David Cohen goes off script

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Nov 01, 2023 View in browser
 
Ottawa Playbook

By Zi-Ann Lum and Kyle Duggan

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In today's edition:

→ A double dose of U.S. Ambassador DAVID COHEN.

→ Minister of Everything CHRYSTIA FREELAND is “cautiously optimistic” the U.S. irritant also known as the digital services tax will be accepted despite the U.S. readying a “big fight.”

→ International Trade Minister MARY NG calls from Japan to talk Indo-Pac, free-trade deadline flexibility and the files that will take up most of her time before the holidays.

DRIVING THE DAY

MOVED BY A MOMENT — U.S. Ambassador DAVID COHEN choked up on stage in front of a luncheon crowd at the Château Laurier on Tuesday as he began talking about the Israel-Hamas war.

— Roll the tape: “We cannot give up on peace,” Cohen said, echoing words used by U.S. President JOE BIDEN in a national address a few weeks ago.

“We cannot give up on a two state solution,” he said, adding that Israelis and Palestinians equally deserve to live in safety and dignity.

“I couldn't be prouder,” — Cohen began to say of Biden before stopping to compose himself, suddenly overcome with emotion — “for the words that he uses to articulate that each and every day.”

His note of gratitude was ad-libbed and not in his prepared speech.

TALKING TO CANADIANS — The curious eyes of the lunch-time crowd darted from table to table when Cohen took an unintended jab at the Liberals’ carbon tax system.

During a Q&A after the speech, Artful Strategies senior adviser DENISE SIELE asked Cohen to look beyond shared priorities to identify where Canada and the U.S. differ.

Both countries share a commitment to net zero and addressing climate change, he said. But Canada is using a carbon tax as a tool to hit those goals — “at least until this week,” he said, prompting everyone in the room to break into laughter over their strawberry shortcakes.

“Canada’s chosen to do a carbon tax. The United States is not using a carbon tax. We don’t agree with that tactic.”

— Elephant in the room: Over at The Westin, there was tax talk on stage and off at Canada 2020's net-zero summit. Minds fixated on the political twist of the Liberals taking an axe to their own carbon tax.

MARK CARNEY, chair of the progressive think tank’s advisory board, shrugged off the drama around the Liberals’ three-year reversal on taxing home heating oil.

“It's all about the end. It's a mistake to overly rely on carbon pricing,” he said. “We cannot buy our way to net zero.”

— Save this for later: On his way into question period, Prime Minister JUSTIN TRUDEAU shot down any speculation the carbon tax break will be extended to other fuels: “There will absolutely not be any other carve outs or suspensions of the price on pollution.” He said the new policy was designed to phase out home heating oil because it’s 50 percent more emitting than natural gas.

— Back at The Westin: Ex-Liberal environment minister CATHERINE MCKENNA showed no restraint when asked What She Really Thinks about the prospect of a DONALD TRUMP comeback and how it would influence climate policy.

McKenna, instrumental in the creation of the carbon tax and rebate system, called Trump a “Reality TV show” who, for better or worse, brought attention to the Paris climate agreement.

The issue is affordability, she said, and people aren’t mad about carbon pricing — they’re peeved about oil and gas costs. (A feeling shared in the U.S. where there’s no carbon tax system.)

— Some real talk: “The geopolitics is terrible right down for climate if you were relying solely on world leaders,” McKenna said, making the point that the private sector and young people also have leadership roles to play.

She left the room of progressives with a pep talk: Climate policy is hard. Suck it up and finish the job.

 

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For your radar

Canadian Finance Minister Chrystia Freeland introduces United States Secretary of the Treasury Janet Yellen at the Atlantic Council Global Citizen Awards, Wednesday, Sept. 20, 2023, in New York. (AP Photo/Julia Nikhinson)

Finance Minister Chrystia Freeland says she's cautiously optimistic the global tax dispute will be resolved. | AP

TAX TUG OF WAR — Even as Finance Minister CHRYSTIA FREELAND was suggesting Tuesday that Canada’s plan to push ahead with its own digital services tax is NBD, U.S. Ambassador Cohen said not so fast —that would surely kick off a “big fight.”

Despite calls for Canada to abandon its plans, such as those emanating from various members of Congress and Business Council of Canada CEO GOLDY HYDER, Freeland made clear she’s not flinching. She even seemed optimistic.

“I was in Washington last week and we did have some good conversations about starting a DST, including at the official level,” Freeland said at a post-Cabinet newser. “I remain cautiously optimistic that we'll be able to reach an understanding with our American partners.”

Many countries agreed in the summer to push off their DSTs until at least 2025, but Ottawa refuses to pause the 3 percent tax on big tech companies for another year.

— What’s next: Trudeau heads to Washington Friday for Americas Partnership for Economic Prosperity talks.

FIRE UP THE MUSICAL RIDE — Treasury Board President ANITA ANAND says the first part of the Liberal government’s spending review that aims to shave off C$15 billion over the next five years will soon be made public.

The initial figures are set to be revealed this month in the supplementary estimates and then in the main estimates next year, she said Tuesday.

— Sprung to her defense: Anand made the impromptu comments right after Freeland was quizzed by a reporter about Bank of Canada Governor TIFF MACKLEM raising concerns fiscal and monetary policy could soon be rowing in opposite directions.

She said ministers are sending her proposals to ensure their departments aren’t engaging in “wasteful spending” so the government's priorities can remain fully funded.

ALSO FOR YOUR RADAR


HUMANITARIAN CHALLENGE — It’s Nov. 1, the deadline Pakistan set for undocumented immigrants to voluntarily leave the country or face deportation.

The rule is expected to apply to roughly 1.7 million Afghan refugees in the country who don’t have documentation — some who have aspirations to resettle in Canada.

Human Rights Watch’s BILL FRELICK warned senators about the impending crisis during Monday’s Senate human rights committee.

“Afghans who have applied for resettlement in Canada, including highly vulnerable women and girls, remain in danger in Pakistan,” he said, despite special immigration and humanitarian programs intended to relocate Afghan women leaders, human rights advocates and vulnerable people.

“They are now at risk of deportation back to Afghanistan where they would face persecution by the Taliban,” Frelick said.

— How many people? Immigration, Refugees and Citizenship Canada wouldn’t say when Playbook asked.

“Given that Afghans are part of a vulnerable population, for security reasons, we cannot provide any details on operational information, including the number of Afghans still in Pakistan,” department spokesperson ISABELLE DUBOIS said in an email. “This has been standard practice since the beginning of our resettlement initiative.”

Immigration Minister MARC MILLER confirmed earlier this week that the government has met its goal of resettling 40,000 “vulnerable Afghans” since August 2021.

TODAY'S HIGHLIGHTS

FILE - Britain's Prime Minister Rishi Sunak delivers a speech on AI at Royal Society, Carlton House Terrace, London, Thursday Oct. 26, 2023. British Prime Minister Rishi Sunak will host a two-day summit focused on frontier AI. It's reportedly expected to be draw a group of about 100 officials from 28 countries, including U.S. Vice President Kamala Harris and executives from key U.S. artificial intelligence companies including OpenAI, Google's   DeepMind and Anthropic. (Peter Nicholls/Pool via AP, File)

“There can be no serious strategy for AI without at least trying to engage all of the world's leading AI powers,” U.K. Prime Minister Rishi Sunak has said. | AP

— It’s caucus day on the Hill.

— Prime Minister JUSTIN TRUDEAU is in Ottawa with a 10 a.m. date with caucus.

— Deputy Prime Minister CHRYSTIA FREELAND will be on stage at 9:20 a.m. at the Sustainable Finance Forum at the Shaw Centre to deliver remarks before booting it to the Hill for the 10 a.m. caucus meeting.

— Innovation Minister FRANÇOIS-PHILIPPE CHAMPAGNE is in London for U.K. Prime Minister RISHI SUNAK’s AI Safety Summit.

11:30 a.m. Foreign Affairs MÉLANIE JOLY will deliver the French version of her Monday policy speech at the Montreal Council of Foreign Relations.

2 p.m. NDP Leader JAGMEET SINGH hosts a media availability before question period.

4 p.m. Immigration Minister MARC MILLER has a media scrum scheduled in West Block to field questions about the new 2024–2026 immigration levels plan.

4:15 p.m. Bank of Canada Governor TIFF MACKLEM and Senior Deputy Governor CAROLYN ROGERS will be at the Senate banking committee to talk about inflation.

7:30 p.m. Transportation Minister PABLO RODRIGUEZ will be at the House transport committee to take questions on Bill C-33. 

7:30 p.m. Health Minister MARK HOLLAND and Mental Health and Addictions Minister YA'ARA SAKS will drop by the House health committee to talk about their mandate letters. (For the record: It has been 98 days since the Cabinet shuffle and new versions of the letters have not been made public.)

HALLWAY CONVERSATION

OSAKA TO OTTAWA — International Trade Minister MARY NG is playing matchmaker in Japan this week at the helm of Canada's first trade mission under the Indo-Pacific strategy.

Ng leads a delegation of 250 people representing 160 businesses. She tells Playbook the mood is “enthusiastic.”

— Quick data point: Trade growth has increased 10 percent with countries under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — but trade with Japan has climbed by 23 percent since the deal came into force in 2018.

— Quick policy point: Foreign Affairs Minister Joly stated in a major policy speech Monday that she believes Canada should be as close to Japan and South Korea as it is to the United Kingdom, France, Germany and Italy.

This interview with Zi-Ann Lum has been edited for length and clarity.

Give us an update from the ground in Japan. 

I visited Panasonic yesterday — they're manufacturing batteries for cars. When Minister [YASUTOSHI] NISHIMURA was in Ottawa just last month, we signed a memorandum of cooperation. It's fantastic.

Companies here are a part of that battery value chain, technologies that are interesting for the Japanese — technology chips, that sort of thing. There's a real, wonderful opportunity there.

Yesterday I visited a hydrogen storage facility, a terminal at the port of Kobe. They are looking at hydrogen as helping with Japan's energy security. I've got hydrogen producers here from Canada that are looking to Japan as an important market.

There are clean tech companies here. There are creative industries here. I met with an incredible Japanese digital digital company. They're looking for partnerships, whether it's AI or whether it is with digital media companies and creatives in Canada.

The digital services tax was raised during your G-7 bilat with United States Trade Representative KATHERINE TAI. Is the government ready to deal with potential retaliation from the U.S. when this tax comes into effect next year?

We didn't talk about that. But what we did do was talk about — what I certainly talked about — was the fact Canada takes very seriously the importance of fairness, where big corporate players, like the tech giants, pay their fair share of tax.

We both agreed that what was negotiated at the OECD was something important.

British trade officials tell me that they’re flexible on the April free-trade agreement deadline if more time is needed to land on a good deal. Is the feeling mutual?

We've done seven rounds. We have another round in November. My message to the negotiators is: Please keep working hard.

So … flexibility on the deadline? 

We should work as hard as we can. The negotiators and I can certainly say from the Canadian side that we are all hands on deck and we're prepared to continue putting the energy into this because it's important to us. Canadian businesses would expect us to do that.

What are your fall priorities? 

I am going to be at APEC in about two weeks.

I am taking the Canada-Ukraine free-trade agreement through Parliament. I believe I appear at [the House] trade committee next week.

There's actually a couple of trade missions I won't be on directly, but I certainly will keep an eye on. That's the Asia-Pacific trade missions and another couple of women-led trade missions to Korea and Thailand.

We announced the Indo-Pacific strategy last November. Since that time, I've been in the region, I don't know, probably 18-19 times. We have planted the seeds, we're watering those seeds, and we're watching the plants come up. We've got to keep watering them — and make sure it blossoms.

 

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MEDIA ROOM


— Ukrainian officials and allies in Europe are ramping up U.S. lobbying for new weapons. POLITICO’s LARA SELIGMAN has the details.

— Quebec Premier FRANÇOIS LEGAULT has a podcast and his latest guest is former Quebec premier LUCIEN BOUCHARD, who he has on for a 42-minute chat.

— A talker from CityNews’ MICHAEL RANGER: Toronto named Canada’s ‘rattiest’ city for second year in a row.

— And another from DANIEL LEBLANC of CBC News: Whistleblowers secretly recorded civil servant slamming federal green fund.

— From CTV News’ DORCAS MARFO, two Russian-Canadian nationals have been charged in the U.S. with allegedly using front companies to avoid sanctions to send semiconductors and electronics to Russia.

ALTHIA RAJ writes a new Toronto Star column that takes stock of disappointment in Liberal circles over Trudeau’s carbon tax climbdown and muses if he’s fallen into a Tory trap.

For Air Quotes Media, Curse of Politics podcast regular JORDAN LEICHNITZ pens lessons for dippers from OLIVIA CHOW’s mayoral campaign.

— And top of POLITICO this hour: RFK Jr.'s 2024 bid is a threat to Republicans — and donor data shows it.

PROZONE


Our latest policy newsletter for Pro subscribers from SUE ALLAN, ZI-ANN LUM and KYLE DUGGAN: Rowing in all directions.

U.S. to host last-minute IPEF talks ahead of APEC summit.

U.K., U.S. slated to announce AI safety partnership.

Supply chain investment to dominate initial focus of APEP talks.

Hedge funds pile into uranium stocks set for ‘dramatic’ rise.  

Fear of Chinese dominance looms over Biden’s next electric car rule.

PLAYBOOKERS


Birthdays: Sen. COLIN DEACON celebrates today with Alberta NDP MLA CHRISTINA GRAY and former MP SANA HASSAINIA. CHRISTOPHER MARTIN-CHAN, director of issues and comms for Ontario Treasury Board President CAROLINE MULRONEY, also celebrates today.

Birthdays, gatherings, social notices for this community: Send them our way.

Spotted: NDP MP RICHARD CANNINGS, observing the House with a guest in the gallery a few minutes before question period; … Tory MP COREY TOCHOR, unleashing the one-man, slow clap heard 'round the chamber in response to Environment Minister STEVEN GUILBEAULT's carbon tax QP talking points; … Public Safety Minister DOMINIC LEBLANC, repeatedly giving Foreign Minister MÉLANIE JOLY the giggles.

Liberal MP JULIE DZEROWICZ talking something over with NDP MP DANIEL BLAIKIE even after QP gots underway — before taking her second-row seat as Poilievre rose to ask his second question of the day.

MARK CARNEY and CATHERINE MCKENNA in a private pull-aside outside the main plenary room at Canada 2020’s fall net-zero summit at The Westin; TOM PITFIELD and Carney later in another pull-aside a couple floors down.

Housing Minister SEAN FRASER scrumming with journalists over Zoom while he waited for his own press conference to start, delayed by Cabinet colleagues running late … Toronto Star reporter STEPH LEVITZ chairing said press conference sporting a Halloween-inspired spider fascinator … CHRYSTIA FREELAND trying to spin that she dressed up as a finance minister for Halloween.

Trade Minister MARY NGrubbing shoulders on national television in Japan with the appropriately festive Osaka Expo 2025 mascot MYAKU-MYAKU.

Manitoba Premier WAB KINEW’s remaining mandate letters released for his Cabinet ministers 14 days after they were sworn in. Meanwhile, it’s been 98 days since Small Business Minister RECHIE VALDEZ was sworn into Trudeau’s Cabinet. Her public mandate letter is still missing.

Movers and shakers: Global Public Affairs consultant ABIGAIL PENDER posted an Oct. 26 meeting with PMO senior adviser BEN CHIN on behalf of Full Circle Environmental Solutions. The company hopes for federal funding to "further innovative environmental technology in the waste tire recycling sector."

The PM has appointed five new senators: Former Liberal MP RODGER CUZNER (who got a Poli Lego ode); JOAN KINGSTON, a nurse and former Liberal member of that province's legislative assembly; JOHN MCNAIR, a lawyer and public servant; KRISTA ROSS, a business and nonprofit leader; and RÉJEAN AUCOIN, a lawyer and francophone leader.

Send Playbookers tips to ottawaplaybook@politico.com .

 

PLAYBOOK IS GOING GLOBAL! We’re excited to introduce Global Playbook, POLITICO’s premier newsletter that brings you inside the most important conversations at the most influential events in the world. From the buzzy echoes emanating from the snowy peaks at the WEF in Davos to the discussions and personalities at Milken Global in Beverly Hills, to the heart of diplomacy at UNGA in New York City – author Suzanne Lynch brings it all to your fingertips. Experience the elite. Witness the influential. And never miss a global beat. BE PART OF THE CONVERSATION. SUBSCRIBE NOW.

 
 
On the Hill


— It’s caucus day on the Hill.

11:30 a.m. Foreign Affairs MÉLANIE JOLY is at the Montreal Council of Foreign Relations.

11:30 a.m. Bill C-21 is the topic of study at the Senate national security committee. Islamic Cultural Centre of Quebec City co-founder BOUFELDJA BENABDALLAH and PolyRemembers’ HEIDI RATHJEN and NATHALIE PROVOST are on the witness list.

2 p.m. NDP Leader JAGMEET SINGH hosts a media availability before question period.

4 p.m. Immigration Minister MARC MILLER has a media scrum scheduled in West Block to field questions about the new 2024–2026 immigration levels plan.

4:15 p.m. Bank of Canada Governor TIFF MACKLEM and Senior Deputy Governor CAROLYN ROGERS will be at the Senate banking committee.

4:15 p.m. “Women, peace and security” will be the focus of study at the Senate foreign affairs committee.

4:15 pm. Inuit Tapiriit Kanatami President NATAN OBED and Assembly of First Nations Interim National Chief JOANNA BERNARD will be at the Senate social affairs committee’s study on Bill C-35.

4:15 p.m. The Senate legal and constitutional affairs committee will meet to study Bill S-13.

4:30 p.m. The House foreign affairs committee will receive a briefing on the situation at the Russia-Ukraine border.

4:30 p.m. The House official languages committee will study the economic development of official language minority communities.

4:30 p.m. The House public safety community will be conducting clause by clause of Bill C-20. 

4:30 p.m. OECD economist MARGUERITA LANE joins the House human resources committee by videolink as MPs launch a new study on the impact on AI on Canada’s labor force.

6:45 p.m. Cowessess First Nation Chief ERICA BEAUDIN will be up at the Senate Indigenous peoples committee.

6:45 p.m. The Senate national finance committee has 14 department officials from Parks Canada, Natural Resources Canada and Environment and Climate Change Canada taking part in its study on main estimates.

6:45 p.m. The Senate transport committee continues its study on the impacts of climate change on critical infrastructure.

7:30 p.m. Transportation Minister PABLO RODRIGUEZ will be at the House transport committee.e

7:30 p.m. Health Minister MARK HOLLAND and Mental Health and Addictions Minister YA'ARA SAKS will drop by the House health committee.

Behind closed doors: The House liaison committee will meet to discuss “committee business”; the House science committee will review draft reports of three studies; the Senate audit and oversight committee will meet to discuss internal and external probes.

TRIVIA


Tuesday’s answer: The Queen Mother received the Order of Canada in October 2000 in recognition of her 100th birthday.  

Props to JIM CAMPBELL, GEORGE SCHOENHOFER, JOHN ECKER and ROBERT MCDOUGALL. 

Think you have a harder trivia question? Send us your best.

Today's question is from reader BILL PRISTANSKI: This former MP was elected to the House of Commons in two different centuries and also worked for JOHN DIEFENBAKER, PETER LOUGHEED and BRIAN MULRONEY. Bonus clue: This individual turns 75 this week.

Answers to ottawaplaybook@politico.com

Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, Luiza Ch. Savage and Emma Anderson.

 

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