Monday, December 7, 2009

Four-Year Delay Seen for New Detroit Bridge

(Journal of Commerce – Courtney Tower)

Canada approves environmental study but lawsuits delay cross-border span

Canada last week achieved a critical milestone toward building the $3 billion Detroit River International Crossing. But the final opening still faces at least four years of delay by the most hopeful calculation from 2013 to 2017.

Canadian authorities gave their final approval in an exhaustive environmental process which has lasted several years since federal and local governments decided to build a new bridge two miles upriver from the 80-year-old Ambassador Bridge. The same U.S. process ended in approval early this year. The two environmental approvals would normally allow the project to go ahead.

Even four extra years can become more if there are further delays from a huge tangle of lawsuits in U.S. courts or from renewed opposition in the Michigan legislature, where the private owner of the venerable Ambassador Bridge, Manual Moroun, has several supporters. Moroun wants to build his own new span and stop the public DRIC. Read more here.

Replacement of CBSA Facilities at the Sault Ste. Marie International Bridge

(Canada NewsWire)

The Federal Bridge Corporation Limited (FBCL), a Crown corporation, and the St. Mary's River Bridge Company (SMRBC), the Canadian owner of the Sault Ste. Marie International Bridge and a wholly-owned subsidiary of FBCL, wish to inform the public that the detailed design for the replacement of Canada Border Services Agency (CBSA) facilities at the Sault Ste. Marie International Bridge will begin in December 2009.

The existing CBSA facilities at the Sault Ste. Marie International Bridge need to be replaced as the buildings are overcrowded, functionally obsolete and operationally deficient.

An environmental assessment was initiated by FBCL in July 2007 and signed off in June 2009.
Funding of approximately $44.1M has been allocated by the federal government in early fall through the Gateways and Border Crossings Fund. The project's design and construction activities will be spread over approximately five years.

For Mr. James McIntyre, Chairman of SMRBC, “The replacement of the CBSA facilities is made possible through a $44M contribution agreement between SMRBC and the Government of Canada to cover the costs. While some purchases of lands have been completed, the remaining land acquisitions necessary are underway and are expected to continue in 2010-2011”.

Friday, December 4, 2009

Small Firms Turn Cautious on Overseas Expansion

(Sharon Singleton — Toronto Sun)

Canada’s small to medium-sized companies may have turned cautious on foreign expansion after the global recession with many saying their earlier expectations for success have not been met, a survey found.

One-quarter of respondents to the KPMG “Taking on the world” survey were unsure if their ventures in overseas markets were successful, while another quarter admitted they weren’t. Half of the 294 companies responding said they thought their operations outside of Canada were successful, but that’s down from last year’s number.

The results contrast with government figures showing that companies are taking advantage of the strong loonie to go on a buying spree for foreign assets, especially in the United States. Read more here.

Customs Notice CN-09-023: Release of Canadian Automated Export Declaration 2010

(CBSA)

1. The purpose of this notice is to inform exporters that the 2010 version of the Canadian Automated Export Declaration (CAED) software will be released on December 17, 2009.

2. The 2009 version of CAED will expire on January 31, 2010. CAED participants should upgrade to CAED 2010 by downloading the software from the CAED Web site here.

3. Please note that the "Currency of Declared Value" field in CAED 2010 has been modified. It will now be possible to use the Canadian dollar ($CAN) or the United States Dollar ($USD) in the "Currency of Declared Value" field. To convert other currencies to the Canadian dollar ($CAN), exporters may use the exchange rate tool on the Bank of Canada website.

4. Operating systems that will be supported by CAED 10 include Win2000, Windows XP and Windows Vista.

5. Please note that the CAED software will be fully compatible with Windows 7 with the release of version 10.5 which is slated to be released in late summer 2010. For further information regarding the compatibility of the CAED with Windows 7, please contact the CAED Helpdesk at Statistics Canada at the number listed bellow.

6. The release notes for CAED 2010 will be available on the Statistics Canada CAED Web site here.

7. For more information about CAED, contact the CAED Helpdesk at Statistics Canada by telephone at 1-800-257-2434 or 613-951-6291 for calls outside North America, by email at export@statcan.gc.ca or visit the CAED website.

8. For more information about export reporting, contact the Border Information Service (BIS) throughout Canada at 1-800-461-9999 (English) and 1-800-959-2036 (French). If you are calling from outside Canada, you can access BIS by calling 204-983-3500 or 506-636-5064. Long distance charges will apply.

Please direct any questions regarding this notice to:
Export Process Licensing,
Export and Accounting Policy Division, Admissibility BranchCanada Border Services AgencyTelephone: 613-954-7160 • Facsimile: 613-946-0241
Email: export@cbsa-asfc.gc.ca

Carbon Border Measures Seen Breaking WTO Trade Rules

(Reuters – Jonathan Lynn)

Border measures to protect domestic manufacturers from unfair foreign competition as part of climate change legislation could run foul of global trade rules, a Brussels think tank said on Thursday. Such border measures could also be economically unworkable, said Fredrik Erixon, director of the ECIPE research institute.

"Many countries are going to think twice because they know they are going to unleash quite hard responses, very likely retaliation, from other countries," Erixon told a conference call about a study on trade and climate. "It is difficult to see how they are going to be squared with basic rules," he said. Read more here.

The full ECIPE paper can be accessed here. (PDF — 31 pages)

How Tech-Savvy Are Canadian Supply Chains?

(Materials Management & Distribution – Deborah Aarts)

Are Canadian supply chain managers innovative enough when it comes to technology? Several sets of data go long way towards answering the question.

Recently, Industry Canada partnered with SCL Canada’s research committee to aggregate some research on how supply chain managers use technology. The two parties consulted several studies issued by Statistics Canada and other international research organizations and analyzed the findings. The result is a set of conclusions based on feedback from more than 20,000 firms.

In November, SCL Canada launched its Technology Tour to explain the findings, stopping in six cities across the country. Philippe Richer, associate director of the service industries and consumer product branch at Industry Canada, presented the information. […]

According to Richer, the lax adoption of e-based technology among companies in the supply chain is cause for concern. One big reason they should act, he said, is because they stand to gain so much. He cited an Aberdeen Group report that found 90% of companies embracing leading-edge collaboration applications achieved gains of at least 15% in order fill accuracy. Only 40% of low technology adopters have the same results.

High adopters of the technology are also achieving comparative advantages in total delivered costs, lead-time reductions, perfect orders and increased compliance to customer mandates. Read more here.

Deal Close on ‘Buy USA — With Strings

(Toronto Star)

There has been a breakthrough in talks between Ottawa and Washington aimed at resolving a dispute over a protectionist U.S. policy known as Buy America, according to a source close to the negotiations.

A tentative deal is ready to go to the desks of Prime Minister Stephen Harper and President Barack Obama, the source said, but both could still face significant political obstacles in winning support for the deal. […]

The compromise would for the first time guarantee that U.S. manufacturers could bid on supply contracts being awarded by provincial and municipal governments in Canada, the source said. Read more here.

Export USA Webinar, December 9: Become Part of Smarter Planet Solutions

(Canadian Trade Commissioner Service)

Learn how you can participate in IBM's Smarter Planet Solutions Global Value Chain.
Smarter Planet Solutions address today's challenges such as climate change, energy, and global supply chains for food and medicine. Adopting these smarter solutions will reduce your carbon footprint and give you a competitive edge in the U.S. market.

As the world continues to get “smaller” and “flatter”, we see now that being connected isn't enough. Fortunately, something else is happening that holds new potential: the planet is becoming smarter through more intelligent systems, processes and infrastructure.

Kim Devooght, IBM Canada's Vice President, Public Sector, will discuss IBM's perspective related to these challenges and highlight opportunities for Canadian organizations in the North American context.

Why should you participate? You will:
• Understand IBM's smart planet focus;
• Gain a perspective on this emerging and dynamic technology trend;
• Learn how your company can partner with IBM to deliver Smarter Planet Solutions.

Date: Wednesday, December 9, 2009
Time: 1:00 to 2:00 p.m. EST Cost: Free

After the presentations, there will be a 20-minute Q&A period. The presentations will be in English but the speakers will take questions in both French and English. Through the Virtual Trade Commissioner, a) the webinar will be made available for on-demand viewing following the live session; b) participants may also download the presentation slides, in both French and English.

Please register by December 8, 2009. Registration here.
For additional information, please email Guillaume Parent: guillaume.parent@international.gc.ca

Revised: Memorandum D11-11-3 Advance Rulings for Tariff Classification

(CBSA)

This memorandum supersedes Memorandum D11-11-3, Advance Rulings for Tariff Classification, dated April 1, 2003. This memorandum has been revised in accordance with the Government of Canada’s Paper Burden Reduction Initiative. The revisions are aimed at eliminating obsolete and duplicated requirements and modifying complex policies.

Bureaucratic Drift: CBP, GSA and Ports of Entry

(Federal News Radio – Lurita Doan)

Federal agencies often share missions as a way to tap expertise, share responsibility and costs, usually for the good of the country. Land ports of entry, at the Canadian and Mexican borders of the United States, are a shared mission. Unfortunately, border crossing points have become victims of bureaucratic drift that hampers the free flow of legitimate trade and travel and does little to advance the agenda of President Obama and Congress.

With a few exceptions, land ports of entry are federally owned buildings. The U.S. General Services Administration (GSA) is the nation's landlord and builds and manages most of the federal government's buildings and courthouses. At the border, GSA is responsible for building, leasing and maintaining the facilities, while U.S. Customs and Border Protection (CBP) provides security and inspection of both people and goods. Even the Departments of Commerce and State have responsibilities at the borders.

Also, unbeknownst to many Americans, state and local law enforcement use these border facilities in executing their missions. Our borders work best when these federal, state and local entities work together and when there is mutual respect for the responsibilities and the importance of each mission.

GSA isn't always efficient in executing its mission, and, often allows bureaucratic wrangling and inter-agency finger pointing that is counterproductive to accomplishing its mission priorities.
CBP is an organization, fighting for survival in the bureaucratic jungle that is DHS – an agency still undergoing growing pains since its inception in 2003. The 22 entities combined to form DHS still spend enormous amounts of time and taxpayer dollars fighting century-old turf wars. Read more here.

Thursday, December 3, 2009

CN Ramps Up After Strike Ends

(Journal of Commerce Online – John D. Boyd)

Railroad acts quickly to resume normal operations

Canadian National Railway was ramping its operations back up December 3 following a five-day strike by locomotive engineers, but it was not clear how long it would take Canada’s largest railroad to get back to full service. Industry sources had said during the strike that it would take at least several days to get all crews back on regular schedules and get train traffic back to a pre-strike pace. Read more here.

Vancouver Airport Workers Threaten Holiday Strike

(Reuters via The Province)

Unionized workers who sort baggage at the Vancouver International Airport warned on Tuesday they may walk off the job during the busy Christmas holiday season. The 300 workers employed by Swissport have approved a strike mandate and talks over wages and job security are at an impasse, according to the International Association of Machinists and Aerospace Workers union.

The union said the company’s latest offer contained no pay increase for lower seniority workers who make up a majority of the workforce. “This offer is nothing short of crap,” local union Chairman Todd Haverstock said in a statement. Read more here.

New Exporters to Border States (NEBS) Mission to Buffalo, February 17-18, 2010

(Ontario Ministry of Economic Development & Trade)

You are cordially invited to participate in the next NEBS Mission to Buffalo on Wednesday, February 17 and Thursday, February 18, 2010.

NEBS is a cost-effective program ideally suited for anyone involved in export development to the U.S., whether working in a management, inside or outside sales, marketing or business development position. It offers practical, hands-on information on the fundamentals of exporting to the United States by combining expert briefings on such topics as U.S. banking, legal and tax considerations, immigration issues, U.S. customs clearance procedures, logistics and regulatory requirements. The mission also includes site visits to a U.S. customs border entry point and warehousing facility.

If your company has been in business for at least one year and has a manufacturing or service base in Ontario, and you are interested in obtaining additional information on this program, please complete the attached form and fax it to the fax number provided.

DRIC Bridge Hurdle Cleared

(Video: Michigan DOT • Story: Chris Vander Doelen — Windsor Star)



The last major legal hurdle in the way of a new $5 billion publicly owned bridge over the Detroit River has been cleared, removing one of the last barriers to the start of one of the largest construction projects in Canadian history.

Transport Canada will announce today that it has won full approval for the wide-ranging Environmental Assessment it has prepared for the Detroit River International Bridge project.

Years in the making, the approval is to be announced this morning, a reliable federal source confirmed to me Wednesday afternoon. Read more here.

China Launches Ad Campaign to Salvage Global Image

(FlexNews – Reuters)



China, the country that introduced the world to formerly obscure chemicals like melamine and diethylene glycol via a series of product safety scandals, is now hoping to salvage its image through an advertising campaign. Read more here.

U.S. Senators Urge Renegotiation of U.S. Trade Deals

(Reuters – Doug Palmer)

A group of U.S. senators urged President Barack Obama on Monday to back legislation requiring the renegotiation of the North American Free Trade Agreement and a long list of other trade pacts they blame for millions of lost U.S. manufacturing jobs.

“We want trade and plenty of it, but we want trade under new rules. The TRADE Act will help Congress and the White House craft a trade policy that makes sense and learns from our many mistakes over the past couple of decades,” Senator Sherrod Brown, an Ohio Democrat, told reporters in a conference call.

The bill, which has seven co-sponsors in the Senate, shows the strong opposition Obama could face from many members of his own Democratic Party if he pushes for new trade agreements without addressing concerns about past trade pacts. Six Democrats are among the co-sponsors, as well as independent Bernie Sanders. Read more here.

U.S. Customs Extends Drawback Comment Period

(Journal of Commerce Online – R.G.Edmonson)

Proposed change would eliminate drawback on goods subject to excise taxes

Exporters and other interested parties have an additional month to tell Customs and Border Protection what they think about a controversial change in drawback regulations. The agency on Wednesday extended the comment period past the original deadline of December 14 to January 12, 2010, on a proposed rule change that would keep importers from claiming drawback on goods subject to U.S. excise taxes.

Companies have been able to recover 99% of the excise taxes they pay on imported goods if they export “commercially interchangeable” products. It’s widely used in the alcohol, tobacco and petroleum industries. Read more here.

How Many Process Steps Does it Take to Execute a Global Import?

(Supply Chain Digest)

106, new Stanford study finds

The supply chain world, in general, is replete with various process models, such as those developed by the Supply Chain Council (SCOR Model), CSCMP, various consultants, and many others.

But when it comes to truly global supply chain processes, the stock of existing process models quickly becomes a lot thinner. That, in part, led a couple of well-respected Stanford University professors (Warren Hausman and Hau Lee) to take a look at an end-to-end process model for global trade management, as well as the potential benefits from automating those process.

“The two or three process models that were available did not really have enough detail to enable them to be used for process improvements,” Dr. Hausman said on a recent videocast from Supply Chain Digest and The Supply Chain Television Channel,” that provided a summary of the research. […]

All told, Hausman and Lee identified 106 discrete steps in a global trade management process. An example of the first portion of the process model is shown here. The entire 106-step model is available in the report, which is available for download from SCDigest: How Enterprises and Trading Partners Gain from Global Trade Management: A New Process Model for the China-to-US Trade Lane (registration required). Read more here.

Analysis – U.S. Tariffs Would Chill Climate Pact and Trade

(Reuters – Timothy Gardner)

Any threat by the United States to slap fees on imports from countries it perceives as weak on cutting carbon emissions could hamper trade relations and delay international efforts to combat global warming.

Lawmakers in states that produce cement, chemicals, steel and other energy-intensive products have called for such tariffs in climate legislation. They fear those industries looking to cut regulation costs could pull up stakes and move to countries that don't have strong climate plans.

But experts say the tariffs may do more harm than good.

“One of the big problems is retaliation,” said Jeffrey Frankel, professor of capital formation at Harvard University's Kennedy School of Government. “Other countries will say 'If the U.S. is doing it, we'll put up our own trade barriers.'“ Read more here.

2009/10 Domestic and Export Controls Seminars

(DFAIT)

The Export Controls Division of Foreign Affairs and International Trade Canada, in cooperation with the Controlled Goods Directorate of Public Works and Governments Services Canada, is organizing a series of Domestic and Export Controls Seminars in the following cities:

Montreal – December 8, 2009Quebec – December 10, 2009Halifax – January 27, 2010Calgary – February 23, 2010Vancouver – March 24, 2010

These seminars will review the responsibilities of Canadian industry in safeguarding military, strategic, and sensitive commercial goods and technology. Our presentation will cover the following issues: International security and trade; Understanding the Export Control List; Applying for an export permit using Export Controls Online (EXCOL); Understanding the application review process; and Common errors made by exporters.

If your company is active in any of the following sectors, you should consider participation: defence, security, nuclear, aerospace and space, information and communication technology, and chemical or biological technology. The seminars will be aimed at individuals in the following roles: Customs or export process specialists; International marketing managers; Compliance officers; Legal officers; and Designated Officers.

There will be an opportunity to meet with officials for a 15-minute one-to-one meeting after the session (3:00–5:00 p.m.). If you are interested, please make sure you indicate this on your registration form provided on our website. You may fax or email your registration. For further information, please contact the Export Controls Division at tie.reception@international.gc.ca

Indian Ocean Too Dangerous for Lines

(Video: PBS/KCTS • Story: International Freighting Weekly)



The International Transport Workers’ Federation (ITF) has warned that shipowners should no longer send ships through areas affected by piracy because of the risk to seafarers. In a motion adopted by its fair practice committee, the ITF said flag states and shipowners that had not taken anti-piracy measures in the Indian Ocean should act before it became “impossible for seafarers to pass through the ever-widening danger area”.

The ITF said: “Save in exceptional circumstances, ships should not transit the [affected] area. The risk of attack is now so great that putting seafarers in harm’s way amounts to a breach of the shipowner’s duty of care.”

ITF maritime coordinator Steve Cotton added: “There are countries actively fighting piracy and there are owners training and supporting their crews to resist it.

Export USA Webinar: Opportunities for Canadian Businesses in the U.S. Health IT Market

(Canadian Trade Commissioner Service)

Canadian companies that have experience working with regional health authorities in Canada or on the Canadian Health Infoway (CHI) networked projects are well placed to bring their interoperable solutions to the U.S. market.

Did you know that the healthcare industry is receiving $142.3 billion from the U.S. stimulus package? This represents more than any other sector.

Register now to find out how your company can tap into the U.S. Health IT market and become more successful across the border.

Why should you participate?

You will: Discover regional opportunities directly from trade commissioners in Philadelphia and New York; Gain insight on privacy, security, sustainability and interoperability related to the U.S. Health IT industry – What lessons have we learned?; Learn how wireless technology is revolutionizing the delivery of health services.

Date: Wednesday, December 11, 2009 • Time: 1:00 to 2:15 p.m. EST • Cost: Free

After the presentation, there will be a 20-minute Q&A period. The presentation will be in English but the speakers will take questions in both French and English. The presentation will also be made available for on-demand viewing in both French and English following the live webinar. Registration is requested by December 10, 2009. For additional information, please email Guillaume Parent.

Wednesday, December 2, 2009

Harper Government Announces New Cargo Terminal for London International Airport

(FedDev Ontario)

Businesses in London and the area will have a greater opportunity to access and compete in international markets thanks to an investment of up to $8 million to establish an International Air Freight Transshipment Centre at the London International Airport that will create up to 150 new jobs and launch a new Cargo Village Gateway. […]

The enhanced development will allow London International Airport to capture an opportunity to become an international trade centre that generates international transportation, enhanced competitiveness for regional business and new sustainable employment. For more information on the project, please see the backgrounder here.

Tuesday, December 1, 2009

Agreement in Sight for Anti-Counterfeit Pact

(IP Review Online)

Negotiations are nearing completion on the proposed Anti-Counterfeiting Trade Agreement (ACTA), which is set to have far-reaching implications for the global intellectual property landscape. Following the latest round of talks – held in Seoul earlier this month – the participating countries will meet in Mexico in the New Year in line with their aim of finalising the agreement text in the early part of 2010.

Countries that attended the sixth round of negotiations, hosted by the Republic of Korea, included Australia, Japan, Canada, New Zealand, Mexico, Singapore and the US. The European Union, meanwhile, was represented by delegates from the European Commission, the EU Presidency – currently held by Sweden – and several EU Member States. The nations reaffirmed their efforts to develop a powerful treaty under international law for enforcing the protection of IP Rights.

According to United States trade representative Ron Kirk, the talks ‘focused on enforcement of rights in the digital environment and criminal enforcement’. While negotiations have so far been conducted on a confidential basis, Kirk hinted that more information about the direction of the talks is forthcoming. ‘Participants … discussed the importance of transparency,’ he added, ‘including the availability of opportunities for stakeholders and the public in general to provide meaningful input into the negotiating process.’ Read more here.

The U.S. Needs a New Deal on Trade with More Opportunities for American Exports – Gary Locke

(Seattle Times – Gary Locke)

For weeks before the 1999 World Trade Organization Ministerial meeting in Seattle, state and local authorities had known that peaceful protests were being planned around the Washington State Convention & Trade Center. But as I drove through downtown on the night of November 29 and saw waves of people returning from a rally waving placards, I got a sinking feeling that the anti-trade sentiment was stronger than people had anticipated. ...events of that day still resonate 10 years later – because the profound questions and concerns that many Americans still have about trade and globalization have not been fully answered. […]

The Obama administration is working to build a new consensus on trade, one that can create widespread prosperity for everyone. While in Asia recently, President Obama pledged that the U.S. would engage in the Trans-Pacific Strategic Economic Partnership Agreement, which would draw us closer to Asia – a bloc of countries that buys 26% of U.S. exports – while setting a high bar for human rights, environmental protection and labor that could serve as a model for future trade agreements.

Meanwhile, the Commerce Department, which I have the honor to lead, is significantly expanding our export-promotion efforts around the world to ensure that U.S. businesses – especially the small and medium-size enterprises that account for more than half of all new jobs – have fair and frequent access to foreign markets. I'm confident that the steps we're taking will help make the benefits of trade more immediately apparent to all Americans – and that is vitally important.

I understand the frustration we saw in Seattle 10 years ago, and in these difficult economic times, we're seeing similar emotions from people who feel like the American economy just doesn't work for them and their families anymore.

That's got to change. Under the leadership of this administration, it will.

Read the complete editorial here.

Wednesday, November 25, 2009

Japan Calls for Tougher WTO Rules on Anti-Dumping

(Forbes – Jonathan Lynn, Reuters)

Japan called on World Trade Organisation members on Wednesday to agree tougher rules on how far states can go to defend themselves against unfairly priced imports, warning excessive retaliation could disrupt commerce.

WTO rules allow members to impose duties on imports that are “dumped” – or sold for less than they cost at home – if they damage businesses in the importing country.

But such anti-dumping investigations and duties are often themselves criticised for being unfair and motivated by protectioniosm, and are the major cause of trade disputes.

Reform of anti-dumping rules was one of Japan's top priorities in the WTO's long-running Doha round, said Hiroyuki Ishige, vice-minister in Japan's Ministry of Economy, Trade and Industry (METI). Japan feared that the gains to the world economy from cutting tariffs to open markets in a Doha deal could be undermined by unwarranted use of anti-dumping measures, he told a meeting of senior WTO negotiators.

“It is not a theoretical concern. It is a real concern. Dumping is sometimes found to exist when there is none,” he said according to a text of his remarks made available to Reuters. Read more here.

U.S., Canada Boost Security Ties

(AFP)

U.S. and Canadian safety chiefs vowed Tuesday to jointly combat organized crime and violent extremism in a bid to boost legal travel and trade across their shared border.

“Close cooperation and coordination between the United States and Canada is critical to the national and economic security of both nations,” US Homeland Security Secretary Janet Napolitano said in a statement. Napolitano said she and her Canadian counterpart, Public Safety Minister Peter Van Loan, were “committed to working together to combat transnational threats and facilitate lawful travel and trade on both sides of the border.”

The pair met in Washington for the second of their formal biannual meetings, on the heels of three other rounds of talks this year. In an effort to bolster trade and security, they agreed to streamline and harmonize border shipping, create new guidelines for maritime emergency cooperation, enhance efforts against human trafficking and increase cooperation to protect infrastructure and counter violent extremists. Read more here.

Monday, November 23, 2009

Freight Forecast Amounts to Mixed Bag

(Fleet Owner)

The latest U.S. freight market outlook issued by FTR Associates presents a mixed bag of projections. Freight volumes should start recovering by early 2010 and could gain significant strength as the year progresses, according to the firm’s economists. Yet much of those gains will depend on the strength of the overall U.S. economic recovery, which is predicted to be only modest at best as consumer spending is expected to remain at lower levels.

“We seem to be exiting the ‘Great Recession’ but it’s not clear yet if that exit is leading to more demand for freight,” said Eric Starks, FTR president, during a webinar conducted by the firm today on the state of the U.S. freight market.

FTR is forecasting a modest U.S. economic recovery through 2010. The firm sees U.S. gross domestic product [GDP] rising 4.5% in the first two quarters but then backsliding to 3.5% to 4% in the second half of the year. Freight volumes are expected to outperform GDP, however. They will rise 4% by the second quarter, increase to 5.5% in the third quarter, and top out at 7.7% in the fourth quarter of 2010 as inventories – currently at historically low levels – are replenished. Read more here.

Labeling Organic? Think Again

(Inside Cosmeceuticals)

It looks like it may be time for the U.S. Department of Agriculture (USDA) to step in and set some guidelines on organic labeling for personal care products. The National Organic Standards Board is requesting USDA apply the same policing to personal care labels claiming “organic” as they do for food because many consumers are getting confused in the sea of misuse as they peruse the personal care aisle.

Currently, companies are able to claim “organic” without being USDA certified. With a little reform, personal care products could only legally tout organic on their label if they went through the process of being certified. Many in the industry are pushing for this smack down as mislabeling downplays the impact “organic” has on marketing and quality.

New Bill Would Expand, Extend Trade Preference Programs

(World Trade Interactive)

Rep. Jim McDermott, D-Wash., introduced last week the New Partnership for Trade Development Act of 2009 (H.R. 4101) to strengthen and improve the African Growth and Opportunity Act, protect the trade interests of AGOA countries in apparel categories where they are particularly competitive, and extend similar trade benefits to lesser-developed countries outside of Africa. According to press sources, this bill includes the following provisions.

• expands duty-free, quota-free access to all products from AGOA beneficiaries as well as LDCs outside of Africa

• establishes a single rule of origin for AGOA, the Generalized System of Preferences and the DF/QF treatment provided to LDCs

• extends AGOA and GSP as far as 2019 and makes permanent benefits to AGOA LDCs

• extends AGOA’s third-country fabric rule from Sept. 30, 2012, to Sept. 30, 2015

• establishes a 10-year limit on the amount of certain apparel (including trousers and knit shirts and blouses) imported from Bangladesh and Cambodia that could benefit from DF/QF treatment but allows this limit to increase as much as 10% each year if certain conditions are met regarding the use of inputs originating in other developing countries or nations that have implemented a free trade agreement with the U.S.

• requires determinations of GSP eligibility for advanced developing countries to include consideration of the extent those countries offer preferential access to their markets to LDCs

Source document available here.

Program to Help Truckers Attracts Drug Smugglers

(Christopher Sherman — Associated Press)

A U.S. program [C-TPAT] that offers trusted trucking companies speedy passage across American borders has begun attracting just the sort of customers who place a premium on avoiding inspections: Mexican drug smugglers.

Most trucks enrolled in the program pause at the border for just 20 seconds before entering the United States. And nine out of 10 of them do so without anyone looking at their cargo.

But among the small fraction of trucks that are inspected, authorities have found multiple loads of contraband, including eight tons of marijuana seized during one week in April.

Some experts now question whether the program makes sense in an environment where drug traffickers are willing to do almost anything to smuggle their shipments into the U.S. Read more here.

Sunday, November 22, 2009

CrossTalk: Handling the Dragon

(Russian TV)



China has arrived in a big way. Peter Lavelle asks his guests whether the world should embrace China’s rising or whether we should expect a major reordering of the international system.

Precautionary Labelling of Priority Allergens

(CFIA)

Health Canada's Consultation workbook on Precautionary Labelling of Priority Allergens in Prepackaged Foods is now available online and can be completed and submitted until February 10, 2010. Click here to start the “Consultation Workbook”.

Health Canada Consulting on Policy Options for Precautionary Labelling of Priority Allergens on Pre-Packaged Foods is available here and Consultation on Precautionary Labelling of Food Allergens is available here.

Brazil Emerging Market for Canada

(Canadian Sailings – Kathlyn Horibe)

Companies encouraged to find niche opportunities, local partners

Doing business in Brazil requires local partners who understand the country’s culture and bureaucracy. That was one of the main messages delivered at a seminar on Brazil-Canada trade hosted earlier this year by the Quebec chapter of I.E.Canada in collaboration with the Brazil-Canada Chamber of Commerce.

“You need partners and introductions to them,” said Johane Séguin of Export Development Canada. “Do your homework. There’s lots to gain.” Ms. Séguin is senior advisor, Latin America, at EDC, which provides Canadian exporters with financing, insurance and bonding services as well as foreign market expertise.

“Local presence is essential,” said David Verbiwski, former consul of the Consulate General of Canada in São Paulo. “You can’t do it without a local partner. It takes people stopping by to see your customers on a regular basis and speaking to them in their own language. Executives (from head office) should also get down there at least once a year to visit customers. Business is built not only on quality and price but also on relationships.” Read the complete article here.

Friday, November 20, 2009

Free Benchmark Study from RILA and American Shipper

(American Shipper)

For a limited time you can download a copy of the International Transportation Management Systems Benchmark Study produced by American Shipper and the Retail Industry Leaders Association (RILA) free by going here.

The study demonstrates how you can successfully manage international transportation by examining successful companies, their technology, business practices, and emerging trends.

Download your copy now while it is available at no charge.

WTO Agrees to Rule on Legality of U.S. Food-Labeling Policies

(Bloomberg – Jennifer M. Freedman)

World Trade Organization judges agreed to decide whether U.S. country-of-origin labeling provisions violate global trade rules and unfairly harm agricultural trade, as Canada and Mexico allege. The U.S. requires food processors to identify the countries where cattle, hogs and some fresh produce originate. Canada and Mexico say the provisions impose unfair and unnecessary costs on their exports, reducing their competitiveness. […]

The Country of Origin Labeling Legislation, or COOL, has caused many U.S. pork-processing companies to stop buying animals born in Canada and has cost the country’s pork industry millions of dollars, according to the Canadian Pork Council, a federation of nine provincial pork industry associations. COOL has cost Canadian cattle producers more than C$250 million in lower beef prices and higher expenses, the Canadian Cattlemen’s Association says. Read more here.

Export Compliance: Canada and the United States – Two-day Intensive Course

(IE Canada)

December 3-4, 2009
Heenan Blaikie Conference Facility
Bay Adelaide Centre, 333 Bay St suite 2900,
Toronto

For more information use the following links for the brochure and registration form.

Thursday, November 19, 2009

U.S. Food Safety Likely to Get Overhaul in 2010

(Reuters)

A U.S. Senate committee voted unanimously on Wednesday to increase government oversight of food safety but the first significant overhaul in 50 years may not happen until 2010.

Pressure to overhaul the food safety system has grown following several high-profile outbreaks involving lettuce, peppers, peanuts and spinach since 2006 that have sickened thousands and killed several.

However, the full Senate probably won’t vote on the bill until 2010 as Congress is currently mired in debate about overhauling the U.S. healthcare system, said Tom Harkin, chairman of the Senate Health, Education, Labor and Pensions Committee. "I really, honestly, I just don’t see how we’ll get to it before Christmas," Harkin said of the food safety bill.

The Senate bill would expand U.S. Food and Drug Administration (FDA) oversight of the food supply and shift its focus toward preventing, rather than reacting, to foodborne outbreaks. FDA would have the power to order recalls, increase inspection rates and require all facilities to have a food safety plan. Read more here.

Recession’s Impact Varies by Industry

(Export Development Canada – Peter G. Hall)

A search for Canadian exporters unaffected by the global recession would need a pretty big magnifying glass. Exports have been dented across the industrial spectrum – but the impact has been unequal. Which industries are expected to fare best and worst over the near-term horizon?

Canada’s energy exporters will take the biggest hit in 2009. Prices are a key factor, as the average spot rates for crude oil, natural gas and coal this year are well below 2008 levels. Volume shipments have also been impacted by lower global demand. Technological advances have unleashed large quantities of US shale gas into the North American market, increasing inventories and dampening US demand for Canadian gas. Uncertainty in the global coal market has led to deferral of planned Canadian mine expansions, stunting the near-term export forecast. After falling 43% this year, weak global activity will hold growth in 2010 to just 9%, leaving foreign sales well below peak levels. […]

As unlikely as it may seem, topping the growth charts next year is the auto sector. Volumes will get a needed boost from triple-shift production at CAMI in Ingersoll, increased production of Toyota’s RAV4 in Woodstock and shipments of Oshawa’s hot-selling Camaros. A rebound of parts exports will also help to lift total sector shipments up 16% in 2010. This is good news, but the sector still remains stressed, as 2010 sales levels will still be 30% below what was achieved in 2007. With a few exceptions, the remaining industries will generally follow the national pattern – significant decline this year, followed by a modest rebound that leaves activity levels well below the previous peak.

Read more or watch the video here.

OECD Forecast Highlights

(OECD via The Globe & Mail)

Canada

• The contraction that began in the last quarter of 2008 seems to have ended in the second half of 2009. External demand and domestic investment now appear to be rebounding, but they also pose the greatest risks to the recovery’s sustainability.

• Unemployment is projected to keep rising until the end of 2009 and underlying disinflation to continue for several more quarters under the weight of persistent slack.

• The Bank of Canada should hold the policy rate at its current near-zero level until the end of June 2010, as it has committed, and probably beyond.

• Given the time required to roll out fiscal stimulus and the nascent recovery, additional expansionary measures, including extending the window of eligibility for extraordinary unemployment benefits, should be resisted. Instead, governments should be preparing detailed and credible medium-term fiscal consolidation plans to be announced soon and be implemented when the recovery is firmly underway.

Non-OECD countries

• The upturn in the major non-OECD countries, especially in Asia and particularly in China, is now a well established source of strength for the more feeble OECD recovery.

• The strength of the upturn reflects both the limited direct exposure to the financial origins of the crisis and the strong policy stimulus these countries were in a position to apply.

• The major policy issue in many of these countries is now becoming one of withdrawal of stimulus so as to avoid igniting asset or general price inflation.

United States

• The U.S. economy is recovering on the back of policy stimulus, improving financial conditions, non-OECD demand growth, normalisation of stockbuilding and stabilisation of the housing market.

• With rapid labour shedding in the downturn, employment should respond quickly to economic activity and unemployment may peak in the first half of 2010.

Euro Area

• The euro area economy will benefit from many of the same growth-drivers as the United States.

• But work-sharing schemes which cushioned employment in the downturn may also weaken the employment intensity of growth going forward.

• With unemployment not set to peak before the end of 2010 or the beginning of 2011, household confidence is likely to be weak and sap the strength of the recovery.

Japan

• Japan is well positioned to benefit from strong growth in the rest of Asia but, fiscal stimulus notwithstanding, weakness on the domestic side will remain a drag on growth.

• With activity insufficient to materially reduce unemployment, deflation is set to linger.

OECD Economic Outlook No. 86, November 2009: Country summaries and a special chapter on the Automobile industry are on the OECD website.