CANADA\\\ >> 16


America that pay wages of $16 an hour.


Cars are Canada’s leading


export, generating some $20 billion in economic activity and employing 130,000 people. The industry however


relies almost entirely on assembly plants owned by foreign automakers. Canada is the only G8


member that does not produce an indigenous automobile. In regards to another key Canadian industry


and a


source of five trade disputes with the U.S. since the 1980s – softwood lumber - Canada secured protection from American anti- dumping tariffs through the preservation of the dispute- settlement mechanism from NAFTA in the USMCA. The deal got mixed reviews sides of


on both the U.S.-


Canada border. Trump called it a “great


deal” for all three countries that solves the “deficiencies and mistakes” of NAFTA. For his part, David


MacNaughton, Canada’s ambassador to


States, made a typically Canadian hockey analogy, calling USMCA a “great save” rather than a “great win.” Though they have


remained largely mum on the agreement, Canada’s two major


railways - Canadian


National, which generates sales moving goods across borders, and Canadian Pacific – saw their stock prices rise 1-2 percent in the days after the deal was signed, though they have fallen sharply since. Still, the signing of the new


deal - together with the recent jump in the world price for Alberta oil and the opening of the new Gordie Howe Bridge linking Detroit and Windsor, Ontario, which will carry more than a quarter of all trade between the two countries - Canada is expected to regain its mantle as the No. 1 trading partner of the U.S., a position it lost to China in 2016. “We


think for (USMCA) will


provide a stable business climate


the North


American economic bloc in the near term,” says Mélanie Nadeau, communications director with the Montreal Port Authority.


the United


Issue 1 2019 - FBJNA


a 1.15 million TEU-capacity container terminal.


Planned


for the mid 2020s, the project is currently undergoing a massive public review along five lines - road and rail traffic; environmental impact, marine transportation, economic benefits and human impact. “Montreal is


decision-making centre with a unique model of a logistics cluster in North America (CargoM), a rail system directly


David MacNaughton, Canada’s ambassador to the United States calls USMCA a ‘great save” rather than a “great win.


proximity


Nadeau credits the port’s to


Europe and


prime location 1,000 miles inland on the St. Lawrence River and at the entrance to the Great Lakes and the American Midwest and Central Canada for making the


destination port of


Montreal – Canada’s second biggest port after Vancouver – a vital trade link to more than 140 countries. Though nearly half of the


38 million metric tons of volume the port handled in 2017 (a 7-percent increase over 2016 and a 6-percent increase in container volume to 13.8 million tons or 1.46 million TEUs – performances the port expects to match in 2018 when final results are announced) was tied to Europe (and another quarter to Asia), Nadeau says a new USMCA deal provides more political and economic stability for the port’s long- term development projects. Chief among them is a terminal project in nearby Contrecoeur with


17 a marine dockside (the so-


called Montreal Model) and direct connection to Canadian National Railway and Canadian Pacific Railway,” she says.


competitive advantages (and) free trade agreements help keep the export economy growing.” The Vancouver Fraser Port also


Authority appears to


be on solid ground when it comes to the movement of trade-related goods through its facility. Though year-end stats are


not yet available, record mid- year results posted in August – a 4.4 percent increase in overall cargo through the port to 72.1 million metric tonnes over the same time last year - suggests business continued to boom in the West Coast facility despite the tough trade talks not only between the U.S. and Canada but also the U.S. and China, Japan and other overseas trading nations. “This year’s record mid-year


results for cargo movement show balanced, steady growth across most business sectors, demonstrating the increasing strength of the Canadian economy and the Port of Vancouver’s ability to handle Canada’s growing trade with Asia, despite general trade uncertainty,” Robin Silvester, the port’s president and chief executive officer, said in a press release. “The Port of Vancouver’s


ability to accommodate the most diversified range of cargo of any port in North America continues to be one of our greatest strengths and is a key factor that will enable us to continue to grow to meet Canada’s future trade objectives.” He added that his port


US President Donald Trump


is also working to increase container capacity for the


“I don’t pay for tariffs - my clients do.” -- says Pierre Dolbec, Dolbec International


these improvements, further capacity will be required, highlighting the need for the Roberts Bank Terminal 2 project, a proposed new three- berth container terminal that would provide the space needed to meet


forecasted


demand for trade of goods in containers.” For his part, Tim Strauss,


vice president Air Canada Cargo – the belly carrier wing of Canada’s national airline - says the USMCA is a welcome development as his company, which is coming a whopping 13-percent increase in volume growth in 2018 over 2017, looks to leverage its national network by transiting freight via its Canadian hubs from


“We have many


2020s. “We are partnering with our existing container terminals to


expand and


improve their operations,” said Silvester. “But even with


any number of markets. “The U.S. is a prime example


of a lucrative market that merits a more aggressive approach,” Strauss told FBJNA in an email. “We serve close to 100 cities in the U.S., either with widebody service from cities like Los Angeles, Miami, San Francisco, Newark, or by trucking. “This is a number we’re increasing, as


interested in


there are important industrial hubs in the U.S. that can easily feed into our network.” Strauss also pointed to new services Air


some


Canada is offering as potential for increased growth in 2019 and beyond. Starting in April, for


example, Air Canada will launch direct year-round service to Vienna with flights from Toronto and Montreal, operated with Boeing 787-9 Dreamliner aircraft. “These are great routes for


cargo and we welcome the extra capacity to and from this market and gateway to Eastern Europe,” says Strauss. “We’ll


also see increased


service on four international routes from Vancouver - Delhi, Melbourne, Osaka and Zurich - starting in June.” Strauss also pointed to


several ongoing projects aimed at both modernizing and streamlining activities at its all-important Toronto hub. “In light of the rapid


growth we’ve experienced, we continue to strive to deliver outstanding service to our customers - and that means embracing a culture of continuous improvement,”


says Strauss. Those projects both mirror


and tie in with the heady numbers


being posted by


Canada’s biggest airport – Toronto’s Lester B. Pearson International.


“We have seen year-over-


year increases in cargo movements and expect this growth trend to continue as described in our Master Plan and 2017 Annual Report,” wrote Maria Ganogiannis, a spokesperson for the Greater Toronto Airports Authority. For her part, Julia


Kuzeljevich, a spokesperson for the Canadian International Freight


Forwarders


Association, says her 71-year- old organization will be watching several trade- related developments in 2019. “With regard to the customs


side of things - and not necessarily strictly related to cross border - we are following developing


frameworks


on e-commerce, especially with regard to de minimis requirements and low value shipments,” Kuzeljevich writes in an email. “On the trade side,


anecdotally we are expecting to see increased volumes under CETA and the CPTPP deals, which may affect port/ terminal/rail congestion.” She adds that labor disputes


and talks at Canada’s biggest ports are also on CIFFA’s radar. “We anticipate resolution


in 2019 to ongoing labor discussions and negotiations at both West Coast ports and Port of Montreal,” says Kuzeljevich.


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