Blog - Cambridge Chamber of Commerce

Just a few short weeks ago it literally was business usual for everyone.

 

But as the scope of the COVID-19 crisis began to unveil itself all businesses, both big and small, were immediately faced with making some very tough decisions.

 

“When we initially heard everything what was happening with COVID-19  we decided to adjust to the situation and maintain a very safe environment,” says Christine Grant, co-owner of Modo Yoga Cambridge, noting reducing class sizes at their Ainslie Street North studio and introducing even stricter cleaning protocols were the first steps.  “But as the situation developed and we realized we had to close our doors it was incredibly emotional. You almost feel like you’re failing the community when you say, ‘we have to close our doors’.”

 

Mike Hruden, general manager and co-founder of Four Fathers Brewing Company said the moment the province first announced the closure of non-essential services it resulted in near panic.

 

“We had a very crazy day in retail because people thought everything was closing,” he says, adding that concern subsided once a revised short list of closures was announced.

 

But like all business owners they quickly realized they would have to switch gears to operate in this unprecedented economic reality.

 

“You can try to be a trendsetter but you don’t know what’s right or wrong, or what you can or can’t do, so we really paid attention to what the government has been posting,” says Mike, referring to the steps his business has taken.

 

Sadly, he says Four Fathers Brewing had to layoff its kitchen and taproom staff but continues to offer free local delivery and curbside pickup at its Guelph Avenue location. Takeout, delivery and curbside pickup are steps many local restaurants and eateries have now undertaken as the crisis continues.

 

“The first thing which has taken off and seems to be appreciated by the local community is free local delivery,” says Mike, noting it began as a March promotion but has been extended.

 

Although most of Four Fathers’ orders are coming from Cambridge, he’s also seen orders come in from Kitchener, Waterloo and Guelph.  He says they are looking at extending the service to Fergus and Elora.

 

“It’s just something that allows people to stay inside and when we deliver, we put the box at the door and stand back and greet them,” says Mike, adding  similar safety protocols are in place with their curbside pickup which has jumped to at least 70 orders last week alone compared to the five or six they saw a month.

 

“There’s a lot of change happening right now, so you have to take it day by day,” he says.

 

Christine and her business partner, Emily Drouillard, agree and say thinking outside the box and being open to any ideas to assist customers is key.

 

“So many businesses have already made that shift,” says Christine, referring to online services now being offered by numerous local businesses, including food and supply pickups and fitness classes. “Don’t think about ‘what I’m not able to do in this situation’, but ‘what can I still do?’.”

 

She says business owners must realize that offering the same service as they did before is nearly impossible.

 

“You just have to do the best you can right now. You can sit and sulk, or you can get up and figure out how to move forward,” says Christine.

 

In their case they were fortunate the Modo Yoga community, which includes more than 70 studios worldwide, was able in just a few days time launch an online network offering numerous classes from around the world.

 

“It was pretty amazing,” says Emily, who says the Modo Yoga community initially had plans to launch this network in the fall but quickly decided to step up the process when the pandemic struck. “Four days going into this there were no videos but the whole community rallied together to send off videos and make content available, so now there’s hundreds of videos and it’s updated daily.”

 

As well, Modo Yoga Cambridge offers two live classes daily on its Instagram account, which are saved for future viewing to ensure followers can practice with their favourite instructors on their own schedules.

 

“It’s been a big learning curve for us,” admits Christine, explaining instructors themselves are learning to adjust conducting virtual classes. “But the response has been great and the support from the community has been wonderful.”

 

Emily agrees and says community support is vital to getting through this crisis.

“What we’re seeing is how responsive our community has been to this shift,” she says, adding very few businesses were prepared for something like this. “Nobody really has a choice in the matter.”

 

But businesses themselves are also doing their part to support the community, including adapting their services to help the healthcare industry.

 

At Four Fathers, Mike says they’ve created a batch of beer which is being sold over the next few months to benefit the Cambridge Memorial Hospital in its fight against COVID-19. He’s hoping to raise at least $4,000 through this fundraiser towards the purchase of needed medical supplies, including masks.

 

“We’ll give them a donation and they can buy whatever it is they want from their donation list,” he says.

 

For local realtor Scott Bennett, who works at the ReMax Real Estate Centre on Hespeler Road, giving back to the community has resulted in a growing movement. Since late January, when COVID-19 was only a threat to Canada, he began a campaign of creating and delivering emergency hygiene packs to those in need, including seniors and those with pre-existing medical conditions.

 

To date, and with the support of the Cambridge Rotary Club, ReMax and volunteers, his campaign has resulted in the delivery of at least 400 kits each containing hand sanitizer, antibacterial hand soap, non-latex gloves and disinfectant wipes.

 

“There’s been such a big response from the community,” says Scott, who receives messages on Facebook regarding residents who need kits.

 

“I’ve been doing quite a bit of running around. A lot of the products are hard to find now,” he says. “I’ve had some store managers who call me when they get in a new shipment.”

 

The kits are packed at Fiddlesticks Community Centre where Scott is now including homemade disinfectant wipes created by liquid Lysol soaked in cloth purchased online in bulk.

 

“We drop off the kits on the porch and there’s no contact. I’m really surprised by the demand and the need,” says Scott, adding his real estate work hasn’t slowed down. “I’ve actually been pretty busy with that lately. I thought a pandemic would slow things down.”

 

He says conducting even more virtual tours has become the norm and that great care and the necessary precautions are being taken when showing clients’ a home.

“It’s not the ideal situation but a lot people have to move because they’re closing on other houses,” says Scott.

 

It’s expected our current situation may not change for several months, but in the meantime, staying connected and healthy is important.

 

“We feel now more than ever it’s important people keep moving their bodies and connecting with friends,” says Emily.

 

 

 

 

 

 

add a comment
Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

I am a small business owner based in Cambridge, Ontario.  Along with my partners, we operate two manufacturing operations employing a total of about 25 people.

 

I am proud of all of the response of our political leaders to this crisis on all levels – local, provincial and federal.  They have taken a sober and analytical approach to the immediate needs of the citizens of this country.

 

Their willingness to commit funds, resources and support to our front line workers, small businesses and all in need will get Canada through this ordeal.

 

As a business owner, my top priority is always looking ahead to determine how I can not only succeed; but avoid unexpected disruption to my team; and minimize our potential for risk of any kind.

 

This is where I think the business community needs more support from our leaders.

 

The question of when we should re-open for business is open for debate.  The leaders in Canada, USA and abroad have differing opinions on this matter. 

 

There is only one question on my mind – what is required for me to do business in a way that will be safe for my team, clients and supply chain?  This is the question that must be answered prior to our return to regular business.

 

There is no doubt in my mind that the scientists of the world will determine when it should happen; using the tools and expertise available to them.  It brings me comfort to know that our Canadian politicians are being guided by science in their decision making process on these issues.  

 

However, there is another component to this decision that I think we are neglecting.  Whenever we return to work, it will be to a new business landscape.  There are new risks, new considerations and a higher expectation from the community for business owners to provide a safe working environment.  As a community, we need to determine what will be required to have in place prior to a return to “regular” business. Until we have a vaccine / “herd immunity”, do workers require masks to be safe?  Do we need to require hand sanitizer at entry points to work areas and require all team members to use?  In Taiwan, there are some common practise expectations for citizens that have allowed them to maintain a very low infection level of COVID without restriction on children being at school, or businesses operating normally.  What can we learn from their example that can help us to prepare to resume our work?

 

If Toyota, Honda, or even my business or a local hair salon re-opened in two or four weeks without making any adaptations to how the risk of COVID transmission is controlled; how will we have made progress against this disease?

 

The saying “time heals all wounds” has never resonated with me.  Time doesn’t heal all wounds; but time does offer us the opportunity to prepare for what is coming at  us next.  We know that the economy will have to resume prior to COVID being completely eradicated.  The question is – what will we as a community do to mitigate the risk of another peak of infection as we make that return to the new normal?

 

There is no question that children will have to return to school; I am less concerned about when that happens than I am about what the plan is to keep them safe and healthy once they are there.  We have the example of how Taiwan has made this work; kids wearing masks and having plastic cubicle style dividers between desks during meals.  Will we use this time to learn from their example and adapt our own action plan for what is required to be in place prior to resuming their in class education?  My hope is that we do. 

 

The Cambridge Chamber of Commerce is starting to gather experts and business owners to start this discussion.  I am proud to be a part of this discussion; I look forward to learning and planning together with others to determine how we as a business community can plan to get back to business.  This is new territory for everyone – consumers, business owners, employees, politicians, government, youth and seniors.  If we can agree on the supports that are needed to re-open in a safe manner, the time spent until that happens can be spent planning and making the required changes to how we do business to accommodate the new reality we live in.  If as a community we neglect this opportunity to plan and adapt, we are destined to repeat this cycle of the pandemic again in the not so distant future.

 

This is work that our Chambers of Commerce, professional associations, industry associations, regulatory bodies or governing standard registrars, perhaps the labour unions and school boards are well poised to do.  They have connections to business in their sector, a communication channel with a broad range of companies in a vertical market, and the support of their members.  If we all pressure these organizations in our own industries to get to work on our behalf, we can start planning for the future.

 

It’s time to change the question from “when can we re-open” to “what is required for a safe and healthy re-opening in my workplace to get through this crisis”?

 

Let’s get to work.

 

Kristen Danson

Managing Partner

MitoGraphics Inc. / Swift Components Corp

519 240-4205 Direct

 

add a comment
Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

Self-isolation. Social distancing.

 

These are terms that have now become part of our daily life in the wake of the COVID-19 crisis, which is causing anxiety worldwide both socially and economically.

 

But ensuring we maintain good mental health amidst this trying time is vital, says Angela Englander, a registered psychotherapist and trauma specialist who operates Ways to Wellbeing Therapy in Cambridge and Tillsonburg.

 

“We need to be reaching out to each other now more than ever,” she says. “We really need to be connecting with our community.”

 

Angela, who specializes in the treatment of all of types trauma, including PTSD (post-traumatic stress disorder), says what we’re dealing with is very similar to what the world experienced during the First and Second World Wars.

 

“We’re getting isolated and starting to get scared of each other,” she says, adding that in the years following the COVID-19 crisis we may be faced with a large number of people dealing with PTSD and a variety of mental health issues. “Many people appear to be having an acute traumatic stress response right now in that they're hypervigilant and full of adrenaline and flooded emotionally.”

 

Angela says nightmares and trouble sleeping are just a few of the common reactions to trauma people may be experiencing.  She has, however, noticed that some of her clients who are dealing with PTSD seem less concerned since many already often live in self-isolation.

 

“They’re saying, ‘the rest of the world is living like us now, and that’s kind of validating’,” she says, adding there are others who fear society will break down as a whole.

 

“People are concerned about becoming ill, experiencing pain, suffering, starving and having their neighbours and people around them turn on them, with riots in the streets.”

 

Angela says the long-term effects of PTSD could include headaches, flashbacks and mood swings.

 

“I think there will be a lot of mental health fallout but I hope the government will step up to fund psychotherapy so people can heal,” she says.

 

Currently, OHIP does not cover the cost of psychotherapy.

 

To combat these fears and anxieties surrounding COVID-19, Angela recommends not only reaching out to a professional for coping strategies and support but by creating a daily routine of self-care.

 

“Maintain routine and focus on your accomplishments,” she says. “Stay connected to others through social media or Skype or by phone.”

 

She says deep breathing, stretching and yoga are also good methods to boost good mental health.

 

“And now that we may not be distracted as much by our work, we can start connecting with more of the community,” says Angela. “This could be our golden opportunity to turn things around.”

Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

The impact of the COVID-19 crisis is affecting all of us in countless ways.

 

But for the most vulnerable in our community, the impact is even greater.

That’s why Dianne McLeod, interim executive director of the Cambridge Self-Help Food Bank, is urging everyone to help.

 

“Even if you only put an extra can of something in the donation bin at the store that would be fantastic,” she said, noting the food bank driver has been picking up donations daily from the grocery stores.

 

The food bank, which normally assists approximately 1,600 families a month, has been providing its clients with pre-packed hampers of donations since the crisis ramped up and has seen many of its supplies dwindle quickly.

 

As of Wednesday (March 18), Dianne says the food bank was running low on many staple items, including peanut butter as well as pasta and pasta sauce.

 

“I’m not sure about next week,” she admits.

 

Dianne was grateful to receive some donations of perishable foods from local restaurants who’ve decided not to provide takeout and close their doors due to the crisis.

 

“They’ve been sending their stuff to us, which is great,” she says, adding the food bank also purchased $8,000 worth of supplies. “Unfortunately, some of the things are not available to purchase at all.”

 

Among the donations needed are rice, canned fish, child friendly snacks, canned fruit, soups and stews, and oatmeal.

 

Besides buying supplies, the food bank has also altered its hours of operation and now offers its community lunch in a ‘come and go’ format rather than a sit-down meal.

 

But it’s the clients that can’t make to the Ainslie Street South facility that are causing Dianne great concern.

 

“One of the biggest ways to help us right now is to check on your elderly neighbours and bring them some food,” she says, explaining the food bank has altered its in-take system to make it easier to get supplies to those in need.

 

In terms of emergency planning, Dianne says the food bank was already well prepared thanks to its former executive director Pat Singleton who put plans in place during the SARS and H1N1 crises. This includes providing the necessary emergency equipment.

 

“Everyone is feeling safe down here,” she says.

 

For information about the food bank, including a link to make a financial donation to Canada Helps, please visit  https://cambridgefoodbank.org/blog/

Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

The Cambridge Chamber of Commerce has a brand-new online look.

 

The Chamber’s new website offers visitors a fresh and vivid digital experience as they access information on the many learning programs, incentives and events we offer that benefit our local business community.

 

“We’re thrilled to be able to offer a new site that is easy to navigate and still provides our Members with the valuable information they’ve come to expect,” says Chamber President and CEO Greg Durocher.

 

With a click of a button on the home page or from the ‘events’ page, Members will be able to easily access and manage their own accounts using a simple username system. They will not only be able to update their profiles to add or delete employees but will also be able to pay bills online.

 

“This feature will be a huge benefit to our Members and streamline our operation so we can concentrate on what we do best: helping businesses grow and prosper,” says Durocher.

 

The site itself is much brighter and colourful and contains fewer links which in turn will make using it a far more engaging experience for visitors.

 

As well, a new mobile site is included which means much clearer access on all digital devices.

 

“We have no doubt users will find this feature a huge bonus,” says Durocher, noting how much communication is conducted on smartphones.  “It’s important for all businesses to adapt to the latest trends.”

add a comment
Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

 

Never in the history of trade negotiations have we seen a country’s largest, most important business  association openly call its government’s trade proposals “dangerous” and say they should be withdrawn. That is exactly what the U.S. Chamber of  Commerce did yesterday.

 

Canada’s negotiators have done their very best in a challenging environment. They have reached out to Canadian people and business, they have extended a warm hand of friendship to their U.S. and Mexican counterparts and they have tabled sensible, generous proposals to improve NAFTA. But, we all have to prepare for the possibility that the U.S. will withdraw from NAFTA, based on the poisonous proposals U.S. negotiators have presented.

The craziest is a sunset clause that would terminate NAFTA after five years unless all three parties agree it should continue. Imagine the uncertainty of having all three countries debate the merits of trade every five years. How could anyone plan to build a factory with a useful life of 30 years? NAFTA would cease to exist for the purposes of long-term business investment.

 

The second troubling proposal concerns the rules of origin. Currently, 62.5% of a car or a truck must be produced in the U.S., Mexico or Canada for it to qualify for duty-free treatment under NAFTA. The U.S.’s proposal would require that 50% of the vehicle be produced in the U.S. This would be immensely harmful to the North American auto industry. It’s impossible to replace long-established multi-billion- dollar supply chains so most companies would simply pay the generally low U.S. tariffs. Manufacturers would then source more inputs from Asia.

 

The third concern is the administration’s proposal to eliminate Chapter 19, the process for dispute  settlement for anti-dumping and countervailing duties.
 
This comes at a time where the U.S. wants to impose a ludicrous 300% tariff on Bombardier jets, which is above even what Boeing had asked for. Chapter 19 is a critical safety net because it enables an independent, binational panel of five arbiters, agreed by both parties, to determine whether or not the duties have merit based on U.S. domestic laws. This is a must-have for Canada.

 

The final jaw-dropping proposal would drastically reshape NAFTA’s procurement rules. U.S. negotiators are proposing a “dollar for dollar” approach to North American procurement markets. That would mean “the total value of contracts the Canadians and Mexicans could access, together, couldn’t exceed the total value that U.S. firms could win in those two countries.” This is quite simply the worst offer ever featured in a trade agreement and is worse than basic access to government procurement offered under the WTO. Canada would be better off with no agreement at all than signing on to this nutty nonsense.

 

At the Canadian Chamber of Commerce, we salute the government’s efforts on NAFTA. The government has done everything possible: our negotiators have been outstanding, Minister Freeland and the entire Cabinet have invested enormous time in building relationships in the U.S., and the PM has invested his political capital and considerable charm to go to bat for NAFTA.

 

ut, if the U.S. administration is not serious about negotiating a mutually beneficial agreement, then we believe no deal is preferable to a bad deal. This is because a trade agreement will last many years. The Trump administration, we’re not so sure…

 

 

For more information, please contact:

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

613.238.4000 (284) 

hbrakel@chamber.ca

Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

Leading tax practitioners say that business owners with income as low as $50K will be affected

 

Ottawa, September 27, 2017 – The Coalition for Small Business Tax Fairness, a unified voice of more than 70 organizations representing hundreds of thousands of business owners across the country, has written a new letter to Finance Minister Bill Morneau with professional analysis confirming that Ottawa’s tax proposals will affect middle-class business owners, resulting in higher tax rates than other Canadians with similar income levels.  

 

“We are alarmed by the huge gap between the government’s statements about the impact of their proposals and the detailed analysis by Canada’s tax professionals,” said Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) and member of the Coalition. “Tax practitioners are united in the view that these changes have the potential to affect all small business taxpayers, no matter their income.”

 

"It is the farmers, mom and pop shops, and entrepreneurs, who invested everything into their businesses, that will be most affected by these changes, instead of targeting the real problem. The government needs to go back to the drawing board, hold a real consultation and listen to what tax professionals, provincial governments and the business owners who fuel the growth of our communities are saying," added Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.

 

The government has claimed that these proposals would not affect business owners with incomes under $150,000. Tax practitioners disagree.

 

One of the new rules introduced by the government would restrict small business owners from sharing income with family members. Tax practitioners say that this can affect business owners with incomes as modest as $50,000. Also, as two-thirds of Canadian incorporated businesses are majority owned by men, the restrictions on sharing income with a spouse are likely to remove a disproportionately higher number of women from benefiting from their family’s business.

 

The government is also proposing changes that would discourage small business owners from holding certain types of investments in the incorporated company. According to tax practitioners, business owners retain business earnings in the corporation to safeguard against economic downturns, secure bank financing and invest in other start-up companies.

 

Tax practitioners have confirmed that the proposed tax changes would result in higher combined corporate and personal taxes for business owners across the board and in many cases, small business owners would incur tax rates far greater than what an employee with a similar level of income would pay. 

 

The Coalition, which has doubled in size since August 31, is asking the federal government to review carefully the analyses of tax professionals across the country, take these proposals off of the table, and launch meaningful consultations with the business community to address any shortcomings in tax policy.

 

The Coalition for Small Business Tax Fairness is encouraging business owners and other concerned Canadians to contact their Members of Parliament and use the hashtags #unfairtaxchanges #taxesinéquitables on social media. For the full list of Coalition members, please visit smallbiztaxfairness.ca.  

 

For media enquiries or interviews, please contact:

Andy Radia
Media Relations Specialist
647-464-2814

 

What some are saying:

 

“The agriculture equipment manufacturing sector represents 12,000 Canadians and their families predominantly in rural areas; as entrepreneurs who have put their lives on the line to invest in and grow their family business, the sector consistently exports more than $1.8 billion of farm equipment to over 150 countries. The scope and complexity of the proposed tax changes puts a lot of this at stake, and we must fight to ensure that fairness prevails for our members.” — Leah Olson, President, Agricultural Manufacturers of Canada

 

“Franchisees are the backbone of the communities they serve, by employing people of all backgrounds, supporting local initiatives, and helping grow the economy. As business owners, they assume significant risk, but have been able to achieve success through hard work and support from family members. Simply stated, CFA believes the changes being proposed by the Minister will hurt Canadian franchisees.” — Ryan J. Eickmeier, Vice President, Government Relations & Public Policy, Canadian Franchise Association

 

“The residential construction and renovation industry has always largely consisted of family-run businesses that help build the communities they operate and live in, many over several generations. These are hard-working Canadians trying to earn a middle-class living, hire local workers, and create a future for their families. The government’s proposed tax changes threaten the very existence of these businesses, posing a threat to small local companies in every community and the jobs they create.” —Kevin Lee, CEO, Canadian Home Builders’ Association

 

“We look forward to working with the Minister of Finance to ensure that any changes help secure the future of agriculture and not hinder it.” — Mark Wales, Chair of the Canadian Horticultural Council’s Business Risk Management Committee

 

“We are fully supportive of the government’s pledge to advance evidence-based policy-making. Our members are concerned that the government’s proposed changes to small business taxes are not sufficiently informed by the level of research, analysis and consultation required to ensure a full appreciation of the impacts this will have on Canadians - not just entrepreneurs and small business owners but also on the overall health of the Canadian economy and competitiveness in the short and long term.” — Leigh Harris, Vice Chair (Interim) National Board of Directors, CMC-Canada

 

“Canadian business families are scared, confused, and demoralized. Years of planning for business succession will potentially go up in smoke! And we’re being called tax cheats along the way. Canada can do better, we must do better—our economy depends on it.”— Allen S. Taylor, Chair, Family Enterprise Xchange

 

“These egregious proposed tax changes would negatively impact the family farm in ways that are both profound and complex. The federal government needs to reverse course on their ill-advised tax hike attack on our middle-class family farms. — Levi Wood, President of the Western Canadian Wheat Growers Association, grain farmer

Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

First you have the Provincial Government with Bill 148 and then you add what our Federal Government wants to do regarding taxes and in reality it just adds up to a nightmare for small businesses. Greg explains in this weeks' 'The City'.

 

 

add a comment
Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

Guest Column by Perrin Beatty, President & CEO, The Canadian Chamber of Commerce

 

Want to understand the reality of trade in North America? Start at the FedEx Super Hub in Memphis, Tennessee at 1:00 a.m., watching the incredible flood of 3.3 million packages daily, ripping with machine-like efficiency over 300,000 conveyor belts spread out over 862 acres.

 

Our delegation’s four days in Tennessee were designed to provide an opportunity to make the case for Canada. The southern reputation for hospitality is well-deserved in Tennessee. And it seemed like everyone has a connection to Canada. I discovered that the Mayor of Nashville, Megan Barry, once worked for Nortel, that FedEx’s 4,000 pilots train on Canadianmade flight simulators and that Memphis residents can enjoy poutine and Canadian beer at the area’s two Kooky Canuck restaurants.

 

And who says Americans don’t know much about Canada? I met dozens of people who appreciate the importance of Canadian businesses, often because of large Canadian investments. We visited CN’s massive intermodal hub, located slightly outside of Memphis. This hub is CN’s gateway to the south, where it can switch containers from one mode of transportation to the other easily. These connections helped us spread the word about the benefits of doing business with Canada.

 

Most folks weren’t aware that Canada was their biggest trade partner, but they were happy to hear it. Currently, there is nearly $14 billion of trade between Tennessee and Canada (that’s more than our trade with France and Italy combined), and over 170,000 jobs in Tennessee depend on trade with Canada. The numbers are astonishing, and when I met Matt Wiltshire, Director of Nashville’s Economic and Community Development Office, he enthusiastically offered to help spread the word.

 

We had very positive discussions about NAFTA. When we met the Memphis Chamber, the participants rallied around the idea of “do no harm.” We agreed that although NAFTA can and should be modernized, the current structure should be the starting point, without having to reinvent the agreement. Overall, the Americans we met believed the NAFTA renegotiation will go well. That’s why this work is so important.

 

Last week the U.S. Trade Representative released its objectives for renegotiating NAFTA. There are areas of concern for us, but it emphasizes building upon the current NAFTA relationship. However, we worry the scope of the negotiations is extraordinarily ambitious—everything from dispute resolution to rules of origin, services, intellectual property. A major rethink could take years.

 

In Washington, politicians will be under pressure to talk tough and tweet crazy things. The negotiators will set “red lines,” deadlines and “deal breakers.” Things can get hot. I remember the Cabinet meeting when Brian Mulroney ordered our negotiators to walk away from the Canada-U.S. talks. But behind the rhetoric and theatre, Tennesseans reassured us that real business people are still sensible, cooperative and ambitious.

 

Whether it’s a fight over NAFTA or any other friction between our countries, it is so important that we have business allies who will stand with us to say that Canada is a friend, an ally and a partner.

 

Our next stop is Texas and then on to Georgia. If you’d like to participate in any of our delegations, please email us. If you’re looking for more info, click here.

 

For more information, please contact:

Hendrik Brakel

Senior Director, Economic, Financial & Tax Policy

 613.238.4000 (284) | hbrakel@chamber.ca

add a comment
Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

Tick-tock! The U.S. Trade Representative just sent the official notification to Congress that NAFTA negotiations will begin in 90 days. The Canadian government must now negotiate and resolve all the hot button issues with our American and Mexican friends—in the midst of a highly charged political environment. How will it play out?

 

For the next 90 days, every special interest and aggrieved Wisconsin dairy producer will have a chance to provide input during the consultation period under Trade Promotion Authority. Then, whatever new agreement is negotiated must pass the House and the Senate. All three governments want NAFTA 2.0 wrapped up ASAP. Canada wants to end the uncertainty that is hurting investment, and for our partners, it is even more urgent.

 

Mexico’s presidential election is set for July 2018 and will be in full election season by the early spring. Polls show the current leader is Andres Manuel Lopez Obrador, a fiery left-wing nationalist who filed a human rights complaint against Mr. Trump and his plans for the border wall. He calls it embarrassing to see the current Mexican government prostrate before Trump. Mexico’s government would dearly love to conclude the NAFTA well before the election.

 

Similarly, U.S. mid-term elections will be held on November 6, 2018, and Republicans need to show progress on trade. The likelihood of NAFTA passing Congress drops off significantly after the mid-terms.

 

Gallup points out that when the U.S. President has an approval rating below 50%, his party loses an average of 36 seats during mid-term elections. President Trump’s approval rating is well south of 50%, in the high-30s. If the administration remains mired in scandals, special counsels and the Russian Connection, the Republican house is likely to lose its 31-seat majority. Would a newly-elected Democratic house be eager to pass Mr. Trump’s NAFTA?

 

No way. Is it even possible to renegotiate NAFTA before the deadlines? The original Canada-U.S. FTA took 18 months (May 1986 to Oct 4 1987), and our governments at the time were the closest of friends.

 

So it’s possible but very unlikely because of the politics. We often hear from Americans that Canada is not the main target of U.S. trade ire. Canada just needs to give the Trump administration a PR win, which it defines as a big give on supply management and softwood lumber, then it can have whatever it wants— regulatory cooperation, movement of people, maybe even an exemption from Buy American.

 

But the politics are awful because Mr. Trump’s bullying, blustering threats have made it impossible for Mr. Trudeau or Mr. Pena Nieto to agree to concessions without appearing weak. Their supporters despise Mr. Trump and would be furious. And even if it wasn’t politically poisonous, why should we make concessions for another country’s domestic politics?

 

There may be another way. The USTR referred to NAFTA modernization as opposed to renegotiation. In the past, NAFTA has been amended extensively without going back to Congress. We could add a chapter on ecommerce, fix the rules of origin and sign a bunch of side letters that could give the Americans the win they need. Let’s hope they take what they can get. Otherwise, NAFTA 2.0 is doomed.

 

Hendrik Brakel

The Canadian Chamber of Commerce

Senior Director, Economic, Financial & Tax Policy

613.238.4000 (284)

hbrakel@chamber.ca

 

Subscribe to this Blog Like on Facebook Tweet this! Share on LinkedIn

Contributors

Blog Contributor Portrait
Brian Rodnick
3
April 3, 2020
show Brian 's posts
Blog Contributor Portrait
Cambridge Chamber
2
March 27, 2020
show Cambridge 's posts
Blog Contributor Portrait
Canadian Chamber of Commerce
21
July 12, 2019
show Canadian Chamber's posts
Blog Contributor Portrait
Greg Durocher
39
September 25, 2017
show Greg's posts

Latest Posts

Show All Recent Posts

Archive

Tags

Everything Manufacturing Cambridge Events Spectrum New Members Taxes Region of Waterloo The Chamber Property Taxes Government Waste Cambridge Chamber of Commerce Networking Success Di Pietro Brian Butcher Greg Durocher Scott Bridger Food Blog Canada Ontario Cambridge Memorial Hospital Business After Hours Discounts Member Benefits Affinity Program Web Development Visa, MasterCard, Debit Big Bold Ideas Politics Elections Municipal Provincial NDP Liberals PC Vote Majority Christmas Homeless Leadership Oil Sands Environment Rail Pipelines Keystone Canadian Oil Canadian Chamber of Commerce Small Business Next Generation Cyber Security Millennials Energy Trump Washington Polls US Congress Bresiteers Trade NAFTA Europe Economy Growth Export Minimum Wage 15 dollars Bill 148 Cost Burdens Loss of Jobs Investing Finance Canada Capital Gains Exemption Tax Proposal MIddle Class Member of Parliment Unfair Changes Small Business Tax Fairness COVID-19 Mental Health Self-isolation Social Distancing Ways to Wellbeing