Posts Tagged ‘Canada’

Canada might have declared conflict on American-made ketchup, however has given its sidekick, mustard, a reprieve.

Mustard made the proposed checklist of retaliatory tariffs on U.S. items, however the federal authorities dropped it simply earlier than the tariffs took impact July 1, reducing Canadian mustard seed farmers a break.

A number of business teams petitioned Ottawa to get sure gadgets taken off its hit checklist. And whereas boats, dishwashers and ketchup imported from the U.S. nonetheless face a 10 per cent tariff, the cries of Canada’s mustard foyer had been apparently heard. (The federal government would not touch upon the specifics of its choice.)

Canada is the world’s largest producer of mustard seed, because of ideally suited rising situations within the Prairies. (Mike McCleary/Related Press)

The business feared the mustard tariff might have pushed down costs for mustard seed exports to its largest buyer, the U.S. — or, even worse, that america would retaliate with tariffs on Canadian mustard seed.

“The individuals who could be hurting as a lot as anybody in all of this might have been the Canadian farmers,” mentioned Dave Macfarlane, a board member with the Canadian Particular Crops Affiliation.

“We had been fairly relieved to see that it got here off the checklist and that the federal government listened to our logic.”

Tops in mustard seed

Canada is the world’s largest producer of mustard seed, because of ideally suited rising situations within the Prairies. It is additionally the world’s largest exporter. In 2017, Canada offered $ 120 million value of mustard seed overseas, greater than half of it going to the U.S.

We then purchase again the completed product. French’s — the top-selling mustard model in Canada — is manufactured within the U.S., however it’s made fully with Canadian-grown mustard seed.

French’s mustard offered in Canada sports activities a maple leaf to promote that it is made fully with Canadian mustard seeds. (CBC)

Maryland-based McCormick, which owns French’s, declined to touch upon Canada’s transfer to drop the mustard tariff. However mustard seed farmers are speaking, expressing reduction the condiment is now not a commerce conflict goal.

“It is excellent information,” mentioned Kevin Hursh, who has a farm close to Cabri, Saskatchewan.

“They may have damage us much more with a tariff on uncooked mustard seed than we’re ever going to have an effect on them with a tariff on ready mustard.”

Kevin Hursh grows mustard seed at his farm close to Cabri, Saskatchewan. (Submitted by Kevin Hursh)

Why do not we make extra?

Contemplating the Prairies are overflowing with mustard seed, why is Canada sending a lot of it overseas as an alternative of processing it at residence?

“We’re good at rising it after which we’re excellent at delivery it away,” mentioned Ross McKenzie, a retired analysis scientist with the Alberta authorities. “We purchase it again at a pleasant premium after it is all been manufactured.”

Canada is residence to only a handful of boutique mustard makers.

We do, nonetheless, have large-scale ketchup manufacturing in Canada.

French’s Canadian regional supervisor, Brooke Gilliford, reveals off the corporate’s plant arrange final yr in Toronto to provide homegrown ketchup. (Jacqueline Hansen/CBC)

When Heinz offered its Leamington, Ont., plant in 2014 and moved its ketchup operations to the U.S., McCormick scored a public relations win by sourcing Leamington tomatoes and ultimately establishing a French’s ketchup processing operation in Toronto.

Nonetheless, the corporate hasn’t moved any mustard manufacturing to Canada, although its 2017 Canadian retail gross sales for French’s mustard had been $ 43.9 million — nearly 4 instances its ketchup gross sales, in accordance with market analysis firm Euromonitor Worldwide.

“It’s one thing we are going to proceed to evaluate,” McCormick Canada spokesperson Stefan Harvalias mentioned in an e-mail, including that the corporate solely not too long ago acquired the French’s model.

What in regards to the French?

In line with Euromonitor, Canada’s second-best-selling mustard model is Maille. It is produced in France — with 60 per cent Canadian mustard seeds.

The model mentioned it’s a necessity to make the mustard in France due to the nation’s experience and components. “For greater than 270 years, La Maison Maille has been producing Dijon mustards and vinegars with a know-how, craftsmanship and human contact,” mentioned Maille in an e-mail. 

Maille mustard is made in France with 60 per cent Canadian mustard seeds. (CBC)

Macfarlane, with the Canadian Particular Crops Affiliation, says it is typically cheaper for giant corporations to consolidate international manufacturing. “They’ll do it extra economically in a giant manufacturing facility, the place they’re pumping out tonnes of it.”

He mentioned Canadian mustard corporations compete by providing one thing completely different — specialty mustard made on a a lot smaller scale. 

“You are making it in small batches; you make it and promoting it at a better value than the commodity stuff, and satisfying prospects with some distinctive issues.”

Kozlik’s Mustard — manufactured in Toronto — is understood for flavours corresponding to triple crunch which is made with three forms of Canadian mustard seeds and home whisky. The corporate has eight full-time staff, and its product will be present in shops throughout Canada, together with Entire Meals.

Jeremy Kessler’s firm, Kozlik’s, manufactures its mustard in Toronto. (Submitted by Jeremy Kessler)

Proprietor Jeremy Kessler says cracking the Canadian market is hard, particularly when huge grocers demand 1000’s of in charges simply to get one product line on retailer cabinets.

“The larger producers, the blokes who’ve been in enterprise rather a lot longer and are rather a lot larger, can afford to pay all these charges.”

Kessler says he needs the Canadian authorities provided extra assist for small gamers like him within the type of advertising and marketing or monetary help.

“I haven’t got a motive why extra is not accomplished,” he mentioned. 

Greyhound Canada is ending its passenger bus and freight providers in Alberta, Saskatchewan and Manitoba, and cancelling all however one route in B.C. — a U.S.-run service between Vancouver and Seattle.

The modifications take impact the top of October, which can make Ontario and Quebec the one areas the place the acquainted running-dog brand will proceed to grace Canadian highways.

“This determination is regretful and we sympathize with the truth that many small cities are going to lose service,” Greyhound Canada senior vice-president Stuart Kendrick mentioned in an interview with The Canadian Press.

“However merely put, the difficulty that we now have seen is the routes in rural components of Canada — particularly Western Canada — are simply not sustainable anymore.”

Kendrick mentioned 415 individuals shall be out of labor, and estimates the choice will affect roughly two million customers.

The corporate blames a 41 per cent decline in ridership since 2010, persistent competitors from sponsored nationwide and inter-regional passenger transportation providers, the expansion of recent low-cost airways, regulatory constraints and the expansion of automotive possession.

Declining ridership is the first perpetrator, mentioned Kendrick, who referred to as that and growing prices an “ongoing spiral” that is making it unimaginable for the corporate to proceed operations.

He mentioned the corporate has raised issues with provincial and federal officers over time, and wished to make sure each ranges of presidency had been “absolutely conscious” of the state of affairs. Greyhound Canada has lengthy advocated for a neighborhood funding mannequin to permit any non-public provider to bid on important rural providers, he mentioned.

‘Vital losses’

Kendrick mentioned Greyhound Canada will proceed to push Ottawa to take a look at bettering transport in northern communities.

“There was a dedication to take a look at our concern, they’re effectively conscious of it. It should not come as a shock that we have had issues, however there was no funding dedication at the moment,” he mentioned.

“The corporate has skilled vital losses regardless of continued efforts to return to viability. Within the affected areas, the corporate has run an working deficit since 2004. We have now had substantial losses over a number of years as a direct results of declining ridership.”

All Greyhound routes in Ontario and Quebec will proceed to function aside from one: the Trans-Canada, which hyperlinks quite a few smaller communities between Winnipeg and Sudbury, Ont.

Kendrick mentioned the choice will depart a lot of the affected communities with no different transportation choices.

Greyhound Canada utilized to provincial regulators final yr to discontinue routes in northern B.C. from Prince George to Prince Rupert due to declining ridership, cancellations that went into impact June 1.

The problem of sufficient transportation got here up repeatedly throughout the ongoing inquiry into lacking and murdered Indigenous girls and ladies, since one of many affected routes included the infamous stretch of Freeway 16 in B.C. often known as the Freeway of Tears, the place quite a few girls have gone lacking.

The U.S. authorities menace to place a tariff on all Canadian-made automobiles could be “catastrophic” to Canada’s financial system, costing 100,000 jobs and including as a lot as $ 9,000 to the sticker value of a brand new automobile if Canada responds in type, sellers say.

Following lately introduced levies on metal and aluminum, U.S. President Donald Trump has repeatedly threatened in current months to impose the same tariff on Canadian-made automobiles, one thing the Canadian Automotive Sellers Affiliation warned Friday could also be sufficient to tip the whole financial system into recession.

The steel tariffs noticed metal face a surcharge of 25 per cent, whereas aluminum was hit with a 10 per cent hike. The president has urged the same plan for vehicles, one that may see 25 per cent on vehicles themselves, and 10 per cent on components.

“This — or something near it — could be catastrophic for not solely the Canadian automotive trade however for the financial system as a complete,” CAPA’s chief economist Michael Hatch stated at a information convention Friday in Ottawa.

The group, which represents three,200 Canadian automobile and truck sellers, says that greater than 100,000 manufacturing jobs could be at instant danger if tariffs are imposed. “Long run, oblique job losses at dealerships and elsewhere would drive this quantity a lot greater,” CADA stated.

Different current experiences from banks have had comparable conclusions, with Toronto-Dominion Financial institution lately calculating that the job toll from auto tariffs could possibly be in extra of 160,000.

Hatch’s evaluation means that Ontario would really feel the impression greater than anybody, because the province is dwelling to the lion’s share of all auto and components manufacturing in Canada.

On the buyer facet, CADA estimates that if Canada responds with comparable tariffs of their very own on U.S. vehicles — simply as they did in retaliation to the metals tariffs — he expects the common value of a automobile to extend by between $ 5,000 and $ 9,000, relying on the make and mannequin. The typical new automobile in Canada at the moment prices about $ 40,000, CADA says.

“Impacts on trade on each side of the border will likely be vital however in the long run it’s the American client that may pay by far the most important value if tariffs are imposed,” Hatch stated. “These figures aren’t alarmist, they’re the truth that we face.”

Automobile dealerships make use of 156,000 Canadians, CADA says, and as many as 30,000 of these jobs might instantly be in danger if any automobile tariffs come to cross.

“In a commerce battle, we level the weapons at ourselves,” Hatch stated.

The group urges lawmakers to do something they’ll to keep away from that state of affairs, by working to safe a brand new NAFTA deal. But when the worst ought to occur, CADA is recommending three steps it desires the federal authorities to take with a view to decrease the harm:

  • Reduce gross sales taxes for new automobile gross sales to offset the tariffs.
  • Implement a “money for clunkers” fashion program that may encourage house owners to commerce of their older automobiles.
  • Produce an instantaneous suite of private and company tax reforms aimed toward enhancing Canada’s competitiveness.