Saturday, February 08, 2025

POGG

Canadian egg prices safe from skyrocketing seen in U.S., experts say
February 07, 2025

Eggs are seen for sale at a Safeway, Monday, Jan. 27, 2025, in Seattle. (AP Photo/Lindsey Wasson)

Soaring egg prices in the United States aren’t expected to stop any time soon, but Canadians likely won’t feel the same sting, according to industry experts.

A relentless avian influenza outbreak has forced U.S. farmers to kill more than 150 million birds in the last three years. The devastating losses have put cracks in American egg production, resulting in a shortage and subsequent egg price hikes at U.S. grocery stores.

A dozen eggs cost Americans US$4.15 (C$6) on average in the month of December, the most recent data available, according to The Associated Press.

But many are paying significantly more, including in California where prices climbed to nearly US$10 in some stores this month.

Canada is not immune to avian influenza outbreaks, but experts say the country is relatively safe from the circumstances that led to these skyrocketing prices.


“(Bird flu) is not going to cripple national egg production the same way it does in the United States,” said Bruce Muirhead, the chair of public policy for Egg Farmers of Canada and a professor at the University of Waterloo, in an interview with CTV National News on Wednesday.

One reason is that Canada’s egg farming operations are much smaller than those in the United States, and dispersed throughout the country, which has helped mitigate avian influenza’s impact on production.

In Canada, the average egg-laying farm has about 25,000 hens, according to Muirhead. In a state like Iowa, the average farm has about 2 million birds.

“We don’t have that kind of scale, which means we don’t suffer the same sorts of issues in these bouts of disease that they do in the U.S.,” he said.

Canada also has a supply management system that regulates dairy, poultry and eggs to ensure supply meets demand. The system allows for greater collaboration among farmers, explained the national organization that represents these farmers.

“Farmers work together to uphold the national supply of eggs. For example, if one region of the country is significantly impacted by an outbreak, eggs from other provinces that are not experiencing avian influenza outbreaks can be shipped to help bolster the local egg supply,” Egg Farmers of Canada said in a statement.

As a result, Canadian egg prices are more stable than those in the U.S., the group said.

Tyler McCann, managing director of the Canadian Agri-Food Policy Institute, further explained in an interview with CTV News: “Supply management is all about balancing off that that supply and demand equation so that producers get a reasonable return for their goods and consumers get a safe, reliable supply of foods.”

The latest government data suggests 47 premises are currently dealing with avian influenza outbreaks across Canada.

If enough farms get infected, supply could be impacted, but “the chances of that happening in Canada are remote,” Muirhead said.

“Prices could go up, yes. But I very much doubt that’s going to happen in any sort of sustained way as we see in the U.S. today,” he said.


And Muirhead said if that happens, it’s not going to happen any time soon.

Statistics Canada shows the average price for a dozen eggs in December was $4.75, down slightly from $4.85 the previous month.

That relatively minor change is in contrast to prices south of the border, where eggs are classified as the “most volatile category” tracked by the U.S. Department of Agriculture. Officials predict prices will continue rising this year as supply remains an issue.

Egg shortages have also forced some U.S. grocers to limit the number of cartons shoppers can purchase and some restaurants are passing down the increased cost onto consumers with what they’re calling an egg surcharge.


Allison Bamford

Videojournalist, 
CTV National News

WE'RE TOO DAMN POLITE

Federal government hosts Canada-U.S. economic summit during tariff threat pause
February 07, 2025

OTTAWA — Prime Minister Justin Trudeau welcomed hundreds of people Friday to a summit about bolstering the economy in the face of Canada’s rapidly changing relationship with its largest trading partner.

“I think we need to do two things in this. We need to both start thinking tactically and strategically,” Trudeau said.

Tactically, he said, Canadians need to be deliberate about how to work with the United States to avoid tariffs. But if the tariffs go ahead, he said, the country needs to be ready to respond and to support Canadians.

U.S. President Donald Trump’s plan to impose sweeping 25 per cent tariffs on Canadian goods, with a 10 per cent tariff on Canadian energy, has been put on hold until March 4.

Trump said in a social media post that the next month will determine “whether or not a final Economic deal with Canada can be structured.”

His administration also has ordered a study of the United States' trading relationship with Canada, due by April 1.

The looming tariff threat and the volatility of the Trump administration have many business and labour leaders urging the federal government to look for other trading partners and ways to strengthen internal trade.

Trudeau said that’s part of the strategic thinking needed to make the economy resilient.

“It’s about time we have genuine free trade in Canada,” he said, adding that trade with the U.S. and the rest of the world is also essential.

The summit is being hosted by the government’s newly created advisory council on Canada-U.S. relations, and includes business and labour leaders, Indigenous leaders and public policy experts. Several federal cabinet ministers are also attending.

“We’d love to have hundreds of people on the council and that’s exactly what this morning is all about,” Trudeau said.

The summit is set to begin with a question-and-answer session with Trudeau and the advisory council before it moves into group discussions.

Flavio Volpe, a member of the advisory council and president of the Automotive Parts Manufacturers Association, said Thursday he hopes the summit is just the start of something bigger.

He said Canada is facing “the most serious industrial threat we’ve ever faced” and the moment calls for a collective effort similar to what happened in the early days of the COVID-19 pandemic.

“It’s important that this isn’t a photo op, that this isn’t a talking-to session, that this isn’t the only time we get together,” he said.

Speaking to reporters before the summit on Friday, Volpe said he’s encouraged by the fact that the group is “very cross-partisan.”


“It’s a very diverse group of leaders from different industries across the country that almost have nothing to do with each other, other than the currency that they trade in and the country that they live in,” he said.

Representatives from the Canadian Chamber of Commerce, the Global Automakers of Canada, the Federation of Canadian Municipalities and Canadian Manufacturing and Exporters are in attendance, as is National Chief of the Assembly of First Nations Cindy Woodhouse Nepinak.

Drew Dilkins, the mayor of Windsor, Ont., said this kind of meeting can help ensure different levels of government and the private sector are “rowing in the same direction.”

“Aligning on the facts is really important because what’s missing in this whole conversation, at least from my perspective on the U.S. side, is fact,” he said.

He and other border community mayors established the Border Mayors Alliance to advocate on behalf of the cities that have the most to lose from U.S. tariffs. He said that kind of grassroots action only works if everyone understands the approach.

Dilkins took part in a meeting of the Federation of Canadian Municipalities' Big City Mayors Caucus in Ottawa on Thursday, where tariffs and trade with the U.S. were the only topics.

Dennis Darby, president and CEO of Canadian Manufacturers and Exporters, said he intends to tell the government that if tariffs are imposed, businesses and workers will need help in the form of direct government relief, tax relief or wage subsidies.

Beyond that, he said, there are “structural problems within the Canadian economy that need to be addressed.”

They include the need to make it easier to move goods between provinces — trade that is undermined by a complicated regulatory environment — and to ensure Canada takes better advantage of its trade deals with other countries.

This report by The Canadian Press was first published Feb. 7, 2025.

Sarah Ritchie and Sammy Hudes, The Canadian Press
Trump claims Canada ‘very tough to do business with,’ trade minister says no  concessions

DURING WWI THE GERMANS CALLED CANADIAN'S; 'STURMTROOPERS'

February 06, 2025 

International Trade and Economic Development Minister Mary Ng discusses negotiating with the U.S. over trade irritants, such as the digital services tax.

Despite U.S. President Donald Trump’s ongoing tariff threats and concerns over access to Canada’s dairy market, International Trade Minister Mary Ng says the federal government will not be making concessions on supply management.

When asked directly during an interview with CTV’s Power Play on Wednesday if Canada will not concede on the issue, Ng answered simply, saying “correct.”

On Monday, Canada got reprieve for at least 30 days from Trump’s threat to impose a 25 per cent tariff on all Canadian imports – except oil, which would be subject to a 10 per cent tariff – after making new commitments to secure the shared border.

In addition to implementing the $1.3 billion border plan – which includes deploying additional personnel, drones, surveillance equipment and helicopters – Canada will appoint a “fentanyl czar” and list cartels as terrorists.

Trump has often leveraged his concerns about illegal migrants and drug trafficking at the Canada-U.S. border as a reason to impose tariffs. Canada’s trade deficit with the U.S. or its defence spending have been other irritants he’s shifted back and forth on.

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Meanwhile, a report from the Wall Street Journal in late January says those familiar with Trump’s thinking think he’s using the threat of tariffs to push for an early renegotiation of the Canada-United States-Mexico Agreement (CUSMA), which is due for review next year.

For years, Americans have voiced discontent over access to the Canadian market, despite Canada agreeing to allow U.S. dairy farmers access to about 3.5 per cent of the domestic market as part of CUSMA, which was signed in 2018.

Earlier this week, prior to the tariff reprieve, Trump told reporters that Canada is “very tough to do business with.”

“We don’t need them for agricultural products because we have all the agriculture we need,” Trump said. “They don’t take our agricultural product, for the most part, our milk and dairy. A little bit they do, but not much. We take theirs.”

During his confirmation hearing last week before the U.S. Senate, Trump’s commerce secretary nominee Howard Lutnick also hinted at a looming fight over dairy.

“Our farmers, our ranchers and our fishermen are the best in the world, and they are treated poorly,” Lutnick said at the hearing. “Canada, as we spoke about, treats our dairy farmers horribly. That’s got to end.”
‘We are living up to our obligations’

Back in 2023 during former U.S. president Joe Biden’s administration, a panel of experts convened under CUSMA ruled in Canada’s favour after American dairy farmers argued the way the Canadian government allocates its tariff-free dairy import permits denies them full access of its 3.5 per cent share of Canada’s market.

Speaking to CTV Power Play host Vassy Kapelos on supply management concerns, Ng pointed to that ruling.

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“With respect to supply management, I would also say that the Americans absolutely have taken advantage of the dispute settlement system that is a part of our trade agreement,” Ng said. “And I would like to remind your viewers that the dispute settlement panel in that particular instance actually ruled in Canada’s favour, which is that we are living up to our obligations in the trade agreement, particularly around dairy.”

Canada’s supply management system coordinates production and maintains import controls for dairy, poultry and eggs to set stable prices for both farmers and consumers.

When asked if Canada would have to make any trade compromises to avoid tariffs next month, Ng says she doesn’t think so, adding that Canada doesn’t “know what (those concessions are) at the moment.”
Will Canada scrap the controversial digital services tax?

Canada’s digital services tax (DST), which imposes a three per cent levy on revenues from tech giants earning money off Canadian content and users, has become deeply unpopular and widely criticized by American lawmakers. They argue that the policy disproportionately impacts U.S. companies.

The tax came into effect last June but is retroactive to 2022, and covers companies like Amazon, Google and Facebook. The Parliamentary Budget Officer (PBO) has estimated the tax will bring in $7.2 billion over five years.
Top headlines on Canadian politics, all in one place

Asked by Kapelos whether the federal government would be willing to get rid of the tax to appease the Trump administration, Ng would not answer directly.

“I think we should talk to them about whether or not there is something that we could be doing on that front, DST being an example,” Ng said.

Asked to clarify whether the federal government is open to negotiating the DST, Ng called it “a commitment we made to Canadians,” but emphasized the importance of understanding issues that are “important for Americans.”

On his first day in office on Jan. 20, Trump announced his “America First Trade Policy” in an executive order, calling for a study into trade practices – including extraterritorial taxes – due April 1.

When asked again about the future of the DST, Ng said, “It’s just too early to say.”

“There are many things that the president is looking at his departments to give him advice on before April the first, (the DST) being one of them and we’re going to do that work on this side as well,” Ng said.

In an interview with CTV’s Question Period in December, former finance minister Bill Morneau said Canada should look at scrapping the DST as a way to make headway with the Trump administration.

“I would move away from that and think about the other places that we have a mutual interest in moving forward,” Morneau said.

With files from CTV News’ Spencer Van Dyk


Stephanie Ha


Supervising Producer, Ottawa News Bureau, CTV News
AltaGas and Keyera sign deals to work together at Ridley Island BC and Fort  Saskatchewan, AB.
February 07, 2025 

AltaGas' Ridley Island Propane Export Terminal located on Ridley Island near Prince Rupert B.C.

CALGARY — AltaGas Ltd. and Keyera Corp. have signed a deal to work together in a plan they say will see more Canadian energy products reach Asian markets.

Under the agreement, Keyera has signed a 15-year tolling contract for 12,500 barrels per day of liquefied petroleum gases export capacity at AltaGas' Ridley Island Energy Export Facility (REEF), which is expected to come online near the end of 2026.

The contract is in addition to the existing volumes that Keyera ships through AltaGas' Ridley Island Propane Export Terminal.

AltaGas says combined with earlier announced contracts, it has now reached its base long-term tolling target for the REEF project.

Meanwhile, AltaGas has signed an 18-year agreement for 8,000 barrels per day of fractionation capacity at Keyera’s facility in Fort Saskatchewan, Alta., and secured a services deal for access to Keyera’s rail, storage and logistics infrastructure.

Keyera says the agreement helps support its growth at Fort Saskatchewan including a proposed fractionation unit expansion project.

This report by The Canadian Press was first published Feb. 7, 2025.



CANADA 

Here's a quick glance at unemployment rates for January, by province
February 07, 2025 
Cars park on the streets beside colourful houses in St. John's, Sunday, June 25, 2023. 
THE CANADIAN PRESS/Adrian Wyld

OTTAWA — Canada’s national unemployment rate was 6.6 per cent in January. Here are the jobless rates last month by province (numbers from the previous month in brackets):

Newfoundland and Labrador 10.6 per cent (10.5)

Prince Edward Island 7.2 per cent (8.5)

Nova Scotia 5.9 per cent (6.3)

New Brunswick 6.4 per cent (7.7)

Quebec 5.4 per cent (5.6)

Ontario 7.6 per cent (7.5)

Manitoba 6.1 per cent (6.2)

Saskatchewan 5.4 per cent (6.0)

Alberta 6.7 per cent (6.7)

British Columbia 6.0 per cent (5.9)

This report by The Canadian Press was first published Feb. 7, 2025.

Here's a quick glance at unemployment rates for January, by Canadian city
February 07, 2025 

A sailboat is seen in front of the Halifax skyline 
THE CANADIAN PRESS/Darren Calabrese

OTTAWA — The national unemployment rate was 6.6 per cent in January. Statistics Canada also released seasonally adjusted, three-month moving average unemployment rates for major cities. It cautions, however, that the figures may fluctuate widely because they are based on small statistical samples. Here are the jobless rates last month by city (numbers from the previous month in brackets):

St. John’s, N.L. 6.8 per cent (6.7)

Halifax 5.0 per cent (5.1)

Moncton, N.B. 5.1 per cent (5.4)

Saint John, N.B. 6.9 per cent (6.2)


Fredericton 7.4 per cent (6.8)

Saguenay, Que. 3.3 per cent (4.1)

Quebec City 4.7 per cent (4.6)

Sherbrooke, Que. 5.0 per cent (5.3)

Trois-Rivières, Que. 4.9 per cent (5.3)

Drummondville, Que. 5.9 per cent (6.3)

Montreal 6.5 per cent (6.6)

Gatineau, Que. 5.4 per cent (5.6)

Ottawa 5.8 per cent (5.9)

Kingston, Ont. 6.2 per cent (6.1)

Belleville-Quinte West, Ont. 8.3 per cent (3.3)


Peterborough, Ont. 6.1 per cent (5.1)

Oshawa, Ont. 8.2 per cent (8.0)

Toronto 8.8 per cent (8.4)

Hamilton, Ont. 7.5 per cent (7.3)

St. Catharines-Niagara, Ont. 6.1 per cent (6.7)

Kitchener-Cambridge-Waterloo, Ont. 8.0 per cent (7.6)

Brantford, Ont. 5.0 per cent (5.1)

Guelph, Ont. 7.8 per cent (7.2)

London, Ont. 7.0 per cent (7.1)

Windsor, Ont. 9.1 per cent (8.9)

Barrie, Ont. 5.8 per cent (6.0)

Greater Sudbury, Ont. 5.9 per cent (5.4)

Thunder Bay, Ont. 5.1 per cent (5.1)

Winnipeg 6.3 per cent (6.2)

Regina 7.0 per cent (6.8)

Saskatoon 4.8 per cent (5.0)

Lethbridge, Alta. 5.2 per cent (5.7)

Calgary 7.7 per cent (8.1)

Red Deer, Alta. 9.7 per cent (10.0)

Edmonton 7.2 per cent (7.5)

Kelowna, B.C. 4.9 per cent (5.2)

Kamloops, B.C. 4.8 per cent (4.3)

Chilliwack, B.C. 6.8 per cent (5.7)

Abbotsford-Mission, B.C. 5.2 per cent (5.3)

Vancouver 6.6 per cent (6.4)

Victoria 3.6 per cent (3.8)

Nanaimo, B.C. 7.1 per cent (6.6)

This report by The Canadian Press was first published

CANADA

Packaged goods entrepreneurs network to 'rise up' and face U.S. protectionism

By The Canadian PressFebruary 07, 2025 at 5:23PM EST

Tara Tomulka, chief executive of Rawcology, is shown in this undated handout photo at her plant. Her company, headquartered in Toronto, makes organic granola bars and snack foods sold at 1,500 location across Canada and the U.S., with about a third of its products shipping to the south. 
THE CANADIAN PRESS/HO-Rawcology *MANDATORY CREDIT*

HALIFAX — Vancouver businesswoman Karen Danudjaja put out a casual social media call on Monday for a “roundtable” on how entrepreneurs could survive the potential hit of 25 per cent U.S. tariffs.

Then the owner of Blume observed with surprise and delight as interest grew, and about 1,000 people accepted her webinar invitation to hear a panel of experts discuss “pivoting” to fresh markets.

U.S. President Donald Trump agreed late Monday to delay by 30 days the imposition of tariffs on Canada, but the Canadian business community is still preparing for the worst. As Prime Minister Justin Trudeau hosted a summit of business, labour and industry leaders in Toronto on Friday, Danudjaja was preparing for her grassroots webinar with guests expected to include investor and television personality Arlene Dickinson, entrepreneur and co-founder of Manitoba Harvest Hemp Foods Mike Fata and B.C. Food and Beverage CEO James Donaldson.

“It’s about diversifying our supply chain as much as we possibly can in order to be ready if the tariffs hit,” said the Vancouver-based businesswoman, who ships about 450,000 packages of her SuperBelly probiotic powder monthly to Canadian and U.S. retailers. “I really see this community rising up to overcome this obstacle,” she said in an interview Thursday.

Tara Tomulka, chief executive of Rawcology, is among those who signed up. Her company, headquartered in Toronto, makes organic granola and snack foods sold at 1,500 location across Canada and the United States, with about a third of its products shipping to the south.


Tomulka relies on getting ingredients such as organic banana purée or tapioca syrup from the U.S. market, but she says that since Monday, the company is “trying to shift and pivot to find local suppliers.”

There are challenges in the details of each potential new relationship. In one case, the firm sourced a potential purchase of Canadian frozen peach purée, but the minimum quantity was simply too large for her to store in her facility, she said.

The Plan B that companies like hers are considering also involves creating fresh products tied to what can be found within the country.

“(Canadian) oats are definitely going to be one of the main ingredients in a new product, and we’re also looking at other unique Canadian-grown ingredients such as hemp protein powders,” she explained.

The positive side of the tariff threat is that Canadian retailers are now also looking for healthy, locally sourced Canadian packaged goods, she added. Over the last week, she counted five new retailers in Canada making inquiries about selling her family’s products.

Sheena Russell, president of Made With Local Snack Foods Inc., said her firm’s online sales of the organic snack bars made at its Windsor, N.S., plant rocketed after Trump’s tariff declarations.

“The last couple of days, the volume of sales has tripled online compared to what it typically would be this time of year,” she said Wednesday.

Still, there are some mixed emotions. Just weeks ago, the Nova Scotia company had been contemplating launching a separate line of products into the U.S. northeast. Russell says that is “on hold” due to the uncertainties created by Trump.

Linda Best, founder of a community economic development investment fund in Nova Scotia that aims to encourage farming startups, said packagers seeking suppliers face a decline in smaller Canadian farms over the past 60 years.

Best cites Nova Scotia Federation of Agriculture research estimating that in her province, less than 10 per cent of the average household’s food budget is spent on locally grown agriculture, a sharp drop from decades earlier.

Statistics Canada indicates that as a result of industry consolidation and the aging of farm operators, the number of farms in the country dropped from about 193,000 in 2016 to about 190,000 farms in 2021.


“We need more farmers, we need more processors and we need them now,” Best said in an interview Thursday.

“In Nova Scotia, (suppliers) aren’t there at this point. That’s what has been driving me nuts for so many years. Yes, we export fish, blueberries and cranberries .... I can think of all kinds of people in Nova Scotia who could be making great products,” she said.

This report by The Canadian Press was first published Feb. 7, 2025.

Michael Tutton, The Canadian Press

CANADA

Saputo CEO doesn't see supply management at risk in trade talks

By Rosa Saba, 
The Canadian Press
February 07, 2025 

Dairy cows stand in a field outside of a milking barn at the U.S. Department of Agriculture's National Animal Disease Center research facility in Ames, Iowa, on Tuesday, Aug. 6, 2024. (AP Photo/Charlie Neibergall,File)


Saputo president and CEO Carl Colizza says he doesn’t think Canada’s dairy supply management system will be up for negotiation despite the tense trade talks with the U.S.

“I think we’ve heard now two ministers come out publicly and state that supply management is not a negotiating component and is not on the table at this point,” said Colizza on a conference call discussing Saputo’s third-quarter fiscal 2025 results.


Market chart of sap:ct
sap:ct
$23.81+0.15+0.63%

As of:February 8, 2025 at 12:06 AM

“We believe the Canadian government understands the importance of supply management in the Canadian landscape, and we don’t think it’s going to be a negotiating element here as we move forward.”

Canada’s supply managed dairy sector is a sore spot for U.S. President Donald Trump, who says the American industry should have more access to the Canadian market.

Some experts have said the issue is likely to come up in trade negotiations between the two countries. The Canada-United States-Mexico Agreement, which was signed in 2018 under the last Trump administration, is up for review next year.

That deal saw Canada agree to let U.S. dairy farmers have access to about 3.5 per cent of the domestic market, but the U.S. has accused Canada of breaking that pact.

However, Canadian politicians have said they will defend dairy producers and protect the decades-old system that regulates production, farm-level prices and trade.

Supply management — which covers not only dairy but also poultry and eggs — isn’t only contentious in international relations.

Its homegrown critics argue it leads to higher prices for Canadians while stifling innovation and export opportunities. Proponents, including industry leaders, say it protects the sector from volatility and keeps retail prices stable.

Though Colizza doesn’t think Canada will give up supply management in trade talks with the U.S., he didn’t appear overly concerned with how Saputo would adapt if the system were to be dismantled.

“At the end of the day, it works for Canadians, and it works for Canada, and we work well within that system,” he said.

“Should the decision be made to move away from that, we’ll also adapt our platform accordingly.”

Trade is generally top of mind for businesses and investors right now, so Colizza was predictably asked what possible tariffs from the U.S. could mean for Saputo. Canada and the U.S. are in a month-long pause from tariffs and retaliation, but uncertainty over what comes after remains.

Colizza assured investors that Saputo’s American business is “very autonomous,” with few links between the two arms on a daily basis.

“So when I take a look at the potential tariff applications that are still lingering, from a direct perspective, there’s not a lot of impact, and that is because of the limited amount of movement we have between Canada and the U.S. and vice versa,” he said.

He added that some business inputs, like packaging materials or chemicals, could be affected but not in a way that drastically affects the overall company.

Saputo reported a loss of $518 million during the quarter ended Dec. 31, compared with a loss of $124 million a year earlier.


On an adjusted basis, earnings rose slightly to $167 million from $163 million.

Revenues were $5.0 billion, up 17 per cent from $4.3 billion a year earlier. It reported its diluted loss per share was $1.22, compared with a loss of 29 cents, while adjusted earnings per share were 39 cents, up from 38 cents.

— With files from Maura Forrest

This report by The Canadian Press was first published Feb. 7, 2025.
Boeing to Lay Off About 400 Workers on Moon Rocket Program

By Eric Johnson and Julie Johnsson
February 07, 2025 

NASA's Space Launch System (SLS) rocket with the Orion spacecraft attached rests on launch pad 39B as final preparations are made for the Artemis I mission at NASA's Kennedy Space Center on November 15, 2022 in Cape Canaveral, Florida.
 (Kevin Dietsch/Getty Images)

(Bloomberg) -- Boeing Co. expects to lay off hundreds of workers on its SLS moon rocket program, fueling speculation that NASA’s marquee space exploration initiative is poised for a shake-up under a second Donald Trump administration.

The US aerospace company cited revisions to NASA’s Artemis program and cost expectations in a brief statement that cited the potential for roughly 400 fewer positions by April 2025.

“We are working with our customer and seeking opportunities to redeploy employees across our company to minimize job losses and retain our talented teammates,” a Boeing spokesperson said by email on Friday.

The exact number of jobs impacted hasn’t been determined, though 400 positions amounts to more than one-third of the staff assigned to the Space Launch System program.

Boeing’s future in space has been in question as NASA undergoes a leadership change under President Trump and close advisor Elon Musk, the SpaceX chief who’s been given unprecedented oversight power. The aerospace manufacturer is culling thousands of jobs and paring its holdings under new Chief Executive Officer Kelly Ortberg.

The Artemis program was officially formed under Trump’s first administration, after he signed a policy directive to send humans back to the moon for the first time since the Apollo program ended more than a half century ago. The program has been beset for years by cost overruns, technical problems and a complicated mission plan, though it supports thousands of jobs across the US.

In November 2022, the SLS rocket made its launch debut after more than a decade of development, sending an uncrewed capsule around the moon as part of the first major test flight for the Artemis campaign. The rocket has come under repeated criticism for its delays and ballooning budget, which is expected to cost as much as $23.8 billion through 2025.

A NASA spokesperson didn’t immediately respond to a request for comment.

Trump has hinted at his desire to send astronauts to Mars in recent years. He has also forged a close relationship with Musk, who founded SpaceX with the goal of starting a settlement on the Red Planet and is developing a powerful new rocket to get there.

“We will pursue our manifest destiny into the stars, launching American astronauts to plant the Stars and Stripes on the planet Mars,” Trump said at his inauguration.

The SLS layoff announcement comes about a week after Boeing unveiled a leadership change on its Starliner astronaut capsule. The program has racked up more than $2 billion in cost overruns after a string of setbacks, including a botched June test flight that left two US astronauts stuck at the International Space Station.

Subscribe to Business of Space: The inside stories of investments beyond Earth, from satellite networks to moon landings. Delivered weekly.

(Updates with details on the SLS rocket in sixth paragraph, Boeing’s space business in ninth.)

©2025 Bloomberg L.P.
Iraq Targets 7M Bpd, But Smarter Strategy Could Unlock Much More

By Simon Watkins - Feb 04, 2025

Iraq’s Oil Ministry has reaffirmed its goal of reaching 7 million barrels per day (bpd) within five years.

The failure to implement the CSSP, critical for water injection and sustaining production, has stalled Iraq’s oil expansion.

Iraq’s reputation for corruption, lack o
f transparency, and political instability has deterred Western oil majors.



It seems that every now and again someone in Iraq’s Oil Ministry realises how much oil the country has left undeveloped and what a good idea it would be to increase production and sell more of it. The latest chap from the Ministry to make such a discovery (last Wednesday apparently) -- Undersecretary Ali Maarij – concluded that Iraq could boost its oil production to 7 million barrels per day (bpd) within the next five years. In fact, with one key adjustment to Iraq’s broad operating procedure in the sector, its oil production could reach 12-13 million in around the same time. So, how could it be done, and what is the problem in doing it?

In 2012, then-Iraq Prime Minister Nouri al-Maliki received a confidential report on his desk showing exactly how Iraq could increase its oil output from just over 3 million bpd at that point to a plateau of 13 million bpd in the ‘High Production’ scenario by 2017. The ‘Medium Production’ scenario plotted a course to 9 million bpd plateau by 2020, while the ‘Low Production’ scenario planned for 6 million bpd by 2025. The report was called the ‘Integrated National Energy Strategy’ (INES) and concluded an 18-month exhaustive study in large part funded by the World Bank, whose senior staff were also instrumental in the analysis. Further assistance came from renowned management consultancy firm then-Booz & Company. Around a year later, a limited-circulation report by the International Energy Agency (IEA) reached similar conclusions about Iraq’s oil production potential.

The cornerstone assumption of both was that Iraq’s true oil reserve number was much higher than previously thought and this remains the case. Officially, Iraq holds a very conservatively-estimated 145 billion barrels of proved crude oil reserves (nearly 18 percent of the Middle East’s total, and the fifth biggest on the planet). Unofficially, it is extremely likely that it holds much more oil than this. In October 2010, around the same time as producing the official reserves figures, the Oil Ministry stated that Iraq’s undiscovered resources amounted to around 215 billion barrels. This was also a figure that had been arrived at in a 1997 detailed study by respected oil and gas firm, Petrolog. Even this figure, though, did not include the parts of northern Iraq in the semi-autonomous region of Kurdistan. This meant, as highlighted by the IEA, that most of these oil sites had been drilled during a period before the 1970s when technical limits and low oil prices gave a narrower definition of what constituted a commercially successful well than would be the case later. Overall, the IEA underlined that ultimately recoverable resources across all of Iraq (including the Kurdistan region) totalled about 246 billion barrels (crude and natural gas liquids).

So far so good, then, especially as Iraq has the world’s equal lowest oil production cost along with Saudi Arabia and Iran of just US$1-2 per barrel. The focus of the INES and IEA key reports – and others that were to follow – was basically three things. First, prioritise the development of Iraq’s ‘Big Four’ fields of West Qurna (1 and 2), Rumaila, Zubair, and Majnoon. At the time these constituted around three-quarters of all Iraq’s incremental oil production. Second, expedite the Common Seawater Supply Project (CSSP). This project involves taking and treating seawater from the Persian Gulf and then transporting it via pipe­lines to oil production facilities to maintain pressure in oil reservoirs to optimise the longevity and output of fields. To reach and then sustain the higher levels of Iraq’s increased oil production profiles, it will need water injection equating to around 2% of the combined average flows of the Tigris and Euphrates rivers or 6% of their combined flow during the low season. And third, ensure that the connecting infrastructure from wellheads to the trunk pipelines was built to a well-organised and regimented plan with clear financial expenditure linked to precise project objectives.


In the wake of these reports, two things happened which encapsulate the Iraq dilemma. First, Iraq Prime Minister started out by doing the right thing in trying to secure one of the very few companies in the world who could handle the size and complexity of the crucial CSSP – the U.S.’s ExxonMobil, as analysed in full in my latest book on the new global oil market order. Talks in 2012 failed but in 2015 the American energy supermajor agreed to take part in the project, in partnership with the China National Petroleum Corporation. Second, in 2018 ExxonMobil requested to withdraw from the project. According to sources who work closely with the Oil Ministry spoken to exclusively by OilPrice.com at the time, the central problem for ExxonMobil was that the risk/reward elements of the CSSP contract as laid out by Iraq’s Oil Ministry were profoundly unbalanced. In terms of the general risk/reward matrix that formed the basis of these negotiations, there were three key elements: ‘cohesion’, ‘security’ and ‘streamlining’. Cohesion related to ensuring that building the facilities connected to the CSSP were completed in full and in order. Security related not just to the on-the-ground security of personnel but also to the soundness of the basic business and legal practices involved in the agreement. Streamlining meant that any deal should continue as had been laid out in the agreement, regardless of any and all future changes to the government of Iraq. The source added that ExxonMobil was at one stage prepared to continue with the CSSP but only if the contracts were drawn up in a truly transparent manner by lawyers it approved, the accounts were managed and audited by accountants it approved, and the Iraqi authorities also managed their side in a similarly above-board way. Subsequent to this, a senior legal source in Washington exclusively told OilPrice.com that any major agreements signed by big U.S. oil and gas firms in Iraq will have to be agreed in full by U.S. lawyers, all accounts will have to be checked by U.S. accounting firms, working processes will have to be checked by U.S. project consultancy firms, and security issues of any nature will have to be worked through and then monitored on an ongoing basis with U.S. security organisations.

Further light on precisely why ExxonMobil believed it necessary to put these safeguards for its own reputation and that of the U.S. in place might be inferred from independent non-governmental organisation, Transparency International (TI), in its ‘Corruption Perceptions Index’. Iraq, which at the time regularly featured in the worst 10 out of 180 countries for its scale and scope of corruption, was described as: “Among the worst countries on corruption and governance indicators, with corruption risks exacerbated by lack of experience in the public administration, weak capacity to absorb the influx of aid money, sectarian issues and lack of political will for anti-corruption efforts.” TI added: “Massive embezzlement, procurement scams, money laundering, oil smuggling and widespread bureaucratic bribery that have led the country to the bottom of international corruption rankings, fuelled political violence and hampered effective state-building and service delivery.” It concluded: “Political interference in anti-corruption bodies and politicization of corruption issues, weak civil society, insecurity, lack of resources and incomplete legal provisions severely limit the government’s capacity to efficiently curb soaring corruption.”

As it now stands, French energy behemoth TotalEnergies has taken over the driving seat for the West in the CSSP, as part of a US$27 billion four-pronged deal in Iraq, which also includes oil and gas field production work and projects to reduce associated gas flaring. That this firm also faced the same initial problems as ExxonMobil was evident when it refused to go ahead with the deal when faced in 2022 with the prospect that Iraq would resuscitate its rightly-buried Iraqi National Oil Company (INOC). Widely regarded as one of the most corrupt organisations to operate in any field anywhere in the world ever, INOC was immediately a deal breaker for TotalEnergies. Having set a precedent in its flat refusal to countenance such shenanigans, the French firm appears to have established a solid position from which to move forward on its four-tier project. If Iraq manages to keep some of its questionable operating practices in check for the duration of TotalEnergies’ four projects, then it may yet see a lot more of its oil production potential realised.

By Simon Watkins for Oilprice.com
Rare Earth Supply Chain Faces New Challenges as Trade War Escalates


By Metal Miner - Feb 05, 2025, 2:00 PM CST


The U.S. has imposed a 10% tariff on all Chinese goods, including rare earths, and China has retaliated with export controls on critical minerals.

Conflict in Myanmar has disrupted the supply of rare earths from the country's mines.

Businesses are exploring strategies to mitigate the effects of tariffs and potential supply shortages, including diversifying supply sources and investing in alternative materials.



The Rare Earths MMI (Monthly Metals Index) held sideways from January to February, moving up a slight 2.88%. Rare earths prices have proven more volatile in the past year than other metal products like steel. Now, it seems the rare earth market could witness more volatility in 2025.

President Trump recently imposed a 10% tariff on all Chinese goods, which includes rare earths. Meanwhile, the Kachin Independence Army (KIA) remains in extensive control of Myanmar’s valuable rare earth mines, severely limiting the Burmese government’s control over this sector. Get weekly updates about these rare earth shifts in MetalMiner’s Weekly Newsletter.


Trump’s Promised Tariffs – Time to Worry?

In early February, President Trump enacted a 10% tariff on all Chinese imports, intensifying global trade tensions and raising concerns about its potential impact on industries reliant on rare earth elements. China currently supplies between 85% and 95% of the global demand for rare earth elements, granting it significant influence over global supply and pricing.

As reported by Reuters, China announced export controls on critical minerals, including rare earths, in retaliation to the U.S. tariffs. This signals the country’s readiness to leverage its dominant position in the sector.

Potential Impacts on the Global Rare Earths Market


These tariffs have led to concerns about supply chain disruptions and increased costs for industries dependent on rare earth elements. Because of these developments, manufacturers in sectors such as electronics, automotive, and defense could face challenges securing necessary materials. Reuters states that this could lead to production delays and higher prices for consumers.
Assessing the Panic

Some analysts argue that the level of concern may be disproportionate to the actual threat. They argue that the global market has previously navigated similar challenges.

For instance, during past trade disputes, companies adapted by diversifying their supply chains and investing in alternative sources of rare earths. Additionally, the current export controls by China are targeted and leave room for negotiation, suggesting that a complete cutoff of rare earth supplies is unlikely.
Various Mitigation Strategies

There are several strategies businesses can utilize to mitigate the effects of tariffs and potential supply shortages. One way to reduce dependence on a single supplier and increase resilience to geopolitical disruptions is to diversify the supply of rare earth elements across multiple sources.

Another way of balancing the world’s supply of rare earths is to invest in exploration and development in places like Australia. Nations can also decrease their reliance on primary sources by supporting technologies that concentrate on producing alternative materials or recycling rare earth elements from goods that have reached the end of their useful lives.

Myanmar Mine Woes Continue into 2025

In the past year, Myanmar’s rare earth mining sector has faced significant upheaval due to escalating conflicts involving armed ethnic groups. This stems from moves by the Kachin Independence Army, an ethnic insurgent group, which has seized control of key mining hubs in Kachin State. Most notable are those located in Panwa and Chipwe, which are critical suppliers of rare earth oxides to China.

Historically, these mining areas were controlled by the New Democratic Army-Kachin, a militia allied with Myanmar’s junta government. However, recent KIA offensives have altered this dynamic. Analysts suggest that while the KIA may intend to resume rare earth operations, negotiations with China could delay any quick restart, potentially tightening global supply and increasing prices.
Looking Ahead

The topic is sure to remain complicated going forward. Due to the KIA’s control over important mining regions, the worldwide supply chain for rare earths will remain unpredictable. Though talks between the KIA and Chinese firms may allow mining operations to resume, there is no clear timetable. Moreover, there is always the chance of more conflict.

Meanwhile, the international community is sure to watch these advances carefully, as they have important ramifications for industries worldwide.

By Jennifer Kary