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  • Author: Colin Robertson
  • Publication Date: 06-2019
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: On Friday, June 28, Japanese Prime Minister Shinzo Abe hosts the leaders of the 19 major economic nations and the European Union in Osaka, Japan. As G20 finance ministers noted after their meeting earlier this month “growth remains low and risks remain tilted to the downside. Most importantly, trade and geopolitical tensions have intensified.” Created in the wake of the 2007-2008 “Great Recession”, the G20 is economic multilateralism at work, an insurance policy to prevent globalization going off the rails. This 14th G20 summit is the culmination of a year-long series of ministerial meetings, hosted throughout Japan.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Canada
  • Author: Ross Fetterly
  • Publication Date: 06-2019
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: Defence budgets seldom remain constant, despite the long-term orientation required in defence planning. However, short-term fluctuations in funding can disrupt military programs and activities, and the impact can last several years. This is, in part, due to the unique mix of personnel, equipment and operations, which the defence budget funds. In times of rapid and unplanned defence budget reductions, short-term decisions can be made that are not necessarily in the best interest of the efficient and effective management of the armed forces. Indeed, significant unforecasted funding reductions could produce and reinforce dysfunctional behaviour. Defence budget reductions, to be effective, must include reductions in each of personnel, operations and maintenance, and capital categories in order to maintain a balance between current demands and building future capability. This study uses the Royal Canadian Navy to demonstrate the fundamental cost relationships in the management and operation of defence forces, which become evident during periods of rapid funding reductions. Fiscal year 2004-2005 is used as the baseline year for the study. The Canadian navy is used as a case study, although similar case studies could have been done for the Canadian army or air force. The Canadian navy has warships divided between the East and West coasts, with one naval base on each coast. This study reduces the number of ships, and associated base support on each coast, in a defined sequence until all ships are eliminated, and illustrates potential savings throughout this process. The study concludes that unless infrastructure, as well as the number of military and civilian personnel, is reduced as ships are decommissioned, savings are minimal.
  • Topic: National Security, International Affairs
  • Political Geography: Canada
  • Author: Randolf Mank
  • Publication Date: 06-2019
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: Canada’s contemporary foreign policy has been shaped by deep integration with, and dependence on, the United States, offset by multilateral support for a rules-based international order. The Trump administration’s confrontational nationalism, combined with other global events and trends, has now disrupted Canada’s position and assumptions. This raises the question of whether or not it’s time for a Canadian foreign policy review. While the Trudeau government deserves credit for several initiatives, a series of discontinuities in Canada’s domestic and foreign policies suggests that our interests could be better served. The Canadian government has two main options: it can follow its current path of adjusting its policies in an ad hoc fashion, while waiting out the Trump administration and hoping for more favourable successors, or it can attempt to set Canada on a new path, in which case a foreign policy review would be warranted.
  • Topic: International Affairs
  • Political Geography: Canada
  • Author: Tetyana Payosova, Gary Clyde Hufbauer , Euijin Jung
  • Publication Date: 04-2018
  • Content Type: Policy Brief
  • Institution: Peterson Institute for International Economics
  • Abstract: The mechanics of US withdrawal from the North American Free Trade Agreement (NAFTA) have been widely explored, with an emerging consensus among legal experts that President Donald Trump does have the authority to pull out of the accord. This Policy Brief examines the legal procedures in Canada and Mexico in the event that either country decides to withdraw or terminate NAFTA. Relative to the United States, Canada and Mexico have clearer legal procedures. To terminate NAFTA in Canada, the Department of International Trade would send the notice to withdrawal upon approval by the Cabinet and the Order in Council. In Mexico, the president can notify withdrawal from NAFTA under Article 2205, following Senate approval. To raise tariffs to the MFN level, Canada requires amendment of federal statutes that requires passage in both chambers of the Parliament through regular procedures. To raise its tariffs, Mexico requires a bill to amend federal legislation that has the approval of the Senate and the Chamber of Deputies.
  • Topic: International Political Economy
  • Political Geography: Canada, Mexico
  • Author: Hugh Stephens
  • Publication Date: 04-2017
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: The Trump administration’s arrival has scrambled the cards in the trade policy world. Not only will the North American Free Trade Agreement (NAFTA) be reopened with uncertain results, but President Donald Trump has scuttled the Trans-Pacific Partnership (TPP) by announcing the United States’ withdrawal from the agreement. Canada, originally cool toward the TPP, pushed hard to be included in it. The TPP became the centrepiece of Canada’s Asia trade strategy, notwithstanding some public ambivalence on the part of the Trudeau government. With the TPP in its present form now in limbo, Canada still has options in Asia. First, it can keep an open mind with regard to the possible reconstitution of the TPP in another form, such as “TPP Minus One” (i.e., minus the U.S.). It should also push to reopen the bilateral negotiations with Japan that were suspended when that country joined the TPP negotiations. Canada is already exploring the possibility of an economic partnership agreement with China, perhaps on a sectoral basis, and simultaneously, it should actively pursue negotiation of a free trade agreement with the Association of Southeast Asian Nations (ASEAN) community. This could in time provide Canada access to the Regional Comprehensive Economic Partnership Agreement (RCEP) currently being negotiated among 16 countries in the Asia-Pacific region and would position Canada well in the eventuality that a Free Trade Area of Asia-Pacific (FTAAP) emerges. In the meantime, uncertainty regarding NAFTA’s future needs to be addressed. This uncertainty makes it more difficult for Canada to attract Asian investment but it also provides further impetus for Canada to diversify its trading relationships and to explore stronger relationships with Asian economies.
  • Topic: International Affairs, Global Political Economy
  • Political Geography: Canada, Asia
  • Author: Andrea Charron, James Fergusson
  • Publication Date: 05-2017
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: While most attention on NORAD and North American defence cooperation is focused on the modernization of the North Warning System (NWS), significant developments have occurred that suggest modernization will be accompanied by significant evolutionary changes to the Command. The new threat environment, centered upon Russian behaviour in Crimea, Ukraine and Syria, a new Russian strategic doctrine, and a new generation of advanced Russian long-range cruise missiles dictate not only layered, multi-sensor early warning system, but also changes in NORAD command arrangements. In addition, the maritime component of the cruise missile threat, alongside continuing concerns of terrorists employing freighters as cruise missile platforms, raise the question whether NORAD should evolve into a binational air-maritime defence command. These considerations are central to the ongoing Evolution of North American Defence (EVONAD) study, emanating from the Canada-US Permanent Joint Board on Defence, under the lead of NORAD, in collaboration with the Canadian Joint Operations Command (CJOC) and US Northern Command (the tri-command structure). The final result is difficult to predict. However, it is clear that both modernization and evolution will be driven by the militaries engaged, with civilian authorities guiding the process, and the public and Canadian government not paying attention.
  • Topic: International Relations, Defense Policy, International Security
  • Political Geography: Canada
  • Author: Alan Stephenson
  • Publication Date: 05-2017
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: It is time for the Canadian government to conduct a holistic review of Canada’s national security complex. The Defence Policy Review is floundering as a consequence of an uncooperative world, Canada’s domestic security institutions require legislative empowerment, and the election of Donald Trump has placed increased pressure on Canadian security and defence. Securing the U.S.’s northern border is a no-fail mission for Canada as peace and prosperity depend upon it. However, this must be done within Canadian security norms and values. Only a ground-up examination of the Canadian national security system will elicit a comprehensive understanding of the current deficiencies that will allow focused alignment of government objectives, policies and public funds. Crisis management requires a strategic plan with clear objectives from which to conduct concurrent and coordinated activities. The Trudeau government has the team in place; now, it needs a new National Security Policy statement to assist in “lead turning” an unconventional U.S. administration steadfast in its stance over national security.
  • Topic: International Relations, International Security, Immigration
  • Political Geography: America, Canada
  • Author: Sarah Goldfeder
  • Publication Date: 05-2017
  • Content Type: Policy Brief
  • Institution: Canadian Global Affairs Institute (CGAI)
  • Abstract: On Jan. 23, the first Monday after being sworn in as president of the United States, Donald Trump signed a presidential memorandum that laid the groundwork for exiting the Trans-Pacific Partnership (TPP). The TPP was the elegant solution to a host of hold-over irritants from the North American Free Trade Agreement (NAFTA) as well as a way to address wholly new issues of trade and commerce. In the wake of this decision, Trump also promised a wholesale reworking of NAFTA, in which everything would be on the table. In the days since, the Trump trade team has been off to a rocky start. Finally, after months of discussion, the notification incumbent for use of the Trade Promotion Authority (TPA) was provided to Congressional leaders on May 18, 2017. Mexico has taken it all in stride, as it took almost immediate advantage of the blusterous U.S. rhetoric to outline its demands for any NAFTA discussion. Canada meanwhile plays the sphinx, open about its willingness to negotiate, but not much else. The U.S. may find that it’s less ready for this round of negotiations than it wanted to be, but its partners are well placed to unite and drive a hard bargain.
  • Topic: International Political Economy, International Affairs
  • Political Geography: Canada, Global Focus
  • Author: Daniel Henstra, Jason Thistlethwaite
  • Publication Date: 09-2017
  • Content Type: Policy Brief
  • Institution: Centre for International Governance Innovation
  • Abstract: Floods cause more property damage than any other hazard in Canada, and water-related losses now exceed fire and theft as the main source of property insurance claims. Public spending on flood relief has grown, and is projected to increase dramatically over the next decade, so governments have been changing their policies to reduce their financial exposure by shifting responsibility to homeowners. An implicit assumption of this policy shift is that individual homeowners must share greater responsibility for protecting their property by purchasing newly available flood insurance. Evidence is presented suggesting that consumer demand for flood insurance may be insufficient for economic viability. Low risk perception and a moral hazard created by government disaster assistance limit incentives for purchasing insurance.
  • Topic: Environment, International Security
  • Political Geography: Canada
  • Author: Jeff Rubin
  • Publication Date: 09-2017
  • Content Type: Policy Brief
  • Institution: Centre for International Governance Innovation
  • Abstract: The claim that additional pipeline capacity to tidewater will unlock significantly higher prices for bitumen is not corroborated by either past or current market conditions. Recent international commitments to reduce global carbon emissions over the next three decades will significantly reduce the size of future oil markets. Only the lowest-cost producers will remain commercially viable while high-cost producers will be forced to exit the market. The National Energy Board should consider a rapidly decarbonizing global economy when assessing the need and commercial viability of further pipelines in the country and use Western Canadian Select as the price benchmark when evaluating the economic viability of any new oil sands projects. Pension plans need to stress test their long-term investments in the oil sands in the context of a decarbonizing global economy.
  • Topic: International Political Economy
  • Political Geography: Canada