UPDATE 1-Canada expresses frustration over latest U.S. crisis

Fri Mar 1, 2013 2:18pm EST
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By David Ljunggren

OTTAWA, March 1 (Reuters) - Canadian Finance Minister Jim Flaherty expressed rare public frustration with the United States on Friday, saying it was regrettable that Canada's main trading partner kept lurching from crisis to crisis.

Political deadlock in Washington means the U.S. government is due to start imposing $85 billion worth of automatic federal spending cuts on Saturday. Canada sends 75 percent of all its exports to the United States and is very reliant on the economic health of its southern neighbor.

Flaherty said he was confident Canada would not suffer too badly from the u.S. cuts, but lamented the looming crisis, which comes in the wake of earlier U.S. dog fights over raising the budget debt ceiling.

"It is regrettable, though, that the U.S. continues to move from crisis to crisis in fiscal terms," he told reporters.

"So we hope - and we'll certainly encourage our friends in the United States through the G20 and in other ways - to develop a solid medium-term economic plan, a sustainable fiscal plan for the United States, just as we have developed one here in Canada, and to stick with the plan," he said.

Earlier on Friday another Canadian cabinet minister took a swipe at the United States, saying the country was up to its ears in debt because it had followed big-spending policies similar to those advocated by a left-leaning Canadian party.

House Leader Peter Van Loan, a Conservative, made his comments while criticizing the left-leaning opposition New Democratic Party (NDP), which wants more government spending on social programs such as public housing.   Continued...