posted on August 31, 2003 01:57:29 PM new
Canadian economy declines in second quarter
Last Updated Fri, 29 Aug 2003 11:26:32
OTTAWA - The Canadian economy shrank by 0.1 per cent in the second quarter of the year, marking the first contraction since 2001, Statistics Canada reported Friday.
"Much of the weakness came in April at the height of the SARS outbreak, as the economy posted gains in both May and June," Statistics Canada said.
The fallout from the discovery of a single Alberta cow with mad cow disease, coupled with the strong Canadian dollar, also weighed on the economy during the most recent quarter.
On a monthly basis, a 0.3 per cent contraction in April was followed by a 0.2 per cent gain in May and growth of 0.1 per cent in June.
The economy pulled back by 0.1 per cent between the first and second quarters of this year. On an annualized basis, the economy shrank by 0.3 per cent.
"A slowdown of business investment in inventories held the economy back in the second quarter," StatsCan said. "The deceleration was centered entirely in the wholesale and retail trade industries."
While Canada experienced an economic decline, the U.S. economy grew by 3.1 per cent in the second quarter. The U.S. Commerce Department said the growth was fuelled by a big increase in military spending, coupled with higher spending by consumers and businesses.
Canadian economists are forecasting that the Bank of Canada will cut interest rates by 0.25 of a percentage point next Wednesday.
"The Bank of Canada will not be surprised by these figures," BMO Nesbitt Burns economist Sherry Cooper said in a commentary.
"While the decline in GDP will grab the headlines, the underlying story is not overly weak. A 25 (basis point) cut next week is fully justified by the drop in GDP, but a Q3 rebound will likely push them to the sidelines after that point," she said.
Hmmmm appears Canada isn't the Model of perfection either.
U.S. raises tariffs on Canadian wheat
Last Updated Fri, 29 Aug 2003 14:08:55
REGINA - Tariffs imposed by the United States on Canadian wheat will be raised, following a decision by the U.S. Commerce Department on Friday.
The tariffs, which were imposed in the spring, had been between 10 and 12 per cent. With Friday's ruling, they will be raised to 14 per cent.
"We are disappointed with the U.S. Department of Commerce findings,"International Trade Minister Pierre Pettigrew said.
"Canadian wheat exports to the United States are fairly traded. They are not subsidized," he said.
"We will assess the Commerce Department's findings to determine the most appropriate action," Pettigrew added.
As part of a long-running trade dispute, American farmers claim the Canadian Wheat Board unfairly subsidizes wheat and dumps it in the United States below market prices. Complaints against Canada were filed last year by the North Dakota Wheat Commission, the U.S. Durum Growers Association and the Durum Growers Trade Action Committee.
Prior to Friday's ruling, the Wheat Board has been through 10 investigations in 13 years, and won each time. But the CWB did not expect to win this most recent ruling.
The whole issue of tariffs is not resolved yet, however.
The Wheat Board has said the U.S. government will not finalize tariff levels until October when the International Trade Commission rules on whether or not Canadian imports have injured U.S. wheat and durum farmers. Depending on that ruling, the tariffs may become permanent or drop to zero.
They don't play fair either... so much for NAFTA and fair trade... at least they got caught.
Winnipeg smoking ban in effect Monday
Last Updated Sat, 30 Aug 2003 12:38:12
WINNIPEG - Smokers in Winnipeg will have to be more careful where they light up on Monday. City inspectors will be making the rounds, enforcing a ban on smoking inside public places.
The smoking ban was intially supposed to take full effect on July 1. But the city agreed to a two-month grace period.
The province said it needed more time to get inspectors ready to enforce the ban in provincial casinos in Winnipeg.
City Inspectors are targeting 40 businesses accused of ignoring the bylaw over the summer.
"We've certainly done the education and warning side of things, and if we find infractions on Monday, there will be charges laid," said Brian Rivet, the city's environmental health officer.
Fines for individuals start at $100 and increase to a maximum of $1,000 after a third offence.
Fines for businesses start at $500 and increase to a maximum of $5,000.
posted on August 31, 2003 02:44:13 PM new
Aren't Canadian politics interesting beyond belief, Twelve? Why thousands haven't responded so far, is beyond me...
