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Canada’s Foreign Affairs Minister Melanie Joly pushes back against U.S. President Donald Trump amid growing tensions over tariffs and trade relations. Joly’s firm response highlights Canada’s position as the two countries face disagreements over trade policy, economic pressure, and the future of U.S.-Canada relations.

Watch the latest political developments as Canada responds to Trump’s tariff approach, with the dispute raising questions about cross-border trade, economic cooperation, and the impact on businesses and consumers in both countries.

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Transcript
00:00The assumptions that have guided the international economy for generations are being challenged.
00:07How can we now remain prosperous, sovereign and secure in a more fragmented, competitive and unpredictable world is the question.
00:18Canada's prosperity still depends on our ability to compete internationally, attract investments and build partnerships.
00:26But we can no longer take those advantages for granted.
00:31We've faced this kind of upheaval before.
00:34More than 75 years ago, the old international order had collapsed, new rivalries were emerging and the Cold War was
00:45taking shape.
00:46Then, Canada helped build the post-war institutions and alliances, including NATO, that strengthened cooperation amongst democratic nations.
00:57By bringing partners together and defending shared interests, Canada became influential well beyond its size or even military might.
01:08Today, we face the same fundamental question.
01:13How can Canada not only navigate a new world, but shape it to our advantage?
01:21Every generation and every government must adapt its approach to the world around it.
01:28And that conversation has played out more than once right here at the Canadian Club.
01:35As Canada's Minister of Industry, I now want to share a vision for how Canada must compete, prosper and protect
01:44its economic sovereignty in this new world.
01:49Before we go into where we're going, let's just understand how we got there.
01:54For 75 years, Canada and the United States built one of the world's most integrated economic relationships.
02:04From the St. Lawrence Seaway bringing iron ore to the Great Lakes, to the Auto Pact, to the Canada-US
02:11Free Trade Agreement, NAFTA and KUSMA.
02:14We can be proud of what we accomplished. More than that, it worked.
02:21It created jobs, growth, high living standards on both sides of the border, but also deep dependencies.
02:31As long as the rules remained stable, that was manageable.
02:37But our main partner in trade has changed the rules.
02:42And now, we must adapt.
02:45The government has a responsibility to help Canadian businesses reduce their vulnerabilities and seize the opportunities ahead.
02:53We must build a stronger, more integrated economy at home and deeper industrial partnerships with trusted nations around the world.
03:05La diversification économique n'est pas qu'un simple objectif de politique commerciale.
03:10Elle est clé à notre sécurité économique et un pilier essentiel de notre souveraineté.
03:19Trade agreements alone won't be enough.
03:22We must coordinate supply chains, investment, innovation and production with partners who share our interests and our values, while avoiding
03:33protectionism amongst trusted allies.
03:37To reduce our vulnerabilities and strengthen our economic sovereignty, we must build deeper industrial partnerships around the world.
03:45And that work begins with the sectors that are the most critical to Canada's future.
03:53For decades, the steel and aluminum industries have been the backbone of our industrial economy.
04:00They built our cities, our infrastructure, cars, planes and our prosperity.
04:08They've also become the most integrated to U.S. markets, producing steel for U.S. auto plants and sending raw
04:16aluminum to be transformed south of the border.
04:19Today, consequently, they're also among the industries most exposed to the new reality we face.
04:28I speak regularly with business leaders with 75-80% of their book of business bound for the U.S.
04:37For well-capitalized larger companies, the tariffs are forcing a fundamental change in their product mix and sales channels.
04:46This is more than challenging, of course.
04:49But for smaller businesses, further down the supply chain, the change is crippling.
04:55And the need to pivot? Existential.
04:59Our response cannot simply be about helping companies weather the storm.
05:03It must be about ensuring that Canada continues to have a strong industrial base for generations to come.
05:11That means helping our producers pivot towards new markets and new products, but also building what is needed at home
05:20for our own needs.
05:23It means accepting that the government must play an active role to support that transition
05:29and to ensure that our open markets are built on solid foundations.
05:35We will work alongside industry to help align Canada's steel sector to meet the demand for the type of steel
05:42Canadian industries need right here at home,
05:45from Algoma and FASCO in Ontario, to Interpro in Saskatchewan, to ArcelorMittal in Contrecœur, Quebec.
05:54More practically, this means that when we purchase icebreakers and when we build pipelines,
06:01we must source the steel from Canadian suppliers.
06:04We must ensure that strategic production capabilities remain right here at home.
06:10And we will provide the financing, when I say we, it's of course the government will provide financing,
06:17and even take equity positions to do that.
06:21What is right in these dire times for workers and businesses?
06:25And allow me for one second to address the elephant in the room, Stelco.
06:32Cleveland Cliffs came to Canada back in the day to be part of the solution.
06:37And now they have spoken in favour of US tariffs,
06:41ones that are directly harming Stelco's own business right here at home
06:47and putting hundreds of Canadian jobs at stake.
06:50Stelco's Hamilton plant produces steel essential to our advanced manufacturing industrial base.
06:58Cleveland Cliffs must uphold its commitments.
07:02Full stop.
07:11We will apply the full force of the law and every tool in the toolbox
07:17to ensure that this strategic capacity remains operational.
07:21And they must keep the jobs in Canada
07:24or face the prospect of having to sell their Canadian assets.
07:31Let's now talk about the aluminum.
07:33The aluminum sector, as well as it is,
07:35has faced a major challenges, but different.
07:38In fact, our supply chain in the sector must be completely repensated.
07:42Thanks to our knowledge and renewable energy production,
07:46Canada, and in particular Quebec,
07:48is becoming, over the last century, the only great product of aluminum in the North.
07:54Or, over the years, we have lost the capacity to transform our aluminum.
08:01In fact, the quasi-totality of the transformation is made in the United States,
08:05which allows us to expose the American tariffs
08:07and increase the cost for the world of us.
08:10It is a strategic vulnerability to remedy.
08:14It is also an opportunity to increase growth.
08:18So, what I've just said in French is,
08:21we used to be able to transform aluminum in Canada.
08:24And we don't anymore.
08:26And so, the next chapter of our industrial strategy for aluminum
08:30must be about transforming and manufacturing more here at home.
08:36Yes.
08:41We need rolling mills so that we can transform Canadian aluminum ingots
08:46into sheets that can be used by manufacturers in the food and beverage sector,
08:52in aerospace, or even auto.
08:55And that must be done across the country.
08:58We will support business projects to do just that,
09:02and conversations with producers, operators, investors,
09:06and potential clients already underway.
09:09And most importantly,
09:11we will support this next level of development through financing
09:15and go beyond, when needed,
09:18to use all tools available to our government.
09:22We will, of course, leverage federal procurement,
09:26particularly in defense.
09:27And we will strengthen Canadian supply chains,
09:30and we will create stronger domestic markets.
09:33And we will work, of course, with like-minded partners in Europe and beyond
09:38to better coordinate our industrial strategy
09:40and build resilient industrial ecosystems.
09:45While in London, for the Farnborough air show,
09:48I addressed the Royal Society for Foreign Affairs at Chatham House.
09:52And in that speech, I talked about our new age of what I called geo-industrialization.
10:02Surviving in the age of geo-industrialization is not about replacing one dependency with another.
10:10It is about building a network of trusted industrial partnerships
10:15that gives Canada greater resilience, greater leverage, and greater prosperity.
10:21And the same principle applies to the auto sector.
10:25The global auto industry is undergoing the most profound transformation
10:31since the invention of the automobile itself.
10:34New technologies, new production methods, and new competitors are reshaping the industry,
10:41particularly as innovation accelerates across Asia.
10:45Canada must adapt to that reality while protecting its industrial base and know-how
10:51that generations of workers have helped build.
10:54And we are a very important market.
10:57We buy nearly 2 million cars a year.
11:01And we are the biggest export market for the U.S.
11:04So, in that context, our objective is twofold.
11:09First, we must protect what we have while modernizing the future.
11:14We have the base to build on.
11:16Southern Ontario is home to some of the most productive auto plants in the world.
11:21Honda and Toyota, which account for 75% of all our auto production in Canada,
11:27have invested heavily in Canada and have benefited from the talent, ingenuity, and dedication of Canadian workers.
11:35And our government will continue to support that success.
11:40And at the same time, we are not the only ones committed to the future of Canadian workers and the
11:45industry in Ontario.
11:47In September, Ford and Unifor and General Motors and Unifor each ratified three years' collective bargaining agreements,
11:55committing to significant capital investments.
11:59However, we can't pretend that all is rosy.
12:03Currently, Stellantis Brampton facility and GM's Cami plant in Ingersoll are sitting idle.
12:09And we are ready to apply all means to get them operating again to put workers back on the line,
12:16including through our Defence Industrial Strategy.
12:20The auto industry is at the heart of advanced manufacturing.
12:23Our position is clear.
12:25We will bring back production to Brampton.
12:28These are well-paid jobs here in Ontario.
12:31And we will make certain that Stellantis honours its commitments to Canadians.
12:42Second, our ambition extends beyond maintaining existing production.
12:47Here and now, the next generation of auto technologies is being developed.
12:52Canada's BlackBerry QNX software powers digital instruments and safety systems
12:58in more than 275 million vehicles worldwide.
13:03You didn't know that, huh?
13:04Well, Wabi develops the AI brain that powers self-driving trucks and tomorrow's robotaxi.
13:12And Wabi is from right here in Toronto.
13:15So, we can be lured into the trap that thinking tomorrow's auto industry looks like yesterday's factories.
13:23The cars of tomorrow will be electrified and connected, period.
13:28And to compete, so must our assembly plants be AI-driven and networked.
13:34And we must lead the world in technological development or we will be doomed to fail.
13:40And we can create the space for Canadian technology to power cars at home and in the world.
13:47Finally, we can't deny the rise of China's truly innovative auto industry.
13:54As you know, we have agreed with China to allow 49,000 EVs into Canada this year.
14:00A commitment to invest in Canada is also included in our agreement with China.
14:08While we are pursuing investment with Chinese auto companies, we will use the powers under the Investment Canada Act
14:16to impose key conditions to protect jobs and our industrial capacity.
14:21Under serious terms of engagement, manufacturers must first, establish a Canadian-controlled joint venture structured in Canada.
14:33Second, make material commitments to localizing production and integrating Canadian suppliers.
14:41Third, commit to hiring unionized or equivalent workers.
14:47And fourth, adopt software and technology systems that ensure the safety of data and security of Canadians.
14:56And this is the ticket of entry to the Canadian market.
15:02Now, let's talk about aerospace.
15:05The Canada is one of the great worldwide players in the space space.
15:08From Montréal to Mississauga, Bombardier has built the most fast aircraft in the world since the Concorde.
15:15It can reach a maximum maximum Mach 0.95. Imaginez!
15:21The aircraft tests have even confirmed that our plane, which is at home, is able to break the sound wall.
15:29It's not just going fast, it's going far, with a height of more than 8,000 nautics.
15:35So, we have bold ambitions for Canada's aerospace sector.
15:41By partnering with Sweden's Saab to build a global eye surveillance plane for Canada and our NATO allies,
15:48of course, it's a partnership between Saab and Bombardier,
15:52We will bring together our advanced civil strengths with one of the most innovative auto and aerodefence companies in the
16:02world.
16:03And so, we are leaders already in civil aerospace, but we must be leaders also in defence.
16:10And be able to develop the technologies that will define the future.
16:16Of course, advanced surveillance systems, fast fighter jets, yes, we can build fighter jets here at home.
16:24Next generation aircraft, autonomous systems, drones and space technologies.
16:30We can build and partner, and in doing so, reduce our reliance on the U.S. by turning towards Europe,
16:38Asia and the world.
16:48In the 1950s, Canadians faced the world turned upside down.
16:53The old order was gone, the future was uncertain.
16:57And there was no guarantee that a country of Canada's size could influence the course of events.
17:05Yet, Canada chose ambition over caution.
17:10A l'époque, nous avons fait le choix de l'ambition plutôt que de la prudence.
17:16We chose to build alliances.
17:18We chose to invest in our own capabilities.
17:21We chose to strengthen our economy while defending our sovereignty.
17:25And because we made those choices, Canada emerged as one of the most prosperous, stable and respected countries around the
17:35world.
17:37Today, our generation faces its own test.
17:42Their circumstances are different, but the question is remarkably similar.
17:48How does a middle power thrive when the world around it is being reshaped by forces beyond its control?
17:57My answer is the same one Canadians gave 75 years ago.
18:03We must not isolate ourselves nor shrink from change.
18:09And we will not wait for others to determine our future.
18:14We will build, we will innovate, and we strengthen our partnerships with countries that share our interests and values.
18:22And we invest in the industries that will define the next generation of Canadian prosperity.
18:29Just as Canada helped build the institutions and alliances that shaped the post-war world,
18:35we now have the opportunity to help build the industrial partnerships that will shape the decades ahead.
18:42We will build on our successful continental economic integration to face outward to the global economy,
18:51as Prime Minister Carney mentioned so well in his Davos speech.
18:55That is what geo-industrialization is ultimately about.
19:00It is about ensuring that Canada remains sovereign, resilient and prosperous in a more competitive world.
19:08It is about giving the next generation of Canadians the same confidence and opportunities that previous generations gave us.
19:18And when history looks back at this moment, my hope is that they will say what is said about those
19:28Canadians living in the 1950s.
19:31That when the world changed, Canada met the moment.
19:35Thank you so much.
19:50Mr. Julie, good afternoon, everyone.
19:54My name is Rita Turcher.
19:55I'm a senior business writer and columnist with The Globe and Mail.
19:58Welcome to the fireside chat.
20:01So everyone is clear.
20:03The feminine energy is the fire, okay?
20:05So this is how we're going to do it.
20:10So Minister Julie, you outlined Canada's, a vision for Canada's economic sovereignty in your remarks.
20:18So I wanted to explore some of the issues in a little bit more depth.
20:23You said at the outset that Canada had to walk away from a bad deal with the US in August
20:30because the demands that Washington was making didn't align with our country's interests.
20:36Yeah.
20:36But people are wondering what role does the US, our largest trading partner, play in the government's plans to fortify
20:45Canada's economic sovereignty?
20:46So we know we're highly integrated.
20:50And we know that we'll continue to do business with the US.
20:53But we also know that we need to develop new markets and, of course, integrate even more economy east to
21:05west.
21:05And I have Dominique LeBlanc as a colleague working with the Prime Minister on that.
21:09But also we need to pivot towards new markets.
21:12And that's why the EU partnership and the summit that is coming up at the end of this month is
21:18going to be critical.
21:20And we will continue to be ready to be at the table and negotiate and get a deal.
21:28But it must be a fair deal.
21:30And it must be in the interest of all Canadians.
21:34OK.
21:35So let's talk about diversification as a pillar of economic sovereignty.
21:40You rightly note that signing more trade deals isn't enough.
21:44Businesses must actually use them to their full potential.
21:49Others need to shift to making new products.
21:51But businesses themselves are the ones that ultimately shoulder the risk of diversification.
21:59And that could include trade financing, investments and innovation.
22:05How does the government plan to help companies mitigate such risks so that they can really seize new opportunities?
22:13Yeah.
22:13And that's what I was exposing a bit in my speech, Rita.
22:16Because I think that we have to accept that the government's role will be bigger than usual because of the
22:25depth of the crisis and the issue.
22:30And so what we will do is, in certain sectors, we will protect our markets, obviously.
22:36But the problem we have is, if all middle powers, like we say, start protecting their markets, and all fall
22:45into protectionism, then we will hurt each other.
22:49And so what we are trying to do is, how can we protect the market, but also be able to
22:56continue to do business with our middle powers that are industrial economies that don't fall into dumping, but that have
23:08same types of conditions for workers and industrial capabilities that make sense to us.
23:14So, of course, we're thinking of Europe, we're thinking of Japan, we're thinking of other countries in Asia.
23:19So that's what we have in mind.
23:21So, of course, that's one of the things that government can do.
23:27And, like I was saying, helping pivoting.
23:29But we will provide even more financing.
23:32We will help businesses address the geopolitical risks, which is really not linked to their own operations or their own
23:40fault.
23:40But also, we'll go further.
23:42And that's something that we haven't done a lot at the federal level.
23:46But in certain contexts, we will take equity positions in companies to be able to address, also, that need for
23:55financing and that need to help risk-taking.
23:59You cannot ask a steel plant that has been operating for 50 years the same way with the same type
24:07of market, even if, for example, they decided to change their operations and adopt a new electric arc furnace, to
24:15just, boom, be able to do defense type of steel or infrastructure type of steel if they never did it
24:22in 50 years.
24:24It's difficult.
24:26And so that's something that we will definitely be doing.
24:29And at the same time, we have different ways of doing that.
24:34We've done it during the pandemic with our airlines.
24:37We did it also during the financial crisis with GM and Chrysler.
24:43But we have the sovereign wealth fund, also, that we're putting into place.
24:49And that will help us, also, to be able to help our businesses.
24:54And, of course, that's for big businesses.
24:58But for smaller businesses, we already have some programs in line.
25:04We will help, obviously, through federal procurement, which I think is absolutely key.
25:11But we will help to, I must say, push and impose conditions to those bigger companies to work with smaller
25:22companies in Canada.
25:23And so that's our way to really support the entire supply chain.
25:28Okay, so if government must play a more active role in supporting this transition, what does that mean for Canada's
25:35fiscal outlook?
25:36How does the government balance this ambition and, you know, possibly more financing spending with fiscal prudence?
25:46Well, I think we've been showing that.
25:48We can do two things can be true at the same time.
25:52So we've been making sure that when it comes to operating expenses of the government that we be able to
26:01balance the books.
26:02And when it comes to major projects, major capex investments, we need to be there.
26:07And we need to be able to create growth at a time where our economic sovereignty is not only being
26:14threatened, it is being attacked.
26:16And so that is why we need to do so.
26:21When you think about the tariffs against our steel and aluminum industries, these are not small tariffs.
26:27It's 50%.
26:29It's actually a complete bearer to export.
26:32And so that's why we have to understand how much this is an important issue.
26:40And also, at this point, in the second chapter of the trade war, because the first chapter was before Prime
26:47Minister Carney decided to leave the negotiation table, it was steel, aluminum, auto, and forestry products that were mainly impacted
26:59by tariffs.
27:00Now, it's 700 products.
27:02And it's in the food and beverage sector.
27:05It's in the garment and textile sectors.
27:08It is also in the plastic sectors.
27:12So we need to figure out how we are supporting a lot of the small and medium-sized businesses that
27:19are impacted.
27:20And that's my job also, working with Kareem, working with my colleagues here, to make sure that as we are
27:26offering so much tools to help them out, that they know about it.
27:31Okay, so you talked about the steel sector, and you even said that the government is prepared to take equity
27:37positions.
27:38Yeah.
27:39Does that include nationalizing STELCO, as the NDP and others have suggested?
27:44So, I was asked that question, and you heard what I said.
27:48So, of course, it is the government's position that STELCO has breached commitments.
27:57And that they cannot also say that because market conditions are changing, or because they have a new business plan,
28:07that they can not follow their commitments.
28:15So, first.
28:16Second, what is really important to understand is that the CEO of STELCO took a position in favor of U
28:25.S. tariffs.
28:25So, that position had an impact on his stance on commitments towards the government of Canada.
28:36And so, since we believe there's been multiple breaches of the commitments, the Investment Canada Act, under Section 40, offers
28:47options through a court process.
28:50First, making sure that we are, they're obliged to comply with the commitments.
28:57Second, financial penalties.
29:01And third, a potential forced divestiture.
29:05So, forcing them to sell their Canadian assets.
29:08And so, we're looking at all of these options.
29:11And I'm always ready to sit down again with STELCO to find a solution.
29:15But it's not true that they will keep, that they will cut the jobs in Hamilton and continue to ship
29:22their steel from the U.S. to Canada, meanwhile.
29:25No way.
29:32So, we have less than five minutes left, but I do want to try to get in two more questions.
29:37Yeah.
29:38What is the government's timeline to either resolve this conflict at STELCO or to pursue legal action?
29:44Oh, it's a question of days.
29:47It's like, of course, we're working also with the union, with the workers.
29:53We're doing everything to make sure that this, not only to protect the jobs, but that this capability that is
30:01so key to our industrial base,
30:04that is so key to the Hamilton community continues to operate.
30:12And so, that is why it's really, really important.
30:14I have a strong sense of urgency.
30:18Okay.
30:19You talk about a wide range of industries in your speech, but there are many others in Canada as well.
30:26We have telecom.
30:27We have Mr. Dodig here from Dallas.
30:28Yes, I'm sorry, Victor.
30:29We're not talking about telecom.
30:30But what about the other industries?
30:32What are your plans?
30:34What can people expect?
30:35You know, I was talking to Victor Dodig from TELUS a bit earlier.
30:39I was saying, please, we're not talking about telecoms in this speech, but it's coming.
30:44It's coming.
30:45So, indeed, I'll have multiple announcements this week.
30:52Again, Spacebound is happening, so we'll talk about space this week in Ottawa.
30:56We're coming up also with a venture cap strategy to increase the pool of capital in this country that is
31:03from Canadian sources.
31:07And we're looking at a sea to space strategy also because we need to have the right telecommunication infrastructure.
31:17We're coming up with a commercialization of life science strategy as well.
31:22Why I say that?
31:23It's because we're in the midst of a big industrial transformation, and we need to be able to address all
31:29that while dealing with the issues of the day.
31:33Because if we don't do it, we will be vulnerable, and we will be even more in a state of
31:38dependency, and that cannot be the position of the government right now.
31:42All right.
31:43I'm just going to squeeze one last question in.
31:46As a journalist, I have pessimism down pat, but I think people are desperate for optimism.
31:52So what keeps you optimistic, or what gives you optimism during these very difficult economic times?
31:58Well, yes.
32:00Well, I think we can be extremely proud of ourselves.
32:03Absolutely.
32:07We are.
32:11I think that, yes, there's a threat, and yes, when the American administration talks, they actually mean what they say,
32:23and that should be something we compute.
32:26But we are strong.
32:29We are in control of our country and of our economic levers.
32:33And so we can do this.
32:36And that's why I'm convinced that this can be also a very optimistic time, because we can do great things
32:43and big things together.
32:45Demand nous appartient.
32:46Wee!
32:53Just wondering, how do you react to being called a bully by the CEO of Cleveland Cliffs in his interview
33:00last night?
33:00I'm just doing my job.
33:02I'm protecting Canadian jobs.
33:03And I just want to make sure that not only does he understand that when he has commitments with the
33:11Canadian government, he needs to abide by it, but also that we're sending a message for foreign companies that, of
33:18course, we're open for business.
33:20But if you come and invest in our country, well, you have to abide by commitments.
33:25And so that's why I'm very aware of the fact that we cannot set a precedent with TV and Cliffs.
33:32And that's why we need to abide by the letter, but also the intent of the law.
33:40He said that actually what he called bullying would actually discourage communities from investing in Canada.
33:45What's your takeaway?
33:46Well, I was just in London, Ontario, this morning with Minister Fidelity, and we announced a $500 million project in
33:58Hitachi, which will be building press boards for their Transformers.
34:04So half a billion investment, 100 new jobs, great news for Southern Ontario, great news for London.
34:12And that's just an example of a fantastic Japanese company investing in Canada.
34:18What you've been talking about the potential for legal action for a little while now.
34:24What's, I mean, simply, but what's the holdup?
34:26I mean, what's keeping you from doing it, from pulling the trigger?
34:29So we hired the best lawyers in town over the week.
34:34And so we were working with them to make sure that we are looking at all options possible.
34:40And of course, we've engaged with Cleveland Cliffs as well.
34:44As I mentioned two weeks ago, we offered them support.
34:49We were there to say to them, you know what, if you have some issues, no problem, we'll work together.
34:55And they said no. So that's why this was a decision of their own making.
35:02And we're reacting to the decision.
35:04Just to clarify, is that, have you hired an external counsel?
35:07Exactly.
35:08What's the last time you spoke with Cleveland Cliffs?
35:11My team has been in contact.
35:13I spoke to the CEO two weeks ago.
35:15I was the one personally to offer him support through the different programs we have,
35:21because I thought it was important to offer that option.
35:25And we're doing that with Algoma.
35:27We're doing that with the Fasco, Arcelone Mittal, Interpro, all the seal plants.
35:33That's what we're doing.
35:33How eminent do you think legal action might be if that's the route that you go?
35:38I've said that our goal is to look at all the options.
35:43And we know that time is of the essence.
35:46Well, would you say the workers were frustrated that another U.S. company came in
35:49and bought a Canadian company and is still playing on workers?
35:54I'm saying to them that we're fighting for their jobs.
35:56Can we go to the next question, please?
35:59Okay.
36:00Well, thank you.

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