What are interprovincial trade barriers, and are they all bad? CBC explains
Donald Trump's tariffs aren't the only road blocks facing Canadian businesses. Interprovincial trade barriers are a big factor in many industries. But whether they're a bad thing depends on who you ask. The CBC's Malone Mullin explains.
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Global News
35 minutes ago
- Global News
BC Ferries' plan to build new vessels in China takes heat from both sides of the aisle
BC Ferries is taking heat from port and starboard over its selection of a Chinese shipyard to build its next four major vessels. The ferry service opened bidding for its major vessel replacement project to pre-qualified shipyards last September, and on Tuesday announced it had chosen China Merchants Industry Weihai Shipyards (CMI Weihai) following a due diligence process. That decision has landed in the choppy waters of a global trade war and a surging 'buy Canadian' movement that was not on the radar last fall. 1:52 BC Ferries contract awarded to Chinese shipyard B.C. Transportation Minister Mike Farnworth said Wednesday that while BC Ferries is an independent organization that makes its own commercial decisions, he was 'disappointed (in) the fact that there is not more Canadian content' in the plan. Story continues below advertisement 'Whenever contacts like this are awarded, I want to see as much Canadian and British Columbian content as possible.' BC Ferries is a private company, not a Crown corporation. However, its sole shareholder is the B.C. government. The issue has also drawn fire from the BC Conservatives, who have called for a review of the decision. Leader John Rustad said the decision to source the ferries from China put the province's economy and security at risk, given ongoing trade and tariff tensions with China. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Do we really want Canadian ships built in China?' Rustad said. 'Who knows what that relationship will look like a few years from now.' 2:55 BC Ferries is getting 4 new vessels In announcing CMI Weihai as the builder, BC Ferries cited its strong bid — including technical capabilities, experience and the 'overall cost and value' it delivered. Story continues below advertisement Cost was also front and centre when BC Ferries announced the process. 'What we are not going to do is ask our customers to pay one dollar more than they need to simply because we are picking a local company,' BC Ferries executive director of communications Dave Groot told Global News in a Sept. 27 interview. At the time, B.C.-based Seaspan shipyards said the bid process, which did not include incentives for B.C. or Canadian content, had essentially ruled it out of contention The company acknowledged there was no question that building in B.C. would cost more, but said it would create major economic spinoffs, including income tax revenues from high-paying skilled jobs. Seaspan, which handles highly complex and multi-billion-dollar contracts for the Coast Guard and Canadian Navy, says it is more than capable of delivering the new ferries. 1:03 Seaspan blows horn on BC Ferries' ship-building bidding process 'We acknowledge the need for BC Ferries to get some of these replacement vessels very fast given their aging fleet,' Seaspan senior vice-president and spokesperson Dave Hargreaves said in a Wednesday statement. Story continues below advertisement 'We are hopeful that the B.C. government will work with our B.C. industry team to develop a strategy to build some of the seven vessels, particularly the last two, in B.C. in the future.' Not all reviews of the choice have been bad, however. Bruce Williams, CEO of the Greater Victoria Chamber of Commerce, said the Chinese contract is in the best interests of ferry-dependent communities, adding that BC Ferries did years of due diligence and that no Canadian companies entered bids. 2:01 BC Ferries defends shipbuilding bid process 'This is very timely, and it's a good thing to have this happen,' Williams said, noting that there was an urgent need for greater ferry capacity. At this point, I think it's in the best interest of all the people, who rely on BC Ferries … especially up and down the coast in communities that are very reliant upon it.' Story continues below advertisement The list of pressure points between Canada and China is long. China has imposed a variety of tariffs on Canadian goods, including seafood tariffs that have directly impacted B.C.'s fishing industry. Canada has also raised concerns about the country's human rights record and its support for Russia in the war with Ukraine.
Vancouver Sun
an hour ago
- Vancouver Sun
Criticism comes from all sides after B.C. Ferries awards contract to Chinese state-owned company
Criticism of B.C. Ferries' decision to partner with a Chinese state-owned company to build four new vessels intensified Tuesday, with calls from B.C. Conservative Leader John Rustad to cancel the contract and reissue the request for proposals to make it more attractive to Canadian bidders. 'I think we should be doing everything we can to support jobs in B.C. and our economy in B.C.,' he told Postmedia News. If the B.C. companies can't build the vessels, then Rustad said the ferry service should be looking at procuring ships from other countries such as Germany and Poland that B.C. Ferries has worked with before and are more friendly to Canada. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Rustad's comments echoed sentiments from B.C. Transport Minister Mike Farnworth who expressed concern about procuring ships from a country currently engaged in a tariff war with Canada. Farnworth, however, stopped short of saying he was going to take action against the decision. 'My main concern with B.C. Ferries' decision is the lack of Canadian content in the contract. My hope is that going forward B.C. Ferries will make a greater effort to require Canadian inputs into its new vessels,' said Farnworth, explaining he had shared those concerns with the corporation. 'With respect to China specifically, my concern is focused around the ongoing trade disputes between our nations and the fact China is deliberately attacking sections of the Canadian economy through unwarranted tariffs.' B.C. Premier David Eby has repeatedly criticized the Asian economic giant over allegations of money laundering, election interference and that it's arming Russia in its invasion of Ukraine. A recent trade mission by the premier intentionally skipped China, with B.C. instead choosing to focus on strengthening ties with Japan, South Korea and Malaysia. On Tuesday, B.C. Ferries announced it had signed a deal with Chinese state-owned Weihai Shipyards to build four new vessels between 2026 and 2031 as replacements for its oldest ships. Nicholas Jimenez, the corporation's CEO, has defended the choice by saying that there were no Canadian companies that applied for the project. In September, North Vancouver-based shipbuilder Seaspan said that 'Canadian shipyards and their supply chains cannot compete with low-wage countries that have lower employment standards, lower environmental standards and lower safety standards.' The company has urged the province to follow Quebec in providing tax breaks and forgivable loans and grants to help ensure ferries can be built in B.C. Jimenez also said that China has come to dominate the global shipbuilding industry with 60 per cent of all ships in the world today having been built by the Asian behemoth. 'In the last 10 to 15 years, the technological capabilities and shipbuilding prowess inside that country has grown immeasurably,' Jimenez told reporters Tuesday. 'We consulted heavily with our colleagues in Europe, who have been in the market for more than a decade. I would note even as recently as two months ago, another very large Italian ferry organization just signed a deal for nine vessels with the very same shipyard that we intend to build in.' Jimenez promised there are provisions in the contract that ensure Weihai will not be paid in full until the ships are delivered. Additionally, he said there will be oversight teams on the ground in China during construction to ensure compliance with the contract and address any security concerns. The full contract has yet to be release and B.C. Ferries isn't releasing the amount being paid to the Chinese company, citing the need to protect future bids. Ed Hooper, B.C. Ferries head of fleet renewal, said Tuesday that the corporation took the step of travelling to all the shipyards on its shortlist and that there was a sense of strong worker safety provisions and oversight at Weihai. He did acknowledge, however, that the dominance of China in the industry is deliberate. Neither Jimenez or Hooper were made available Wednesday for further questions. Joy MacPhail, B.C. Ferries board chairwoman and former NDP cabinet minister, was also unavailable. A corporation spokesperson said that they had been having regular briefings and meetings with the provincial government throughout the procurement process and had notified the federal government of their selection of Weihai ahead of time. They also said that all IT networks and vessel systems for the ships will be installed in Canada by local suppliers and that B.C. Ferries had sought the advice of an independent risk consultancy on security measures for the project. Rustad said that while Jimenez might not have concerns about the geopolitical ramifications of the deal, there is no telling when an international incident could occur between Canada and China that might put the delivery of the vessels in jeopardy. 'Obviously there's lots of rhetoric going back and forth between the United States and China, friction with Taiwan,' Rustad told Postmedia. 'Who knows what may happen? Hopefully nothing by 2029 to 2031 which is when these ships are going to start to be constructed and delivered.' Concerns over the contract have reverberated to the federal level with Jeff Kibble, Conservative MP for Cowichan-Malahat-Langford, questioning federal Transport Minister Chrystia Freeland during question period in Ottawa. 'The Liberals are set to hand over $30 million (in federal subsidies) to B.C. Ferries while B.C. Ferries hands over critical jobs, investment and industry to China,' Kibble charged. Freeland responded that she agrees the federal government needs to be supporting local industry and working with allies and trade partners but that the B.C. Ferries' contract wasn't a federal project. Jenny Kwan, NDP MP for Vancouver East, told Postmedia that Ottawa has a role in working with provincial governments to build up the country, including ensuring that domestic companies can compete for large procurement contracts. 'We have to re-examine how that procurement process is undertaken,' said Kwan.
The Province
an hour ago
- The Province
Musk says he regrets 'some' of his social media posts about Trump: 'They went too far'
The dispute posed a threat to Musk's wealth when the U.S. president raised the prospect of retaliating by cutting off his government contracts Published Jun 11, 2025 • Last updated 9 hours ago • 3 minute read FILE: Donald Trump walks with Elon Musk before the launch of the sixth test flight of the SpaceX Starship rocket Tuesday, Nov. 19, 2024 in Boca Chica, Texas. Photo by Brandon Bell / THE ASSOCIATED PRESS Elon Musk, who served as a close adviser and confidant to President Donald Trump until a bitter public falling out last week in a series of social-media posts, issued his strongest sign of contrition yet over how he handled the rupture. 'I regret some of my posts about President @realDonaldTrump last week,' he said on his social-media platform, X. 'They went too far.' The dispute — which was triggered by Musk's opposition to the tax-cut bill Trump is pushing through Congress — posed a threat to Musk's wealth when the president raised the prospect of retaliating by cutting off his government contracts. That would have battered SpaceX, his rocket company, and Tesla Inc.'s stock price tumbled last Thursday, before recovering most of the loss. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Tesla shares rose nearly 2% in premarket US trading on Wednesday after Musk's post. The stock was already rising in after-hours trading after Musk set June 22 as the tentative launch date for his long-awaited robot-taxi service. They had slid more than 19% so far this year as investors weighed up the damage from his previous embrace of Trump, which turned off car buyers across Europe and other markets, as well as the subsequent risks caused by his messy falling-out with the president. Musk, the world's richest man, had been the first to stand down from what had been an escalating spat, responding to advice from those online to de-escalate after it rapidly veered out of control. He had riled Trump by claiming credit for his election victory, endorsing his impeachment and even suggesting the president was implicated in the sex crimes of Jeffrey Epstein. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. It remains unclear whether Musk's expressions of regret will do much to repair his relationship with Trump, who is known for carrying grudges and has been using the power of the federal government to lash out at those who have crossed him. That would seem to pose particular peril for Musk, given that SpaceX relies heavily on federal contracts and his businesses are subject to federal regulatory oversight. Elon Musk attends news conference with President Donald Trump in the Oval Office of the White House, Friday, May 30, 2025, in Washington. (AP Photo/Evan Vucci) Trump has signaled little willingness to mend fences with Musk but told reporters that he felt they had once had a good relationship and 'I wish him well.' The president said in an NBC News interview Saturday that he had no interest in repairing the relationship. The scale of the blow-up had already cast significant doubt on whether the two will ever resume the close friendship they had during the first several months of Trump's second term, when Musk was a nearly ubiquitous presence in the White House's inner circle. This advertisement has not loaded yet, but your article continues below. Until he stepped down, ahead of the spat, Musk had led the so-called Department of Government Efficiency, which sought to slash spending, shutter agencies and cut the federal workforce. The department had aimed to generate $1 trillion of savings for the government but fell far short of that goal, producing just $180 billion by its own unverified accounting. Even that would be erased by Trump's tax bill, which would add $2.4 trillion to the government's budget deficits over the next decade, according to the nonpartisan Congressional Budget Office. That caused Musk to previously lobby against its passage, calling it a 'disgusting abomination.' U.S. President Donald Trump and White House Senior Advisor, Tesla and SpaceX CEO Elon Musk sit in a Tesla Model S outside the White House on March 11, 2025. Photo by— With assistance from Eric Pfanner and Shelly Banjo. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here.
