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Tuesday, December 17, 2024

How Trump’s tariff threat pushed Canada’s Trudeau to brink of resignation

Canada’s embattled prime minister faces fresh calls to resign after top minister steps down over possible ‘tariff war’. 



LONG READ News Donald Trump By Jillian Kestler-D'Amours 17 Dec 2024 Al Jazeera

Montreal, Canada – For weeks, Justin Trudeau has tried to reassure Canadians that his government has everything under control.

US President-elect Donald Trump’s threat late last month to slap 25-percent tariffs on his country’s northern neighbour has dominated the headlines, with Canadian business leaders and politicians hammering the prime minister about how he plans to respond.

This week, the simmering crisis took an unexpected — and escalatory — turn when Canada’s finance minister, Chrystia Freeland, announced she was stepping down from her post because she and Trudeau were “at odds about the best path forward”.

“The incoming administration in the United States is pursuing a policy of aggressive economic nationalism, including a threat of 25 per cent tariffs. We need to take that threat extremely seriously,” Freeland wrote in her resignation letter on Monday.

“That means keeping our fiscal powder dry today, so we have the reserves we may need for a coming tariff war. That means eschewing costly political gimmicks, which we can ill afford and which make Canadians doubt that we recognize the gravity of the moment.”

Freeland’s surprise resignation — and the letter criticising her longtime political ally — have sent shockwaves across Canada.

They have also sparked renewed calls for Trudeau, already weakened by months of internal divisions and plummeting public support, to step down as leader of his Liberal Party in advance of elections next year.

“Everything is spiralling out of control,” Conservative Party leader Pierre Poilievre told reporters on Monday in the Canadian capital, Ottawa.

“We cannot accept this kind of chaos, division [and] weakness while we’re staring down the barrel of a 25-percent tariff by our biggest trading partner and closest ally,” said Poilievre, adding that Trump is “a man who can spot weakness from a mile away”.

“There’s an overwhelming appetite right now for change,” Laura Stephenson, a professor of political science at Western University in Ontario, told Al Jazeera in an interview before Freeland’s resignation and the new calls for Trudeau to step down.

“And the faith that Canadians have that change is going to come from the government that’s been in power for so long is very low.”

Trudeau has served as prime minister since 2015, when he and his centrist Liberal Party won a majority government. That election brought an end to nearly a decade of Conservative rule under former Prime Minister Stephen Harper.

‘Appetite for change’

Even before Freeland’s shock announcement, or Trump’s tariff threat, Canada was at a fraught moment, politically.

The country has been gearing up for a federal election next year that is widely expected to end a decade of Trudeau-led Liberal Party governments and usher in Poilievre, a hyper-partisan, right-wing populist, as the next Canadian prime minister.

It is also grappling with a housing crisis, rising costs and increasingly divisive political rhetoric.

The Liberals also lost the backing of the left-leaning New Democratic Party (NDP) in September, when NDP leader Jagmeet Singh announced his party was withdrawing from a 2022 agreement to prop up Trudeau’s minority government.

While the NDP has continued to vote alongside the Liberals so far, the government is more vulnerable if a no-confidence vote is triggered in the House of Commons. The result of that vote could force Trudeau to call an early election.

“They’re fighting themselves instead of fighting for Canadians,” Singh said of the Liberals on Monday. “For that reason, today, I’m calling on Justin Trudeau to resign. He has to go.”

Most recent polls have also shown Trudeau facing a difficult — if not insurmountable — challenge in trying to win back public support in advance of the looming election, which must be held before late October 2025.

A Leger survey from November found that 42 percent of Canadians said they planned to vote for the Conservatives in the next election, compared with 26 percent who backed the Liberals and 15 percent who picked the NDP.

Nearly seven in 10 Canadians also said they were dissatisfied with Trudeau’s government, the same survey found.

With Trudeau’s tenure now nearing the 10-year mark, Canadians have grown weary of his government — and like many electorates around the world, there is “incumbent fatigue” in Canada.

But more than that, Trudeau has personally become a target of growing anger in recent years around key issues, from his government’s handling of the COVID-19 pandemic to the cost of groceries and the housing crisis.

“We’re in a very different place I think than we were when Trump was first elected” in 2016, said Barbara Perry, director of the Centre on Hate, Bias and Extremism at Ontario Tech University, noting that right-wing talking points have gained ground across Canada in recent years.

She also pointed to a recent Abacus Data poll that showed Canadians viewed Trump more favourably than Trudeau — 26 percent to 23 percent — as evidence of a general shift.

“For [Trump] to be that popular is really disturbing and, I think, does suggest that there is room for right-wing forces to emerge in the Canadian context,” Perry told Al Jazeera.

“We saw little glimmers of right-wing political narratives [in 2016], but I think we’re seeing more than glimmers now,” she continued.

“It really does bode well for the far right [and] bode ill for those who would prefer to see much more progressive and inclusive policies and discourses.”

US-Canada ties

Against that backdrop, Trump’s tariff threat has loomed large — as have questions about how the Trudeau government plans to deal with the incoming US administration.

In a Truth Social post on November 25, the president-elect said he would impose the 25-percent tariff on Canada and Mexico until both countries stop the flow of drugs and migration through their borders.

“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!” Trump wrote.

Trudeau — who was prime minister during Trump’s first term, from 2017 to 2021 — responded to the threat by promoting a united, non-partisan “Team Canada” approach to the incoming US administration and stressing the importance of strong US-Canada ties.

The two countries share the longest international border in the world, stretching 8,891km (5,525 miles), and they exchanged nearly $2.7bn ($3.6bn Canadian) in goods and services daily in 2023, according to Canadian government figures.

The Canadian government promised to enact stricter border measures, and the prime minister also made a surprise visit to Trump’s Mar-a-Lago estate in Florida in late November to discuss the way forward.

“Thanks for dinner last night, President Trump. I look forward to the work we can do together, again,” Trudeau wrote on X after the talks, in a nod to his familiarity with the US leader.

During Trump’s first term, the Trudeau government’s view was that it could protect Canadian interests by negotiating “from a position of allyship, not from a position of enmity”, said Christine de Clercy, a political science professor at Trent University in Ontario.

Despite the changed political landscapes in both countries, Trudeau has appeared to be continuing with that approach, de Clercy told Al Jazeera in an interview before this week’s developments in Ottawa.

“And this time around, he’s not the rather inexperienced prime minister that he was in 2017 when Mr Trump was first sworn in,” de Clercy said.

“That has value because Canadians quite correctly are rather worried about the future of the Canada-American relationship for the next four years.”

Right-wing alignment

Still, the Trump administration of 2025 is expected to be different from its first iteration.

Trump has largely eschewed centrist Republicans for a crew of die-hard, MAGA believers, and he is coming into the White House with a clear plan on the economy, immigration and foreign policy.

At the same time, Trudeau has been the target of heated criticism from Trump supporters, right-wing US media outlets and even some of the figures who will play key roles in the president-elect’s new administration.

On December 11, for instance, Trump adviser and billionaire Elon Musk used his social media platform X to call Trudeau “an insufferable tool”. He added that the Liberal Party leader “won’t be in power for much longer”.

That kind of sentiment is typical for many in Trump’s orbit who view Canada under Trudeau as a “communist land with mandatory COVID vaccinations and government lockdowns”, said Asa McKercher, a professor who studies Canada-US relations at St Francis Xavier University.

“Canada is a part of the American culture war stuff, and Mr Trudeau is really a figure of hatred for a lot of people in the [Make America Great Again] world,” McKercher told Al Jazeera.

“A lot of the charm offensive that Canada was able to do with people in the White House [during the last Trump administration] is not going to fly this time.”

Meanwhile, like Trump, Poilievre — who was first elected to the House of Commons two decades ago, in 2004 — is hyper-partisan and prone to ad hominem attacks.

He regularly lambasts journalists, the “woke” left and other perceived opponents. He also makes sweeping statements about defending “freedom” and blames Trudeau personally for Canada’s ills.

“There are a lot of commonalities between them,” McKercher said of Trump and Poilievre.

“Mr Poilievre portrays himself as this macho, alpha kind of guy — very much fitting the manly, macho attitude of the Trump administration and the MAGA movement.”

Trump as line of attack

Trump’s return to the White House — and his tariffs plan in particular — have also given Poilievre and the Conservatives an opportunity to attack Trudeau as weak in the face of the Republican leader.

When asked how he would deal with possible US tariffs, Poilievre said on November 15 that he would “fight fire with fire”.

“Trump wants what’s best for American workers. I want what’s best for Canadian workers. And we’re not going to be suckers any more,” the Conservative leader said in a radio interview. “Trump would love nothing more than to keep Trudeau in power because he can walk all over him.”

Conservative politicians at the provincial level have also been hitting out against Trudeau, using Trump as a line of attack.

Some have called Trump’s concerns about irregular migration at the US-Canada border “valid” and urged the prime minister to do more.

Right-wing Ontario Premier Doug Ford, for example, said the federal government must take a more proactive approach to the border, calling Ottawa “slow to react” and “stuck on its backfoot”.

Amid that rhetoric, recent polls show that many Canadians now believe Poilievre is better equipped than Trudeau to deal with Trump.

An Abacus Data poll last month found 45 percent of Canadians said Poilievre had a better chance of getting positive results for Canada during a second Trump presidency. Only 20 percent said Trudeau was better positioned.

Another more recent poll (PDF) had the two leaders effectively tied on the question of who was better suited to manage Trump, with 36 percent choosing Poilievre compared with 34 percent who picked Trudeau.

The CBC News Poll Tracker, which aggregates federal election polling data across Canada, also had the Conservatives with a 21-percentage-point lead over the Liberals on Monday.

“The numbers are just stacked against either the Liberals or the NDP and in favour of the Conservatives,” said Perry.

“The negative messaging coming from the Conservatives — about everything being broken and the federal government’s responsible — that has become so firmly embedded in our psyches.”

‘End to the Trudeau era’?

So far, Trudeau has yet to comment publicly on Freeland’s resignation, including whether it will affect his plans to lead the Liberal Party through the next election.

The prime minister held a meeting with his cabinet on Monday evening in Ottawa, where several Liberal MPs urged him to step down, according to a report by CBC News. Sources told the public broadcaster that Trudeau has yet to make a decision.

While it remains unclear what happens next, Trudeau is on arguably shakier political ground than ever before and many experts are questioning how long he can stay on as leader after losing one of his top political allies in Freeland.

“This episode cannot help but shake those most loyal to Trudeau. Not sure he survives the end of 2024,” Stewart Prest, a political science professor at the University of British Columbia, wrote on social media on Monday.

“By the end of 2025, we’ll be reflecting that a single post from Trump put in motion the events that will have finally brought an end to the Trudeau era.”⍐

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Note-Illustration-The Week 

‘Big win’ narrative of Indian media shows New Delhi’s unease, lack of confidence

 

‘Big win’ narrative of Indian media shows New Delhi’s unease, lack of confidence

When Nepal's prime minister made his maiden visit to China early this month - a departure from the usual practice of the country's leaders making India their first official destination - the visit, along with some other regional developments, left India very worried. So, when Sri Lankan President Anura Kumara Dissanayake was in India from Sunday to Tuesday for his first overseas visit as head of state, some Indian media outlets described it as a "carnival." 

An Indian media outlet ran an opinion piece on Monday with the catchy headline, "Sri Lanka's Pivot Away From China Is A Big Win For India's Foreign Policy." According to the article, the visit underscored "how India remains central and of topmost priority for Sri Lankan leaders and policymakers, despite growing Chinese influence." Meanwhile, the Indian media extensively reported on the Sri Lankan president's "big assurance" to India during his visit that the country would not permit its territory to be "used in any way, in a manner that is detrimental to the interest of India." 

《 By Global Times

Published: Dec 17, 2024 

Regarding the choice of visits by Nepal and Sri Lanka, whether India is worried or cheering for victory, it is forcing regional countries to choose sides between China and India. Long Xingchun, a professor from the School of International Relations at Sichuan International Studies University, told the Global Times that Indian media's coverage of the Sri Lankan president's visit reflects India's mentality as a "regional" power, rather than a global one. 

In sharp contrast to India, China does not require small- and medium-sized countries in South Asia to choose sides; rather, it hopes that these countries will make choices that are most beneficial to their own futures - specifically, to work with relevant countries to promote regional peace, stability and development. This is why China-Sri Lanka relations have remained steady over the years, contrary to what the abovementioned article claimed - "Sri Lanka's pivot away from China." Chinese projects such as the Colombo Port City and the Hambantota Port have significantly boosted Sri Lanka's economic and social development, as well as the overall development of the region. For Sri Lanka, China is a partner that brings peace and development.

With such facts on the table, it is impossible for some Indian media outlets to succeed in sowing discord in China-Sri Lanka relations. While they have attempted to do so, they have ignored the right of a sovereign country like Sri Lanka to choose its partners and have underestimated the ability of the Sri Lankan government and people to determine what is in their best interest.

After all, forcing regional countries to choose sides and adopt an "India first" foreign policy reflects India's long-held, bossy and narrow-minded attitude toward other countries in South Asia, a region India views as its sphere of influence. That is why India perceives China's engagement with regional countries such as Nepal and the Maldives as an attempt to wean them away from New Delhi.

"Three mindsets of India are on display - sour grape, paranoia, and pomposity," says Zhang Xiaoyu, an expert in South Asian Studies, Communication University of China.

China is willing to see its neighboring countries develop friendly relations with other countries. This shows China's diplomatic confidence. In contrast, the "big win" mentality exhibited by some Indian people and media reflects their country's unease and lack of confidence. Some Indian media outlets often suggest that China is using its economic power to lure South Asian countries and view China's participation in regional affairs with skepticism. However, they should consider why China is welcomed in the region. Regional countries' persisting enthusiasm for China stems from its capability and willingness to provide development opportunities these countries desire.⍐ 

Monday, December 16, 2024

UK’s economy shrinks unexpectedly by 0.1% in October

 


UK’s economy shrinks unexpectedly by 0.1% in October 

GDP figures underline scale of challenge for Labour to get the economy growing

《Guardian staff and agencies Fri 13 Dec 2024》

Britain’s economy shrank by 0.1% in October, underlining the scale of Labour’s challenge to get the economy growing.

Figures from the Office for National Statistics showed the unexpected fall in GDP was driven by declines in construction and production, while the dominant services sector stagnated.

Economists, polled by Reuters, had expected the economy to grow by 0.1%. It follows a decline of 0.1% in September and sluggish growth of 0.1% in the third quarter of the year, according to figures last month.

Keir Starmer said last week it was the government’s “aim” to make the UK the fastest-growing G7 economy, while pledging to deliver higher real household disposable income by 2029.

However, a range of companies have said they plan to slow spending and hiring after Labour’s budget in October, which included £40bn of tax rises.

Economists said the second successive monthly contraction in GDP meant the economy had grown for only one of the five months to October, and might mean the economy shrank for the fourth quarter as a whole.

The chancellor, Rachel Reeves, said the figures were “disappointing” but insisted Labour was putting the economy back on track for growth.

“While the figures this month are disappointing, we have put in place policies to deliver long-term economic growth,” said Reeves. “We are determined to deliver economic growth as higher growth means increased living standards for everyone, everywhere.”

Business groups have complained that measures announced in the budget, including an increase in employer national insurance contributions, add to their costs and deter investment.

Production output fell by 0.6% in October because of falls in manufacturing, mining and quarrying, while construction fell by 0.4%.

“The economy contracted slightly in October, with services showing no growth overall and production and construction both falling,” said Liz McKeown, the director of economic statistics at the ONS.

“Oil and gas extraction, pubs and restaurants and retail all had weak months, partially offset by growth in telecoms, logistics and legal firms.”

Paul Dales, the chief UK economist at Capital Economics, said it was “hard to tell how much of the fall is temporary as activity was put on hold ahead of the budget”.

“The clear risk is that more activity was cancelled or postponed after the budget,” he said, citing weak PMI data. “There is every chance that the economy went backwards in the fourth quarter as a whole.”

Figures last week showed that growth in the UK’s dominant services sector slowed to its lowest rate in more than a year in November as firms digested business tax rises in the budget.

The closely watched S&P Global UK services PMI survey scored 50.8 in November, slowing from 52.0 in October.

The pound fell to its lowest level against the US dollar in nearly two weeks, dropping as much as 0.4% in early trading.

Analysts said the contraction in the UK economy could make it more likely that the Bank of England monetary policy committee will vote to cut the base rate when they meet later this month.

“These latest figures will send a chill through the corridors of Westminster, as the government’s growth agenda looks increasingly at risk,” said Isaac Stell, investment manager at Wealth Club.

“With more and more companies stating they will cut back on hiring and investment to deal with the rising costs related to the budget, the question will be, where will growth actually come from?”

The disappointing growth figures came as a survey by GfK showed that consumer confidence remained suppressed in December amid the “continuing uncharitable view on the UK’s general economic situation”.

The market research company’s latest consumer confidence survey said that consumers “don’t know where they are going” and are still thinking twice about big-ticket purchases.

Anna Leach, the chief economist at the Institute of Director, said: “As we head further into the festive season, and consumer confidence remains in the doldrums, many businesses are continuing the process of updating their business plans for the coming year to accommodate significant increases in employment costs.

“The recent blows to businesses have made the task of achieving stronger sustainable growth harder.”

Separate ONS trade data showed imports and exports of goods fell in October. Exports to the European Union were higher than exports to the rest of the world for the first time in nearly a year.

“A weakening export climate amid rising global policy uncertainties and declining business confidence, exacerbated by the impact of recently announced budget measures, raises concerns about sustaining the growth momentum,” Hailey Low, associate economist at NIESR, said.

Last month, the Bank trimmed its annual growth forecast for 2024 to 1% from 1.25% but predicted a stronger 2025 with 1.5% growth, reflecting a short-term boost to the economy from the budget.⍐

British politics enters the “death zone”

British politics enters the “death zone”

Every party in British politics is in danger, whether they think it or not


Funny things happen to the human body above 26,000 feet (8,000 metres). Brain cells die. Blood turns to thick red custard. Vessels in the eye spontaneously burst. Brain swelling can lead to coma or worse. Mountaineers call it “the death zone”, and with good reason. In British politics the death zone is less visceral, but no less serious. Any party that spends too long in the 20s or below in the polls is in deep trouble. Usually only one major party is unlucky enough to be so disliked. Today, they all are.

《  Britain | Bagehot, Dec 11th 2024 The Economist 

Britain’s main parties are remarkably unpopular. Labour sits at 26% in the polls on average, eight points below what was already the most efficient (or disproportionate) landslide victory in British electoral history. It is joined by the Conservatives, also on 26%, which is only a shade above their performance in the general election, itself a historic low. Nigel Farage’s populist band Reform uk ticks up to 21%, which is enough to trigger excitable headlines but not enough to guarantee replacing the Liberal Democrats as Britain’s third party, never mind usurp the Conservatives as an alternative party of government.

Each is a slip from falling into an electoral crevasse. First-past-the-post is generous to the party on top and merciless to those beneath it, which have to scrap for every second of media coverage, every pound from donors and every inch of voter head space.

Strangely, few in Westminster seem concerned. In the Labour ranks, success has led to complacency. Polls are dismissed. The party commands a majority of 163 mps and has at least four clear years of government before they face voters again. Yet clouds are already gathering in the valley, even if the view from the top—or from inside a ministerial car—looks splendid. Labour Together, a think-tank close to the leadership, believes the danger is losing voters to the right; others argue that the danger lurks to the party’s left, with people drifting to the Greens. So far both camps are correct: Labour is bleeding support in all directions.

Similar denial afflicts the Conservatives. Tory mps have been cheered by Labour’s lousy start. Yet although Labour’s support has bled, the Conservatives have barely benefited. A few months after their worst performance in a general election they remain more or less where they were: a historically unpopular party.

Some around the party are willing to face reality: “Many, many people came to hate the Conservative Party and will for a long time,” wrote James Frayne in a report for the Centre for Policy Studies, another think-tank. Most, however, are so blasé they notice only the unpopularity of Labour rather than their own. It is the same confused logic that leads people suffering hypothermia to strip naked and run into the snow.

If any party can be optimistic about life in the death zone, it is Reform UK. This is largely because it has the least to lose. The party has only five MPs and is barely five years old. It is still underresourced, with a handful of staff and little cash, akin to early-20th-century mountaineers having a crack at Everest in pyjamas and tweed. Even so, the latest iteration of Mr Farage’s two-decade-long quest to blow apart British politics is arguably his most successful. One poll put Reform UK second, behind the Conservatives and above Labour.

In Mr Farage’s telling Britain is on the brink of one of its once-a-century political ruptures, when a party is shifted from being a party of government to a straggler. For all his bullishness, Reform uk is just as close to death as glory. Such is the surreal workings of Britain’s first-past-the-post electoral system, there is a minimal gap between Reform uk winning two, 20 or 200 seats at the next election; between a historic breakthrough or another chapter in Mr Farage’s almost-made-it political life.

The only other time all major parties entered the death zone was in the pits of the Brexit years, in the spring and early summer of 2019. Theresa May’s dying Conservative government tacked along in the low 20s. Jeremy Corbyn’s historically unpopular Labour Party joined them. Mr Farage’s outfit, then named the Brexit Party, peaked at roughly the same level. It was an extraordinary period, which was treated as such by everyone in Westminster. Commentators dragged out “King Lear” quotations to sum up the rage of the public: “I will do such things, / What they are, yet I know not: but they shall be / The terrors of the Earth.”

In 2019 British politics managed to escape the death zone, but it was a destructive endeavour. Mrs May was removed and replaced by Boris Johnson, who purged his party, triggered a constitutional crisis and forced an election. It was a painful experience that few remember fondly, but it gave voters what they wanted: an end to the stasis of a hung parliament and Britain’s departure from the European Union. At least the screaming stopped.

Into thin air

This time a strange incuriosity has befallen Britain’s political class. The voters are screaming just as loudly as they were in 2019, yet few are paying the calls any heed. Back then the cause of the discontent was obvious. Now the screams are harder to decipher. Are Britons angry about the state of the NHS, or the economy, or immigration? A good chunk of Westminster has decided to zip its tent and hope that the storm passes. Politics is relative, runs the logic. It is sometimes enough simply to be the least hated. Whoever does triumph, by default, will take a victory lap and claim death was never near.

Despite its fatal name, most climbers survive the death zone. Even the deadliest mountains kill only a small percentage of those who attempt to scale them. Nevertheless, preparation, caution and bravery are all needed to survive. Not many in Westminster are yet willing to accept that the stakes are that high. Forgetting the risks is the quickest way to die.

Illustration: Nate Kitch

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