Canada through common funding. The costs for R&D have already been shared by the membership pool, and partners pay the same price for the weapons system as the U.S. services. Future upgrades become additional FMS expenses for the Super Hornet, whereas upgrade developments are shared by JSF members. Each of the competitors is being asked to provide 88 fighter aircraft within the $19 billion funding envelope and the old adage of “you get what you pay for” is very applicable. Each of these platforms brings a different level of current and future combat capability that needs to be judiciously weighed. If the fighter is to reach the government's goal of flying until 2060, each needs to be flexible and adaptative to evolving technology. More significantly, 70 per cent of lifecycle costs are in sustainment and therefore the fighter chosen must be cost-effectively supported for the next 40 years. The next leg In the lead-up to the RFP, it has been evident that national security factors have been competing with economic benefit interests. With the election this fall, the next government (whatever form this takes) will no doubt want to review the project and put its own stamp of approval on the process that it has inherited. Hopefully this will not further delay the decision on the replacement of the CF-188 fleet and the Royal Canadian Air Force will finally be able to move ahead with the best fighter aircraft Canadians can provide to the women and men who are putting their lives in harm's way. https://www.skiesmag.com/features/erratic-flight-path-canadas-fighter-procurement-plan

  • Ottawa on track to invest less on new military kit than promised for second year

    12 novembre 2018 | Local, Aérospatial, Naval, Terrestre

    Ottawa on track to invest less on new military kit than promised for second year

    OTTAWA — For the second year in a row, the federal government is expected to spend billions of dollars less on new military equipment than promised because of a combination of good and bad news: cost savings on some projects and delays in others. The Trudeau government in 2016 released a new defence policy that included dramatic increases in spending on new aircraft, ships, armoured vehicles and other military equipment over the next 20 years. The investments are vital to replacing the Canadian Forces' fighter jets, ships and various other types of aging equipment with state-of-the-art kit. Yet while new budget documents filed in the House of Commons show the Department of National Defence has so far been given authority to spend $4 billion this fiscal year, the policy had predicted total spending of $6.5 billion. The department does have until March 31 — when the federal government's fiscal year ends — to make up the $2.5-billion difference, but its top civilian official, deputy minister Jody Thomas, admitted Thursday that a large shortfall is likely. Part of the reason is that the department expects to save about $700 million on various projects that ended up costing less than planned, Thomas told The Canadian Press following a committee appearance on Parliament Hill. “We've delivered things more efficiently than was anticipated and so we don't need the money,” she said. “And we can apply it to projects, either new projects or projects that have a cost overrun.” But delays moving some projects through the military procurement system have also caused their fair share of problems, Thomas said, and the department is expecting to have to put off $1 billion to $1.3 billion in purchases it had planned to make this year. “We'd like to (spend) $6 billion every year. Can I guarantee to you that we're going to do that? No, there's slowdowns in projects, there's slowdowns with suppliers, there's changes in scope. Things change,” she said. “I'm hoping to get it below $1 billion. I'm not committing to getting it to below $1 billion. ... We're driving projects to get it as low as possible and spend funds efficiently and effectively. We're not wasting money.” The government spent $2.3 billion less than planned last year. That was also largely because of delays in projects such as the government's multibillion-dollar plan to buy new warships, though also because some things ended up costing less than expected. The government does deserve credit for having increased investments in equipment to levels not seen since the height of the war in Afghanistan in 2010 and 2011, said defence analyst David Perry of the Canadian Global Affairs Institute. “And if they can actually move as much as the deputy (minister) was saying, and they only leave $1 billion on the table, that will be the best year in the last several decades,” said Perry, who has previously warned that delays in the procurement system could derail the defence policy. “But there are a bunch of impacts from not being able to spend money on schedule. One is you don't have the actual gear to do what you want. And project budgets lose purchasing power when money is not spent on schedule. So it's not good to have delays.” https://windsorstar.com/pmn/news-pmn/canada-news-pmn/ottawa-on-track-to-invest-less-on-new-military-kit-than-promised-for-second-year

  • AETE must move to make room for new fighters says commanding officer

    4 janvier 2019 | Local, Aérospatial

    AETE must move to make room for new fighters says commanding officer

    Kelly-Anne Riess ADJUSTCOMMENTPRINT Moving the Canadian military's Aerospace Engineering Test Establishment out of Cold Lake to Ottawa is the only way 4 Wing can grow to accommodate new fighters, says AETE commanding officer Col. Eric Grandmont, referring to feasibility studies conducted by the Air Force. He said the loss of AETE will be offset by a gain for 4 Wing. “We are planning ahead for the long-term future of Canada's fighters,” he said. “The RCAF is committed to Cold Lake and Bagotville as our fighter bases, and there will be significant investment in these areas to prepare for the arrival of the future fighters.” The new aircraft will require an expansion of 4 Wing. Facilities will need to be updated and the current AETE building, which is the newest and second largest hanger on the base, will need to be repurposed. Canada is currently in the process of purchasing 25 used fighter aircraft from Australia and buying another 88 new jets to replace the existing fleet of CF-18s. The costs for relocating AETE are included in the $470 million the Liberal government has set aside for buying the used Australian F-18 fighter jets. Grandmont said he is hoping the transition plan for AETE will be approved by this spring. The move, which would not take place before the summer of 2021, could affect one-third of AETE, which employs 166 military personnel and 22 public servants. The remainder would be reassigned elsewhere in the air force, either in Cold Lake or other military bases. “We are trying to minimize the impact on the city,” said Grandmont, adding the current plan is to stagger his staff's moves to Ottawa. He said some of the positions in question are currently vacant and, if filled, those employees would start their jobs immediately in the nation's capital instead of coming to Cold Lake in the interim. Also, some public servants currently working for AETE in Cold Lake are close to retirement and would likely choose to end their careers and stay in Alberta's north instead of moving to Ottawa. Grandmont says once the unit relocates it will augment its staff with civilian test pilots. “We are hoping to recruit retired members back to the unit once it's in Ottawa,” said Grandmont, adding that moving AETE would put the unit in a central position to service all Canadian Forces aircraft, many of which are in Eastern Canada. “Our people spend a lot of time on the road. They can be away for five or six months a year,” said Grandmont. Recently, some AETE personnel spent seven months in Petawawa, Ont. doing the work necessary to have two Chinooks available to send to Mali, where Canada has been providing emergency medical evacuation for the United Nations peacekeeping mission going on in that country. There are 19 fleets in the Canadian Air Force and only two of them are in Cold Lake—the CF-18 and the Griffon helicopters, said Grandmont. Other aircraft, like the CC-130J Hercules, CC-17 Globemaster and CC-150 Polaris are all based in Trenton, Ont. The CC-144 Challengers are in Ottawa. The CP-140 Aurora and the CH-149 Cormorants are in Greenwood, NS. The CH-148 Cyclones are in Shearwater, NS, The CH-147F Chinooks are in Petawawa, Ont. There are CC-138 Twin Otters are in Yellowknife. AETE, like all units in the Air Force, is facing a shortage of pilots. Recruiting multiengine pilots from Eastern Canada is a challenge for AETE, and a CC-130H Hercules pilot based in Winnipeg does not necessarily want to uproot his or her family to Cold Lake where his or her spouse would have limited options for employment, as well as restricted access to health care. “Although once people get to Cold Lake, they usually enjoy their time here,” said Grandmont. “It is a beautiful area.” AETE has also been losing personnel to private industry, which can offer better working conditions for experienced testers. Postmedia first revealed the proposal to move AETE in 2016. The plan first started under the Conservative government, but the Liberals continued with the relocation initiative. -With files from David Pugliese (Disclosure: The editor of the Cold Lake Sun is married to a member of AETE.) https://www.pinchercreekecho.com/news/local-news/aete-must-move-to-make-room-for-new-fighters-says-commanding-officer

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