China planning to restrict or stop Canadian ag exports beyond canola

A recent report in the Canadian newspaper the Globe and Mail claims that China plans to restrict or even stop imports of agricultural commodities extending beyond canola.

Before the recent trade dispute between the two countries grain forecasters claimed that China could import more than two million tonnes of peas from this year's crop up from a previous high of 1.3 million tonnes. Gao Huazhi chief executive of Jiangsu Tongliang that imports Canadian agricultural products into China said "purchase plans for wheat, peas, flax seed, and rapeseed meal have all been cancelled". Rapeseed meal is canola meal.

All Richardson International canola shipments to China blocked

According to a recent blog article: "Amid heightened political tensions China blocked all canola exports from Canadian agri-exporter Richardson International Ltd. The move comes amid heightened tensions between the two countries in a dispute over trade and telecom related technology that has ensnared the chief financial officer of the world's largest telecommunications equipment maker, Huawei Technologies Ltd. who faces criminal charges in the U.S. " At the request of the US the CFO of Huawei was arrested last December at Vancouver International airport. This has created tense relations between the two countries. Canada is being sued by the CFO Meng Wanzhou for her arrest. Some analysts see the ban on canola exports and possible restriction of others as a response to Canada's treatment of the Huawei executive Wanzhou.

It is not clear why Richardson's exports to China have been halted. Officials at China's General Administration of Customs had no comments on the situation. If there is an extended ban on canola exports this will not only hurt Richardson, Canada's biggest grain handler but has ramifications for Canada's agricultural economy. China is the world's top importer of canola. China's purchases of canola from the US are also negatively effected by US duties and China's response.

Oilseeds, led by canola represent a leading component of China export category and made up 17 percent of all exports in 2017. Just yesterday, the Canada Council of Canada president Jim Everson claimed that China had expanded its restriction on buying canola to all Canadian exporters, not just James Richardson International.

The issue is also examined by an Alberta paper:On Thursday, March 21, the Canola Council of Canada said in a statement Chinese importers are unwilling to buy Canadian canola. To add to tensions, the Western Producer quoted the Globe and Mail Friday saying China plans to restrict or stop imports of Canadian agricultural commodities beyond canola. They say purchase plans for wheat, peas, flax seed and rapeseed meal have been canceled.The Council says discussions have not indicated the issue will soon be resolved.

Previously pubished in Digital Journal

Some companies have complaints about Canadian marijuana legislation

Although cannabis infused edibles are not yet legal in Canada, they are still available illicitly. The black market for edibles could continue to flourish as businesses complain of complicated government regulation slowing the rollout of legal edibles.

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Edibles are a big market, offering cannabis customers a method of use often preferable to smoking. With an estimated $1 billion in the US and Canada being spent on edibles in 2017, the market is expected to grow to $4.1 billion by 2022 according to BDS Analytics.

Regulations governing edibles and vaping to be in force by October 17, 2019

Food and beverage makers as well as cannabis companies are hoping to tap into the expected demand and are preparing to roll out legal pot-infused edibles once the new regulations go into place in later this year. However, the process faces problems and the parameters for legal production are not clear.

Cannabinoid-infused products that will be legalized under the new regulations include inhalable extracts as well as solids, beverages and topicals, like lotions.

Jeff Zietlow, of licenced producer CannTrust Holdings Inc. said: "It's a challenge. Everyone is running for the October deadline, and we're trying to develop multiple products at the same time. The more certainty you have, the easier it is to innovate products."

Health Canada published proposed edible pot regulations last December and has finished public consultations on February 20. It is now in the process of reviewing responses before it published final regulations.

Companies preparing for new legal cannabis products

Greenhouse Juice Co. based in Toronto is planning to produce beverages infused with cannabidiol. It will be helped by a $9 million investment from Canopy Growth Corp's venture capital division. Also, the licensed producer Organigram has partnered with Canada's Smartest Kitchen to develop edibles. Initially it will focus on the chocolate confectionery market. And Hexo Corp., based in Quebec, has joined with Molson Coors for a joint venture called Truss which will make and sell cannabis-infused drinks but they will be non-alcoholic.

Reactions to proposed rules vary

Jessika Villano, owner of Buddha Barn dispensary in Vancouver, says she hopes the government genuinely wants her opinion although she was sceptical: "I don't feel like anybody's been listening. I feel a little bit deflated, actually," Villano notes that a single serving would be limited to 10 milligrams of THC, the psychoactive ingredient in cannabis, and each serving must be individually wrapped. However Villano claims that some cancer patients use up to 650 milligrams per dose. The regulations would outlaw higher does products. She claims that substitute products would be much too expensive for users.

Bruce Linton, CEO of Canopy Growth Corp., said the rules aren't perfect, but they're very good. Canopy Growth is developing a calorie-free cannabis beverage. Linton did not have an issue with the 10 milligram limit per serving for drinks. He said that the one area where the limit might be too strict is with respect to vape pens which usually have a higher does so they may be used on several occasions.

However, Linton was generally pleased with the regulations saying that the government was moving forward in a well-regulated, incremental way. He said that if necessary the dosage could be increased later. He concluded:"In the context of how governments normally work, this is astounding."

Previously published in Digital Journal

Most Canadians would prefer the majority of vehicles sold in the future to be EVs.

The poll carried out by Clean Energy Canada shows that 64 percent of Canadians would prefer electric vehicles to be the majority of vehicles sold in the future. 72 percent of respondents thought EVs would become the majority of cars sold globally.

The Clean Energy Poll

The poll of driving-age Canadians breaks down the respondents by province, generation, and political party. Only supporters of the Conservative Party don't want the majority of cars sold to be EV's and even of that group 46 percent preferred a majority of cars be EVs.

71 percent of those polled thought that the change would happen in 15 years or less, and 56 percent thought it would happen in 10 years or less. A majority of those polled said that if they were to buy a new car now they would likely prefer and EV.

On air pollution, climate impact, fuel costs, maintenance costs, reliability concerns and driving enjoyment respondents preferred EV's except for the last two. Even there on driving enjoyment the response was close to even.

The Canadian poll numbers are similar to those of a poll of US drivers. In that poll 74 percent said that EV's are the future of driving. The American poll found that charging station availability was the largest concern for those considering the purchase of EVs. In Canada 45 percent of respondents said that knowing there are enough charging stations was really important.

Canadians also showed strong support for government rebates and tax incentives as a way of encouraging people to by EVs. They also supported government investment in charging infrastructure.

The survey was carried out between March 11-13 2019 online. 1,495 Canadian residents were polled all over age 18.

Electric vehicle sales in Canada

Statista has data for EV sales from 2013 to 2018. Sales have risen dramatically each year. In 2017 there were only 17,086 EVs sold according to Statista whereas in 2018 this more than doubled to 42,700.

There is a more detailed report by electrik.co for 2017:Electric vehicle adoption in Canada grew significantly last year according to a new report.There are now close to 50,000 plug-in vehicles in the country and sales grew 68% in 2017.

That’s based on a new report published yesterday by Canada’s Fleetcarma.The bulk of the increase can be attributed to a 120% increase in Ontario, which drove sales in the entire country. Historically, Quebec has been driving EV sales in Canada despite not being the most populous province, but Ontario is now taken the lead for the first time after introducing some of the most generous EV incentives ever seen, including a direct rebate of $14,000 on some electric cars.

The report gives the data for sales in Ontario, Quebec and British Columbia over several years. All other provinces have very low figures with Alberta being the province with the fourth largest sales with only 430 cars sold in 2017. Manitoba has over 5,000 hybrid vehicles but only 188 battery only EVs registered. In 2017 in Canada as a whole battery-electric vehicles (BEV) outsold the hybrids (PHEV).

Previously published in Digital Journal

Canada allows extradition process to continue against Huawei Chief Financial Officer

(March 2) The Canadian government will allow the extradition process to the US of Meng Wanzhou Chief Financial Officer (CFO) of the Chinese tech giant Huawei to proceed after what it called a thorough and diligent review of the evidence in the case.

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The next step in the process is for a judge to determine if the extradition process should continue.

Charges against Meng

Meng is the daughter of the founder of Huawei Ren Zhengei. She was arrested in Vancouver last December at the request of the US on charges of fraud. Meng served on the board of Skycom, a Hong Kong based company that is alleged to have done business with Iran in 2009 and 2014 in violation of US sanctions. A separate case involves Huawei allegedly stealing intellectual property associated with a phone testing robot developed by T-Mobile. The arrest of Meng in Canada has strained relations between Canada and China.

The arrest of top Huawei executive Meng Wanzhou has sparked an escalating diplomatic crisis between Ottawa and Beijing

-, CTV/AFP/File

US regarded Huawei as a potential threat to national security

President Trump is expected to issue an order that will limit that sales of Huawei 5G equipment within the US shortly. Huawei has denied any wrongdoing or inappropriate dealings with the Chinese government. As reported in a recent Digital Journal article the US has also tried to convince European countries not to use Huawei technology.

Meng is out on bail while she waits to next process to continue. If she is extradited she will face trial in the US. Meng's attorney told The Verge: “Our client maintains that she is innocent of any wrongdoing and that the U.S. prosecution and extradition constitutes an abuse of the processes of law.” Another Digital Journal article also covers the Meng extradition process.

The next steps

A government article notes: "The next step is the judicial phase where a judge hears the case. If the judge decides a person should be committed for extradition, then the Minister of Justice must decide if the person should be surrendered (extradited) to the requesting country. The Minister of Justice will not comment on the facts of this case given he may need to make a decision later in this process.

Under the Extradition Act and the Treaty, Canada must review the alleged conduct and determine whether it could have resulted in a jail sentence of 1 year of more if it had taken place in Canada. The conduct for which extradition is sought must also be considered criminal in both the United States of America and in Canada. This is known as “dual criminality”. Canada’s extradition process protects the rights of the person sought by ensuring that extradition will not be granted if, among other things, it is contrary to the Canadian Charter of Rights and Freedoms, including the principles of fundamental justice."

Meng is to appear at the British Columbia Supreme Court on March 6 to confirm that an Authority to Proceed has been issued. At that time a date will be scheduled for the hearing. At the hearing the Canadian government will make its detailed arguments available to the Court. The evidence will become part of the public record. The extradition hearing is not a trial. If there is a trial it will be in the US after she is extradited. Meng will remain on bail during court proceedings. The process could take months or even longer.

Previously published in Digital Journal

Canadian crypto-exchange in big trouble after founder reported dead in India

(February 5)_Gerald Cotten, founder of large Canadian crypto exchange QuadrigaCX is reported to have died in India back in December. Since then the company has been in deep trouble as Cotten did not leave information on how to access cryptocurrencies held in storage.

The Wallets

A recent article notes: "Any user who wants to transfer bitcoin requires a wallet — located on a server. So-called hot wallets are for live transactions — while so-called cold wallets are for storage to keep coins safe from hackers. Robertson's affidavit says that assets tallied in those wallets show that Quadriga owes clients approximately $250-million as of Dec. 17, 2018. But court documents say the company can only access "hot" wallets at this time."

Jennifer Robertson is Cohen's widow and executor of his estate. Robertson has said she has hired a security expert to aid her recover information about Quadriga Fintech Solutions Corp. and several other companies Cotten registered in BC. She claimed that Cotten's companies had more than 115 thousand clients who had invested more than $70 million. She estimates they are now worth about $250 million in December 2018.

Nova Scotia court issues a stay of proceedings

The Nova Scotia Supreme Court has granted QuadrigaCX an order for credit protection after the reported sudden death of founder Gerald Cohen in India. Cohen was just 30 years old. His death was said to be due to complications of Crohn's disease. The 30-day stay is a bid to stop lawsuits against the company at this point. The hope is that the key to the wallet will be found.

Maurice Chiasson, the company's lawyer, told the court he wanted time to search for about $250 million Canadian in assets that has been inaccessible since his death. The death of Cohen has left about 115,000 users without access to their funds. Court filings indicate that some users have large balances with the largest affected user's balance valued at almost $70 million. Understandably, some users are in panic mode.

QuadrigaCX employees say the only way to access much of the cash was lost when Cotten died. This is rather strange. Usually there is some arrangement such as is described on the appended video in which several people have the keys and at least two of them need to sign on at the same time. This allows for access when someone is not available and also serves as a check against one individual getting access without the other knowing. The appended video argues that Cohen is probably not dead and that there is a scam involved with him transferring coins out of the wallet. Cotten apparently was the only person with the recovery code to access the secure "cold wallets". However, as the video pointed out Cohen had said in an earlier interview that there was a three person arrangement with two being needed to open the wallet.

Access to the cold wallet

Quadriga customer Elvis Cavalic said to CBC: "With a cold storage wallet, it's completely offline. It's not connected to the servers or the infrastructure set up by the exchange. It's usually a physical device that you would plug into a computer and requires a button to be pressed and it might need a password."

Apparently the way to access that wallet was not left with his wife Jennifer. It is passing strange why Cohen would not leave this information with others or that others do not have they keys with several being required to sign in at the same time to the device. He surely should have been aware of the problems should he die or be incapacitated.

Nikhilesh De, a CoinDesk reporter, said that money in the cold wallet could be gone forever if no one can find the key saying: "The idea behind cold storage is that they're inaccessible unless you have the appropriate keys and the access and coins have been lost in the past. There will only be a finite number of bitcoins ever issued, and any bitcoins that are lost are lost forever."

The coins could be lost forever too if Cotten is still alive and is able to withdraw the coins without detection.

Cotten's encrypted laptop will be handed over to lawyers acting for the creditors. Eventually it will be given to a court-appointed monitor. A Nova Scotia RCMP spokesperson confirmed to the CBC that they are assisting an investigation into QuadrigaCX that is being led by the RCMP of Toronto West. Lawyers for the company say that they are considering a possible sale of the company to cover their debts. Given that a considerable amount of their assets cannot be accessed no company might be interesting in buying it.

Previously  published in Digital Jouirnal

Canada not only supports Venezuela coup but helped plan it

Canada has not only supported the US recognition of Juan Guaido the Venezuelan opposition leader in the National Assembly as president but also was involved in planning that preceded the coup.

 

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Canada and the Lima Group

Next Monday February 4th Canada will host members of the Lima group of South and Central American countries in an attempt to find a resolution to the situation in Venezuela Canadian Foreign Affairs Minister Chrystia Freeland has announced.

Freeland said: "Since August 2017, Canada has been working closely as a member of the Lima group, which is comprised of over a dozen Latin American countries and the Caribbean, to address the Venezuelan crisis. The Maduro regime relinquished any remaining legitimacy when it seized power through fraudulent and undemocratic elections on May 20, 2018. We now call upon Nicolas Maduro to cede power to the National Assembly, the only remaining democratically elected institution in Venezuela, in line with that country's constitution."

The May 20, 2018 elections Freeland is referring to was the election of Maduro as president. While numerous countries rejected the results there were also many who accepted it. Two divergent accounts of the election are linked, one in Wikipedia, the other in Venezuelanalysis

Not only does Freeland not identify the election she just categorically calls them undemocratic and fraudulent. Of course she does not tell you either that the functions of the National Assembly have long been taken over by the elected Constituent Assembly. Mainstream media do not ever mention this body. See my recent Digital Journal article.

Friedland has already spoken with Juan Guaido two weeks before the US and Canada recognition of him as president. She congratulated him on unifying opposition forces. Her conversations allowed Canada to respond almost immediately after Guaido declared himself interim president according to an official who spoke to the Globe and Mail.

Ben Rowswell, Canada's former ambassador to Venezuela said that he was astonished by the Lima Group consensus that quickly followed Guaido's declaration that he was president. Bowswell said:"It’s an unusual move for any country to comment on who the president of another country should be – to have countries that represent two-thirds of the population of Latin America do it in minutes shows there was a remarkable alignment that’s got to be nearly unprecedented in the history of Latin America. What you might be seeing here is success of some extraordinary quiet diplomacy.”

The quiet diplomacy that planned the coup

An AP article notes: "The coalition of Latin American governments that joined the U.S. in quickly recognizing Juan Guaido as Venezuela’s interim president came together over weeks of secret diplomacy that included whispered messages to activists under constant surveillance and a high-risk foreign trip by the opposition leader challenging President Nicolas Maduro for power, those involved in the talks said."

In mid-December Guaido went to Washington, Columbia and Brazil to brief them on the mass demonstrations planned to coincide with Maduro's swearing in on January 10. However, the article also notes: "Playing a key role behind the scenes was Lima Group member Canada, whose Foreign Minister Chrystia Freeland spoke to Guaido the night before Maduro’s swearing-in ceremony to offer her government’s support should he confront the socialist leader, the Canadian official said."

Now Canada is carrying on with its task by hosting the Lima Group without the US. The US need not be present while Canada is doing its job for it and the US is not a member of the Lima Group.

I append a pro-Maduro video and then a Fox News anti-Maduro video. The latter is interesting in that Bolton who is interviewed specifically says that the US is interested in Venezuelan oil.

Previously published in Digital Journal

Volkswagen discusses using Ford's US plants to produce its own EVs

U.S. auto manufacturer Ford is talking with Volkswagen in Washington, DC about the German auto maker possibly using Ford plants to make electric vehicles and sharing its platform with Ford in the U.S.

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EVs to be manufactured may include microbuses

Back in June the two companies announced that they were planning an alliance to cooperate on some future products. Diess said that the alliance would not include equity stakes for the automakers. Volkswagen chief executive officer Herbert Deiss said recently that he is looking for a place to build the company's electric cars in North America.

EV models include classic microbuses

Although Diess did not say what exact models may be made in the U.S., they may include the I.D. Crozz and the I.D. Buzz.

The I.D. Crozz is expected to go on sale in 2021, and the I.D. Buzz in 2022. The Buzz is a remake of the classic microbus. However other possibilities include pickup trucks shown at recent auto shows that are sold worldwide.

Diess said: “We need additional capacity here in the United States, we need an additional car plant for VW and Audi combined.” Audi, which is now part of the Volkswagen group. is also planning to sell vehicles in the U.S. including several models that will be based on VW's MEB platform designed to produce more affordable models.

A recent article notes: "Volkswagen is expecting to launch at least three new all-electric vehicles in the U.S. in the next five years.The first will be the 2020 introduction of the ID, a unique electric-only that would replace the e-Golf; the much-anticipated, all-electric ID Buzz, a remake on the counterculture-icon microbus, due in 2022; and the I.D. Crozz, a rugged-hatchback spinoff. A flagship sedan, previewed by last year’s I.D. Vizzion concept, could also arrive around 2022."

Ford could use VW's EV architecture

If Ford and VW come to an agreement on sharing the development of EVs, both companies could use VW's EV architecture. VW is planning large investments in EVs up to $50 billion.

VW hopes that by just 2025 fully a quarter of all the groups' vehicles will be solely powered by electricity. They expect to have some 50 different fully battery powered vehicles plus 30 plug-in hybrids.

Using Ford plants would save VW money

Although there are some reports and rumors about VW expanding its existing plant in Chattanooga, Tennessee or even building a new plant, sharing facilities with Ford could achieve the aims of VW without the company having to invest a great deal of money in a new or expanded facility. It would help localize production as well and help shield it from currency fluctuations or trade wars.

Neither company has released any specifics about their deal, and both said they were still in the process of working out details.

Previously published in Digita Journal

Auto union leader and PM Trudeau to fight GM closure of Oshawa plant

(November 27) Jerry Dias, the head of Unifor union that represents General Motors auto workers in Oshawa, has met with Canadian PM Justin Trudeau and was optimistic that the two will put up "one hell of a fight" to keep the plant open."

Dias and Trudeau will fight to keep the Oshawa plant open Dias claims

Dias warned that if GM is able to get away with closing the Oshawa plant it could be on track to a complete disinvestment in Canada. Dias said he is more optimistic about a solution after an hour-long meeting with PM Trudeau with his staff. Dias said: "He's certainly going to roll up his sleeves and speak to General Motors and do every thing he can to get their attention..The prime minister doesn't view it as a fait accompli — he's going to roll up his sleeves and fight with us."

Dias called the meeting constructive as they shared their disappointment at GM's decision to lay off more than 2,500 workers. Dias said that their focus will be on the families hurt by the global announcement. They discussed also their recent discussions with GM and with Trudeau's call with U.S. President Trump earlier in the day about the auto industry and how best they could stand up for those affected in both the U.S. and Canada. Dias said that Trudeau and Trump should pursue a coordinated, binational policy to stop GM from closing its plants in Oshawa, Ohio, Michigan and Maryland. Given Trump's America First policy it is unlikely that this can be successful especially since Trump has been critical of Trudeau and does not seem to get along with him.

Dias wants new tariffs on GM-made vehicles from Mexico

Dias is calling for tariffs on GM-manufactured vehicles from Mexico. He claims that while GM is making cuts both in Canada and the U.S. the company is investing more in Mexico. It already builds almost one million cars each year in Mexico. This suggestion is probably a non-starter given that Canada has just finished negotiating a three-way trade deal with Mexico and the U.S.

Dias warned that GM could intend to end up by shutting down all operations in Canada. If Oshawa closes the only assembly plant left in Canada would be in Ingersoll Ontario. That plant manufactures the Equinox which is also made in Mexico. There is a GM propulsion plant in St. Catherines Ontario that builds engines and transmissions that are then shipped to assembly plants for installation.

Dias also warned that GM's plan to divest from Canada would lead to the collapse of the Canadian auto parts industry.. Dias would like to see GM shift production of some new vehicle to Ottawa to avoid closing the plant. Right now its makes the Impala and Cadillacs. The cars are facing declining sales. It also does final assembly on two pickup models.

Union ready to take aggressive action to save Oshawa plant

If GM does not reverse its decision, Dias said that workers are ready to take prolonged action. Dias said he would meet with the president of the United Automobile Workers in the U.S. to discuss possible joint actions as the closings also effect plants in the U.S.

Dias claimed that Canada could not just sit by as GM moved more vehicle production to low-wage jurisdictions such as Mexico. The newly negotiated trade agreement probably allows GM to shift production to Mexico I expect. Dias said: "They aren't closing our damn plant without one hell of a fight. Our plant in Oshawa is not closing and we'll do whatever it takes. We're sick and tired our jobs going to Mexico. Period. We will do anything to stop that. We need a very aggressive strategy."

Dias has a friendly relationship with the federal Liberal government as he worked closely with the government as it renegotiated NAFTA with the U.S. after the U.S. made a deal with Mexico.

As the appended video shows the Oshawa plant has seen declining production for years and its size is a mismatch with its present level of production. It is highly unlikely that GM will try to keep the plant open especially when the Liberal government seems clearly not interested in pushing for this. Trudeau is much less reactive to the closures than Trump.

Trudeau vows to help

Trudeau vowed to help get GM workers 'back on their feet' as GM stood firm on closing the Oshawa plant. This does not seem to be in sync with Dias' view which is to keep the plant open. Innovation Minister Navdeep Bains also said the government was ready to support the 2,500 workers who will be affected by the closing of the plant. Both have pointed out that GM appears unwilling to change its mind about closing the plant as it is pursuing a broad plan of global restructuring. GM argues that the closure are required because of shifts in consumer buying patterns.

The response of the Liberal government makes it clear that they are not even contemplating a big fight to save the Oshawa plant from closing. Instead they will provide those laid of with some unspecified form of assistance.

GM has had financing of a bailout through large government loans

The Canadian economist Jim Stanford tweeted: "A black day for Oshawa, and for Canada. This is what financialization and globalization hath wrought. GM paid out $25b in dividends & other cash to shareholders in last 5 yrs. Its manufacturing is high-quality and profitable. But still that's not enuf: coupon-clippers demand more"

In June 2009, GM filed for bankruptcy protection. In its filing in U.S. Bankruptcy Court, it said it had $82.29 billion US in assets and $172.81 billion in liabilities as of the end of that fiscal year. The Canadian Ontario and Federal government provided GM about $9.5 in financial aid. The governments received an 11.7 percent stake in GM in return.

Both the U.S. and Canadian government received shares in GM although they sold quite a few in 2011. The Canadian federal government sold off its last shares in 2015. In October, Export Development Canada showed there was an outstanding loan to the GM Corp. of more than $1 billion. The government apparently wrote off over $1 billion owed by Chrysler.

Previously published in Digital Journal