Published in The Globe and Mail
The Bank of Canada finally pulled the trigger on Wednesday and reduced its policy rate by 25 basis points. Forecasters were split between a June or July cut, but overall, the data were just too strong in favour of a cut – or too weak, as it were, considering the latest GDP numbers.
This marks the beginning of a cycle of easing policy rates. The question for most commentators, investors, and consumers is now: How far and how fast?
The bank cut its policy rate from 5 percent to 4.75 percent. Despite the cut, a strong case can be made that monetary policy is more restrictive now than it was at the Bank of Canada’s last announcement on April 10. This augurs well for further declines…
Published in The Globe and Mail
Resources have been a major part of Canada’s economic prosperity since its founding. Yet, many Canadians downplay these important assets, viewing resources as a “curse” or “Dutch disease.” Instead, we should count ourselves lucky to inherit such abundance.
Going back to British economist David Ricardo, our comparative advantage in trade is to export products that are relatively cheaper to produce domestically while importing products that are relatively more expensive to produce at home. This is the case for Canada: Exports are dominated by the high productivity resource sector. Energy, forestry, fishing, mining and agriculture make up one-third of our export earnings. As for trade balances…
Robert Dimitrieff - China is after Canada’s pulp and paper industry – it’s a national-security issue
Published in the Globe and Mail
In the shadow of escalating global conflicts and the pressing demand for military supplies, a critical component of national security is being overlooked: the strategic importance of pulp and paper. Traditionally seen as mundane commodities, these materials are in fact pivotal in the production of military-grade components such as nitrocellulose, a key ingredient in artillery ammunition.
Canada, home to vast tracts of forest, has long been a powerhouse in pulp and paper production. Yet, recent developments raise concerns about national security.
The March, 2023, acquisition of Resolute Forest Products by privately held Paper Excellence – among other purchases of Canadian producers by…
