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National Post
20 minutes ago
- National Post
DATA Communications Management Corp. Reports Q2 2025 Financial Results
Article content Revenues were $113.8 million in the second quarter vs. $125.8 million in Q2 2024 Gross profit as a percentage of revenues of 26.8% compared to 27.3% in Q2 2024 SG&A expenses decreased to $19.9 million vs. $22.5 million in the prior year quarter Adjusted EBITDA 1 represented 14.6% of revenue vs. 13.4% in Q2 2024 Adjusted EBITDA was $16.6 million vs. $16.9 million in Q2 2024 Pipeline of new business opportunities continues to grow Quarterly dividend of $0.025 per common share declared, payable on September 24, 2025 to shareholders of record as of September 10, 2025 Article content Article content BRAMPTON, Ontario — DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) ('DCM' or the 'Company'), a leading Canadian provider of print and digital solutions that help simplify complex marketing communications and workflow, today reported second quarter 2025 financial results. Article content MANAGEMENT COMMENTARY Article content 'Despite challenging market conditions and stronger than expected revenue headwinds in the second quarter, we continued to deliver solid operating performance with essentially flat adjusted EBITDA and higher adjusted EBITDA margin compared to last year,' said Richard Kellam, President & CEO of DCM. 'Uncertainty about trade policies, including tariffs, the direction of the economy, and the ongoing labour issues at Canada Post have driven continued market headwinds. These factors have negatively impacted business confidence, resulting in client budget reductions, delayed orders, and inventory drawdowns. As such, revenues in the quarter were down 9.5% compared to last year. Given this ongoing uncertainty, the Company has decided to withdraw all financial guidance until there is greater clarity on these external challenges.' Article content 'We are well-positioned financially to manage through the current market conditions with our strong cash flow, a disciplined focus on maintaining margins, and managing overhead costs. We continue to be encouraged by our strong and growing pipeline of new business opportunities, the highest level of which we've seen in years. We expect to more fully realize these efforts as market conditions improve. Additionally, we have the flexibility to pursue M&A opportunities to strengthen our product and service offerings and create more value for our clients,' added Kellam. Article content DCM continues to be guided by four strategic priorities for 2025: Article content Maintain our focus on profitable organic growth Deliver a return on our new capital investments Continue to drive gross margin improvement through operating efficiencies Demonstrate agility and adaptability to effectively navigate an uncertain environment. Article content OTHER BUSINESS HIGHLIGHTS Article content Dividend Declaration Article content On August 6, 2025, DCM's board of directors declared a quarterly dividend of $0.025 per common share, payable on September 24, 2025, to shareholders of record at the close of business on September 10, 2025. This dividend is designated as an 'eligible' dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation. Article content On June 10, 2025, DCM announced that the Toronto Stock Exchange (the 'TSX') accepted a notice filed by the Company of its intention to make a normal course issuer bid with respect to its outstanding common shares (the 'Common Shares'). The notice provided that the Company may, during the 12 month period commencing June 12, 2025 and ending no later than June 11, 2026, purchase, through the facilities of the TSX, up to 4,220,210 Common Shares, being approximately 10% of the 'public float' (as such term is defined in the policies of the TSX) of such Common Shares as at May 31, 2025. In June 2025, the Company repurchased and cancelled 79,400 common shares for total consideration of $0.1 million, including transaction costs. Article content On June 2, 2025, DCM entered into a fourth amended and restated credit agreement (the 'Bank Credit Facility') with a Canadian chartered bank, extending the maturity date of its senior secured revolving credit facility to May 31, 2028. The Bank Credit Facility also included an expanded leasing facility to finance future equipment purchases along with a number of reporting enhancements. Article content On July 17, 2025, a third amended and restated credit agreement with Fiera Private Debt ('FPD') was entered into to update certain definitions and incorporate qualitative changes, with no impact to the financial terms of the FPD Facilities. Article content The Company will host a conference call and webcast on Thursday, August 7, 2025 at 9:00 a.m. EST Article content Mr. Kellam and James Lorimer, CFO, will present the second quarter 2025 results followed by a live Q&A. Article content Register for the webcast prior to the start of the event: Article content Microsoft Virtual Events Powered by Teams Article content All attendees must register for the webinar prior to the call. Please complete the phone field in the form at the above link (prior to the start of the event) if you wish to dial in. Article content The Company's full results will be posted on its Investor Relations page and on SEDAR+. A video message from Mr. Kellam will also be posted on the Company's website. Article content Footnotes: 1 Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income (loss), Adjusted net income (loss) as percentage of revenues, Net Debt to Adjusted EBITDA and Free cash flow are non-IFRS Accounting Standards measures. For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release, and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, see the information under the heading 'Non-IFRS Accounting Standards Measures', the information set forth on Table 2 and Table 3 herein, and our most recent Management Discussion & Analysis filed on SEDAR+. Article content For the periods ended June 30, 2025 and 2024 April 1 to June 30, 2025 April 1 to June 30, 2024 January 1 to June 30, 2025 January 1 to June 30, 2024 (in thousands of Canadian dollars, except share and per share amounts, unaudited) Revenues $ 113,794 $ 125,751 $ 237,469 $ 255,005 Gross profit 30,508 34,334 66,768 71,645 Gross profit, as a percentage of revenues 26.8 % 27.3 % 28.1 % 28.1 % Selling, general and administrative expenses 19,871 22,473 43,330 46,608 As a percentage of revenues 17.5 % 17.9 % 18.2 % 18.3 % Research & development expenses 1,216 1,391 2,336 2,638 As a percentage of revenues 1.1 % 1.1 % 1.0 % 1.0 % Adjusted EBITDA 16,568 16,888 35,156 35,553 As a percentage of revenues 14.6 % 13.4 % 14.8 % 13.9 % Net income for the period 3,714 4,064 8,828 5,539 Adjusted net income 3,891 4,017 9,094 8,920 As a percentage of revenues 3.4 % 3.2 % 3.8 % 3.5 % Basic earnings per share $ 0.07 $ 0.07 $ 0.16 $ 0.10 Diluted earnings per share $ 0.06 $ 0.07 $ 0.15 $ 0.10 Adjusted net income per share, basic $ 0.07 $ 0.07 $ 0.16 $ 0.16 Adjusted net income per share, diluted $ 0.07 $ 0.07 $ 0.16 $ 0.15 Weighted average number of common shares outstanding, basic 55,317,543 55,245,796 55,313,271 55,134,340 Weighted average number of common shares outstanding, diluted 57,156,673 57,835,179 57,198,419 57,746,066 Article content The following table provides reconciliations of net income to EBITDA and of net income to Adjusted EBITDA for the periods noted. Article content EBITDA and Adjusted EBITDA reconciliation Article content For the periods ended June 30, 2025 and 2024 April 1 to June 30, 2025 April 1 to June 30, 2024 January 1 to June 30, 2025 January 1 to June 30, 2024 (in thousands of Canadian dollars, unaudited) Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Interest expense, net 5,120 5,366 10,268 10,919 Debt modification gain (867 ) — (867 ) — Amortization of transaction costs 131 140 271 280 Current income tax expense 1,445 16 3,516 1,358 Deferred income tax recovery (359 ) 947 (1,270 ) (216 ) Depreciation of property, plant, and equipment 1,792 1,783 3,514 3,306 Amortization of intangible assets 326 306 709 1,034 Depreciation of right-of-use-assets 5,029 4,329 9,831 8,814 EBITDA $ 16,331 $ 16,951 $ 34,800 $ 31,034 Acquisition and integration costs — 243 — 526 Restructuring expenses 58 1,101 58 2,186 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 Adjusted EBITDA $ 16,568 $ 16,888 $ 35,156 $ 35,553 Article content TABLE 3 Article content The following table provides reconciliations of net income (loss) to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. Article content Adjusted net income reconciliation Article content For the periods ended June 30, 2025 and 2024 April 1 to June 30, 2025 April 1 to June 30, 2024 January 1 to June 30, 2025 January 1 to June 30, 2024 (in thousands of Canadian dollars, except share and per share amounts, unaudited) Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Restructuring expenses 58 1,101 58 2,186 Acquisition and integration costs — 243 — 526 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 Tax effect of the above adjustments (60 ) 16 (90 ) (1,138 ) Adjusted net income $ 3,891 $ 4,017 $ 9,094 $ 8,920 Article content About DATA Communications Management Corp. Article content DCM is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. DCM serves over 2,500 clients including 70 of the 100 largest Canadian corporations and leading government agencies. Our core strength lies in delivering individualized services to our clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage, and digital asset management. From omnichannel marketing campaigns to large-scale print and digital workflows, our goal is to make complex tasks surprisingly simple, allowing our clients to focus on what they do best. Article content Additional information relating to DATA Communications Management Corp. is available on and in the disclosure documents filed by DATA Communications Management Corp. on SEDAR+ at Article content Certain statements in this press release constitute 'forward-looking' statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. When used in this press release, words such as 'may,' 'would,' 'could,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'believe,' 'intend,' 'plan,' and other similar expressions are intended to identify forward-looking statements. These statements reflect DCM's current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. Article content These forward-looking statements involve a number of risks, uncertainties, and assumptions. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. We caution readers of this press release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates or intentions expressed in these forward-looking statements. Article content The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are described in further detail in our most recent annual and interim Management Discussion and Analysis filed on SEDAR+, and include but are not limited to the following: industry conditions are influenced by numerous factors over which the Company has no control, including: declines in print consumption; labour disruptions at suppliers and customers, including Canada Post; the impact of tariffs and responses thereto (including by governments, trade partners and customers), which may include, without limitation, retaliatory tariffs, export taxes, restrictions on exports to the U.S. or other measures, increases in our input costs, and the effect of governmental regulations and policies in general; our ability to achieve and meet our revenue, profitability, free cash flow and debt reduction targets for 2025 and in the future; while we have received consents from our lenders for the declaration and payment of the special dividend and regular recurring dividend, including the exclusion of the special dividend from our fixed charge coverage ratios, our financial leverage may increase, and there is no guarantee that we will pay such dividends in the future; and, our ability to comply with our financial and other covenants under our credit facilities, which may preclude us from paying future dividends if our outlook and future financial liquidity changes. Article content Additional factors are discussed elsewhere in this press release and under the headings 'Liquidity and capital resources' and 'Risks and Uncertainties' in DCM's Management Discussion and Analysis and in DCM's other publicly available disclosure documents, as filed by DCM on SEDAR+. Article content Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements. Article content This press release includes certain non-IFRS Accounting Standards measures, ratios and other financial measures as supplementary information. This supplementary information does not represent earnings measures recognized by IFRS Accounting Standards and does not have any standardized meanings prescribed by IFRS Accounting Standards. Therefore, these non-IFRS Accounting Standards measures, ratios and other financial measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that this supplementary information should not be construed as alternatives to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of DCM's performance. Definitions of such supplementary information, together with a reconciliation of net income (loss) to such supplementary financial measures, can be found in our most recent annual and interim Management Discussion and Analysis and filed on SEDAR+ at Article content Condensed interim consolidated statements of financial position (in thousands of Canadian dollars, unaudited) June 30, 2025 December 31, 2024 $ $ Assets Current assets Cash and cash equivalents 2,887 6,773 Trade receivables 100,697 103,445 Inventories 24,987 23,843 Prepaid expenses and other current assets 3,755 5,989 Income taxes receivable 1,364 3,432 $ 133,690 $ 143,482 Non-current assets Other non-current assets 2,201 9,104 Deferred income tax assets 9,071 8,224 Property, plant, and equipment 33,845 34,812 Right-of-use assets 164,159 162,510 Pension assets 3,408 3,142 Intangible assets 7,596 8,282 Goodwill 22,747 22,747 $ 376,717 $ 392,303 Liabilities Current liabilities Bank overdraft — 880 Trade payables and accrued liabilities 46,503 59,890 Current portion of credit facilities 8,714 15,175 Current portion of lease liabilities 12,263 10,525 Provisions 3,413 8,016 Deferred revenue 4,564 6,199 $ 75,457 $ 100,685 Non-current liabilities Provisions 480 1,279 Credit facilities 79,642 68,515 Lease liabilities 163,295 158,603 Deferred income tax liabilities — 60 Pension obligations 17,256 18,354 Other post-employment benefit plans 1,307 1,409 Asset retirement obligation 3,492 3,438 $ 340,929 $ 352,343 Equity Shareholders' equity Shares 284,546 284,592 Warrants — 219 Contributed surplus 3,219 3,078 Translation Reserve 192 307 Deficit (252,169 ) (248,236 ) $ 35,788 $ 39,960 $ 376,717 $ 392,303 Article content Condensed interim consolidated statements of operations (in thousands of Canadian dollars, except per share amounts, unaudited) For the three months ended June 30, 2025 For the three months ended June 30, 2024 For the six months ended June 30, 2025 For the six months ended June 30, 2024 Revenues $ 113,794 $ 125,751 $ 237,469 $ 255,005 Cost of revenues 83,286 91,417 170,701 183,360 Gross profit 30,508 34,334 66,768 71,645 Expenses Selling, commissions and expenses 9,649 10,178 20,609 21,042 General and administration expenses 10,222 12,295 22,721 25,566 Research & development expenses 1,216 1,391 2,336 2,638 Restructuring expenses 58 1,101 58 2,186 Acquisition and integration costs — 243 — 526 Net fair value losses (gains) on financial liabilities at fair value through profit or loss 179 (1,407 ) 298 1,807 21,324 23,801 46,022 53,765 Income before finance costs and income taxes 9,184 10,533 20,746 17,880 Finance costs Interest expense on long term debt and pensions, net 1,837 2,307 3,708 4,805 Interest expense on lease liabilities 3,283 3,059 6,560 6,114 Amortization of transaction costs 131 140 271 280 Debt modification gain (867 ) — (867 ) — 4,384 5,506 9,672 11,199 Income before income taxes 4,800 5,027 11,074 6,681 Income tax expense Current 1,445 16 3,516 1,358 Deferred (359 ) 947 (1,270 ) (216 ) 1,086 963 2,246 1,142 Net income for the period $ 3,714 $ 4,064 $ 8,828 $ 5,539 Other comprehensive income: Foreign currency translation (110 ) 14 (115 ) 44 (110 ) 14 (115 ) 44 Items that will not be reclassified to net income Re-measurements of pension and other post-employment benefit obligations s 1,816 1,755 1,431 8,768 Taxes related to pension and other post-employment benefit adjustment above (461 ) (406 ) (363 ) (2,248 ) 1,355 1,349 1,068 6,520 Other comprehensive income for the period, net of tax $ 1,245 $ 1,363 $ 953 $ 6,564 Comprehensive income for the period $ 4,959 $ 5,427 $ 9,781 $ 12,103 Basic earnings per share 0.07 0.07 0.16 0.10 Diluted earnings per share 0.06 0.07 0.15 0.10 Article content Condensed interim consolidated statements of cash flows (in thousands of Canadian dollars, unaudited) For the six months ended June 30, 2025 For the six months ended June 30, 2024 $ $ Cash provided by Operating activities Net income for the period $ 8,828 $ 5,539 Items not affecting cash Depreciation of property, plant, and equipment 3,514 3,306 Amortization of intangible assets 709 1,034 Depreciation of right-of-use-assets 9,831 8,814 Share-based compensation expense 89 321 Net fair value losses on financial liabilities at fair value through profit or loss 298 1,807 Pension expense 742 943 Gain on disposal of sale and leaseback — (11 ) Loss on disposal of property, plant and equipment — 149 Provisions 58 2,186 Debt modification gain (867 ) — Amortization of transaction costs 271 280 Accretion of asset retirement obligations 54 65 Other post-employment benefit plan expense 87 298 Right-of-use assets impairment — 97 Income tax expense 2,246 1,142 Changes in non cash working capital (12,173 ) 764 Contributions made to pension plans (675 ) (604 ) Contributions made to other post-employment benefit plans (189 ) (115 ) Provisions paid (5,460 ) (6,526 ) Income taxes paid (1,448 ) (1,599 ) Total cash generated from operating activities 5,915 17,890 Investing activities Proceeds on sale and leaseback transaction 6,694 8,661 Purchase of property, plant, and equipment (2,536 ) (6,989 ) Purchase of intangible assets (23 ) — Purchase of non-current assets (143 ) (6,499 ) Proceeds on disposal of property, plant, and equipment — 431 Total cash provided by (used in) investing activities 3,992 (4,396 ) Financing activities Exercise of options — 337 Proceeds from credit facilities 53,733 30,185 Repayment of credit facilities (48,054 ) (43,726 ) Decrease in bank overdrafts (880 ) (1,564 ) Transaction costs (417 ) — Dividends paid (13,829 ) — Principal portion of lease payments (4,005 ) (3,500 ) Repurchases of shares (213 ) — Total cash (used in) financing activities (13,665 ) (18,268 ) Change in cash and cash equivalents during the period (3,758 ) (4,774 ) Cash and cash equivalents – beginning of period 6,773 17,652 Effects of foreign exchange on cash balances (128 ) 51 Cash and cash equivalents – end of period $ 2,887 $ 12,929 Article content Article content Article content Article content Article content Contacts Article content Mr. Richard Kellam President and Chief Executive Officer DATA Communications Management Corp. Tel: (905) 791-3151 Article content
CBC
21 minutes ago
- CBC
Why doesn't Canada already have a stronger relationship with Mexico?
Social Sharing With tensions once again heating up in Canada's trade negotiations with the United States, and the Trump administration blaming the "elbows up" approach, Canadian officials are scrambling to build new relationships, including with one of its closest neighbours: Mexico. The effort began at the G7 summit in Kananaskis, Alta., in June, where Prime Minister Mark Carney invited Mexican President Claudia Sheinbaum to meet with him privately, Foreign Affairs Minister Anita Anand said from Mexico City Tuesday. Anand is in the Mexican capital with Finance Minister François-Philippe Champagne to build a "bilateral economic relationship." But the trip has prompted some experts to ask why it didn't happen sooner. Carney's first trip abroad was to France and the United Kingdom, where he discussed not only broadening trade, but security ties as well and invited King Charles to deliver the throne speech. While France and Britain are key allies, Mexico is a bigger trading partner than those two countries, said Laura Macdonald, a political science professor at Carleton University. "There's a historic reluctance by Canada to engage seriously with Mexico," Macdonald said. "And there's a tendency for them to fail when they try to work together." Anand and Champagne's visit signals a willingness to change that, Macdonald added. No bilateral trade agreement, says Sheinbaum While the two senior ministers met with Sheinbaum for more than an hour and Champagne hailed the talks as "quite extraordinary," the Mexican president poured cold water on the idea of a bilateral trade agreement the following day. Sheinbaum said her meeting with the Canadians was "very good," but that "there is no need" for a new agreement. "We have the trade deal with the United States, Canada and Mexico," Sheinbaum said at a news conference Wednesday. Anand wrote on X shortly after that she and Champagne are meeting with Mexican business leaders on the second day of their trip "to explore new opportunities and to strengthen strategic partnerships." Getting over the halting nature of Canada and Mexico's relationship will take work, Macdonald said. Canadian businesses have been so used to prioritizing U.S. partners that there has been little effort to, for example, learn Spanish or work to overcome other cultural barriers, she said. "I don't think it's been taken seriously as a modern, diversifying economy and I think that's short-sighted and portrays our kind of colonial mindset toward the world in general," Macdonald said. "Mexicans, similarly, don't know very much about Canada, and think of it as a cold place and an extension of the United States." WATCH | 'Elbows up' sets Canada apart from Mexico in negotiations, says U.S. ambassador: 'Energy in the room': Why no extension on tariffs for Canada, says U.S. ambassador 24 hours ago Tariffs on non-CUSMA-compliant goods from Canada are now at 35 per cent after U.S. President Donald Trump raised them following a self-imposed deadline, while Mexico is given an extension for ongoing negotiations. U.S. Ambassador to Canada Pete Hoekstra talks to Power & Politics about the different results, and the current state of the cross-border relationship. Macdonald has been part of a project by the Canadian union Unifor to partner with Mexican unions to help fight labour abuses in Mexico. "It's important for Canada to be seen as part of solutions to problems of inequality in Mexico … and not just see it as a site for low-wage production as it was kind of built into NAFTA and CUSMA," Macondald said. She noted that arrangement contributed to the U.S. and Canada losing manufacturing jobs. Stuart Bergman, the vice-president and chief economist at Export Development Canada (EDC), has made a case for shoring up Canada's trade relationship with Mexico. In April, he wrote on EDC's website that only three per cent of Canada's two-way merchandise trade is attributed to Mexico, while the U.S. accounts for 70 per cent. He said that a portion of the merchandise Mexico imports from China could be replaced by Canadian equivalent products, including autos and parts. Canada-Mexico trade 'far below potential' Tuesday, the Business Council of Canada echoed Bergman's post, calling Canada (BCC)'s trade and business ties to Mexico "underdeveloped and far below its potential." Canada and Mexico buy fewer than three per cent of each other's overall exports, wrote Shauna Hemingway, the BCC's senior special adviser on Mexico and the Americas. And while Canadian investments in Mexico have increased "dramatically" since 2010, Mexican investment in Canada stalled at $3.1 billion US in 2023, she said. "Our inability to accurately assess what we mean to each other's economies … impacts our decision-making and both countries tend to look much more readily to the east to Europe and west to Asia," Hemingway said. Economists and trade experts say the potential for increased trade lies especially in goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA) — such as raw materials like lumber and critical minerals, as well as on goods U.S. President Donald Trump has slapped with high tariffs (or threatened to do so), including steel, aluminum, copper, autos and pharmaceuticals. Anand said Canada and Mexico have agreed to build a work plan that focuses on resilient supply chains, port-to-port lines of trade, artificial intelligence, agri-food, the digital economy and energy security. WATCH | G7 prompted Canada-Mexico diplomatic efforts, says Anand: Anand says momentum to build Canada-Mexico relationship started at G7 summit 21 hours ago Foreign Affairs Minister Anita Anand said Prime Minister Mark Carney had an 'excellent' bilateral conversation with Mexican President Claudia Sheinbaum at the G7 summit in Kananaskis, Alta., in June. Anand said she and Finance Minister François-Philippe Champagne are continuing to build on the momentum created by that conversation, while ensuring Canadians' interests are represented. On the periphery of Canada's diplomatic efforts toward Mexico, a rumour emerged that the two countries had agreed to create a "trade corridor" somehow bypassing U.S. duties. The rumour appears to have come from a seemingly AI-generated YouTube video from the channel PPR Mundial posted July 18, alleging Canada and Mexico are planning to divert $120-billion worth of U.S. trade from American ports by delivering goods by rail and sea "without entering Texas ports" in a so-called "Northern Corridor." The video claims Canada's exports like steel, "maple" and lumber will head to the Gulf of Mexico via a "coastal shipping bridge." The distance between the two countries' largest ports, the Port of Vancouver and Port of Manzanillo, is around 4,917 kilometres by ship according to one estimate. The video is riddled with factual errors, including the types of customs charged on goods passing through the U.S. as well as trade and economic figures, and rarely cites verifiable sources. "The first thing I thought is, 'How in the world would this be done?'" said Debra Steger, professor emerita at the University of Ottawa's faculty of law and a senior fellow at the Centre for International Governance Innovation and the C. D. Howe Institute, specializing in international trade law. "I guess if you went out into international waters, sure, OK. But I mean, how many goods could you put on ships and how long would it take for them to get there? And putting things on planes — you can't put everything on a plane and it's very, very expensive." Steger added that she hopes Champagne and Anand are exchanging information with Mexican officials on their respective countries' negotiations with the U.S. It's unclear if that has happened. When asked repeatedly by reporters Tuesday evening, the ministers declined to answer whether they knew why Mexico has been so far spared the 35 per cent tariffs on non-CUSMA-compliant goods. Anand said only that Canada and Mexico's trade relationships to the U.S. are complex and different. Carney indicated Tuesday that Canada could ease up on retaliatory tariffs and that he would have a phone call with Trump when it "makes sense."
CBC
34 minutes ago
- CBC
How much U.S. trade can Canada shift to other countries?
One user on YouTube asked us: How much of Canada's trade business with the U.S. could be replaced with other countries? The CBC's Nisha Patel was live, taking your questions about Canada-U.S. trade.
