Canada and Japan get ‘next level’ serious

From: POLITICO Ottawa Playbook - Thursday Sep 21,2023 10:02 am
Presented by CPAC: A daily look inside Canadian politics and power.
Sep 21, 2023 View in browser
 
Ottawa Playbook

By Nick Taylor-Vaisey, Zi-Ann Lum and Kyle Duggan

Presented by CPAC

Thanks for reading Ottawa Playbook. Let's get into it.

In today's edition:

→ A trio of Cabmins tees up today’s Big News with Japan.

→ The top players to watch at this afternoon's finance meeting.

→ What to expect when VOLODYMYR ZELENSKYY rolls into Ottawa on Friday. 

DRIVING THE DAY

FILE - Japan's Minister for Economy, Trade, and Industry Nishimura Yasutoshi speaks during a meeting with U.S. Trade Representative Katherine Tai at the White House Complex in Washington, on Jan. 6, 2023. Japan announced a decision Tuesday, June 27, to reinstate South Korea as a preferred nation with fast-track trade status starting July 21, virtually ending a four-year economic row that was further strained during their bitter historic disputes. (AP Photo/Susan Walsh, File)

Japan’s Economy, Trade and Energy Minister Yasutoshi Nishimura is in Ottawa today. | AP

PLAYBOOK BRIEFING — Canada will sign two agreements with Japan this morning that could give Japanese companies first dibs on tax credits Ottawa introduced in response to JOE BIDEN’s climate law.

— Visiting VIP: Japan’s Economy, Trade and Energy Minister YASUTOSHI NISHIMURA is in town for a signing ceremony with his counterparts: Energy Minister JONATHAN WILKINSON, Innovation Minister FRANÇOIS-PHILIPPE CHAMPAGNE and International Trade Minister MARY NG.

— Sneak peek: Champagne flexed his pitchman skills during an interview with Playbook on the eve of the announcement, billing Nishimura’s visit and the agreements as signs Canada is taking its relationship with Japan “to the next level.”

Shared antipathy of China helps, too.

“They want to ensure that they're working with friends and allies, who will be able to support them through thick and thin,” Wilkinson said of Japan’s interest in Canada. He sat next to Champagne in a small conference room in West Block. “We are a safe harbor relative to many other countries in the world — so there's a lot of interest in Canada, and we're looking to take advantage of it.”

Two nonbinding memoranda of understanding will be signed by lunchtime.

— Diplomatic drips: Thanks to leaks in Japanese media last week, we already knew the agreements would cover battery supply chains and industrial research and development.

— What’s new new: The agreements are timed with the impending arrival of Canada’s proposed investment tax credits, Ottawa’s C$80 billion response to the Biden administration's Inflation Reduction Act.

Finance department officials told a parliamentary committee this week that one of the five proposed investment tax credits for carbon capture, utilization and storage is “approaching the finish line.”

Wilkinson said the credits should be finalized “soon,” which means “significant amounts of capital costs for mining and for processing will actually be covered by the federal government in order to actually kickstart and accelerate” deals with Japanese companies.

— Sounds familiar: The MOUs will launch new dialogues between the two countries covering the battery supply chain and industrial research and development.

Similar MOUs signed with Germany led Volkswagen to choose St. Thomas, Ont. for its first gigafactory, lured by C$13 billion in production subsidies. The Canadian government has faced pushback from business groups over the generous subsidies.

Champagne, who was key in landing the Volkswagen deal, smiled when asked if the new agreements with Japan are a precursor to potential big deals with Japanese automaker Toyota.

"This is really key at a time where we're trying to diversify our trading partners — and certainly Japan is becoming a very key partner on the science and technology side," he said.

— The bigger picture: The agreements with Japan are certain to be touted as a win for the government’s Indo-Pacific strategy, which has been a topic of discussion lately because of eroding ties with India.

 

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SECOND THOUGHTS — NDP Leader JAGMEET SINGH tells Playbook that Ottawa’s Indo-Pacific strategy merits another look in light of allegations that link India to a Canadian murder case.

“The goal of trade agreements is to trade with allies that share values to promote the type of world that we want to have where we respect human rights,” which Singh said should feature prominently in trade talks.

“We should look at justice for the people of the community — so, human rights of the people. We should look at labor rights, environmental rights, and a big part of that is human rights in the respect of individuals — and that is something now that is definitely in question.”

— How Canada’s trade minister sees it: Ng, who spoke to Playbook by phone on the last day of her Covid-19 quarantine, defends the strategy. She says it's comprehensive, and beyond Ottawa’s interest to have India as a key ally in the region. The United States also feels this deeply.

“There's an active criminal investigation that is going on so I don't want to comment further,” Ng said. “Mostly because I don't want to compromise that work, which is really, really important work.”

— Konnichiwa, Japan: Ng and Nishimura will reunite in Osaka and Sakai for the G7 trade ministers meeting in late October. Canada hopes to make a splash with a trade mission timed in parallel to the meeting.

— Speaking of travel: The Globe reports: Ottawa calls for calm after India issues travel advisory.

— Overnight news: The Canadian Press is reporting that India's visa processing center in Canada is suspending visa services.

TODAY'S HIGHLIGHTS

US Secretary of State Antony Blinken, Canadian Minister of Foreign Affairs Melanie Joly, and Canadian ex-diplomat Michael Kovrig, who was detained in China, attend the High-Level Dialogue on the Declaration Against Arbitrary Detention in State-to-State Relations, in New York, Wednesday, Sept. 20, 2023, on the sidelines of the 78th United Nations General Assembly. (Timothy A. Clary/Pool Photo via AP)

U.S. Secretary of State Antony Blinken and Foreign Affairs Mélanie Joly with Michael Kovrig in New York on Wednesday at a discussion on arbitrary detention. | AP

— Prime Minister JUSTIN TRUDEAU is in New York City.

— Deputy PM CHRYSTIA FREELAND is in Ottawa.

8 a.m. Trudeau will meet with the Haitian PM ARIEL HENRY.

8:30 a.m. Trudeau will chair the High-Level Meeting of the United Nations Economic and Social Council Ad Hoc Advisory Group on Haiti. Foreign Minister MÉLANIE JOLY will also attend.

11:30 a.m. Trudeau will hold a media availability.

1:15 p.m. Freeland will make an announcement and hold a media availability. Other Cabmins joining her: Innovation Minister FRANÇOIS-PHILIPPE CHAMPAGNE, Housing Minister SEAN FRASER, Small Business Minister RECHIE VALDEZ and Treasury Board President ANITA ANAND.

3:30 p.m. The House national defence committee meets for a briefing on the security situation in the Indo-Pacific region. Witnesses include national defense director of staff Maj. Gen. PAUL PRÉVOST and Taipei Economic and Cultural Office Representative HARRY HO-JEN TSENG.

4:20 p.m. Trudeau departs NYC for Canada.5:30 p.m. Tory Leader PIERRE POILIEVRE headlines a Bay Street fundraiser at the National Club, which prides itself on drawing leading lights in the fields of "banking, law, insurance, marketing, medicine and technology."

 

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For your radar


BUDGET PREVIEW — It's that time again. IAN LEE, the Carleton prof, is testifying at a House finance committee's pre-budget hearing. Lee is first on the docket at today's two-hour session, starting at 3:30 p.m.

— Just a thought: Budget season isn't real until Lee, who has registered 465 interventions at various parliamentary committees since 2006, gives his two cents. If he didn't show up, the space-time continuum could well fold in on itself.

— But we digress: A pair of pension managers, PETER LETKO and DANIEL BROSSEAU, are testifying on behalf of their eponymous firm. They've made noise in recent years about a stark decline in Canadian pension funds' investment in Canadian companies.

The trend must reverse for the good of the country, they say. Among the hundreds of pre-budget stakeholder briefs and dozens of witnesses still to be heard this autumn, the federal budget crafters are said to be listening closely to Letko and Brosseau.

— The elevator pitch: The pair penned a Toronto Star op-ed in the final week of the 2021 federal election that insists pension funds should think domestically:

"When institutional investors send Canadians’ hard-earned savings outside of Canada, they aren’t just moving money out of the country, but also some of its most important associated economic benefits. That means less innovation, fewer jobs and reduced economic activity and security for Canadians — the majority of whom are beneficiaries of pension plans that appear increasingly and inexplicably uninterested in investing in Canada."

— Background reading: The Globe's ANDREW WILLIS devoted summertime column inches to Letko and Brosseau's ideas, which he wrote are "gaining traction in federal and provincial political circles, despite ardent opposition from fund managers."

Willis noted the ironic twist that both men once lobbied the federal government to relax restrictions on pensions investing outside Canada. (They were successful.)

— In the weeds: Expect this afternoon's testimony to draw on a research paper published by the firm that probes the impact of the decades-long trend of divestment in Canadian companies — and which offered detailed recommendations budget-makers will read closely.

— Also appearing: Canadian Labour Congress, Native Child and Family Services of Toronto, Front d'action populaire en réaménagement urbain, and housing analyst BEN RABIDOUX. ICYMI, Playbook recently caught up with Rabidoux.

 

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HALLWAY CONVERSATION

Ukranian President Volodymyr Zelenskyy addresses the 78th session of the United Nations General Assembly at United Nations headquarters.

Ukranian President Volodymyr Zelenskyy addresses the 78th session of the United Nations General Assembly on Tuesday. | Mary Altaffer/AP Photo

A FRIENDLY TRIP NORTH — Ukrainian President VOLODYMYR ZELENSKYY is set to deliver an address to Parliament in Ottawa on Friday. He'll also visit Toronto. What does he hope to achieve? What should we expect from his speech?

Playbook asked YAROSLAV BARAN, the co-founder of Pendulum Group, a member of the Canada-Ukraine Foundation's board of directors and organizer for Café Ukraine in Ottawa.

This conversation has been edited for length and clarity.

Why is Zelenskyy coming to Canada now? He was already in New York City at the U.N. this week. Is a short trip north simply a matter of geography?

Geography is a big part of it. Another part of it is taking an opportunity to reinforce his message. The longer the war goes on, the more there's a risk of "Ukraine fatigue" in countries other than Ukraine. When the war started, there was saturation coverage here in Canada, day in day out, 24 hours, live.

Fast forward a year and a half later, it's no longer breaking news. Zelenskyy needs to maintain our attention on the war if he's going to maintain our support. He's not going to win this war without international assistance. He needs arms, and he needs international legal cover. You only get that by maintaining interest and awareness.

Zelenskyy delivered a remote address to Parliament last year. How might these remarks differ from those remarks?

I am guessing that this speech is going to be primarily in English, whereas the previous one was in Ukrainian. Zelenskyy's English has improved tremendously over the last year, through use. More and more, he's been doing interviews and speeches in English. That is going to make it more impactful for an audience hearing it directly rather than through the voice of an interpreter coming in through an earbud.

World leaders have in the past slipped a message to the Canadian government into parliamentary addresses. Do you expect that from Zelenskyy?

No, not at all. The specifics are always communicated through backchannels or through official channels. There's an ongoing conversation between Global Affairs Canada and the Ukrainian ministries of health, defense, and the Office of the President. They're in constant communication in terms of official needs, whether it's military or humanitarian. This address is really a macro messaging exercise.

Zelenskyy is likely to receive a standing ovation from everybody in the House chamber. How important is that for him?

It is important, because we have been witnessing what's happening south of the border, particularly in the Republican Party. A majority of Republicans are still backing the idea of military and financial support for Ukraine. But that support has eroded. And that has been a conscious, deliberate campaign since the war started. TUCKER CARLSON, a Kremlin propaganda repeating machine, has had an impact on the public.

When Zelenskyy looks at the U.S., he's starting to get a little bit worried, because he sees support diminishing, he sees what appears to be a legitimate debate on the issue now — and that wasn't the case a year and a half ago. He does not want that to seep into other places. It's very important to see the entire Canadian Parliament is of one mind on this.

Any idea why Toronto is on the itinerary?

The Ukrainian diaspora community is basically headquartered in Toronto. One hundred years ago, it would have been Winnipeg. These days it's Toronto in terms of concentration of Ukrainian-Canadians and head offices of Ukrainian-Canadian organizations. If you're going to have a community event, or any kind of a gala or fundraiser, Toronto is the obvious place to do it.

PAPER TRAIL


TOP OF THE HEAP — Canadian diplomats haven’t expensed sports tickets in the Big Apple since at least the start of 2022 — but that doesn’t mean they haven’t caught some games there free of charge.

Documents tabled in Parliament detail sports and cultural events tickets gifted to bureaucrats, many of which were provided to the government as “part of partnership agreements with the cultural institutions” or through invitations by “Canadian cultural institutions.”

A Global Affairs response to a question by Conservative MP LUC BERTHOLD reveals 19 events various bureaucrats attended, including a Raptors/Knicks game, Carnegie Hall orchestral concerts, a show by the National Ballet of Canada, comedy club acts and a Rangers/Maple Leafs game.

The most recent listing was when the consul general (checks notes: TOM CLARK) caught a Knicks/Heat game at Madison Square Garden on May 5.

 — Who needs tickets: Diplomats have long considered cultural and sporting events tools of the trade.

The department views cultural diplomacy as a “means to advancing our foreign policy objectives through increased access to decision-makers and influencers,” the paper said.

Expensing tickets can be politically explosive — especially in tough economic times — and pricey gifts can come across badly, too, often raising conflict-of-interest concerns.

The department did not record how much the tickets were worth. They were considered gifts of “nominal value” when “taking into account the local New York context,” and the department insists that “in no instance was the objectivity of any of the diplomats influenced.”“In one particular instance where the gift may have been considered of greater value, the mission consulted with the department’s values and ethics division, which advised there was no conflict of interest.”

 

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MEDIA ROOM


DOMINIC CARDY, the former New Brunswick NDP leader who went on to serve as a Progressive Conservative minister in that province, is now interim leader of the Canadian Future Party.

DEAN BENNETT of The Canadian Press reports that Alberta is set to release its long-promised report on whether the province should quit the Canada Pension Plan.

PAUL WELLS ventured to Hamilton, Ont., where rosy federal polls have the Conservatives looking to pick up an unlikely seat. There's a twist: former mayor and Liberal MP BOB BRATINA is helping the local Tory.

— The Record explains the impact of a cyberattack on Canadian airports suspected to have been carried out by pro-Russian hackers.

— From The Narwhal: ‘Treated like machines’: wildfire fighters describe a mental health crisis on the frontlines

— ICYMI from Nunatsiaq News: Nunavut Premier P.J. AKEEAGOK forecasts double-digit economic growth in 2024

Playbookers


Birthdays: HBD to Senator MARIE-FRANÇOISE MÉGIE and to JOE VOLPE, JOE SPINA and ED PICCO.

Send birthdays to ottawaplaybook@politico.com.

Spotted: Former U.S. ambassador to Canada BRUCE HEYMAN’s “toque time” selfie at Lake Louise … GCSurplus selling “women's nuptial outfits and accessories,” including a white wedding dress and a veil, with a minimum bid of C$500.

Peloton asking the House finance committee to have the “government launch a public awareness campaign to encourage Canadians to adopt an active lifestyle” … A bevy of budget asks from regular folks outside the fishbowl, including one from someone who “did not know your committee existed” or that she could send in suggestions until she read ARMINE YALNIZYAN’s column in the Star.

Movers and shakers: Ontario Cabinet minister KALEED RASHEED resigned from his post, and left the Progressive Conservative caucus, amid allegations related to the Greenbelt scandal punishing the government.

PROZONE


If you’re a , don’t miss our latest policy newsletter by KYLE DUGGAN and ZI-ANN LUM: Singh calls for Indo-Pacific rethink.

In other Pro headlines:

U.S. President JOE BIDEN launches Climate Corps amid pressure from green and youth groups.

EU institutions reach deal on anti-greenwashing legislation.

Defense CEOs want help cutting China ties.

U.S. House Financial Services Committee advances bipartisan bill with narrower approach to investing in China.

Bloomberg pumps another $500M into ‘Beyond Carbon’ campaign.

On the Hill


Find the latest House committee meetings here.

Keep track of Senate committees here.

9 a.m. Conservative MP BEN LOBB’s private member’s legislation, Bill C-234, is up for discussion at the Senate agriculture committee. Sen. DAVID WELLS, the Senate sponsor of the bill, will be there — as will seven department officials from agriculture and agri-food, finance and environment to take questions on Lobb’s proposal to amend the Greenhouse Gas Pollution Pricing Act.

11 a.m. Canadian Labor Congress President BEA BRUSKE and Edge Realty Analytics housing analyst BEN RABIDOUX will be witnesses at the House finance committee, where MPs are holding pre-budget consultations.

11 a.m. The House environment committee will spend most of its meeting behind closed doors discussing its report on clean technologies.

11 a.m. The House public accounts committee will discuss committee business in front of cameras before turning them off to review reports on three auditor general studies.

11:30 a.m. The Senate social affairs committee meets to study Canada’s temporary and migrant labor force.

11:45 a.m. The Senate legal and constitutional affairs committee meets to take Bill S-212 through clause-by-clause consideration.

3:30 p.m. The House national defence committee will receive a briefing on the Indo-Pacific region.

Behind closed doors: The House agriculture committee meets; the House status of women committee also has “committee business” on its agenda; the House fisheries committee continues its review of a draft report of MPs’ study on ecosystem impacts and management of pinniped populations; and the Senate foreign affairs committee meets to discuss “future business.”

TRIVIA


Wednesday’s answer: Late Progressive Conservative MP WILLIAM MURRAY SMITH donated a collection of pysanky, traditional Ukrainian eggs, to the Library of Parliament in 1962.

Props to ANJUM SULTANA, QASIR DAR, KRISTA OUTHWAITE, BOB GORDON, GEORGE SCHOENHOFER and ROBERT MCDOUGALL.  

Today’s question: VOLODYMYR ZELENSKYY will be in Ottawa Friday and will make his second address to the House of Commons. Tell us … when and where did the Ukrainian president make his very first North American debut?

Send your answer to ottawaplaybook@politico.com

Want to grab the attention of movers and shakers on Parliament Hill? Want your brand in front of a key audience of Ottawa influencers? Playbook can help. Contact Jesse Shapiro to find out how: jshapiro@politico.com

Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, Luiza Ch. Savage and Emma Anderson.

 

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