Good morning,
Here’s what you need to know ahead of Jody Wilson-Raybould’s testimony:
At 3:15 p.m. today, the former attorney-general will sit before the House of Commons justice committee to share her side of the story about pressure from her own government to abandon prosecution of SNC-Lavalin.
But she’s already raising concerns about the restrictions placed on what she can say (for subscribers). The cabinet order permitting her to testify “falls far short of what is required” for full disclosure, she wrote in a letter to the chair of the committee. Wilson-Raybould said she won’t be able to discuss communications during her time as Veterans Affairs minister, her subsequent resignation or her private talk with cabinet. (The order also prevents her from discussing her conversations with the prosecutions director, who is moving forward with charges against SNC.)
The Globe will have live coverage of Wilson-Raybould’s testimony. Check tgam.ca this afternoon for the latest.
Adam Radwanski argues that the former minister has challenged the status quo in a way Trudeau might once have wanted: “As Ottawa awaits Jody Wilson-Raybould’s testimony on the SNC-Lavalin affair, it’s evident that there is at least one change to the political culture that the Prime Minister has not been able to entirely go back on – even if he might now wish he could.” (for subscribers)
Need a refresher on the SNC saga? Here’s a quick rundown:
- In 2015, the RCMP laid corruption and fraud charges against Quebec firm SNC-Lavalin over its dealings in Libya.
- On Feb. 7 of this year, The Globe reported that Wilson-Raybould was pressed last year by the Prime Minister’s Office – while she was attorney-general – to order the prosecutions office to ditch those criminal charges in favour of a negotiated settlement. (If convicted, SNC could face a 10-year ban from federal contracts.)
- Trudeau initially denied the allegations as “false,” but the wording of his responses changed a number of times in the days that followed.
- On Feb. 11, the ethics commissioner said he would look into the matter
- Trudeau’s top adviser, principal secretary Gerald Butts, resigned on Feb. 18.
- The House justice committee launched hearings into the SNC matter, with Privy Council Clerk Michael Wernick speaking on Feb. 21. The highest ranking civil servant described efforts by Trudeau and his staff as “lawful advocacy” and said there was no “inappropriate pressure.”
For a full primer on the SNC story so far, subscribers can go here.
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In the U.S., all eyes are on another person’s testimony: Michael Cohen
Donald Trump’s former personal lawyer is expected to give a behind-the-scenes account of the President’s conduct when he sits before a House of Representatives committee today. Cohen – who was just disbarred yesterday – is already facing prison time for lying to the House and Senate intelligence committees in 2017. But this testimony comes after he turned on Trump. Among the things Cohen may discuss: Trump’s taxes, a payment to porn star Stormy Daniels, and the Trump Tower Moscow project.
Trump and Kim Jong-un are in Vietnam for a second round of nuclear talks
North Korean leader Kim Jong-un and U.S. President Donald Trump met in Hanoi on Wednesday for their second summit, with Trump saying he was not walking back on U.S. demands for North Korea’s denuclearization. Kim and Trump shook hands and smiled briefly in front of a row of their countries’ flags at the Metropole hotel in the Vietnamese capital.
Asked if he would declare a formal end to the Korean War, Trump said: “We’ll see.” Kim said they had overcome obstacles to hold the summit in Vietnam and had needed patience since their first meeting in Singapore last year. He said he hoped these talks would be successful. Trump and Kim are scheduled to hold a 20-minute, one-on-one chat followed by a dinner with aides.
Ontario’s human-rights chief is calling for an end to solitary confinement
Renu Mandhane, the person who first brought the plight of Adam Capay to the public’s attention in 2016, says solitary continues to be overused in the province. “I think there are likely other people in somewhat similar circumstances,” she said.
Capay spent a total of 1,647 days in solitary, often behind Plexiglas and subjected to round-the-clock lighting while staff failed to attend to his declining mental health. After visiting him during a visit of the Thunder Bay District Jail, Mandhane shared the grim details of his situation with the media. (Go here to read about new details that emerged after Ontario declined to appeal a stay of a murder charge against Capay.)
Solitary confinement has dropped significantly in federal prisons in recent years, but figures in Ontario remain largely unchanged. Between 6 to 8 per cent of inmates in the provincial system are segregated at any one time, and around 20 per cent of segregated inmates are kept in solitary beyond 15 days.
Canada is threatening to not ratify USMCA until Washington ends steel and aluminum tariffs
Canadian officials have been quietly telling top U.S. officials and legislators for weeks that the Trudeau government might not table the trade agreement if the tariffs aren’t scrapped. The deal is a key Trump priority, and Ottawa is hoping to use that leverage to apply pressure. The issue appeared to be on Trump’s mind yesterday, when he said: “They have to get it approved also. We have to get it approved. Let’s see what happens.” (for subscribers)
Meanwhile, Trump’s top economic adviser says he’s “proud” of Canada and Trudeau for “hanging tough” against Huawei. Barrie McKenna writes that “the kind words are notable because Larry Kudlow hasn’t exactly been a reliable friend to Canada since he joined the White House last year.” In October, Kudlow suggested without evidence that Trudeau’s behaviour had nearly sabotaged USMCA negotiations. (for subscribers)
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ALSO ON OUR RADAR
Ottawa is planning to direct the CRTC to put more emphasis on competition, lower prices and the protection of consumer rights. The move comes as the telecom regulator gets set to consider whether large carriers like Rogers should be required to resell cellular service to smaller companies that haven’t built their own networks.
Brexit might not be coming on March 29 after all. Prime Minister Theresa May said members of Parliament will be able to vote to extend the deadline to leave the EU if she’s unable to win enough support for a revised exit deal. May’s remarks follow Labour Leader Jeremy Corbyn saying he wants a second referendum on Brexit.
MORNING MARKETS
Stocks sink
European stock markets opened lower on Wednesday after fresh hostilities erupted between India and Pakistan, causing Asian assets to fall and pushing investors into safe havens such as the yen. Earlier, Pakistan said it had carried out air strikes in Indian-controlled Kashmir and shot down two Indian jets in its own airspace. Tokyo’s Nikkei gained 0.5 per cent, and the Shanghai Composite 0.4 per cent, while Hong Kong’s Hang Seng slipped by less than 0.1 per cent. In Europe, London’s FTSE 100, Germany’s DAX and the Paris CAC 40 were down by between 0.3 and 0.8 per cent by about 7 a.m. ET. New York futures were down. The Canadian dollar was back up to about 76 US cents.
WHAT EVERYONE’S TALKING ABOUT
Trudeau treads time-honoured path with TSN everyman routine
Cathal Kelly: “We get what’s happening here. The Prime Minister is in trouble. His bona fides as a normal, relatable guy are in doubt. He needs to assure people that he is the sort of guy who would walk into your local drinking establishment and order a Bud, not some kombucha-tinted, oak-casked, pumpkin pale ale. And especially not out of season. What’s the solution to that problem? Tawkin’ hawkey with the boys. Just a regular, trustworthy, non-extrajudicial-influencing hockey-talking guy who likes his pucks and loves his Habs.”
Millennials don’t want to be stuck in condos, Mr. Morneau
Konrad Yakabuski: “Fully 80 per cent of Canadians got to work by car in 2016, either as drivers (74 per cent) or as passengers (6 per cent). What this indicates, more than anything, is that policy-makers seem to have systematically underestimated how much ordinary people are willing to sacrifice for the space of a detached single-family house … Finance Minister Bill Morneau needs to consider the evidence as he weighs demands from the real estate industry to ease mortgage rules for first-time buyers in his March 19 budget.” (for subscribers)
Why U.S. military intervention in Venezuela would be a risky gamble
Jean Daudelin: “The legality of foreign military interference in Venezuela would be on shaky grounds, but an ‘invitation’ by Juan Guaido – recognized broadly as the legitimate interim president of the country – could probably give the intervention some legal cover. … At a minimum, limited commando operations or targeted missile attacks may be needed to do the trick, while avoiding large-scale loss of life and the complete dismantling of the army. History reminds us, however, that such ‘surgical’ operations can quickly get out of hand.” Jean Daudelin is associate professor at the Norman Paterson School of International Affairs at Carleton University.
We’re going to start sharing the daily editorial cartoon in this newsletter on a regular basis. Let us know what you think.
LIVING BETTER
How airports are trying to take the stress out of flying
Toronto’s Pearson airport launched a program last week that has volunteers walking 13 therapy dogs around its terminals. Fliers will be able to pet and play with them as a way to take the edge off before taking to the skies. And Toronto isn’t alone: airports from Vancouver to Halifax to Winnipeg have similar programs. (for subscribers)
MOMENT IN TIME
Freud meets Jung
Feb. 27, 1907: It was the meeting of professional soulmates, who became famous frenemies. When Carl Gustav Jung met Sigmund Freud for the first time in Vienna, the two renowned psychoanalysts reportedly chatted for more than 13 hours. Jung, the younger Swiss psychiatrist, said he wanted their friendship to be “not as one between equals, but as that of father and son,” while the Austrian founder of psychoanalysis referred to Jung as his “heir” and the “spirit of my spirit,” according to a New York Times article on the 1974 publication of a compilation of their letters. Yet friction in their bromance (or is it pateromance?) appeared early on, arising from differences in their theories and personal insecurities. Jung grumbled about being overshadowed by the “father creator.” Freud reportedly accused Jung of wanting him dead. Their breakup was depicted in the 2011 film, A Dangerous Method, directed by David Cronenberg. A sexual affair portrayed in the movie between Jung and his patient Sabina Spielrein may have been the stuff of fiction, but the rift between the two men was not. In a farewell letter, the 1913 equivalent of a breakup text, Freud wrote: “I propose that we abandon our personal relations entirely.” – Wency Leung
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