Morning Update: Developments on USMCA; B.C. firm broke privacy laws; the carbon tax and 2030 targets

Good morning,

These are the top stories:

Chrystia Freeland is set to negotiate a USMCA side-letter in a push for ratification

Sources say the Deputy Prime Minister is expected to meet with her U.S. and Mexican counterparts in Washington today as the Trump administration looks to secure an addendum to the trade deal that would appease the Democrat-controlled House of Representatives.

Demands said to be on the table include the ability for U.S. officials to inspect Mexican factories to ensure they’re living up to USMCA labour standards – one area of concern for Democrats who have so far refused to ratify the agreement. Mexico’s powerful unions, however, have strongly objected to inspections.

Mexico’s point-man on the trade deal said earlier this week that the three sides were “very close” while U.S. House Speaker Nancy Pelosi said talks were “within range” of an agreement that would satisfy Democrats.

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B.C. firm AggregateIQ broke privacy laws but won’t face penalties

A joint investigation from the privacy commissioners of B.C. and Canada has found AggregateIQ – which is linked to political consulting company Cambridge Analytica – broke domestic privacy laws when it failed to obtain consent for voters’ data in its work on the Brexit “leave” campaign, in U.S. elections, and for clients in B.C.

But unlike regulators in the U.S. and the European Union, Canada is unable to levy monetary fines. “Reform is urgently needed to maintain public trust in political parties and our democratic system,” federal commissioner Daniel Therrien said.

A market drop caused by the foreign-buyers’ tax is no excuse to back out of a home purchase

That’s the ruling from the Ontario Court of Appeal after one buyer withdrew her purchase after the Toronto-area housing market cooled in 2017 when the foreign-buyers’ tax was announced. The buyer had argued that the tax created a drastic unexpected change in circumstances, therefore relieving her of her contractual obligation.

But the court disagreed and ordered her to pay more than $600,000 – the difference between the price she agreed to pay, and the much lower price the seller ultimately received from someone else. Real estate buyers take risks in bidding wars, the court said.

Canada must quadruple its carbon tax to meet 2030 targets, a commission says

Canada’s carbon tax is set to rise from $20 this year to $50 in 2022, but the Ecofiscal Commission says the figure needs to rise to $210 by 2030 in order to cut emissions 30 per cent below 2005 levels.

The commission’s report found that consumer-facing policies such as the carbon tax are cheaper to implement than other emissions-reducing regulations and also lead to the greatest economic gain.

Ecofiscal’s findings follow a United Nations report that said greenhouse-gas emissions hit record levels last year.

Labour issues: One strike ends, and another is averted

The CN strike is over, bringing relief to rail workers as well as farmers and hospitals that had been reeling from a propane shortage. Details of the deal – which ended the longest rail strike in a decade – are not yet available, but issues included rest periods and benefits.

Metro Vancouver transit workers reached a tentative agreement to stave off a planned three-day bus and SeaBus strike. Staff had planned to walk off the job today, but negotiators were able to find a solution in last-minute talks overnight.

Meanwhile, Canada Post workers are still without a contract a year after the federal government legislated them back to work. Like the CN workers, Canada Post employees have been pushing for a resolution on health and safety concerns, including long hours and overtime.

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ALSO ON OUR RADAR

Huawei’s Canadian jobs pitch: The Chinese tech giant says it supported more than 4,750 full-time jobs in Canada last year as it releases a report touting its economic contributions. The figures, which also point to $50-million in research funding at Canadian universities, come as Ottawa contemplates whether to ban Huawei equipment from 5G networks.

Maltese officials resign in scandal over journalist’s murder: The top aide to Malta’s Prime Minster stepped down as well as two ministers as police ramp up an investigation into the 2017 killing of investigative reporter Daphne Caruana Galizia, who had been examining government corruption.

U.S. prosecutors open probe of opioid makers: Six pharmaceutical companies are under investigation for potential criminal charges for shipping large amounts of opioids. This is the latest action taken by governments, including in Canada, seeking to penalize companies that contributed to the opioid crisis.

Suspect charged in Toronto feces attacks: A 23-year-old man has been arrested after allegedly throwing buckets of feces at five people in three separate attacks. Samuel Opoku was charged with five counts of assault and five counts of mischief.

MORNING MARKETS

World stocks strain for record high on trade hopes: World shares made another push for an elusive record high on Wednesday after U.S. President Donald Trump said Washington and Beijing were in the final throes of inking an initial trade deal. Tokyo’s Nikkei gained 0.3 per cent, and Hong Kong’s Hang Seng rose 0.2 per cent, while the Shanghai Composite lost 0.1 per cent. In Europe, London’s FTSE 100, Germany’s DAX and the Paris CAC 40 were up by between 0.3 and 0.5 per cent by about 4:45 a.m. ET. New York futures were up. The Canadian dollar was just below 75.5 US cents.

WHAT EVERYONE’S TALKING ABOUT

Trudeau turns the elusive middle class into an unnecessary ministry

Robyn Urback: “There is no universal way to measure the middle class in Canada, which seems to be entirely the point of the Liberals creating a ministry specially dedicated to it. ... Maybe the middle class is simply a feeling in your heart?”

Under Kenney’s plan, Quebec’s equalization take would grow

Konrad Yakabuski: “If his goal in reforming equalization is to penalize Quebeckers for opposing the construction of an oil pipeline through their province, Kenney is way off track.”

TODAY’S EDITORIAL CARTOON

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LIVING BETTER

Assessing Laurentian Bank’s savings account with a 3.3-per-cent interest rate

The Quebec-based outfit has introduced an exceptional offer that beats any other rates for Canadian savings accounts. Rob Carrick says that while the 3.3-per-cent rate is a publicity stunt that won’t be viable in the long term, those comfortable moving money around should exploit the offer for as long as it’s available.

MOMENT IN TIME

Alfred Nobel establishes the Nobel Prize

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Nov. 27, 1895: When Alfred Nobel’s brother Ludvig died in Cannes in 1888, a French newspaper declared: “Le marchand de la mort est mort!” The merchant of death is dead. The headline was in error – while Ludvig had died, it was younger brother Alfred who had made a fortune from arms manufacturing as well as the invention of dynamite. This premature obituary, which went on to say he had “become rich by finding ways to kill more people faster than ever before,” left Alfred rattled, and historians believe it was the catalyst that prompted him to find a way to alter his legacy. Seven years later, after much research and thought, Alfred Nobel signed his last will and testament, and left the bulk of his estate to establish the Nobel Prize. When the Swedish chemist and industrialist died a year later, at the age of 63, his family (he never married) was shocked to find out his fortune would fund a foundation that would annually award prizes to individuals who make important contributions to better humankind in the fields of physics, chemistry, physiology, literature and peace. The unlikely pacifist had secured his place in history as the man whose money restores faith in humanity, rather than destroys it. – Gayle MacDonald

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