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Leverage sought for deals with U.S.

Canada's newest economic minister says the time has come to get tough in trade negotiations with the "American Goliath."

Industry Minister David Emerson is a proponent of the controversial idea of linking Canada's industry sectors to leverage better trade deals with the United States.

The former chief executive of British Columbia-based forestry giant Canfor said he wouldn't propose cutting off Canada's natural gas exports until the United States gives Canada free trade in lumber.

There needs to be more give-and-take and more than one issue or one sector on the table, he suggested. As well, there should be proposals for strategic coalitions between industries so negotiations can be most effective.

"It's the reality of being the smaller partner in a negotiation, and anybody who's pretending otherwise hasn't thought about it," Emerson said.

Regarding Canada's other major trade irritant, the closing of the U.S. border to live cattle, litigation by a U.S. farm group could prolong the ban for two more years, Alberta Premier Ralph Klein says. The border was closed 16 months ago after a single case of mad cow disease in the province.

The Canadian government will revamp its popular Canada savings bonds program but won't scrap it.

Finance Minister Ralph Goodale said his department is reviewing all aspects of its retail debt program, which includes Canada savings bonds and Canada premium bonds sold to the public.

A consulting firm has recommended eliminating the bonds because they have become much less in demand in recent years due to better financial returns on stocks, bonds and mutual funds.

"The option of eliminating the Canada savings bonds program is not on the table as part of this review," Goodale said.

Traffic was stalled for several hours Friday at the Lacolle, Quebec-U.S. border crossing after about 200 customs agents picketed to protest stalled contract talks. Agents blocked traffic in both directions until police convinced them to move aside. They are seeking wage parity with Mounties and U.S. customs agents.

Rotating strikes by Parks Canada workers escalated Friday in advance of the Labor Day weekend. About 5,000 federal workers who run the national park system along with historic sites, canals and marine conservation areas stayed home from work.

Steelworkers at the Iron Ore Company of Canada have rejected a contract offer that could have ended a seven-week strike. About 1,400 members of the United Steelworkers of America have been on strike since July 19.

A tentative agreement is imminent in talks aimed at ending a four-month strike at Aliant, Atlantic Canada's largest telephone company, a federal official said Friday. About 4,300 workers have been on strike since April 23 seeking better pensions and improved job security.

A survey of Canadian employers finds that wage increases will average 3.2 percent next year. The Hay Group management consultancy polled 500 Canadian organizations in the public and private sectors.

Canada's dollar is higher, ending the week at 76.94 U.S. cents while the U.S. dollar returned $1.2997 Canadian, before bank exchange fees.

The Bank of Canada's key interest rate is unchanged at 2 percent while the prime lending rate is 3.75 percent.

Stock markets were higher Friday, with the Toronto composite index at 8,344 points and the Canadian Venture Exchange at 1,527 points.

Lotto 6-49: (Wednesday) 1, 2, 21, 30, 31, 38; bonus 46. (Aug. 28) 17, 19, 23, 24, 28, 38; bonus 12.

Jim Fox can be reached at canadareport@hotmail.com