International Fertilizer and Agriculture News - September 2

Strait of Hormuz Shipping Traffic Remains Low Following Attacks

According to maritime security firm Windward, vessel traffic through the Strait of Hormuz remained low on Monday as attacks on commercial vessels transiting the waterway increased. A total of 13 vessels crossed the Strait on Monday: six entered the Persian Gulf, including four tankers, while seven departed the Gulf, including three tankers. Windward data showed that all vessels used the Iranian-controlled northern lane, with no vessels transiting via the US-protected southern lane.
On Monday evening, a Saudi very large crude carrier (VLCC) was reportedly attacked by Iran while sailing through the Strait along the US-protected southern lane. This was the second attack on a commercial vessel in the southern lane within three days.

Carney: Trade Talks Can Resume Only When the United States Shows Genuine Willingness to Negotiate

Canadian Prime Minister Mark Carney said today that Canada is willing to resume trade negotiations with the United States, but has no intention of reopening talks until its neighbor presents a more constructive proposal. Speaking in Ottawa on Tuesday, Carney said: "When the United States stops making internet memes, stops being sarcastic, puts aside its hard-line posture and treats negotiations seriously, then the two sides can begin talks."
After trade negotiations collapsed the previous evening, the United States invoked Section 338 of the Tariff Act of 1930 on August 22 to impose new tariffs on USD 28bn of Canadian imports. Canada has pledged to implement equivalent retaliatory tariffs from September 8. On August 24, US President Donald Trump described Canada as "one of the most difficult countries in the world to deal with" and, several days later, even renamed Lake Ontario "Lake America."
Carney said the collapse of negotiations resulted from unreasonable US demands that could undermine Canada's national sovereignty. One day before his remarks, the Liberal Party won three seats in by-elections, gaining voter support for both the party and its trade strategy and regaining a parliamentary majority. The governing Liberals now hold 173 of the 343 seats in Canada's House of Commons and can pass legislation without support from other parties. The Conservatives remain the official opposition with 138 seats.
The by-elections were held to fill vacancies created by lawmakers' resignations between general elections, after the Liberals had briefly fallen below the majority threshold. Votes took place in Quebec, Ontario and British Columbia, the three provinces most severely affected by US punitive tariffs. Data from ATB Financial show that the latest US trade measures have nearly tripled the effective tariff rate on British Columbia's exports to the United States to around 11%. Tariffs on exports from Quebec and Ontario have roughly doubled to around 11% and 8%, respectively.
A recent Ipsos poll showed that around 52% of Canadians are personally willing to bear a degree of significant economic hardship during the trade dispute. About 73% support export tariffs on crude oil, natural gas and electricity, while 69% support fully restricting energy exports to the United States. Alberta and Saskatchewan have been relatively less affected because Trump granted tariff exemptions for energy imports. Both provinces favor resolving the dispute through diplomacy rather than retaliatory action.