The News Rundown

Canada faces pressure at Nato summit for riding on 'coattails'

Canada is under mounting pressure to increase its military spending as it continues to fall short of the target set out for Nato members, raising fears that the country is becoming an outlier among its allies.
That message was made clear this week as Prime Minister Justin Trudeau attended the Nato summit in Washington DC to mark the military alliance’s 75th anniversary.
Canada, a Nato-founding member, ranks seventh overall in the amount of money spent on defence among the 32-nation alliance, but it falls way short of the alliance’s doctrine, which requires Nato countries to spend at least 2% of their GDP on the military.
Using that metric, Canada - which spends 1.34% of its GDP on its military - is ahead of only Slovenia, Turkey, Spain, Belgium and Luxembourg in the alliance. By contrast, the UK spends just over 2% of its GDP on its military, while the US spends nearly 3.5%.
Canada’s defence budget currently stands at $27B though the Trudeau government has promised in its most recent budget that it will boost spending to almost $50B by 2030.
Still, that would only make up 1.76% of Canada’s GDP, meaning the country will continue to lag behind its allies in the coming decade. Frustration with Canada was made clear in a letter sent in May to Mr Trudeau by 23 bipartisan US senators. The senators wrote: “We are concerned and profoundly disappointed that Canada’s most recent projection indicated that it will not reach its two percent commitment this decade.”
The US ambassador to Canada David Cohen has also taken note, saying in a recent interview with Global News that Canada is now “the outlier in the entire alliance”.
In less diplomatic remarks, US House Speaker Mike Johnson said on Monday that it is “shameful” Canada has not hit the 2% mark and accused Canada of "riding America’s coattails".
Canada is already feeling the consequences in other ways. It has ambitions to be part of US-led Indo-Pacific economic talks, which includes countries like Australia, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, and South Korea. But so far, Canada has been left out. It has also been excluded from the AUKUS defence pact between Australia, the UK and the US.
Right after Justin Trudeau led the Liberals to a strong victory in the 2015 federal election, he declared that he would also guide Canada back to its rightful place on the global stage in the aftermath of a decade under the Conservatives.
Trudeau told an ecstatic crowd in Ottawa that October: “To this country’s friends all around the world, many of you have worried that Canada has lost its compassionate and constructive voice in the world. Well, I have a simple message for you. On behalf of 35 million Canadians: We’re back.”
Even though we're over 40 million Canadians now, Canada is clearly not back on the world stage. Increasingly ignored and spurned does not describe a country that its allies appreciate and rely on and respect.
Philippe Legassé, a Carleton University professor whose research focuses on defence policy and procurement, said there are a number of reasons why Canada lags behind in spending despite being a relatively financially strong country. First, the Canadian public does not see defence spending as a priority when measured against other needs, like healthcare and other social services.
Another reason is that, historically, Canada did not focus on its military spending as much because it was protected by nuclear allies like the UK and the US. It saw its value in other collective security endeavours, including peacekeeping.
Facing pressure from allies, Canada has finally revealed a timeline for when it expects to hit the NATO defence spending target on the last day of the NATO summit. Trudeau said: “We can say with confidence and assurance that we will hit the two per cent spending mark by 2032.”
But Prime Minister Justin Trudeau gave no specifics on how Ottawa will reach a benchmark he described as a “crass mathematical calculation.” Trudeau offered little explanation as to how the federal government plans to pay for the increased NATO contribution.
NATO members agreed in 2014 to spend at least two per cent of their national gross domestic product on defence but Canada has long fallen short.
“We continually step up and punch above our weight, something that isn’t always reflected in the crass mathematical calculation that certain people turn to very quickly, which is why we’ve always questioned the two per cent as the ‘be all and end all,’” said Trudeau.
A day before providing the timeline for reaching the NATO target, Canada said it is moving ahead with the purchase of up to 12 new submarines to replace its aging fleet.
Canada also signed a trilateral agreement with the U.S. and Finland known as the “ICE Pact” to boost the production of icebreakers in an effort to protect the Arctic and Antarctic regions and deter Russia and China in the Far North.
In a bizarre quote, Trudeau said: “We are buying big things. We are building big things, and we are protecting the longest coastline in the world, including with increased responsibilities for the Arctic.”
Biden’s health and the prospect of a second Donald Trump presidency have cast a shadow over the summit. Trudeau was asked whether Biden can still lead on the global stage: “We are lucky on the world stage to have Joe Biden leading here at NATO. In some extraordinarily consequential times, his depth of experience, his thoughtfulness, his steadfastness on the greatest issues and challenges of our time, is a credit to, the work that we’re all doing together.”
Canada will likely face even more pressure to increase spending if Trump wins the next election. Last February, Trump said he would “encourage” Russia to “do whatever the hell they want” to NATO allies who don’t pay their share on defence.
Conservative Leader Pierre Poilievre on Friday said he was “embarrassed” to watch Prime Minister Justin Trudeau at this week’s NATO leaders’ summit, where Trudeau was dogged by calls to commit to reaching the alliance’s target on defence spending.
Poilievre said: “It’s clear now that Justin Trudeau is seen as an absolute joke on the world stage. I was embarrassed to see our prime minister treated like a human piñata by the rest of the NATO countries. They look upon him with total and complete ridicule. Canadians are tired of being embarrassed by a prime minister who prances around and preens, lectures the world, without doing his part.”
But Poilievre didn’t say if he will also commit to Trudeau’s pledge that Canada will reach the target of spending at least two per cent of GDP on defence in eight years.
A spokesperson instead shared a statement from the party’s defence critic James Bezan, calling the 2032 commitment “another promise Justin Trudeau has no intention of honouring.”
Asked Friday why he won’t make the same commitment, Poilievre said he needs to ensure there’s enough money available to achieve it first. “I always say what I mean and mean what I say. I make promises that I can keep. And right now, our country is broke. Every time I make a financial commitment, I’m going to make sure I’ve pulled out my calculator and done all the math, because people are sick and tired of politicians just announcing that they’re going to spend money without figuring out how they’re going to pay for it.”
Poilievre says a government led by him would cut foreign aid funding to “dictators, terrorists and multinational bureaucracies” and eliminate waste and fraud in the defence and procurement departments, putting the savings into the Canadian Armed Forces. Poilievre’s office has previously said a future Conservative government “will work toward” meeting the NATO spending commitment, but without a clear timeline.
Canada has clearly lagged behind on the world stage. It's time for a fresh new policy when it comes to our place in the world. If our allies don't even take us seriously, how can we expect our enemies to?
Supplementals:

This past week the temperatures rose beyond 35C in Alberta and as a result our electrical grid was under severe strain to the point a grid alert was issued on Monday.
A grid alert means that the province is seeing a shortage of power.
Initially there were questions as to what the causes were for the shortage of power in the province. The political angle is that our de-regulated electricity market has created a situation where shortages can manifest themselves and the province should re-regulate.
According to the Alberta Electricity System Operator (AESO) the system saw an unplanned thermal generation outage, high temperatures causing a reduction in generator capacity, and a line outage that impacted power imports.
The AESO later said that the grid was nowhere close to needing rolling outages. The peak usage on Monday, the hottest day, was 11,599 megawatts.
At the time the grid alert was issued Alberta was importing 420MW power from neighbours in BC, Montana, and Saskatchewan.
The interesting bit about that figure is that over the past month we shuttered our final coal powered generating plant.
That plant at its highest output produced 420MW power.
This coal shutdown was spearheaded by the Notley NDP government and saw a move of some plants to natural gas and some completely shuttered.
This transition was complete on June 16 and many in environmental circles have heralded it as a successful move.
But the reality is that our power in the heat of the summer and cold of the winter is being supplemented by hydro in BC, coal in Saskatchewan, and coal and gas in Montana.
There is zero reason for Alberta to be questioning whether or not we will have power or rotating outages on the coldest and warmest days of the year.
This is something that can be fixed in the mid to long term but the province needs to get on this sooner rather than later.
This story shows serious problems in how electricity operates in Alberta. This is a core bread and butter issue that needs to be resolved by the UCP government.
It should be a simple thing at the end of the day given our first world status. Will it be talked about in the sense of needing more power?
More gas, more wind where it makes sense, and fast tracking nuclear energy.
That is what the government of tomorrow builds to both fix this problem and green our electrical grid.
Supplementals:

Trans Mountain Pipeline Outperforming the Entire B.C. Economy Should be a Wakeup Call

When looking at the economy of British Columbia, it's hard to know exactly how well or not we are doing as a province. One week, an article will come out and say BC is having positive growth, others say things are more stagnant. With so many conflicting news sources it's not an easy feat trying to picture what the year ahead will look like.
These uncertain times show the resilience of certain industries that Canada, and BC in particular, especially the resource industries. Even under the premiership of David Eby's NDP which has skewed more centre-left than his predecessor John Horgan, they still see the value of the forestry, mining, and natural gas industries to the province. While they still place a huge value on the environment, their government has been committed to approving LNG projects, along with allowing forestry and mining their space to work.
So it's interesting to see a report from the energy industry news website EnergyNow claiming that the Trans Mountain pipeline expansion contributes more to Canada's economic growth (0.25%) than the entire province of BC (0.23%). It's not something that's sourced, and with a biased news source, it's not exactly reliable. But even with that aside, the article does make a number of good points that clickbait headline aside, do bear discussion.
Given its array of resources, BC should be one of the pre-eminent forces in the Canadian economy. While BC is certainly no slug, we are still witnessing Canada’s Pacific gateway province struggling to keep up with a single infrastructure project. This scenario exposes the issues affecting how BC chooses to handle and benefit from its rural economies and shines a light on the pressing need to rebuild investor trust and make better use of our abundant natural resources.
BC’s economy on the whole has traditionally relied on its resource sectors for growth. From forestry and mining to energy and agriculture industries, these sectors have supported small-town BC for decades, and account for vast swatches of the province’s total international exports. However recent economic indicators in the province suggest a trend; a decline in the efficiency and profitability of these sectors.
A key concern lies in the diminishing confidence among investors in BC’s resource industries. The ever-changing policies of the provincial government, especially the uncertain regulations around land management, while well-intentioned, have made it difficult for investors to make decisions in this province.
One of the main indicators of how the economy is faring is the job market. Last week the jobs report for June was released and things are most certainly getting worse. The recent report highlighted a troubling trend in British Columbia's job market, revealing a loss of 10,000 positions in June. That alarming figure, combined with a decline in both the labour force and employment, underscores the urgent need for strategic action to stabilize and revitalize our economy.
According to the latest labour force statistics highlights, the unemployment rate in B.C. decreased to 5.2% in June, down 0.4% from May. At first glance, that might seem like positive news. However, a closer examination reveals a more complex and concerning picture. The labour force shrank by 23,000 individuals, while employment decreased by 9,700. This paradoxical scenario, where the unemployment rate drops despite fewer jobs, is indicative of deeper systemic issues. All this is happening despite our population growth staying at unprecedented levels due to federal immigration policies.
One critical area that needs attention is private sector job creation, which has flatlined. As highlighted by the Business Council of British Columbia, the private sector is the primary engine of job growth and economic prosperity. However, recent trends show a worrying stagnation. Since the onset of the pandemic, private sector employment has struggled to regain its footing, leaving many workers and businesses in a state of uncertainty. For example, the tech sector took a huge hit, shedding 15,400 jobs in just the last month alone.
Last month a poll from Angus Reid showed that 1 in 3 people in BC are seriously looking at leaving the province due to the high cost of living. Angus Reid explains: “Housing affordability challenges are nothing new to many British Columbians. Vancouver, Burnaby, Victoria, and Kelowna all rank among the 12 most expensive cities to rent across the country, while purchase prices follow a similar trend. Home prices have been rising precipitously since the turn of the century. While the BC NDP has announced a series of actions on home affordability, and Metro Vancouver now leads the nation in new housing starts, residents continue to grapple with the reality of costs. Half (53%) say the government needs to focus more on taking steps to address their housing needs. One-quarter (24%) are satisfied, and seven per cent say the focus has been too heavy.”
At the end of the day, what the economy is doing does matter to people because it shows that people have the ability to get ahead. With things becoming even more unaffordable than before, we can't say that we're heading in the right direction, and that will spell trouble for the NDP in the election 3 months away.
Supplementals:

Firing Line

What is halal chicken? KFC's switch to 'diverse menu options' sparks boycott calls

KFC Canada has made the decision to move to halal-certified chicken and ban pork in its restaurants across Canada.
The change happened in Ontario already and will be moving across the country by the end of the year.
There are of course many other fast food chicken establishments that people can choose from Popeyes to the newly arrived Chick-Fil-A in Canada.
Popeyes as an example does provide halal chicken as an option but it is not the only choice.
There are also other ethnic options available too.
The news came to prominence this week when users online sought to organize a national boycott. The boycott cites a letter from KFC Canada.
In particular the chain wants to offer “inclusive menu options for all customers” and says they also will discontinue pork products, and have “collaborated with KFC Canada Muslim team members on the halal rollout”.
At this point you may be asking: what is halal?
Halal quite simply is an Arabic word that means “permissible” and in this context refers to the preparation of food.
Halal practices in general are based on the Quran and what would please the Prophet Mohammad.
For a food item to be halal it must not contain any haram substances such as pork, alcohol, or blood. It must also be free from cross-contamination with other haram substances.
Haram refers to anything forbidden by islamic law.
Halal chicken and meat in general sees its differences in how it is prepared and processed.
Halal chicken and other meats must be slaughtered in accordance with islamic law.
Animals must be slaughtered in the name of Allah by a Muslim who is of sound mind. The blood must be fully drained from the veins and the animal must be healthy at the time of slaughter.
Halal meat in general also is free of hormones, GMOs, and other additives including vaccines.
Halal meat production also bans the use of stunning to incapacitate the animal before it goes to slaughter.
As such, a typical halal process involves slitting the animal's throat while it is still conscious and allowing it to bleed out.
The meat at the end is then blessed by a Muslim cleric.
This of course raises questions from humanitarians and animal rights activists as to whether or not this is an ethical way of slaughtering animals.
In Ontario where this move is first happening, 6.7% of the population identifies as Muslim and the brand wants to cater to Canada’s growing Muslim community.
KFC Canada’s CEO is Sabir Sami who took on the role in January 2022 and prior to this Sami led the global operations team and oversaw operations in Thailand, India, Asia Central, and Greater Asia. Before this he was the Managing Director for KFC Middle East, North Africa, Pakistan, and Turkey.
Albertans will have recently heard the horror stories of halal butchers in Calgary that violated public health rules. KFC will be using meat from large suppliers such as Maple Lodge Farms and Zabiha Halal.
We present this story as an opportunity for our listeners to make an informed decision about where they get their fast food chicken.
Halal meat is preservative free and free of additives but is slaughtered in a halal manner. Either of these may be deal breakers for you or may be reasons you elect to have a halal sandwich.
This story didn’t get traction in the media because it’s obscure.
Canada has one of the largest Sikh diasporas outside of India and Sikhs as a religious group are not able to consume halal products.
This and the banning of pork has a huge impact on Canada’s Sikh population that could perhaps be the biggest uncovered angle of this story.
At the end of the day this story speaks to where our country is going and the clientele large companies like KFC feel compelled to serve.
Time will tell if Chick-Fil-A’s Canadian operation takes off and if KFC made the right move once the dollars start rolling in.
But in the meantime consider whether or not you want KFC going forward.
Supplementals:

Quote of the Week

“We are buying big things. We are building big things, and we are protecting the longest coastline in the world, including with increased responsibilities for the Arctic.” - Justin Trudeau on his government’s efforts to protect our sovereignty

Word of the Week

Coattails - each of the flaps formed by the lower back of a coat, especially a tailcoat.

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Show Data

Episode Title: Chickening Out

Teaser: Canada faces pressure at the NATO summit to up defence spending, Alberta faces an electricity shortage, and BC’s economy starts to stagnate. Also KFC Canada begins to sell halal chicken.

Recorded Date: July 13, 2024

Release Date: July 14, 2024

Duration: 55:39

Edit Notes: None

Podcast Summary Notes

Duration: XX:XX