The "Extraordinary" Commercial Niche Between Canada and the United States Lets Lobbyists Disband

The growing trade war between Canada and the United States has resulted in almost three dozen new cases in the federal lobbyist registry in the past two months, as Canada complements its response to state-imposed tariffs. -United.

Even with retaliatory tariffs in Canada on July 1, lobbyists predict that the rise will continue in Ottawa as groups fight against other scheduled tariffs imposed on other countries

. mention steel or aluminum as of July 3, 32 have been created in the last two months for the first time. Thirteen more were created earlier this year and 67 were updated this year, many of which specifically refer to Canada's response to steel and aluminum tariffs as a reference point for lobbyists. Several companies have multiple registrations with several consultants in the same firm.

On Canada Day, retribution on US products reached $ 16.6 billion, from mattresses to ballpoint pens to toilet paper. The Canadian government claims that this corresponds to the volume of trade affected by the US duties imposed the previous month, fixing 25% on steel and 10% on aluminum products directed to the south.

Prime Minister Justin Trudeau (Papineau, Que.) And US President Donald Trump spoke privately on June 29 when Canada finalized its retaliatory list. The tone of rhetoric on both sides has warmed in recent weeks. Trudeau and Foreign Minister Chrystia Freeland (University-Rosedale, Ont.) Have repeatedly referred to US action, for reasons of national security, as " unlawful, unfair, prejudicial and prejudicial to both countries. Mr. Trump emphasized the character of his counterpart, calling Mr. Trudeau "weak" and "very dishonest".

"It's an amazing time, so there's a lot of people coming up. Sarah Goldfeder, director of Earnscliffe Strategy Group

Business consultant Adam Taylor said the month-long waiting period, while allowing time for comments from stakeholders, also showed a little hope that Mr. Trump could reverse the course. But what struck him the most about last week is the symbolism of it all.

"This shows that we are slowly but surely getting rid of what has been the greatest success of free trade in the world to date. "Said Taylor, a former advisor to former Trade Conservative Minister Ed Fast, now director of Export Action Global. "Now we are literally making lists to make things harder, more expensive and more difficult to negotiate with each other."

Lobbying probably focuses on four key areas, Ms. Goldfeder said: US trade; Retaliation rates in Canada; jockeys for a rescue package; and responses to rumors that Canada may impose other measures, called "safeguard measures", to ensure that steel and aluminum from third countries are too expensive to export to the United States not be dumped in Canada. This could result in quotas and tariffs for non-NAFTA countries on steel and aluminum.

"Neither of the two parts of the industry has the same opinion about the four pieces," said Mrs. Goldfeder, trade specialist and American diplomat in Mexico and Canada

. Earnscliffe, an industrial group, was launched last week and refutes the call for "guarantees" against the fear that other countries will flood the market, as they have supported some steel producers.

The Canadian Coalition for Construction Steel, which represents 17 companies, warned that more tariffs could be "catastrophic" and that Canadian producers do not have the capacity to respond to their needs. The construction industry needs imported steel and can not afford to pay more.

"All these industries operate on very thin margins, so they see their profit margin disappear," she added. Goldfeder

The "stupid" government to restrict further steel imports: commercial lobbyist

This argument has also been at the center of the many companies that hired consultant Peter Clark, who s 39; is waiting for an announcement from Ottawa in a few weeks. on "backups".

The rhetoric between US President Donald Trump and Prime Minister Justin Trudeau has intensified over the past few days as both parties have put in place tariffs on products from the other party . Photograph provided by Global Affairs Canada

. Clark, of Gray, Clark, Shih and Associates, is registered with nine new groups in June alone, raising most of the regulatory issues of the global steel trade. They include the Alberta Manufacturers Vessel Manufacturers Association, the metals supplier Cascadia Metals Ltd. and Wirth Steel and Cantak Corporation, both distributors of steel products.

Provisional guarantees proposed against world imports outside the United States are "serious". Said Clark who encouraged the skyrocketing companies that hired him on the Hill.

"It sounds like the prospect of being suspended in the morning," said Mr. Clark, who works on steel records. since the 1980s. Recently, more than half of his time is spent on these files, he said, in what often extends to 70-hour workweeks and 80-hour workweeks.

"This people, his business, depends on his ability to get steel.And if they can not get it from Canadian mills, they'll pick it up at government – so that's what they do. "

He said the officials had been" open "The government seems to want to" limit as much as possible steel imports. "[19659002] Although Canada can not "go back and authorize" the "American" tax without In response, Mr. Clark said his clients were urging the government to be cautious because many Canadian jobs depend on a regular supply of steel and aluminum.

He questions the fear of "diversification" as a result of US tariffs and says that unions and steelmakers may want to "eliminate all the possible risks, but there's a lot more disruption that can happen to the "

"There is no real proof that this is happening," he said.

This is what led lobbyists to hold meetings with officials, particularly at the Ministry of Finance, to explain the nature of their businesses, what they need and to prove that businesses can not s & # 39; supply. 19659030] Other New Tariff Records

Former US Ambbadador Derek Burney recently added two steel files to his lobbying portfolio

Norton Rose Fulbright Canada LLP's consultant created two registrations in June the distributor Behlen Industries, as well as Welded Tube of Canada, a producer of steel pipes. His badistant refused an interview request, saying that he did not comment on the clients' business. Mr. Burney, who was Chief of Staff to former Prime Minister Brian Mulroney and involved in Canada-US trade negotiations at the time, said the companies were focused on measures retaliation from Canada on US tariffs. PMO, Finance and Global Affairs are offices he will contact.

Summa Strategies consultants were also active on this issue, signing on ASW Steel Inc. in June, in addition to their ongoing work with Canadian Steel Producers. Association (CSPA) and records earlier this year with Algoma heavy steel, based in Sault Ste. Married. Consultant Alex Maheu said Summa did not usually comment on the work with clients and pointed to the June 29th CSGA statement in favor of the rates and financial aid announced last week by the government Canada, which reached $ 2 billion in 1965-19005. to protect workers in the steel, aluminum and manufacturing industries.

As Canada launched consultations on its list of countermeasures, other companies were logging into the lobbyist registry. Food & Beverage Canada, PepsiCo Canada, Beer Canada, Whirlpool Canada and the International Sleep Products Association all registered deposits in June. Some proposed items, such as beer kegs, have been removed from the preliminary list.

Although the final list of products subject to new tariffs was released last week, these companies and others could continue their lobbying efforts. Goldfeder said, especially if tariffs lead to "unintended consequences" that threaten middle-clbad jobs. "One of the things that this government has proven to us time and time again, is that it's not afraid of a correction course," she said.

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The Hill Times

New Steel and Aluminum Lobbying Cases 2018

Note: New records created in 2018 making reference to steel or aluminum at the center of their lobbying efforts. Source: Federal Register of Lobbyists