Key US-Canada trade artery shuts down due to union strike + China, Russia could boost trade through Northern Sea route, though NATO has its concerns

Saint Lawrence Seaway shuts down after union walkout: The Saint Lawrence Seaway, a major trade artery that is jointly managed by the US and Canada, was forced to shut down after Canada’s leading trade union Unifor organized a worker walkout on Sunday morning, Bloomberg reported. The stoppage is expected to affect some 100 vessels along the route, some of which are carrying grain. “This impasse is extremely unfortunate but our members remain committed to getting a fair agreement,” Unifor president Lana Payne said in a release cited by Bloomberg.

What’s the issue? St. Lawrence Seaway Management, the company which runs the Seaway, believes that Unifor is trying to force its hand after securing recent gains against Ford and General Motors, Bloomberg wrote, citing company statements. The seaway operator intends to seek a ruling under Canadian law that would force Unifor to provide workers to ensure that grain shipments can transit the route, Bloomberg added.

Russia looking to supply China with LNG + boost trade through Northern Sea Route: Russia is looking to become a top supplier of liquified natural gas (LNG) to China and increase trade with the East Asian country through the Northern Sea Route (NSR), Reuters quotes Russian Deputy Prime Minister Alexander Novak as saying. “Russia could become the main reliable supplier of LNG to China, taking into account the projects that are currently being implemented,” Novak said, according to Reuters. Russian President Vladimir Putin has said that global investment in the NSR — which runs from Russia’s border with Norway to the Bering Strait near Alaska — could deepen trade between east and west.

Not everyone is happy about deepening Chinese-Russian ties: NATO is concerned that Chinese shipping through the NSR could pave the way for Chinese military presence in the Arctic, NATO senior military officer Rob Bauer is quoted as saying by Bloomberg. China recently had a freighter use the passage for a three-month trip between the Baltic Sea to China. “We cannot be naive and expect these new routes to be solely used by commercial vessels,” Bauer said at the Arctic Circle Assembly conference in Reykjavik. While Russia’s intentions for the route have become clear, China’s intentions remain opaque, Bauer added.