August 31, 2011, 10:48 AM EDT

By Greg Quinn

(Updates with economist comment in eighth paragraph, finance minister in 14th paragraph.)

Aug. 31 (Bloomberg) — Canada’s economy shrank in the second quarter for the first time since the recession two years ago, as a high dollar boosted imports and curbed exports while natural disasters interrupted energy and automobile production.

Gross domestic product fell at a 0.4 percent annualized pace during the April-June period following a 3.6 percent gain in the first three months of the year, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg forecast no growth in the quarter, based on the median of 23 responses, with nine calling for an expansion and six for a contraction.

The world’s 10th largest economy joined Japan in shrinking in the second quarter, reflecting weakness in the U.S. and Europe, its biggest trading partners. The report adds pressure on Bank of Canada Governor Mark Carney to keep his policy interest rate at 1 percent at the Sept. 7 announcement, with some investors betting he may need to cut borrowing costs.

“No matter what, we are getting growth that isn’t going to be going anywhere for some time,” said Derek Holt, Scotia Capital’s vice-president of economics in Toronto, by telephone.

“The Bank of Canada has full reason to remain parked on hold for at least the next year or so,” Holt said. “When they do start to raise interest rates, I can’t see them doing more than capping off at around 2 percent into 2013.”

The Canadian dollar rose 0.3 percent to 97.54 cents per U.S. dollar at 9:33 a.m. in Toronto, compared with 97.79 cents yesterday. One Canadian dollar buys $1.02522. The price of shorter-dated bonds rose, with the yield on Canada’s 2-year government benchmark falling one basis point to 1.02 percent.

Drag From Trade

Trade was the biggest drag on the economy in the second quarter as imports of goods and services rose 2.4 percent, led by a 6.6 percent gain in machinery and equipment. Exports, which equaled a third of Canada’s economy in 2010, fell 2.1 percent, the most in two years. Automobile production fell an annualized 6 percent, disrupted by Japan’s earthquake and tsunami, while wildfires in Alberta and maintenance shutdowns curbed oil and gas extraction by 3.6 percent.

“Accidents can happen to any economy and we had temporary troubles in energy and autos that likely accounted for the negative sign” said Avery Shenfeld, chief economist at CIBC World Markets by telephone from Toronto. “We likely aren’t yet in recession despite the negative second quarter,” he said, adding that “the biggest risk is beyond Canada’s borders.”

Domestic Demand Grows

Second-quarter final domestic demand, which excludes inventories, imports and exports, grew by 0.7 percent after 0.5 percent in the first quarter, Statistics Canada said today. Consumer and government spending both increased 0.4 percent after being little changed in the first quarter.

Fixed capital investment rose by 2 percent, led by a 3.7 percent increase in business spending on plant and equipment.

Inventories rose by C$19.2 billion ($19.6 billion) in the second quarter, the most since the end of 2007 and more than double the C$9 billion gain in the previous three months, Statistics Canada said.

Canada’s economy shrank from the fourth quarter of 2008 through the second quarter of 2009 according to Statistics Canada figures. The country doesn’t have an official arbiter of recessions similar to the National Bureau of Economic Research in the U.S.

On a monthly basis, Canada’s gross domestic product rose 0.2 percent in June, compared with the 0.1 percent expansion that was the median forecast of 23 economists in a Bloomberg survey. Retail sales of new and used cars led the gain.

Economy ‘Paused’

Finance Minister Jim Flaherty, speaking to reporters in Toronto about 30 minutes after the report was released, said the economy “paused” in the second quarter. “As anticipated, the data published today show that the Canadian economy is still very fragile,” Flaherty said. “Global economic growth has been weak in recent months and as a trading nation, we must recognize that turmoil abroad will inevitably have an impact on our economy.”

Business investment and consumers will lead an economic recovery in the second half of this year, Governor Carney told the House of Commons Finance Committee Aug. 19. While opposition lawmakers at the hearing asked about the need for more government stimulus, Flaherty, whose Conservative Party holds a majority of seats in Parliament, said that major new spending would be “precisely the wrong direction” for Canada.

Economic ‘Headwinds’

Carney also said the “headwinds” restraining the economy, including the Canadian dollar’s rise against the U.S. dollar, had increased. The Canadian dollar touched 94.07 cents per U.S. dollar July 26, the strongest since November 2007. Since then, the currency has weakened and government bond yields have fallen on bets Carney may cut rates to fight the global slowdown’s impact.

Royal Bank of Canada Chief Executive Officer Gordon Nixon warned Aug. 26 of “significant headwinds” for banks, including sovereign debt concerns, after his company posted profit that missed analysts’ estimates for the sixth time in seven quarters.

Banks around the world are facing “a slowdown in consumer lending and the added difficulty of an operating and prolonged low interest rate environment,” Nixon said on an earnings call for Canada’s largest lender.

The U.S. economy grew at a 1 percent annualized pace in the second quarter, the Commerce Department said Aug. 26. Output in the 17-nation euro area rose 0.2 percent in the second quarter from the first, the European Union’s statistics office in Luxembourg said Aug. 16.

Third Quarter Growth

The Bank of Canada forecast in July growth rates of 2.8 percent in the third quarter and 2.9 percent in the fourth. Economists surveyed by Bloomberg Aug. 22 to Aug. 29 predicted growth of 2 percent in the third quarter and 2.2 percent in the fourth.

“The domestic economy has been strong compared to the U.S. but clearly there is a roof on Canadian growth if the U.S. gets back into recession,” Canadian Trucking Alliance President David Bradley said in an Aug. 28 telephone interview. “There is a fragile optimism heading into the fourth quarter” when retailers stock up for holiday sales, he said.

–With assistance from Andrew Mayeda and Ilan Kolet in Ottawa and Sean Pasternak in Toronto. Editor: Paul Badertscher, James Tyson

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net.

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; Christopher Wellisz at cwellisz@bloomberg.net.

Article source: http://www.businessweek.com/news/2011-08-31/canada-economy-shrinks-for-first-time-since-2009-recession.html

JANZOUR, Libya (Reuters) – Muammar Gaddafi’s foreign minister, Abdelati Obeidi, was arrested Tuesday at his farm in Janzour, a suburb west of Tripoli, a Reuters correspondent said.

Article source: http://news.yahoo.com/canada-takes-first-step-toward-holocaust-memorial-224301973.html

Enlarge image

Canada’s Economy Contracts for First Time Since 2009

Brent Lewin/Bloomberg

Canada joined Japan in shrinking in the second quarter, reflecting weakness in the U.S. and Europe, its biggest trading partners.

Canada joined Japan in shrinking in the second quarter, reflecting weakness in the U.S. and Europe, its biggest trading partners. Photographer: Brent Lewin/Bloomberg

Canada’s economy shrank in the
second quarter for the first time since the recession two years
ago, as a high dollar boosted imports and curbed exports while
natural disasters interrupted energy and automobile production.

Gross domestic product fell at a 0.4 percent annualized
pace during the April-June period following a 3.6 percent gain
in the first three months of the year, Statistics Canada said
today in Ottawa. Economists surveyed by Bloomberg forecast no
growth in the quarter, based on the median of 23 responses, with
nine calling for an expansion and six for a contraction.

The world’s 10th largest economy joined Japan in shrinking
in the second quarter, reflecting weakness in the U.S. and
Europe, its biggest trading partners. The report adds pressure
on Bank of Canada Governor Mark Carney to keep his policy
interest rate at 1 percent at the Sept. 7 announcement, with
some investors betting he may need to cut borrowing costs.

“No matter what, we are getting growth that isn’t going to
be going anywhere for some time,” said Derek Holt, Scotia
Capital’s vice-president of economics in Toronto, by telephone.

“The Bank of Canada has full reason to remain parked on
hold for at least the next year or so,” Holt said. “When they
do start to raise interest rates, I can’t see them doing more
than capping off at around 2 percent into 2013.”

The Canadian dollar rose 0.3 percent to 97.54 cents per
U.S. dollar at 9:33 a.m. in Toronto, compared with 97.79 cents
yesterday. One Canadian dollar buys $1.02522. The price of
shorter-dated bonds rose, with the yield on Canada’s 2-year
government benchmark falling one basis point to 1.02 percent.

Drag From Trade

Trade was the biggest drag on the economy in the second
quarter as imports of goods and services rose 2.4 percent, led
by a 6.6 percent gain in machinery and equipment. Exports, which
equaled a third of Canada’s economy in 2010, fell 2.1 percent,
the most in two years. Automobile production fell an annualized
6 percent, disrupted by Japan’s earthquake and tsunami, while
wildfires in Alberta and maintenance shutdowns curbed oil and
gas extraction by 3.6 percent.

“Accidents can happen to any economy and we had temporary
troubles in energy and autos that likely accounted for the
negative sign” said Avery Shenfeld, chief economist at CIBC
World Markets by telephone from Toronto. “We likely aren’t yet
in recession despite the negative second quarter,” he said,
adding that “the biggest risk is beyond Canada’s borders.”

Domestic Demand Grows

Second-quarter final domestic demand, which excludes
inventories, imports and exports, grew by 0.7 percent after 0.5
percent in the first quarter, Statistics Canada said today.
Consumer and government spending both increased 0.4 percent
after being little changed in the first quarter.

Fixed capital investment rose by 2 percent, led by a 3.7
percent increase in business spending on plant and equipment.

Inventories rose by C$19.2 billion ($19.6 billion) in the
second quarter, the most since the end of 2007 and more than
double the C$9 billion gain in the previous three months,
Statistics Canada said.

Canada’s economy shrank from the fourth quarter of 2008
through the second quarter of 2009 according to Statistics
Canada figures. The country doesn’t have an official arbiter of
recessions similar to the National Bureau of Economic Research
in the U.S.

On a monthly basis, Canada’s gross domestic product rose
0.2 percent in June, compared with the 0.1 percent expansion
that was the median forecast of 23 economists in a Bloomberg
survey. Retail sales of new and used cars led the gain.

Economy ‘Paused’

Finance Minister Jim Flaherty, speaking to reporters in
Toronto about 30 minutes after the report was released, said the
economy “paused” in the second quarter. “As anticipated, the
data published today show that the Canadian economy is still
very fragile,” Flaherty said. “Global economic growth has been
weak in recent months and as a trading nation, we must recognize
that turmoil abroad will inevitably have an impact on our
economy.”

Business investment and consumers will lead an economic
recovery in the second half of this year, Governor Carney told
the House of Commons Finance Committee Aug. 19. While opposition
lawmakers at the hearing asked about the need for more
government stimulus, Flaherty, whose Conservative Party holds a
majority of seats in Parliament, said that major new spending
would be “precisely the wrong direction” for Canada.

Economic ‘Headwinds’

Carney also said the “headwinds” restraining the economy,
including the Canadian dollar’s rise against the U.S. dollar,
had increased. The Canadian dollar touched 94.07 cents per U.S.
dollar July 26, the strongest since November 2007. Since then,
the currency has weakened and government bond yields have fallen
on bets Carney may cut rates to fight the global slowdown’s
impact.

Royal Bank of Canada Chief Executive Officer Gordon Nixon
warned Aug. 26 of “significant headwinds” for banks, including
sovereign debt concerns, after his company posted profit that
missed analysts’ estimates for the sixth time in seven quarters.

Banks around the world are facing “a slowdown in consumer
lending and the added difficulty of an operating and prolonged
low interest rate environment,” Nixon said on an earnings call
for Canada’s largest lender.

The U.S. economy grew at a 1 percent annualized pace in the
second quarter, the Commerce Department said Aug. 26. Output in
the 17-nation euro area rose 0.2 percent in the second quarter
from the first, the European Union’s statistics office in
Luxembourg said Aug. 16.

Third Quarter Growth

The Bank of Canada forecast in July growth rates of 2.8
percent in the third quarter and 2.9 percent in the fourth.
Economists surveyed by Bloomberg Aug. 22 to Aug. 29 predicted
growth of 2 percent in the third quarter and 2.2 percent in the
fourth.

“The domestic economy has been strong compared to the U.S.
but clearly there is a roof on Canadian growth if the U.S. gets
back into recession,” Canadian Trucking Alliance President
David Bradley said in an Aug. 28 telephone interview. “There is
a fragile optimism heading into the fourth quarter” when
retailers stock up for holiday sales, he said.

To contact the reporter on this story:
Greg Quinn in Ottawa at
gquinn1@bloomberg.net.

To contact the editors responsible for this story:
David Scanlan at dscanlan@bloomberg.net;
Christopher Wellisz at
cwellisz@bloomberg.net.

Article source: http://www.bloomberg.com/news/2011-08-31/canada-s-economy-contracts-for-first-time-since-2009-recession.html

August 31, 2011, 10:48 AM EDT

By Greg Quinn

(Updates with economist comment in eighth paragraph, finance minister in 14th paragraph.)

Aug. 31 (Bloomberg) — Canada’s economy shrank in the second quarter for the first time since the recession two years ago, as a high dollar boosted imports and curbed exports while natural disasters interrupted energy and automobile production.

Gross domestic product fell at a 0.4 percent annualized pace during the April-June period following a 3.6 percent gain in the first three months of the year, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg forecast no growth in the quarter, based on the median of 23 responses, with nine calling for an expansion and six for a contraction.

The world’s 10th largest economy joined Japan in shrinking in the second quarter, reflecting weakness in the U.S. and Europe, its biggest trading partners. The report adds pressure on Bank of Canada Governor Mark Carney to keep his policy interest rate at 1 percent at the Sept. 7 announcement, with some investors betting he may need to cut borrowing costs.

“No matter what, we are getting growth that isn’t going to be going anywhere for some time,” said Derek Holt, Scotia Capital’s vice-president of economics in Toronto, by telephone.

“The Bank of Canada has full reason to remain parked on hold for at least the next year or so,” Holt said. “When they do start to raise interest rates, I can’t see them doing more than capping off at around 2 percent into 2013.”

The Canadian dollar rose 0.3 percent to 97.54 cents per U.S. dollar at 9:33 a.m. in Toronto, compared with 97.79 cents yesterday. One Canadian dollar buys $1.02522. The price of shorter-dated bonds rose, with the yield on Canada’s 2-year government benchmark falling one basis point to 1.02 percent.

Drag From Trade

Trade was the biggest drag on the economy in the second quarter as imports of goods and services rose 2.4 percent, led by a 6.6 percent gain in machinery and equipment. Exports, which equaled a third of Canada’s economy in 2010, fell 2.1 percent, the most in two years. Automobile production fell an annualized 6 percent, disrupted by Japan’s earthquake and tsunami, while wildfires in Alberta and maintenance shutdowns curbed oil and gas extraction by 3.6 percent.

“Accidents can happen to any economy and we had temporary troubles in energy and autos that likely accounted for the negative sign” said Avery Shenfeld, chief economist at CIBC World Markets by telephone from Toronto. “We likely aren’t yet in recession despite the negative second quarter,” he said, adding that “the biggest risk is beyond Canada’s borders.”

Domestic Demand Grows

Second-quarter final domestic demand, which excludes inventories, imports and exports, grew by 0.7 percent after 0.5 percent in the first quarter, Statistics Canada said today. Consumer and government spending both increased 0.4 percent after being little changed in the first quarter.

Fixed capital investment rose by 2 percent, led by a 3.7 percent increase in business spending on plant and equipment.

Inventories rose by C$19.2 billion ($19.6 billion) in the second quarter, the most since the end of 2007 and more than double the C$9 billion gain in the previous three months, Statistics Canada said.

Canada’s economy shrank from the fourth quarter of 2008 through the second quarter of 2009 according to Statistics Canada figures. The country doesn’t have an official arbiter of recessions similar to the National Bureau of Economic Research in the U.S.

On a monthly basis, Canada’s gross domestic product rose 0.2 percent in June, compared with the 0.1 percent expansion that was the median forecast of 23 economists in a Bloomberg survey. Retail sales of new and used cars led the gain.

Economy ‘Paused’

Finance Minister Jim Flaherty, speaking to reporters in Toronto about 30 minutes after the report was released, said the economy “paused” in the second quarter. “As anticipated, the data published today show that the Canadian economy is still very fragile,” Flaherty said. “Global economic growth has been weak in recent months and as a trading nation, we must recognize that turmoil abroad will inevitably have an impact on our economy.”

Business investment and consumers will lead an economic recovery in the second half of this year, Governor Carney told the House of Commons Finance Committee Aug. 19. While opposition lawmakers at the hearing asked about the need for more government stimulus, Flaherty, whose Conservative Party holds a majority of seats in Parliament, said that major new spending would be “precisely the wrong direction” for Canada.

Economic ‘Headwinds’

Carney also said the “headwinds” restraining the economy, including the Canadian dollar’s rise against the U.S. dollar, had increased. The Canadian dollar touched 94.07 cents per U.S. dollar July 26, the strongest since November 2007. Since then, the currency has weakened and government bond yields have fallen on bets Carney may cut rates to fight the global slowdown’s impact.

Royal Bank of Canada Chief Executive Officer Gordon Nixon warned Aug. 26 of “significant headwinds” for banks, including sovereign debt concerns, after his company posted profit that missed analysts’ estimates for the sixth time in seven quarters.

Banks around the world are facing “a slowdown in consumer lending and the added difficulty of an operating and prolonged low interest rate environment,” Nixon said on an earnings call for Canada’s largest lender.

The U.S. economy grew at a 1 percent annualized pace in the second quarter, the Commerce Department said Aug. 26. Output in the 17-nation euro area rose 0.2 percent in the second quarter from the first, the European Union’s statistics office in Luxembourg said Aug. 16.

Third Quarter Growth

The Bank of Canada forecast in July growth rates of 2.8 percent in the third quarter and 2.9 percent in the fourth. Economists surveyed by Bloomberg Aug. 22 to Aug. 29 predicted growth of 2 percent in the third quarter and 2.2 percent in the fourth.

“The domestic economy has been strong compared to the U.S. but clearly there is a roof on Canadian growth if the U.S. gets back into recession,” Canadian Trucking Alliance President David Bradley said in an Aug. 28 telephone interview. “There is a fragile optimism heading into the fourth quarter” when retailers stock up for holiday sales, he said.

–With assistance from Andrew Mayeda and Ilan Kolet in Ottawa and Sean Pasternak in Toronto. Editor: Paul Badertscher, James Tyson

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net.

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; Christopher Wellisz at cwellisz@bloomberg.net.

Article source: http://www.businessweek.com/news/2011-08-31/canada-economy-shrinks-for-first-time-since-2009-recession.html

Wed Aug 31, 2011 11:17pm IST

Article source: http://in.reuters.com/article/2011/08/31/markets-canada-stocks-idINN1E77T1VQ20110831

Wed Aug 31, 2011 11:22pm IST

Article source: http://in.reuters.com/article/2011/08/31/markets-canada-stocks-idINN1E77U18H20110831

Wed Aug 31, 2011 1:52pm EDT

Article source: http://www.reuters.com/article/2011/08/31/markets-canada-stocks-idUSN1E77U18H20110831

By Bill Mann, MarketWatch

PORT TOWNSEND, Wash. (MarketWatch) — Canada’s economy shrank slightly in the second quarter, the latest figures show, but no one seems to be panicking north of the U.S. border. Nor do they seem overly worried, for that matter.

The shrinkage in Gross Domestic Product was not expected, but it wasn’t that surprising, either, all things considered. After all, fires and tsunamis — aka “acts of God” — do happen.

Canada’s GDP shrank 0.1% from the first quarter, for an annualized drop of 0.4%, marking the first decline since the second quarter of 2009, Statistics Canada said Wednesday. This followed a 0.9% increase the first quarter.

For now, at least, the weak U.S. economy is actually outperforming Canada’s.

Click to Play

Private sector adds 91,000 jobs in August

The private sector added 91,000 jobs in August, which was an expected number. The ADP report is seen as a preview of the monthly jobs report due out at the end of the week. (Photo: Getty Images.)

Exports fell 2.1% from the previous quarter, the sharpest drop in two years, dragged down by a 6.7% decline in energy shipments as output was hit by wildfires in northern Alberta and maintenance shutdowns. Plus, the weak U.S. economy, of course.

The consensus call was for Canada’s much-touted economy to stall in the second quarter, but not contract. Japan was the only other Group of Seven nation to record a decline in the quarter. Canada now lags behind the United States, where GDP grew an annualized 1% in the second quarter.

Canada’s economy did expand 0.2% in June, which economists took as an encouraging sign that activity was picking up in the third quarter. Economists had been expecting a flat reading for the quarter and a 0.1% increase in June.

Recession? Not necessarily

But the figures, while disappointing, don’t mean Canada will fall back into recession, analysts and Canadian officials are virtually unanimous in saying. And there was that upswing at the end of the quarter, which is a hopeful sign going ahead, analysts agree.

“While the headline number is disappointing, the details of the report are more upbeat, and do not signal a recession,” Diana Petramala, economist at Toronto Dominion Bank, told the Toronto Globe and Mail.

“Look for a better third quarter,” said Jennifer Lee, senior economist at BMO Nesbitt Burns in a note.

Sal Guatieri, BMO Capital Markets Senior Analyst, said of the disappointing GDP report:

“It’s worth noting that the economy did grow at a fairly respectable rate, plus 3% in the previous two quarters. There were some temporary factors that slowed the economy in the second quarter. The supply chain disruptions in the auto industry, wildfires in Alberta. Most importantly, the economy appears to have ended the quarter on a fairly healthy note, June GDP up 0.2%. That suggests growth will rebound to about 2% in the third quarter.”

He added: “There may have been a knee-jerk (currency) reaction, but I’m not seeing any long-lasting effect. Again, the report does not carry many implications for monetary policy, even though quarterly growth came in a little weaker than expected, June GDP came in a little better than expected, raising hopes that the economy bounced back in the third quarter.”

CIBC Senior Economist Benjamin Tal, quoted in the Financial Post, was also upbeat about the GDP contraction:

Article source: http://www.marketwatch.com/story/canadian-gdp-headline-may-be-deceiving-2011-08-31?reflink=MW_GoogleNews

BY BEN LEFEBVRE

HOUSTON—Nebraska’s governor asked the federal government Wednesday to deny TransCanada Corp. a permit needed for a pipeline expansion that would dramatically boost the amount of Canadian crude oil delivered to refiners in the Midwest and …

Article source: http://online.wsj.com/article/SB10001424053111904716604576542484291001842.html

OTTAWA — A “bullish” Canada is working to block a proposal calling on governments around the world to work to reduce the amount of fats, sugar and salt in processed foods for an upcoming United Nations summit on non-communicable diseases, according to an analysis of drafts of the declaration by a leading medical journal.

The British Medical Journal has reviewed key versions of the document that will form the foundation of the summit of world leaders in New York City next month. It says that Canada, along with the United States and the European Union, wants a pivotal line about resource allocation to combat non-communicable diseases — estimated to cause more than half of all deaths in low- and middle-income countries — deleted from the document altogether.

The statement, supported by the so-called F-77 group of lower-income states, reads: “acknowledge that resources devoted to combating non-communicable diseases are not commensurate with the magnitude of the problem.”

Common risk factors for these diseases — namely heart disease, respiratory illnesses, diabetes and cancer — are unhealthy diet, tobacco use, physical inactivity and harmful use of alcohol.

“What I’ve been told by people who are sitting around the table trying to negotiate this is Canada has been particular bullish, even more bullish than the U.S. in protecting industry,” journal investigations editor Dr. Deborah Cohen said in an interview Tuesday.

“They’ve been surprised at Canada because you typically think of Canada as being quite into public health, but actually they’ve been quite bullish. What happens is things get added in and then there’s a push back against things getting added in.”

For example, Canada is also resisting specific guidance on alcohol and wants to strike a reference to increased taxation on tobacco to reduce smoking, said Cohen.

“Canada is quite against tobacco taxation and legislation, even though Canada has implemented those kind of public-health interventions, but they were against putting it in,” she said.

Negotiations on the final version of the summit’s declaration document are expected to continue later this week as part of the leadup to the high-level UN meeting, set for Sept. 19 and 20.

“It’s hard to see without effective public-health measures put in place what’s really going to happen,” said Cohen, admitting it’s a tough fight ahead.

“You’re taking on the tobacco industry, the alcohol industry, the food industry and the drug industry. You kind of think, ‘What hope do you have really?’”

Bill Jeffery, Canadian co-ordinator of the Centre for Science in the Public Interest, who will be representing that group and the International Association for Consumer Food Organizations at the official UN event in New York City, said it looks as if Canada has been unhelpful during the negotiating process to date, based on his review of drafts.

“Canada’s position is, at best, persistently ambivalent and, more likely, energetically opposed to using government regulation in Canada and elsewhere to help limit the economic and health burdens of diseases caused by tobacco, food diet, alcoholic beverages,” said Jeffery.

“At every turn, Canada seems to undercut the efforts to improve public health led by G-77 countries, Norway and others.”

The Public Health Agency of Canada, which has convened consultations for the upcoming summit, told public-health advocates Tuesday that Prime Minister Stephen Harper will not be attending the summit due to a scheduling conflict. Parliament reconvenes Sept. 19 after a summer break.

In a statement, the agency said the British Medical Journal does not “provide an accurate representation of Canada’s views or sufficient context for these issues.”

The agency added: “Canada is supportive of the World Health Organization process to develop a comprehensive global monitoring framework for non-communicable diseases (NCDs).”

On the question of tobacco and taxation policy, the Finance Department said it’s wrong to say Canada is “resisting all language on taxation.”

“Canada’s position is grounded in the World Health Organization Framework Convention on Tobacco Control, which recognizes that price and tax measures are an effective and important means of reducing tobacco consumption, subject to the sovereign right of nations to determine and establish their own taxation policies. Canada encourages all parties to implement the FCTC.”

schmidt@postmedia.com

Twitter.com/sarah_schmidt_

Article source: http://www.canada.com/health/Canada+battling+proposal+reduce+fats+sugar+salt+Journal/5329844/story.html