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Good morning,

It's been a long year. Before the Politics Briefing goes on hiatus for the holidays, we thought we'd highlight some of the inspiring stories from 2017 that make us hopeful for the new year. Got any suggestions? Let us know.

One of the most ambitious projects to mark Canada 150 was a 150-day voyage from Toronto to Victoria via the Northwest Passage. The Canada C3 Expedition saw the Polar Prince, a repurposed icebreaker, travel 23,000 kilometres as it circled the length of this country's coastline while focusing on reconciliation with the First Nations located along the route.

The Polar Prince set off from Toronto's harbour on May 31 for a 15-leg journey whose passenger list would include 300 people who asked to take part. The final passenger list included artists, musicians, scientists, naturalists, community leaders, newcomers to Canada, historians, "youth ambassadors" and Indigenous elders.

The ship spent the next five months travelling through the St. Lawrence into the Maritimes, heading north around Newfoundland before sailing into Nunavut and through the Northwest Passage. It reached B.C.'s northern coast in early October before continuing south to Victoria.

The expedition highlighted recently announced protections for Nunavut's Lancaster Sound, something Inuit leaders had long called for. The Lancaster Sound marine conservation area is the largest protected area in Canada, and its new status will ban oil drilling in the Northwest Passage.

At the same time, the journey underscored that the long, painful process of reconciliation is far from finished, something that became evident in both large and small ways on the ship. Along northern B.C.  the expedition and its passengers explored how Indigenous coastal communities are bridging traditional knowledge, science and technology to protect their territories.

The expedition also highlighted the impact climate change and rising temperatures are already having on Canada's arctic — and the race for scientists to understand what's happening.

Globe columnist Margaret Wente spent 12 days on the ship, an experience that changed her: "The purity and stillness of the Arctic are qualities I've experienced nowhere else. When the sun is hidden behind a haze and the sea and ice stretch on to the far horizon, the world becomes a monochrome of greys and whites. It feels as if the Earth's elements have been distilled down to their essence."

This is the daily Politics Briefing newsletter, written by Chris Hannay in Ottawa, Mayaz Alam in Toronto and James Keller in Vancouver. If you're reading this on the web or someone forwarded this email newsletter to you, you can sign up for Politics Briefing and all Globe newsletters here. Have any feedback? Let us know what you think.

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TODAY'S HEADLINES

Prime Minister Justin Trudeau says he'll clear all of his family's vacations with the Ethics Commissioner, after the watchdog concluded two family trips to the Aga Khan's private island violated federal ethics law. Ethics Commissioner Mary Dawson rejected Mr. Trudeau's defence that he was merely visiting a close friend when he took his family — all expenses paid — to the Bahamas. Ms. Dawson's report concluded Mr. Trudeau violated four sections of the Conflict of Interest Act.

The federal government is restoring a "pension for life" option for recent military veterans with disabilities, though many still won't receive as much as they would have under the old Pension Act. The federal government announce a tax-free monthly payment with a top-up for pain and suffering, replacing a system introduced by the former Conservative government that switched to lump-sum payments.

The federal government has given provinces an ultimatum: impose a carbon tax by Jan. 1, 2019, or Ottawa will do it for them. The government says its carbon tax will apply in any province without its own carbon pricing plan in line with federal standards. The threat puts the federal government on a collision course with a number of provinces who either refuse to adopt a broad carbon price or fail to meet Ottawa's requirements.

The U.S. tax system has been completely overhauled. Republicans passed the most drastic revamp of the tax code in three decades following a process that has been roundly criticized as rushed and hidden. The bill itself institutes permanent cuts to the corporate tax rate and disproportionately slashes taxes for the wealthiest Americans. (Most personal income tax brackets will see cuts in the short term but they will expire over time).  By 2027, households earning less than $75,000 will see a tax increase. Estimates by the bipartisan Joint Committee on Taxation suggest that GDP will grow .7 per cent in the next decade while $1-trillion will be added to the deficit by a party that was once focused on deficit reduction. Economists of all stripes have been opposed to the legislation and no Democrats in either the House or the Senate voted for the bill. It's a law that is also historically unpopular according to public polling.

If you're trying to buy a Bombardier C Series in the U.S., imported from Canada, you'll have to pay nearly four times sticker price. The U.S. Commerce Department upheld its ruling on Bombardier (preliminary duties of nearly 300 per cent have been levied) following its ongoing dispute with Boeing.

As NAFTA remains in limbo, talk of the Trans-Pacific Partnership-11 amid a larger pivot away from reliance on trading with the U.S. market has come to the forefront. Canadian auto parts makers, however, are pumping the brakes on optimism over the TPP.

The White House is threatening to cut aid to United Nations members that throw their support behind a draft resolution that is requiring the the U.S. to withdraw its unilateral decision to recognize Jerusalem as Israel's capital.  "The U.S. will be taking names," U.S. Ambassador to the UN Nikki Haley tweeted.

New African National Congress President Cyril Ramaphosa is vowing unity for his weakened party. Mr. Ramaphosa, who took over South Africa's historically dominant party earlier this week, is the country's deputy president and was once Nelson Mandela's preferred successor.

The U.S. is sanctioning Ramzan Kadyrov, the Putin ally and strongman in charge of Chechnya, and four other individuals for alleged human rights abuses. Mr. Kadyrov is accused of overseeing extrajudicial killings and disappearances.

Speaking of Bombardier and South Africa, Export Development Canada has cancelled its loan for the Gupta brothers' purchase of a jet from the Canadian aerospace company. The Gupta family, who have created a business empire in the country, are closely tied to South African President Jacob Zuma and have faced accusations of dubious insider deals. EDC, the federal government's export agency, cited a "political-exposure" risk in cancelling the loan.

British Prime Minister Theresa May says that her government would allow a delay on Brexit under exceptional circumstance. March 29, 2019, has been targeted as the official date of Britain's exit from the European Union. Ms. May's caucus has been beset with infighting over the decision to leave the EU and yesterday she forced her most senior minister, Damian Green, to resign amid a pornography scandal.

Globe and Mail Editorial Board on Trudeau: "Mr. Trudeau seems to believe his character is so unimpeachable that no one would dare conclude that an apparent conflict of interest on his part could in fact be real. He showed the same arrogance when he refused, initially, to put an end to the Liberal Party's shameless cash-for-access fundraisers. Now he has gone so far as to break the Conflict of Interest Act, and yet he still seems baffled and put off that anyone would accuse him of wrongdoing. The Prime Minister needs to gets his moral compass in working order. It has failed him so far."

Barrie McKenna (The Globe and Mail) on price-fixing: "If you really want to get riled up, head over to the dairy aisle or the meat counter. There, producers have been brazenly fixing prices on dozens of essential food items since the 1970s – all with the blessing of Ottawa and the provinces. We are talking about the supply-managed dairy, poultry and egg sectors, in which farmers get to decide what they'll be paid for their products. Chicken breasts, milk, cheese, yogurt and a host of other products containing these essential ingredients are all much more expensive than they should be." (for subscribers)

Konrad Yakabuski (The Globe and Mail) on Emmanuel Macron: "He quickly saw his popularity plummet as voters discovered their new President's authoritarian streak and revolutionary plans for transforming their country into a lean and mean productivity machine. By late summer, Mr. Macron's approval rating had been cut in half. And that was before he pressed ahead with labour reforms that previous presidents had promised only to change their minds in the face of protest. Mr. Macron's two immediate predecessors followed a similar hero-to-zero trajectory during their first year in office. But while Nicolas Sarkozy and François Hollande never recovered from their early fall from grace, resulting in the failed presidencies of both, Mr. Macron has made a spectacular recovery in public opinion owing largely to a feeling among French voters that the new boss is not anything like the old ones."

Conservative Leader Andrew Scheer is condemning Justin Trudeau’s handling of controversial vacations, after the prime minister was found to have broken conflict of interest rules. NDP Leader Jagmeet Singh says Trudeau should be reprimanded.

The Canadian Press

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