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Premiers Danielle Smith and Doug Ford agree to study new energy corridors, more trade
Premiers Danielle Smith and Doug Ford agree to study new energy corridors, more trade

CTV News

time07-07-2025

  • Business
  • CTV News

Premiers Danielle Smith and Doug Ford agree to study new energy corridors, more trade

There are currently no events scheduled on LIVE3. Check back soon to watch live events from across Canada and the world! This content is not currently available for viewing in your browser. For the best video experience, we recommend using a supported browser for your platform. Please visit our FAQ for more info. [3001/6008] The premiers of Alberta and Ontario have agreed to a feasibility study of new pipelines and rail lines between provinces while increasing interprovincial trade of alcohol and vehicles. The agreements are laid out in two memorandums of understanding that the premiers signed in Calgary. The potential pipeline and rail line routes to be studied would connect Alberta's oil and gas resources and critical minerals to James Bay in eastern Ontario with a commitment to use Ontario-made steel. The memorandum for supporting new energy corridors says the study would make it easier for the private sector to get on board and lead development. Alberta Premier Danielle Smith says the agreements signify the two provinces' commitment to drive investment and boost market access for their key industries. Ontario Premier Doug Ford says the provinces are trying to make Canada's economy more resilient in the face of U.S. President Donald Trump's tariffs. He says he hopes Ottawa will get on board by repealing a number of energy regulations including net-zero targets.

Defense Spending and Trade Reform Could Fuel These ETFs
Defense Spending and Trade Reform Could Fuel These ETFs

Globe and Mail

time03-07-2025

  • Business
  • Globe and Mail

Defense Spending and Trade Reform Could Fuel These ETFs

Against the backdrop of trade negotiations with the U.S., the recently elected Mark Carney government announced the passage of a bill that will strengthen the Canadian economy. On Thursday, June 26th, Bill C-5, the One Canadian Economy Act, received Royal Assent. The bill is the realization of Prime Minister Carney's campaign promise to promote free trade in Canada by Canada Day, by introducing legislation to eliminate all federal barriers to interprovincial trade and labor mobility, and to remove all federal exceptions under the Canadian Free Trade Agreement. As stated in the bill's press release, the One Canadian Economy Act serves a two-fold purpose: Expedite nation-building projects (Building Canada Act): Streamline federal review and approval processes to increase regulatory certainty, attract capital, strengthen industries, and enhance sovereignty and resilience while protecting the environment and respecting Indigenous rights. Remove federal barriers to internal trade and labour mobility (the Free Trade and Labour Mobility in Canada Act): Accept comparable provincial or territorial regulations, where they exist, as meeting federal requirements for the movement of goods, services, and labour within Canada. This will enable more goods, services, workers, and businesses to move freely across provinces and territories. In summary, the bill aims to promote economic development and growth within Canada. As noted by Statistics Canada, approximately $532 billion worth of goods and services were traded across provincial and territorial borders in 2023, accounting for 18.1% of Canada's gross domestic product (GDP). Revitalizing Canadian Manufacturing The manufacturing industry is a vital part of Canada's internal trade, accounting for one-third (33.3%) of the total trade between provinces and territories in 2021, according to Statistics Canada. However, less than one-fifth (18.6%) of the industry's output was used domestically, highlighting the significance of U.S. trade to the sector. The importance of the U.S. economy to Canadian manufacturing was emphasized in a recent National Bank of Canada Financial Markets memo, which noted that merchandise exports to the U.S. have declined by approximately 26% over the past three months. Due to this weakness, the manufacturing sector experienced a third consecutive decline in real sales in April, and new orders, following the same trend, show no signs of short-term recovery. Both indicators were at their lowest levels since 2022 in April. Recently, Prime Minister Carney has committed Canada to a substantial increase in military spending, as North Atlantic Treaty Organisation (NATO) members have agreed to invest 5% of Gross Domestic Product (GDP) annually on core defence requirements and defence- and security-related expenditure by 2035. For Canada, this amount would be approximately $150 billion annually on defence-related priorities. The rise in defense spending, along with efforts to reduce the country's internal trade barriers, could bolster the manufacturing sector. As noted in a recent National Bank of Canada Financial Markets memo, Canada's global manufacturing presence has been steadily declining since military spending last reached the 2.0% level. The new NATO requirements will necessitate a major shift for Canada to reindustrialize, leveraging an underused energy advantage to revive manufacturing. A recent example where the prospect of increased defense spending boosted a nation's economic outlook is Germany, where a newly elected government enacted a fiscal plan allowing defense spending in excess of 1% of GDP to become exempt from the debt brake, Germany's constitutional limit on structural deficits. Investing in Manufacturing For Canadian investors seeking exposure to the Canadian manufacturing sector, both the iShares S&P/TSX Capped Materials Index ETF (Ticker: XMA), and BMO Equal Weight Industrials Index ETF (Ticker: ZIN) are options that offer such exposure. As a baseline, understanding the sector exposures that these solutions offer is important. The Materials Sector includes companies that manufacture chemicals, construction materials, forest products, glass, paper, and related packaging products, as well as metals, minerals, and mining companies, including steel producers. The Industrials Sector comprises manufacturers and distributors of capital goods such as aerospace & defense, building products, electrical equipment, machinery, and companies that offer construction & engineering services. It also includes providers of commercial & professional services, including printing, environmental and facilities services, office services & supplies, security & alarm services, human resource & employment services, research & consulting services. Additionally, it covers companies that provide transportation services. Given the above, XMA aims to replicate the performance of the S&P/TSX Capped Materials Index. Conversely, ZIN aims to replicate the performance of the Solactive Equal Weight Canada Industrials Index. Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.

Ottawa removes all federal exceptions from Canadian Free Trade Agreement
Ottawa removes all federal exceptions from Canadian Free Trade Agreement

Yahoo

time01-07-2025

  • Business
  • Yahoo

Ottawa removes all federal exceptions from Canadian Free Trade Agreement

The federal government says it has removed all interprovincial trade barriers under its jurisdiction. Ottawa has eliminated the remaining federal exceptions from the Canadian Free Trade Agreement (CFTA), Internal Trade Minister Chrystia Freeland said in a press release on Monday. Of the 53 exceptions removed, most of them focused on procurement, according to the press release. "Today's announcement builds on the government's efforts to strengthen the Canadian economy," reads the statement. "The federal government will continue to show leadership in this area, and work with provinces and territories to strengthen the CFTA, advance mutual recognition and ensure seamless labour mobility within Canada." Throughout the spring federal election campaign, Mark Carney as Liberal leader repeatedly vowed to "eliminate" interprovincial trade barriers and create "free trade by Canada Day." But Canada's internal trade barriers won't all be eliminated by then — not even all the federal ones. Canada's supply management system for dairy products, which sets provincial production quotas, will remain. Quebec also has language requirements that will stay in place. Provinces have announced steps to reduce their own interprovincial trade barriers in recent months.

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