Latest news with #defence
National Post
6 hours ago
- Business
- National Post
Michael Taube: Mark Carney leans European, but needs to buy American again
Article content It will also 'promote multilateral dialogue and co-operation with like-minded countries in relevant areas of security and defence where considered mutually beneficial.' Some of the matters mentioned in the agreement include support to Ukraine, peacekeeping operations, military mobility, maritime security, sharing information on defence initiatives and cybersecurity. Article content And it doesn't stop there. Businesses will be encouraged to 'grow and diversify markets by fully and effectively implementing' the Canada-European Union Comprehensive Economic and Trade Agreement. The parties also agreed to work towards a 'digital trade agreement,' 'identify trends and risks of mutual concern that could affect our economic security,' 'reduce barriers and strengthen agriculture and agrifood trade' and focus on shared energy needs. Article content What about the future of Canada-U.S. relations? While there have been issues between our two countries due to U.S. President Donald Trump's tariffs and leadership style, it's vitally important for Carney to rebuild ties with the U.S. There have been political, economic and military disagreements between Canada and the U.S. before. We fought one another during the War of 1812. Nevertheless, we always found ways to agree to disagree and move forward like good friends and allies do. Article content Article content Things looked promising at one point. Carney said earlier this month that his government was 'in intensive negotiations with the Americans' to end the tariffs on aluminum and steel that chilled relations between our two countries. Carney and Trump also agreed to work towards an economic and security pact within the next 30 days during last week's G7 summit in Kananaskis, Alta. Article content Alas, Carney's determined tone has noticeably shifted. He's now hemming and hawing about the path forward. 'We'll do what's right for Canada,' he told reporters in Brussels. 'We're working hard to get a deal, but we'll only accept the right deal with the United States. The right deal is possible, but nothing's assured.' Article content Trump then announced on Friday through his Truth Social account that he was 'terminating ALL discussions on Trade with Canada, effective immediately.' Why? This was due to Canada's decision to introduce a 'Digital Services Tax on our American Technology Companies.' Trump believed the Carney Liberal government was 'obviously copying the European Union' with this tax, and felt it was a 'direct and blatant attack' on the U.S. Article content Article content No one is suggesting that Carney is obligated to bend to Trump's every whim and desire during these crucial negotiations. At the same time, this is hardly the sort of descriptive language and rhetorical tone he should be using in public before the July 21 deadline. Article content If there have been issues between the two sides, fine. All Carney had to do was take a more neutral position for the bulk of the 30-day process and crescendo accordingly. This would have shown that he recognized the importance of preserving Canada-U.S. relations and was taking things seriously. It would have been hard to argue against such logic. Article content It appears that Carney's infatuation with the EU has further strained our friendship with the U.S. for the foreseeable future. While some will claim that Trump is the main reason, it's a false narrative. He'll be out of office in a number of years, as will Carney. The devastating political and economic effects of a fractured Canada-U.S. relationship will last long past then. Article content Article content Article content
Irish Times
11 hours ago
- Business
- Irish Times
‘Trump always chickens out' is starting to look more like ‘the man always gets his way'
Keeping The Donald happy is a preoccupation these days. Europe has promised to increase defence spending, with Nato head Mark Rutte buttering up the US president in a message praising his action in Iran – and later referring to 'daddy' using strong language to achieve a ceasefire between that country and Israel. And in the economic arena, US treasury secretary Scott Bessent announced late on Thursday that G7 countries had agreed to rewrite a key part of the Organisation for Economic Co-operation and Development (OECD) corporate tax deal in the face of tax threats from Washington. There is a familiar pattern here, with US threats based on political, military or economic muscle met by concessions from elsewhere. The Trump trick is to successfully move the goalposts. Just look at trade. If you had said before Donald Trump took office that the US could impose 10 per cent in additional tariffs on most imports from the European Union and meet – so far – no retaliatory action from Brussels, then that would have sounded crazy. READ MORE Now there is a fair chance that the EU will accept that these tariffs remain in place as part of EU/US trade talks now under way in return for Washington backing off more extreme threats. The narrative has been, of course, that Trump always chickens out of imposing the more extreme tariff threats. He did have to pull back on his initial 'Liberation Day' tariffs and he has done some kind of a deal with China . Market upheavals and fears of economic damage at home do stay his hand. But faced with the threat of 50 per cent tariffs on its exports to the US, the EU looks to be ready to do a deal which offers more to Washington than it does to EU capitals. Trump's madness wins over Brussels process. The pressure on the European Commission to agree a deal is growing, and there is no cast-iron guarantee that the EU can stick together. Germany , where car exports are being hit hard by a special 25 per cent tariff on this sector, is pushing hard for a quick agreement. That might suit Ireland, too; though, of course, it will depend on the terms – and particularly what is said on pharma. Dublin would prefer no additional tariffs on any exports to the US, but that does not seem likely. The other main Irish interest will be the tech sector, where there are reports of some progress as part of wider negotiations on non-tariff aspects of the EU/US deal. The last thing Ireland wants is for the big US digital tech players with bases here to be drawn into the trade battle. That said, in the 'nothing is agreed until everything is agreed' world of trade talks, we will just have to wait and see on this one. This week's agreement on tax – in which the US will drop a new part of its budget bill, section 899, which would have given it powers to impose taxes on investors and businesses from other countries operating in the US – is another sign of Europe accommodating Trump. To achieve this, the other G7 countries are offering to rewrite part of the OECD corporate tax deal. This would have allowed other countries – including Ireland – to require US companies to pay top-up taxes in their jurisdiction if they did not meet the 15 per cent minimum tax payment rule elsewhere. Agreeing the change is a notable backing down by the European members of the G7 and chips away again at the OECD corporate tax deal, painfully negotiated over many years. The EU now looks likely to give ground on the tariffs as well, at least to the extent of accepting the 10 per cent remaining in place. This may lead to some kind of an agreement by July 9th – likely one that requires more talking in the months ahead. And a falling-out between the two sides can by no means be ruled out, leading to Trump imposing higher tariffs to try to force more concessions. Were this to happen, the EU would finally have to respond with its own tariffs. And then we would be into dangerous waters. Brussels and EU capitals will try to avoid this all-out trade war. But they will only do so by agreeing a deal that gives more to Washington than it does to the EU. Talk at this week's EU summit by European Commission president Ursula von der Leyen that the bloc would go off and join an existing group of 11 Asia-Pacific countries – who have formed a trade partnership that the UK has also signed up to – is an irrelevant distraction. There is nothing wrong with diversifying trade, but this looks about as convincing a negotiating tactic as the UK's talk of doing deals with far-flung countries during the Brexit process. So the EU looks to be on the back foot. It will offer more concessions than Washington and hope that this is enough to at least extend the talks with the US, and perhaps tie down a few key areas. Ireland has escaped the worst of the tariffs so far, largely because pharma has been excluded, though other exports, including food and drink, have been hit by the additional 10 per cent charge. Continuing to avoid too much economic pain would require two things. One, obviously, is the avoidance of a trade war. Ireland will argue for the quick deal. The second is some agreement in relation to pharmaceuticals which is not too punitive. Given the scale of Irish pharma exports to the US, this is clearly the area where Ireland remains most exposed in the short term, either to tariffs being imposed or other tax or negotiated measures which mean less profit being reported here and thus less corporation tax. And in the longer term, it puts questions over the scale of US investment here, particularly to serve the American market. Having done so well over recent years, Ireland remains in the frame here. It is hard to see all this uncertainty being taken off the table all at once. Ireland will hope that the mood in the EU will mean some kind of deal before the July 9th deadline. Beyond that, more negotiations and questions will lie ahead. As we see with this weekend's fresh outbreak of trade tensions between the US and Canada, the path of negotiations with Trump is rarely straightforward. Trump has tilted the pitch in his favour and will continue to push for more. And the longer-term damage he is creating to the international economy and political relations won't worry him one bit.
Free Malaysia Today
12 hours ago
- Business
- Free Malaysia Today
Reveal value of airbase calibration job, says MP
Former deputy defence minister Ikmal Hisham Abdul Aziz also urged the defence ministry to disclose if any penalty had been imposed on the company that failed to deliver four Black Hawk helicopters. (Bernama pic) PETALING JAYA : A former deputy defence minister has called on the government to reveal the value of a new contract awarded to a firm which failed to supply four Black Hawk helicopters for the military last year. Tanah Merah MP Ikmal Hisham Abdul Aziz said the defence ministry should explain the rationale for awarding the contract involving three military air bases to Aerotree Defence and Services Sdn Bhd. Ikmal said, if true, it would be an 'unhealthy' culture in terms of defence asset procurement. 'The government must reveal the value of the contract in line with the principle of transparency. All the more since this is the same company that failed to supply the much-needed Black Hawk helicopters,' the Bersatu MP told FMT. On Wednesday, FMT reported that Aerotree had been awarded a contract to calibrate the instrument landing system equipment for fixed-wing aircraft at three military air bases. This came eight months after the defence ministry cancelled a RM187 million Black Hawk lease contract it signed with the firm after it failed to deliver the aircraft despite three date revisions. The four helicopters, leased for five years, were intended to serve as a platform for the army's Air Team Nucleus, supporting both training and operational flight missions. Ikmal, who chairs Perikatan Nasional's defence bureau, urged the defence ministry to disclose if any penalty had been imposed on the company for failing to deliver the helicopters. He said the public deserved to know the company's track record in military procurement and defence facility development, especially in light of its failure in the previous deal. FMT has reached out to the defence ministry for comment.
Malay Mail
12 hours ago
- Politics
- Malay Mail
King urges MAF to stay ready, equipped amid global conflicts, warns against political interference in defence procurement
KUALA LUMPUR, June 28 — The increasingly challenging and uncertain global political landscape requires that the Malaysian Armed Forces (MAF) remain ever ready and equipped with the latest defence technology to face any eventuality. His Majesty Sultan Ibrahim, King of Malaysia, said the Iran-Israel war and prolonged conflict in Gaza clearly show that international laws are no longer sufficient to safeguard global peace. 'It is crucial for the MAF to always be prepared and equipped with the latest technology to deal with any possibility, as we don't know who is a friend and who is an enemy,' His Majesty said. The King said this when officiating the commissioning parade and presentation of appointment letters to MAF cadet officers at Kem Perdana, Sungai Besi here today. At the same time, Sultan Ibrahim reminded the government to ensure that there is no political interference or influence from suppliers in all defence procurement processes. MORE TO COME
Reuters
16 hours ago
- Business
- Reuters
Berlin to simplify rules in bid to speed up defence surge, draft law says
BERLIN, June 27 (Reuters) - The German government seeks to speed up defence procurement by simplifying legal procedures, fostering European cooperation and facilitating orders to start-ups to make its military combat-ready, according to a draft law seen by Reuters late on Friday. The speedy surge of the German military's capabilities "must not fail due to overly complex procurement procedures or lengthy authorisation processes", the document said, while warning of signs that Moscow's war objectives reach beyond Ukraine. "The time factor is crucial." At a NATO summit in The Hague, leaders on Wednesday agreed to hike the alliance's defence spending target to 5% of national GDP, with 3.5% dedicated to core defence and 1.5% to related security issues. German Chancellor Friedrich Merz's government on Tuesday approved a budget framework which is expected to see Berlin's total military spending rise from 95 billion euros in 2025 to 162 billion euros in 2029, equalling 3.5% of GDP. The new defence procurement law is part of efforts to speed up military purchases that in the past have been plagued by lengthy delays, project failures and cost overshoots. The draft law determines that all procurement that contributes to Europe and NATO's military readiness inherently touches upon vital national security, which constitutes a basis to invoke an exemption under European public procurement law. That would amplify a trend that Berlin has been following for some time by more often making use of a national security clause under EU law to prioritize domestic procurement, while also seeking to minimize delays caused by legal challenges. The hurdles for cash-strapped start-ups and innovative companies to join competitions are to be lowered by enabling advance payment to these firms, according to the draft, dated June 25. The paper also makes provisions for a future simplification of European defence procurement rules, something now under discussion at the EU level, by stating that the German law should not be tougher than European law but facilitate joint European defence procurement across the board. The law will entitle contracting entities to limit tenders to bidders inside the European Union or the European Economic Area, and to determine that a certain share of the contracted goods or services must originate in the EU, according to the document. The draft law does not, however, attempt to change the rule that all defence purchases with a volume of 25 million euros or more must be approved by parliament, a requirement seen by many experts as a major hurdle against speeding up procurement. At the start of June, Defence Minister Boris Pistorius said Germany would need up to 60,000 additional troops under the new NATO targets for weapons and personnel, effectively expanding the military to some 260,000 troops. The Bundeswehr has not yet met a target of 203,000 troops set in 2018, and it is currently short-staffed by some 20,000 regular troops, according to defence ministry data.
