Healthcare: The Canadian Fiscal Crisis that America Would Love to Have

By Keith Edmund White

Editor-in-Chief

Canada's provinces are beginning to rein in healthcare spending, which means they are putting the breaks on near-double digit percent annual increases.  Sure, this is the beginning of a decade-delayed 'new reality' regarding raising healthcare spending.  But, as Keith White reports, if Canadian spending on healthcare constitutes a crisis, it's a crisis the United States would love to catch.

Jeffrey Simpson at The Globe & Mail highlights a big shift in how provinces are dealing with healthcare spending, and the possibility that provinces may need to start coming to gripes with containing healthcare spending.

After a decade allowing healthcare budgets to increase, all provinces, save one (i.e. Quebec), are holding back on healthcare spending.  Why?   Budgets are shrinking; healthcare costs are raising; and, after years of avoidance, provincial debts have to be reckoned with.

But the lurking sense of 'doom and gloom' in Simpson's article could easily bemuse an American observer.

BTBObserver Highlights Evolving Canada-U.S. Economic Relationship

The Canada-U.S. trade relationship is still going strong, it's just changing.

From Woodrow Wilson's Beyond the Border Observer, highlighting a profound take-away from a Financial Post article detailing a still-strong Canada-U.S. trading relationship:

Wednesday’s Financial Post has a fascinating piece on the importance and changing nature the Canada-U.S. economic relationship.  With so much attention paid to diversifying Canada’s trade portfolio, its importance to emphasis the unique and lasting value a close Canada-U.S. economic partnership has for both nations.

The driving question in Canada-U.S. trade isn’t whether Canada and the United States look for new traders partners.  Rather, it’s whether they harness their relationship in order to succeed in the 21st century global marketplace.

Can You Be Pro-Free Trade and Increase 1,000+ Tariffs? Sure, Just Ask Canada

Nailing down a nation’s trade policy can be tricky. 

 Just look at the trade policies of Canada under conservative Prime Minster Stephen Harper. 

Sure, Canada’s Conservative government is pushing regional and bi-national trade pacts.

But, in Canada’s latest federal budget, there are 1,253 tariffs increases. The fiscal impact: adding $300 million to Canada’s ~$5 billion in existing tariff revenues.

Read all of Stephen Gordon’s excoriation in Maclean’s here. (Note: Terence Corcoran’s Financial Post article earlier this week makes the same point). Below are some highlights:

...Yes, there were those 37 tariff reductions, but there was also the measure to ‘modernize’ Canada’s General Preferential Tariff (GPT) regime by ‘graduating’ 72 countries from the GPT; imports from these countries will now face higher tariffs. Mike Moffatt estimates those 37 tariff reductions will be accompanied by 1,290 tariff increases. By my count, there are 84 GPT countries, but I still haven’t been able to track down a list of which countries will be removed from the GPT (Update: Mike Moffatt informs me 12 of these already have separate agreements with Canada, so that brings it to 72). The budget does name some examples: Korea, China (second-most important source of imports to Canada), Korea (seventh) and Brazil (twelfth), and the GPT countries as a group account for more than 20 per cent of imports. This measure is expected to generate some $300 million in extra revenues, on top of about $5 billion in existing excise duty revenues.

So instead of a unilateral reduction in tariffs, the government is planning a unilateral increase. This is not how a pro-trade government behaves. (Imports from the countries with which the Conservatives have negotiated free trade agreements are dwarfed by those from China alone.)


…

I still can’t get my head around the truly bizarre notion that low tariffs are a subsidy to other countries on the part of Canadian taxpayers, especially since raising tariffs requires Canadian taxpayers to cough up an additional $300 million a year to the government. But if we needed any more evidence that this government is not serious about free trade, here it is. Instead of viewing cheaper imports as a way of increasing consumers’ purchasing power, the Conservative government views them as a problem to be solved.

After seven years in power, the Conservative trade legacy consists of higher tariffs and more obstacles to foreign investment. The Council of Canadians must be thrilled.

More on DHS's New FY13 Budget

By Keith Edmund White
Editor-in-Chief

More resources on just what DHS's budget, which became official yesterday when President Obama's signed the Fiscal Year (FY) 2013 Continuing Resolution appropriations bill.

(Note:  Author appreciates readers bringing the documents cited below to his attention.)

Readers will find three primary documents below outlining the DHS budget for the remaining 6 months of Fiscal Year (YR) 2013.

Study Highlights Troubling Threats to Critical Infrastructure-Should We Fret Over Canada-U.S. Joint Infrastructure?

ZDNet.com reports on the recent release of Trend Micro Inc.'s 2013 research paper, Who's Really Attacking Your ICS Equipment? 

The report shows attackers didn't wait long to attack a dummy control site emulating an Industrial Control System, similar to systems that could control a water pump or monitor a power plant's output.  

The impact:  Computer system monitoring critical private and public infrastructure in the United States is most likely being attacked repeatedly and on a daily basis.

And it's as simple as having a computer and internet access.  With power system systems, dam networks, and international finance dependent on internet connectivity, all wired nations must grapple with protecting their critical infrastructure.

Former Co-Chair Talks RCC

The former co-chairmen of the Regulatory Cooperation Council offers a concise Bloomberg editorial extolling the virtues of regulatory alignment:

Over the last decade, businesses have been emphasising the need to increase international regulatory cooperation, thus harmonising requirements and eliminating "nontariff trade barriers". At its best, such cooperation opens markets and promotes exports. As a result, it contributes to economic growth and job creation, and it can save consumers a lot of money.

G&M: Kings NHL Coach Sutter Plans to Talk Keystone with Obama

To get a sense of just how how much more Keystone penetrates the Canadian public relative to the American public, The Globe and Mail reports that N.H.L. Coach Darryl Sutter will push Obama on Keystone when he and his Stanley Cup-winning team are hosted by the White House today.

Keystone is not without controversy:  passionate debate continues in Canada and the United States.

But if the White House passes on Keystone, the Canadian-U.S. bilatteral relationship is going to take a hit.

From the article:

The President of the United States is about to get an earful on the Keystone XL pipeline from an unexpected source: the head coach of the Los Angeles Kings.

Darryl Sutter – who is also the owner of a 3,000-acre ranch near Viking, Alta. – plans to weigh in on the pipeline debate when Barack Obama plays host to the reigning Stanley Cup champions on Tuesday.

...


“Absolutely,” he said. “It’s 20 feet underground. How can we not want to keep North America [energy self-sufficient]? Why does the border have to separate that? It doesn’t make sense. For sure, I’m going to ask him.”

Canadian governments are engaged in an all-out effort to secure approval for the pipeline. This month, Natural Resources Minister Joe Oliver and Saskatchewan Premier Brad Wall visited U.S. lawmakers and industry leaders in Chicago, Houston and Washington.

Budget Deal Shields DHS Sequestration, For Now

According to Mickey McCarter's illuminating article at HSToday.us, DHS has been largely spared sequestration's across the board cuts.  But, unless replaced, sequestration will bring back automatic cuts over the next nine years.

From HSToday.us's Under Continuing Resolution, DHS Largely Escapes Sequestration:

Congress agreed Thursday to a continuing resolution (HR 933) to fund the federal government for the rest of fiscal year 2013, providing the Department of Homeland Security (DHS) with a full budget that takes most of the sting out of the automatic budget cuts under sequestration. At least for now. 

Previously, DHS faced cuts across the board in a manner that was allocated to eligible accounts, trimming about five percent of the department's overall budget in FY 2013, according to estimates from Homeland Security Secretary Janet Napolitano. Although the sequester remains in effect under the continuing resolution, the budget bill largely spares DHS from its worst effects for this fiscal year, drawing cuts from other areas to keep budget caps in line with levels spelled out in the Budget Control Act of 2011.

...

DHS could see sequestration cuts in FY 2014 unless the sequester is repealed or DHS is again granted authority to avoid it.

Read the article to see how the FY13 CR impacts DHS's overall budget, especially when it comes to the U.S. Coast Guard. 

Canada Budget Biggest Loser? First Nations

By Keith Edmund White

Editor-in-Chief

Canada's First Nations:  the biggest loser of Canada's 2014 federal budget.

First, there's The Hill Times interview-heavy article emphasizing the Harper government linking federal aboriginal funding to tribes supporting Conservative budget and resource development plans.  

The problem?  The First Nations oppose both the budget and Conservative resource development plans.

Some would call the tactic hardball politics.  Others call it "blackmail" and "[u]nilaterally changing agreements."  From today's article:

"Well, they’re blackmailing us into signing it. That’s what they’re doing.” [Chief Allan Adam of the Athabasca Chipewyan First Nation in Alberta.]

...

The question then comes for the government that if First Nations refuse to sign these agreements and the government refuses to give them money, who’s going to pick up the cost around income assistance, all of those things that are there, what’s going to happen? We’re going to end up with a crisis here. It’s not bargaining in good faith. Unilaterally changing agreements, there’s nothing good faith about that. It’s shocking.”  [NDP MP Jean Crowder, Aboriginal Affairs Critic (Nanaimo-Cowichan, B.C.)]

And last week, rabble.ca published a predictably cutting Conservative aboriginal policy critique.  But whatever their bias, rabble.ca sure seems justified in blasting the Conservative Party over First Nations educational support and reform:

Almost two years ago, the Auditor General put out a thorough and scathing analysis of the dysfunctional and inadequate funding arrangements for First Nations schools.

In response, the Deputy Minister of Aboriginal Affairs, Michael Wernick, told the Commons Public Accounts Committee, in the fall of 2011, that he was sure we would see First Nations education legislation in 2012.

Well, 2012 has come and gone.

There were no commitments on First Nations education in the 2012 budget.

Instead that budget included massive, radical and unprecedented roll-backs of federal environmental oversight and protection and other measures that struck such fear in the hearts of First Nations communities that the Idle No More movement was born.

Why the stand still?  

From the stand-point of this casual observer, a charitable view would be that the issues facing Canada's First Nations go beyond federal initiatives and funding.  And Conservatives and First Nations aren't natural partners: the First Nations are a roadblock to Conservative energy development plans, plans considered critical to Canada's economic security.  

Worse-case:  As small group that has no constituency in the Harper government, what reason is there for Conservatives to 'own' Aboriginal issues--even if it's clear something must be done.

More Resources

2011 Senate Report on Improving First Nations Education

2005 Report on First Nations Economic Development Strategy

First Nations Development Institute

Idle No More Movement

Aboriginal Affairs and Northern Development Canada

Obama Compares Israel-Palestine and Canada-U.S. Relations, Triggers Harsh Hashtag

The Toronto Sun reports on U.S. President Barack Obama comparing the Israeli-Palestinian relationship to the Canada-U.S. relationship.  As you can tell, some didn't appreciate the presidential Canadian name-drop:  

U.S. President Barack Obama is taking heat for comparing relations between Israel and Palestine with Canada and the U.S.

Because Canadians are known for hurling rockets into Buffalo, right?

Obama made the comparison in the West Bank Thursday, saying Canadians and Americans have disagreements, too, but resolve them diplomatically.

“We can’t afford to have our kids in bed sleeping and suddenly a rocket comes through the roof, but my argument is even though both sides may have areas of strong disagreement, may be engaging in activities the other side considers to be a breach of good faith, we have to push through those things to try to get to an agreement.”

For those wanting a hilarious distraction, check out #thecanucksarecoming.

Now, to be fair, Canadians (in a loose sense) burnt down the White House.

G&M: "The 2000s were a lost decade for Canadian exports to the United States"

Yes, the a budget dropped in Ottawa.  

But I'm finding Michael Burt's Globe and Mail article a bit more significant to the Canada-U.S. relationship's overall trajectory:

In short, Canada and the United States are becoming less dependent on one another, and, in most cases, China is the X factor. The Conference Board of Canada discusses these trends, their causes and implications in its recently published report, Walking the Silk Road: Understanding Canada’s Changing Trade Patterns.

The most resilient industries in terms of Canada’s share of U.S. imports are generally service industries. A highly educated work force, similar cultures, and a shared language have helped Canadian firms maintain their competitive position in the U.S. market. In contrast, Canada has generally lost the largest market share in manufacturing industries where labour is a major share of total costs, such as furniture manufacturing, printing and textiles. Industry specific issues can be an additional factor, such as the shift in consumer demand for flooring and cabinets away from traditional hardwood products toward those made from bamboo or more exotic hardwoods.

The link above goes to a webinar; if you want to access the actual December 2012 report, go here. 

 A summary of the report and webinar will be up by next Monday.

Achieving Columbia River Treaty 2.0: Challenges of A 21st Century Update to An International Dam and Power Generation Treaty

By Keith Edmund White

Source:  CRT Digital Library, http://crtlibrary.cbt.org/items/show/125

Editor-in-Chief

A local Washington State paper, talks Columbia River Treaty (CRT) renewal, detailing the ecological pressures that accompany updating a 20^th century power generation-flood control treaty to reflect 21^st century concerns.  But are renewal talks over CRT, a treaty that whose expiration clock starts running in 2014, more likely to stumble over financial terms?  

Then again, will this impressive water-management/power generation treaty, which stretches from British Columbia to Montana, be able to adapt to ecological concerns or the demands of Native peoples on both sides of the border?  

Keith White discusses the CRT's impressive 50-year evolution.

The Columbia River Treaty:  'Kaiser City' Floods, 50 Years Canada-U.S. Flood and Power Cooperation Starts

In May 1948, a ten-foot high deluge inundated the city of Vanport, then the second-largest city in Oregon locate between Portland and Vancouver.  The Vanport Flood not only washed a city (striking “Kaiser City” from the U.S. cultural lexicon), but ushered in a impressive treaty where the United States swapped power generation in return for Canada providing regional flood control.  (Page jump after the photo)

Source:  CRT 2014/2024 Review-Recent  U.S. Entity Study Results available in full below.

9th Circuit Says No to "Computer Strip Searches," Narrows Border Search Doctrine, and May Change the Canada-U.S. Security & Trade Relationship Too

By Keith Edmund White

CrimPro meets border policy courtesy of child pornography.  Why an apparent court victory for digital privacy rights might be a 21st century Trojan horse, and its impact on the Canada-U.S. border security and trade relationship. 

The 9th Circuit Court of Appeals held today (United States of America v. Cotterman) that reasonable suspicion is needed to forensically examine electronic devices seized during a border search (and not risk having any incriminating evidence kicked out of court).

OK, boiled down:  The 9th put up red light to a "computer strip search" without reasonable suspicion.

Might not sound like a big deal, but this decision reflects an interesting development in the suspicionless searches of personal property (yes, there are times law enforcement officers can search your stuff without showing an iota of cause).

Oh, and it might just impact America's border security and trade policies.

Disclaimer:  I haven't fully digested, let alone have the expertise of others, like the Brennan Center for Justice, to fully assess this case.  The post,  found after the jump, simply highlights:

• even a cursory read of the decision's summary suggests that this decision reflects something more complicated than a 'win' or 'lose' for digital privacy rights, and 
• perhaps the most important aspect of the case, whether giving heightened protection against computer strip searches impacts U.S. border security, gets shockingly short attention by the Court.   

U.S. Transportation Budget Woes? Just Copy Canada

By Keith Edmund White

Canada may just save U.S. state legislators from raising taxes to fund road repairs.

Canadian Immigration: Ontario > Quebec > British Columbia

Nothing too shocking (figures match the provinces' overall population trends), besides 2010 representing a 2008-12 high-water mark.

Will Sequester's Border Trade Effects Dampen BTB?

Will sequester dampen the blue skies of BTB?

By Keith Edmund White
Editor-in-Chief

Will one of the unintended victims of sequester be the Beyond the Border Initiative (BTB)?

For now, no.  

But recent reports suggest a prolonged sequester may turn BTB into a moribund agreement. 

2013 Niagara Moot Court Competition Results

The results are in!

Click the image for a full-screen view, and learn more about the 2013 competition here.

NDP's Patry Bloc Bolt: Short-Term Pain, Long-Term Gain?

By Keith Edmund White

Editor-in-Chief

Keith Edmund White on why the pundits are wrong on Patry's Bloc bolt, with some help from recent U.S. party-switching history.  And how the loss of one seat my just hand the NDP Parliament in 2015.

My google-news feed is filled with takes on Quebec NDP MP Claude Patry's switch to, in the National Post's words, the "moribund but still kicking" Bloc Quebecois.  

The BQ now boasts a whopping 5 members in Canada's 308-member Parliament.

But the NDP, Canada's Official Opposition Party, has one less seat.

So does Patry's Bloc party signal closing time for the NDP?