In economics, the positive, contradiction, and discord

En économie, du positif, des contradictions et des discordes

Photo: Ryan Remiorz, The canadian Press
Bombardier has officially launched its new business jet Global 7500 a few days before Christmas. Although the company has experienced ups and downs this year, the industry is doing well, according to Aero Montreal.

Bombardier If the year for the economy of Quebec has been marked by a major political event with the election of the CAQ, it has also been a backdrop for the story of a business which has never really stopped speaking, or Bombardier. Rapid assessment : ragaillardie at the beginning of 2018 by its resounding victory at the expense of Boeing in an american court, Bombardier has seen the contract of REM slip between the fingers, disposed of its CSeries program at Airbus (which has been renamed A220), announced the elimination of 5,000 jobs, of which half are located in Quebec, is facing a review of the financial markets Authority, lost the contest to replace the trains of Via Rail, and officially launched its new business jet Global 7500.

Note that instead of Bombardier in the industrial fabric of Quebec is without equal. Around the nucleus of production, concentrated in Mirabel, Saint-Laurent and near the Montréal-Trudeau airport, is organized the entire constellation of suppliers and sub-contractors where work of thousands of people. These companies, moreover, supply not only Bombardier, but countless other companies in the aerospace sector : CAE, Bell Helicopter, etc And it’s going well, moreover, exclaimed Aero Montreal after the announcement of the abolishment of positions at Bombardier. We are hiring everywhere, and the shortage of brains is such that companies are forced to refuse contracts. A situation which should, in all probability, be repeated in 2019.

To (re)read

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The surplus Eric Girard may be the Finance minister more lucky in Canada, writes our columnist Konrad Yakabuski in the pages of the Globe and Mail at the beginning of the month of December. Elected in a new government caquiste in October, Mr. Girard, the former treasurer of the National Bank, has inherited a budget surplus well above expectations.

While the budget, Carlos Leitão presented at the winter planned for 2017-2018 a surplus of $ 850 million, good economic performance has continued to replenish the coffers of the State. Result : after review, the surplus rose to $ 2.6 billion. The new balance sheet, which gives the CAQ considerable leeway to design its next budget, has taken the world by surprise. At the end of march, the stabilization reserve was therefore to nearly 9 billion.

The figures for the first months of the fiscal year 2018-2019, moreover, show that the situation is always positive. But the minister, Girard has shown himself to be prudent in posting this picture in November. “It is important not to conclude that the income will sustain the same pace over a horizon of 12 months that they have known in the first five months “, he said. See you in march, if the tradition continues, for his first budget.

When the pipeline becomes public, The federal government is now the owner of a pipeline. The fate of the proposed expansion of Trans Mountain, seconded by Ottawa, but disputed by the British Columbia, took a major turn when the company Kinder Morgan announced that it was suspending the work in April.

Caught short and in the face of a government of alberta that left raised the threat to limit the quantities of oil transported to British Columbia, the Trudeau government wanted to ease the tensions. He chose to compensate Kinder Morgan, an oil company based in Texas. Unable to find a buyer for the pipeline, he has just offered to buy it, some seeing it as a gesture contradictory to the extent to which Canada is a signatory to the climate agreement of Paris. “You can’t ask people to change their habits while subsidizing fossil fuels “, said the Duty in October, François Delorme, economist at the School of management, University of Sherbrooke.

The federal government has delivered. More recently, Ottawa committed $ 1.6 billion to the oil industry, which is unable to export as it would like its oil to cause pipeline already full.

The neighbor to the south Who would have thought that the free trade Agreement the north american, in force since 1994, would change its name ? The agreement, the acronym of which adjusts according to the country that the decision required more than a year of negotiations, nothing less.

To complicate the discussions, the business relationships have had to deal with tariffs on steel and aluminium imposed by Washington in some countries, including Canada. Ottawa had no other choice but to respond with its own tariffs, targeting the passage of the products of the companies situated in areas conducive to Donald Trump.

The tone had been given as early as August 2017. “I want to be clear : [Donald Trump] wants not only to revisions of the clauses or the modernisation of a few chapters. We are of the opinion that NAFTA has fundamentally disappointed many, many Americans “, had said the us Trade representative Robert Lighthizer. By affixing his / her signature a few weeks ago, the american president, who had once described NAFTA as the “worst commercial treaty ever signed,” said that the greatest battles are sometimes great friendships.

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