(Whitehouse.gov via Uptake Video)
President Biden, Chair of the Middle Class Task Force, along with Task Force Members Secretary Sebelius and Secretary Vilsack, announced today the findings of the President’s Food Safety Working Group. President Obama established the group in March to coordinate Federal efforts and develop short- and long-term agendas to make food safer.
Vice President Biden announced key actions that the Obama Administration is taking to improve the safety of the US food supply:
• Strengthening "traceback" so that contaminated food is quickly identified and removed from shelves and that people get quick information about problems;
• Instituting a new salmonella rule to prevent contamination in the egg industry;
• Issuing new FDA guidance to prevent e. coli O157:H7 contamination of leafy greens, melon, and tomatoes; and
• Implementing more thorough inspections to prevent e. coli and other pathogens at facilities that handle beef.
“Our goal is to overhaul the system so we can get better at both stopping food safety problems before they happen and almost as equally important moving quickly, much more quickly, when they do,” Biden said. “We need to create a more comprehensive, more rational, more effective approach to food safety. This is, when you think about it, pretty long overdue.”
Sebelius said that these are not just words on a page but rather are already being put into action. Sebelius and Vilsack also talked about a better trace-back system.
“In order to protect consumers and their families we are going to create a unified incident command system,” Vilsack said. “And within 90 days Federal agencies will implement this new incident command system to address outbreaks of food borne illness.”
They also said they will work to keep consumers in the loop and improve communications. An upgrade is planned to the Food Safety Web site.
Wednesday, July 8, 2009
Tuesday, June 30, 2009
Buy American Lives on as Environmental Protection Agency Talks Tough
(The Canadian Press – Lee-Anne Goodman)
Opponents of the Obama administration’s so-called Buy American provisions are working furiously this summer under a Canadian deadline, trying to convince legislators to do something about the protectionist measure before a full-fledged trade war erupts.
Their efforts come despite recent Environmental Protection Agency directives reminding local utilities that they need not concern themselves with NAFTA obligations as the federal watchdog also issued stern warnings about Buy American non-compliance.
“We’re all under the Canadian clock,” Dawn Christof-Champney, president of the Waste and Wastewater Equipment Manufacturers Association, said Monday. Champney was referring to the 120-day deadline issued by the Federation of Canadian Municipalities on June 6. It gives the U.S. 120 days to exempt Canada from the Buy American provisions in President Barack Obama’s $787 billion economic stimulus package, or Canadian municipalities will begin shutting out U.S. firms from bidding on local contracts.
Various stakeholders opposed to Buy American, including blue-chip American corporations, recently made submissions to the White House Office of Management and Budget, or OMB, the department handling the stimulus package. They urged a reversal of the policy. “We all poured most of our energy into submitting our views,” Champney said.
Submissions in hand, the Obama administration will now write the final rules on how to implement Buy American. A spokesman for the OMB said recently the legislation is expected to be tweaked, “but to what extent and how significantly, that remains to be seen.” Read more here.
Opponents of the Obama administration’s so-called Buy American provisions are working furiously this summer under a Canadian deadline, trying to convince legislators to do something about the protectionist measure before a full-fledged trade war erupts.
Their efforts come despite recent Environmental Protection Agency directives reminding local utilities that they need not concern themselves with NAFTA obligations as the federal watchdog also issued stern warnings about Buy American non-compliance.
“We’re all under the Canadian clock,” Dawn Christof-Champney, president of the Waste and Wastewater Equipment Manufacturers Association, said Monday. Champney was referring to the 120-day deadline issued by the Federation of Canadian Municipalities on June 6. It gives the U.S. 120 days to exempt Canada from the Buy American provisions in President Barack Obama’s $787 billion economic stimulus package, or Canadian municipalities will begin shutting out U.S. firms from bidding on local contracts.
Various stakeholders opposed to Buy American, including blue-chip American corporations, recently made submissions to the White House Office of Management and Budget, or OMB, the department handling the stimulus package. They urged a reversal of the policy. “We all poured most of our energy into submitting our views,” Champney said.
Submissions in hand, the Obama administration will now write the final rules on how to implement Buy American. A spokesman for the OMB said recently the legislation is expected to be tweaked, “but to what extent and how significantly, that remains to be seen.” Read more here.
Is ‘Buy China’ a Protectionist Threat?
(New York Times – Catherine Rampell)
“Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China,” a Beijing government edict said.
The Chinese government quibbled with the “protectionist” characterization of its edict – not surprisingly, given how energetically the Communist leadership protested the protectionist portions of the United States’ stimulus package. But economists have fretted about it nonetheless, fearing that it may be a potential harbinger of a new wave of protectionist policies throughout the developing world.
Is this a trend free trade advocates should really worry about? Should we expect other emerging economies to start hoisting up trade barriers, under the impression that the current crisis has somehow debunked capitalism? Read more here.
“Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China,” a Beijing government edict said.
The Chinese government quibbled with the “protectionist” characterization of its edict – not surprisingly, given how energetically the Communist leadership protested the protectionist portions of the United States’ stimulus package. But economists have fretted about it nonetheless, fearing that it may be a potential harbinger of a new wave of protectionist policies throughout the developing world.
Is this a trend free trade advocates should really worry about? Should we expect other emerging economies to start hoisting up trade barriers, under the impression that the current crisis has somehow debunked capitalism? Read more here.
Customs Notice: Canada-EFTA Free Trade Agreement
(CBSA)
The following is now available on the CBSA Web site:
CN09-014 Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada-European Free Trade Association Free Trade Agreement
This notice announces regulatory amendments and new regulations proposed by the Canada Border Services Agency (CBSA) in support of the implementation of the Canada-European Free Trade Association Free Trade Agreement (CEFTA). It is further proposed that these regulatory amendments and new regulations come into force on July 1, 2009, on condition that the Governor in Council make them.
The following is now available on the CBSA Web site:
CN09-014 Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada-European Free Trade Association Free Trade Agreement
This notice announces regulatory amendments and new regulations proposed by the Canada Border Services Agency (CBSA) in support of the implementation of the Canada-European Free Trade Association Free Trade Agreement (CEFTA). It is further proposed that these regulatory amendments and new regulations come into force on July 1, 2009, on condition that the Governor in Council make them.
Monday, June 29, 2009
Jordan, Canada Sign Free Trade Agreement
(AP/CTV News)
Canada has inked a free trade pact with Jordan that will lift duties on Canadian exports to the Arab nation.
Trade Minister Stockwell Day and his Jordanian counterpart signed the agreement Sunday in Jordan's capital, Amman.
Canada's forestry, manufacturing and agriculture sectors are expected to benefit from duty-free access.
In return, Canada will give the Mideast country preferential trade conditions, including full exemption from customs duties for Jordanian goods.
The deal is expected to be ratified by both parliaments later this year.
Bilateral trade stood at about $92.2 million in 2008, according to a news release from Canadian government. Read more here.
Canada has inked a free trade pact with Jordan that will lift duties on Canadian exports to the Arab nation.
Trade Minister Stockwell Day and his Jordanian counterpart signed the agreement Sunday in Jordan's capital, Amman.
Canada's forestry, manufacturing and agriculture sectors are expected to benefit from duty-free access.
In return, Canada will give the Mideast country preferential trade conditions, including full exemption from customs duties for Jordanian goods.
The deal is expected to be ratified by both parliaments later this year.
Bilateral trade stood at about $92.2 million in 2008, according to a news release from Canadian government. Read more here.
Obama Opposes Trade Sanctions in Climate Bill
(New York Times – John M. Broder)
President Obama on Sunday praised the energy bill passed by the House late last week as an “extraordinary first step,” but he spoke out against a provision that would impose trade penalties on countries that do not accept limits on global warming pollution.
“At a time when the economy worldwide is still deep in recession and we’ve seen a significant drop in global trade,” Mr. Obama said, “I think we have to be very careful about sending any protectionist signals out there.” He added, “I think there may be other ways of doing it than with a tariff approach.”
The passage of the House bill on Friday night was an important, if tentative, victory for the president, becoming the first time either chamber of Congress had approved a mandatory ceiling on the gases linked to global warming. Read more here.
President Obama on Sunday praised the energy bill passed by the House late last week as an “extraordinary first step,” but he spoke out against a provision that would impose trade penalties on countries that do not accept limits on global warming pollution.
“At a time when the economy worldwide is still deep in recession and we’ve seen a significant drop in global trade,” Mr. Obama said, “I think we have to be very careful about sending any protectionist signals out there.” He added, “I think there may be other ways of doing it than with a tariff approach.”
The passage of the House bill on Friday night was an important, if tentative, victory for the president, becoming the first time either chamber of Congress had approved a mandatory ceiling on the gases linked to global warming. Read more here.
Global Supply Chain Hit by Uniserve Case
(International Freighting Weekly – Gavin van Marle)
Carriers could find themselves fully liable for goods following delivery errors
The number of supply chain partners vulnerable to the new liability loophole uncovered by IFW last month could be far greater than originally thought, and include carriers of all modes, as well as forwarders and warehouse operators.
UK-based freight operator Uniserve was recently found liable in a High Court ruling for a £375,000 (US$610,000) pallet of mobile phone devices that was stolen from one its warehouses in 2003 after being delivered there in error.
The company’s CEO, Iain Liddell, said that more than just the forwarding sector could be liable for goods accepted in good faith, but delivered in error. “If the error is such that your customer didn’t intend to deal with you at all, then no contract will arise and you are liable for the full cost of the goods if you are at fault for their damage or loss, “ he said.
“An error can be as simple as the principal or his agent delivering the goods to the wrong party, but the party receiving those goods may well have a trading relationship and have every intention of providing a service to the principal or his agent and accept the goods in good faith, totally unaware that an error has been made.”
He outlined some potential ways in which hauliers, shipping lines and airlines could find themselves fully liable as the result of errors that would invalidate a contract: Read more here.
Carriers could find themselves fully liable for goods following delivery errors
The number of supply chain partners vulnerable to the new liability loophole uncovered by IFW last month could be far greater than originally thought, and include carriers of all modes, as well as forwarders and warehouse operators.
UK-based freight operator Uniserve was recently found liable in a High Court ruling for a £375,000 (US$610,000) pallet of mobile phone devices that was stolen from one its warehouses in 2003 after being delivered there in error.
The company’s CEO, Iain Liddell, said that more than just the forwarding sector could be liable for goods accepted in good faith, but delivered in error. “If the error is such that your customer didn’t intend to deal with you at all, then no contract will arise and you are liable for the full cost of the goods if you are at fault for their damage or loss, “ he said.
“An error can be as simple as the principal or his agent delivering the goods to the wrong party, but the party receiving those goods may well have a trading relationship and have every intention of providing a service to the principal or his agent and accept the goods in good faith, totally unaware that an error has been made.”
He outlined some potential ways in which hauliers, shipping lines and airlines could find themselves fully liable as the result of errors that would invalidate a contract: Read more here.
Friday, June 26, 2009
Canada Asks for Talks on ‘Buy American’ Issue
(Journal of Commerce Online – Alan M. Field)
Canadian trade officials would like to discuss with U.S. counterparts an agreement that would enable U.S. and Canadian companies to have reciprocal access to local and municipal government procurement contracts.
Canadian Trade Minister Stockwell Day asked U.S. Trade Representative Ron Kirk today to “explore” such a deal, which would permit Canadian suppliers to continue to bid for U.S. local and municipal governments, despite “Buy American” provisions in the current U.S. economic stimulus plan. The two countries already have an agreement governing reciprocal access to government contracts on a federal level.
Although the idea has been widely discussed, this is the first time that the Canadian government has brought the idea directly to the Obama administration. Read more here.
Canadian trade officials would like to discuss with U.S. counterparts an agreement that would enable U.S. and Canadian companies to have reciprocal access to local and municipal government procurement contracts.
Canadian Trade Minister Stockwell Day asked U.S. Trade Representative Ron Kirk today to “explore” such a deal, which would permit Canadian suppliers to continue to bid for U.S. local and municipal governments, despite “Buy American” provisions in the current U.S. economic stimulus plan. The two countries already have an agreement governing reciprocal access to government contracts on a federal level.
Although the idea has been widely discussed, this is the first time that the Canadian government has brought the idea directly to the Obama administration. Read more here.
Minister Day Promotes Canadian Trade in France
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today concluded a two-day visit to France where, during important multilateral meetings, he strongly reiterated Canada’s calls to keep markets open and resist the temptation of protectionism.
Minister Day and Ted Menzies, Parliamentary Secretary to the Minister of Finance, met with Organisation for Economic Co-operation and Development (OECD) and World Trade Organization (WTO) partners to address the current state of the world economy and the need for continued trade and investment liberalization.
“In order for us to succeed in restoring prosperity to the global economy, we need to work with OECD and WTO members to fight the impulse to hide behind trade barriers. Canada is leading by example by pursuing free trade agreements with markets all over the globe,” said Minister Day. “We are strongly opposed to protectionism and will continue to defend free and open trade on the world stage.
“The Doha Round of WTO negotiations offers the best way forward to ensure fair, rules-based international trade. We need to aggressively pursue these talks to ensure our Canadian companies gain access to as many markets as possible, especially during this difficult economic period.”
Following the OECD meetings and informal meetings of WTO ministers, Minister Day delivered a speech to senior business officials from the Canada-France Chamber of Commerce where he highlighted Canada’s aggressive free trade agenda, positioned Canada as the best place in the world to do business and called for the need to resist protectionism.
Minister Day also had a very productive meeting with his French counterpart, Anne-Marie Idrac, Secretary of State for Foreign Trade, where he reinforced the need for stronger commercial relations with France and emphasized the importance of concluding negotiations on a comprehensive economic and trade agreement with the European Union as soon as possible.
“An agreement with the European Union, now more than ever, will help provide Canadian companies with enhanced access to the world’s largest market,” said Minister Day. “We will continue to work with our European partners, such as France, to ensure this becomes a reality.”
France is Canada’s eighth-largest merchandise trading partner worldwide and its third-largest in Europe, after the United Kingdom and Germany.
For the complete text of the OECD meeting’s ministerial conclusions is available here (PDF) and more details about Minister Day’s visit can be found here.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today concluded a two-day visit to France where, during important multilateral meetings, he strongly reiterated Canada’s calls to keep markets open and resist the temptation of protectionism.
Minister Day and Ted Menzies, Parliamentary Secretary to the Minister of Finance, met with Organisation for Economic Co-operation and Development (OECD) and World Trade Organization (WTO) partners to address the current state of the world economy and the need for continued trade and investment liberalization.
“In order for us to succeed in restoring prosperity to the global economy, we need to work with OECD and WTO members to fight the impulse to hide behind trade barriers. Canada is leading by example by pursuing free trade agreements with markets all over the globe,” said Minister Day. “We are strongly opposed to protectionism and will continue to defend free and open trade on the world stage.
“The Doha Round of WTO negotiations offers the best way forward to ensure fair, rules-based international trade. We need to aggressively pursue these talks to ensure our Canadian companies gain access to as many markets as possible, especially during this difficult economic period.”
Following the OECD meetings and informal meetings of WTO ministers, Minister Day delivered a speech to senior business officials from the Canada-France Chamber of Commerce where he highlighted Canada’s aggressive free trade agenda, positioned Canada as the best place in the world to do business and called for the need to resist protectionism.
Minister Day also had a very productive meeting with his French counterpart, Anne-Marie Idrac, Secretary of State for Foreign Trade, where he reinforced the need for stronger commercial relations with France and emphasized the importance of concluding negotiations on a comprehensive economic and trade agreement with the European Union as soon as possible.
“An agreement with the European Union, now more than ever, will help provide Canadian companies with enhanced access to the world’s largest market,” said Minister Day. “We will continue to work with our European partners, such as France, to ensure this becomes a reality.”
France is Canada’s eighth-largest merchandise trading partner worldwide and its third-largest in Europe, after the United Kingdom and Germany.
For the complete text of the OECD meeting’s ministerial conclusions is available here (PDF) and more details about Minister Day’s visit can be found here.
CBP: Mandatory Automated Filing of Export Information
(CBP)
Memorandum: Frequently Asked Questions Enforcement of U.S. Census Bureau Regulations Requiring Mandatory Automated Filing of Export Information has been updated.
To read the full CBP legal bulletin, go here (PDF).
Memorandum: Frequently Asked Questions Enforcement of U.S. Census Bureau Regulations Requiring Mandatory Automated Filing of Export Information has been updated.
To read the full CBP legal bulletin, go here (PDF).
Thursday, June 25, 2009
U.S. Sends Encouraging Trade Signals on Buy America: Flaherty
(CBC News – The Canadian Press)
U.S. congressional leaders appear to be prepared to work with Canada to dampen the threat of protectionism between the world’s two largest trading partners, Finance Minister Jim Flaherty said Wednesday.
Earlier, the finance minister met with several key senators, including former Democratic presidential candidate John Kerry, as well as House budget chairman John Spratt, on the financial crisis and trade issues. “What I heard today was a willingness to work on this issue,” he said in a conference call from Washington. “[And] that Canada is viewed as having a special trading relationship with the United States.”
But Flaherty gave no indication whether the congressmen he met, who were both Republicans and Democrats, were willing to lobby for a repeal of the so-called “Buy America clauses being inserted in billions of dollars of infrastructure spending programs.”
The laws require lower-level governments to use American steel and manufactured goods exclusively in procurement that uses federal infrastructure dollars. The laws do not contravene free trade agreements because the spending is being directed by states and municipalities, not Washington. Read more here.
U.S. congressional leaders appear to be prepared to work with Canada to dampen the threat of protectionism between the world’s two largest trading partners, Finance Minister Jim Flaherty said Wednesday.
Earlier, the finance minister met with several key senators, including former Democratic presidential candidate John Kerry, as well as House budget chairman John Spratt, on the financial crisis and trade issues. “What I heard today was a willingness to work on this issue,” he said in a conference call from Washington. “[And] that Canada is viewed as having a special trading relationship with the United States.”
But Flaherty gave no indication whether the congressmen he met, who were both Republicans and Democrats, were willing to lobby for a repeal of the so-called “Buy America clauses being inserted in billions of dollars of infrastructure spending programs.”
The laws require lower-level governments to use American steel and manufactured goods exclusively in procurement that uses federal infrastructure dollars. The laws do not contravene free trade agreements because the spending is being directed by states and municipalities, not Washington. Read more here.
Manufacturers Want Early Transport Bill
(Journal of Commerce Online – John D. Boyd)
Factory sector lobbying giant ties high-wage jobs to health of freight sector
Getting a new multi-year, federal transportation spending program approved by Congress quickly is a key to the health of the factory sector, says the head of the National Association of Manufacturers. “Transportation is more than just mobility for people and goods – it’s also about high wage manufacturing jobs,” said NAM President John Engler, as he urged lawmakers to speedily pass new legislation to replace the program that expires September 30.
He issued the remarks following approval June 24 by a House subcommittee of the Surface Transportation Authorization Act of 2009.
Engler said those factory jobs depend on a healthy freight shipment system to bring in raw materials and distribute goods or equipment through the supply chain. “Transportation is the circulatory system of the nation’s economy,” Engler said. “We must keep it in excellent health.” Read more here.
Factory sector lobbying giant ties high-wage jobs to health of freight sector
Getting a new multi-year, federal transportation spending program approved by Congress quickly is a key to the health of the factory sector, says the head of the National Association of Manufacturers. “Transportation is more than just mobility for people and goods – it’s also about high wage manufacturing jobs,” said NAM President John Engler, as he urged lawmakers to speedily pass new legislation to replace the program that expires September 30.
He issued the remarks following approval June 24 by a House subcommittee of the Surface Transportation Authorization Act of 2009.
Engler said those factory jobs depend on a healthy freight shipment system to bring in raw materials and distribute goods or equipment through the supply chain. “Transportation is the circulatory system of the nation’s economy,” Engler said. “We must keep it in excellent health.” Read more here.
Proposed "Trade Act" Could Lead to Re-opening NAFTA
(GHY International)
A trade reform bill introduced this week would put the brakes on pending trade agreements and could result in re-opening existing pacts such as the North American Free Trade Agreement.
Led by Rep. Mike Michaud (D-Maine), chairman of the House Trade Working Group, more than 100 supporters of the legislation claim it sets out a new international trade model that would help protect human rights, the environment and U.S. jobs. The working group has opposed free-trade agreements, including the Central American Free Trade Agreement and the pending pacts.
The proposed legislation would require that pending agreements with Panama, Colombia and South Korea be renegotiated to meet the TRADE Act’s requirements. The bill has the support of several progressive organizations, such as Public Citizen’s Global Trade Watch, environmental groups and all the major unions, including the AFL-CIO and Change to Win.
“This is the opportunity to build a new model for trade,” said Michaud, noting that a companion bill in the Senate is also in the works.
Business groups and industry lobbyists, however, say the measure would stifle trade and hurt the U.S. economy.
“This is a recipe for disaster,” said Christopher Wenk, trade lobbyist for the U.S. Chamber of Commerce. “These guys want to set a course backward on trade, and we want to set a course forward on trade. This is not the course our workers and exporters need right now.”
Andrew Shore, a partner with the trade law and lobbying firm Jochum Shore & Trossevin, which represents retailers and importers, said he also thought the measure was bad policy.
“From what we’ve seen, this piece of legislation is focused on stopping trade, not facilitating trade,” Shore said. “And it is totally counterproductive to the trade debate.”
The "Trade Act" would require that all future U.S. agreements include more labor and environmental provisions, and it includes a “sense of the Congress” proposal that calls for a replacement to so-called fast-track authority — which gave the Congress only a yes or no vote on trade agreements — by giving Congress a more signiicant say in selecting negotiating partners.
A trade reform bill introduced this week would put the brakes on pending trade agreements and could result in re-opening existing pacts such as the North American Free Trade Agreement.
Led by Rep. Mike Michaud (D-Maine), chairman of the House Trade Working Group, more than 100 supporters of the legislation claim it sets out a new international trade model that would help protect human rights, the environment and U.S. jobs. The working group has opposed free-trade agreements, including the Central American Free Trade Agreement and the pending pacts.
The proposed legislation would require that pending agreements with Panama, Colombia and South Korea be renegotiated to meet the TRADE Act’s requirements. The bill has the support of several progressive organizations, such as Public Citizen’s Global Trade Watch, environmental groups and all the major unions, including the AFL-CIO and Change to Win.
“This is the opportunity to build a new model for trade,” said Michaud, noting that a companion bill in the Senate is also in the works.
Business groups and industry lobbyists, however, say the measure would stifle trade and hurt the U.S. economy.
“This is a recipe for disaster,” said Christopher Wenk, trade lobbyist for the U.S. Chamber of Commerce. “These guys want to set a course backward on trade, and we want to set a course forward on trade. This is not the course our workers and exporters need right now.”
Andrew Shore, a partner with the trade law and lobbying firm Jochum Shore & Trossevin, which represents retailers and importers, said he also thought the measure was bad policy.
“From what we’ve seen, this piece of legislation is focused on stopping trade, not facilitating trade,” Shore said. “And it is totally counterproductive to the trade debate.”
The "Trade Act" would require that all future U.S. agreements include more labor and environmental provisions, and it includes a “sense of the Congress” proposal that calls for a replacement to so-called fast-track authority — which gave the Congress only a yes or no vote on trade agreements — by giving Congress a more signiicant say in selecting negotiating partners.
Wednesday, June 24, 2009
Lead-Footed Safety Issues
(Washington Times – Carter Wood, National association of Manufacturers)
It’s a safe bet that no member of Congress has ever given a speech proudly endorsing a bill to close mom-and-pop businesses, hurt low-income shoppers, cause libraries to discard children’s books and ban products ranging from dirt bikes to ballpoint pens.
Last year, Congress overwhelmingly passed a law that did all these things – forcing small businesses to close and punishing manufacturers, retailers and consumers. Yet the Consumer Product Safety Improvement Act (CPSIA) became law with few warnings – and no congressional floor speeches – about the serious economic harm it would cause.
To be sure, the CPSIA came in response to the public’s legitimate concern about dangerous toys and products, especially those contaminated by lead paint. Reports in 2007 produced a media storm and political pressure. Manufacturers and retailers alike welcomed increased funding and staffing for the CPSC. But Congress went further. Read more here.
It’s a safe bet that no member of Congress has ever given a speech proudly endorsing a bill to close mom-and-pop businesses, hurt low-income shoppers, cause libraries to discard children’s books and ban products ranging from dirt bikes to ballpoint pens.
Last year, Congress overwhelmingly passed a law that did all these things – forcing small businesses to close and punishing manufacturers, retailers and consumers. Yet the Consumer Product Safety Improvement Act (CPSIA) became law with few warnings – and no congressional floor speeches – about the serious economic harm it would cause.
To be sure, the CPSIA came in response to the public’s legitimate concern about dangerous toys and products, especially those contaminated by lead paint. Reports in 2007 produced a media storm and political pressure. Manufacturers and retailers alike welcomed increased funding and staffing for the CPSC. But Congress went further. Read more here.
Tuesday, June 23, 2009
Europe and U.S. Accuse China of Unfair Trade Practices
(New York Times – Jack Healy)
The United States and European Union accused China of unfair trade practices on Tuesday, saying the Chinese government was restricting exports of raw materials to give manufacturers in that country a competitive advantage.
Ron Kirk, the United States trade representative, said China had imposed quotas, export duties and other costs on raw materials used in the production of steel, chemicals and aluminum. In effect, he said, China was putting its thumb on the scale and giving Chinese manufacturers an unfair edge. He said that restrictions on exports of bauxite, zinc, yellow phosphorus and other raw goods make it more expensive for manufacturers to produce finished goods and threatened thousands of jobs in industries already rocked by the global recession. “Trade has to be fair,” Mr. Kirk said in a news conference in Washington. “If you’re going to do business with the United States, you’re going to have to play by the rules.”
The United States and European Union filed complaints with the World Trade Organization, the first step in what could be a years-long process of trying to resolve grievances against China.
“The Chinese restrictions on raw material distort competition and increase global prices, making things even more difficult for our companies in this economic downturn,” the European Union’s trade commissioner, Catherine Ashton, said in a statement. Read more here.
The United States and European Union accused China of unfair trade practices on Tuesday, saying the Chinese government was restricting exports of raw materials to give manufacturers in that country a competitive advantage.
Ron Kirk, the United States trade representative, said China had imposed quotas, export duties and other costs on raw materials used in the production of steel, chemicals and aluminum. In effect, he said, China was putting its thumb on the scale and giving Chinese manufacturers an unfair edge. He said that restrictions on exports of bauxite, zinc, yellow phosphorus and other raw goods make it more expensive for manufacturers to produce finished goods and threatened thousands of jobs in industries already rocked by the global recession. “Trade has to be fair,” Mr. Kirk said in a news conference in Washington. “If you’re going to do business with the United States, you’re going to have to play by the rules.”
The United States and European Union filed complaints with the World Trade Organization, the first step in what could be a years-long process of trying to resolve grievances against China.
“The Chinese restrictions on raw material distort competition and increase global prices, making things even more difficult for our companies in this economic downturn,” the European Union’s trade commissioner, Catherine Ashton, said in a statement. Read more here.
Monday, June 22, 2009
Minister Day Launches Infrastructure Trade Mission to Russia
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, arrived in Russia today with a trade mission composed of 33 Canadian companies representing various facets of Canada’s infrastructure sector.
Minister Day’s trade mission kicks off with a tour of Novie Veshki, a Canadian-built housing complex and one of the largest subdivisions in Moscow. This development is the first in Russia to mirror Canadian building codes, making it a good example of how Canadian expertise can be applied – with great success – in this country.
“The Novie Veshki project is moving forward with the direct involvement of Canadian engineers and architects. It represents the first housing project in Russia to adopt building codes that mirror Canada’s strict regulations,” explained Minister Day. “I was impressed to note that this new housing complex looks just like the ones we see in Canada. In fact, looking around, it feels like I haven’t left Canada!”
The trade mission will stop in Moscow and Sochi, where Minister Day will also meet with representatives of Canadian companies already doing business in Russia, including infrastructure development for the Sochi 2014 Olympic and Paralympic Winter Games.
“Canadian companies have proven to be world-class competitors. They have a lot to offer, particularly expertise in construction and infrastructure development,” said Minister Day. “I am here in Russia this week to promote what Canada has to offer and to help Canadian businesses build bridges to the Russian marketplace.”
The Russian Federation is an emerging market and remains a key destination for Canadian companies specializing in technology, agriculture and infrastructure. Canada’s exports to Russia grew by 30% in 2008 and have increased almost sevenfold since 2000.
More details about Minister Day’s trade visit to Russia can be found here.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, arrived in Russia today with a trade mission composed of 33 Canadian companies representing various facets of Canada’s infrastructure sector.
Minister Day’s trade mission kicks off with a tour of Novie Veshki, a Canadian-built housing complex and one of the largest subdivisions in Moscow. This development is the first in Russia to mirror Canadian building codes, making it a good example of how Canadian expertise can be applied – with great success – in this country.
“The Novie Veshki project is moving forward with the direct involvement of Canadian engineers and architects. It represents the first housing project in Russia to adopt building codes that mirror Canada’s strict regulations,” explained Minister Day. “I was impressed to note that this new housing complex looks just like the ones we see in Canada. In fact, looking around, it feels like I haven’t left Canada!”
The trade mission will stop in Moscow and Sochi, where Minister Day will also meet with representatives of Canadian companies already doing business in Russia, including infrastructure development for the Sochi 2014 Olympic and Paralympic Winter Games.
“Canadian companies have proven to be world-class competitors. They have a lot to offer, particularly expertise in construction and infrastructure development,” said Minister Day. “I am here in Russia this week to promote what Canada has to offer and to help Canadian businesses build bridges to the Russian marketplace.”
The Russian Federation is an emerging market and remains a key destination for Canadian companies specializing in technology, agriculture and infrastructure. Canada’s exports to Russia grew by 30% in 2008 and have increased almost sevenfold since 2000.
More details about Minister Day’s trade visit to Russia can be found here.
B.C. Truckers Keep Border Crossing
(Today’s Trucking)
Chalk a victory up for B.C. truckers. Regional officials from the Canada Border Services Agency (CBSA) in B.C. were persuaded by the B.C. Trucking Association to keep the Aldergrove border crossing (northbound) open to commercial vehicles.
Earlier this month, CBSA floated the idea of closing the Aldergrove crossing to truckers because the crossing is not equipped with the proper security checks to detect illegal activity in commercial trucks, and wanted the traffic diverted to the Pacific Highway crossing.
Aldergrove is the 12th busiest border crossing in Canada and about 100,000 commercial trucks use the route to cross the Canada/U.S. border per year. Read more here.
Chalk a victory up for B.C. truckers. Regional officials from the Canada Border Services Agency (CBSA) in B.C. were persuaded by the B.C. Trucking Association to keep the Aldergrove border crossing (northbound) open to commercial vehicles.
Earlier this month, CBSA floated the idea of closing the Aldergrove crossing to truckers because the crossing is not equipped with the proper security checks to detect illegal activity in commercial trucks, and wanted the traffic diverted to the Pacific Highway crossing.
Aldergrove is the 12th busiest border crossing in Canada and about 100,000 commercial trucks use the route to cross the Canada/U.S. border per year. Read more here.
Trading Barbs: Canada Tries to Outlaw U.S. Cigarettes
(The Hill – Ian Swanson)
Tobacco country lawmakers are seething over a bill that would outlaw U.S. cigarettes in Canada. Bill C-32, which has been approved by Canada’s House of Commons but not the Senate, would ban the use of all flavorings, except menthol, in all cigarettes.
The controversial legislation is being considered amid a debate over “Buy American” language in the $787 stimulus bill that required U.S. content in projects as long as that did not violate trade deals.
The Canadian bill’s intent is to make tobacco products less affordable and accessible to young people by prohibiting candy-flavorings in cigarettes used to turn children on to smoking.
But the ban on flavorings would also include mild flavorings used in the processing of American-blend cigarettes made from burley tobacco. The flavorings are intended to make the products taste less harsh and are not detectable to smokers, according to Roger Quarles, president of the Kentucky’s Burley Tobacco Cooperative. Read more here.
Tobacco country lawmakers are seething over a bill that would outlaw U.S. cigarettes in Canada. Bill C-32, which has been approved by Canada’s House of Commons but not the Senate, would ban the use of all flavorings, except menthol, in all cigarettes.
The controversial legislation is being considered amid a debate over “Buy American” language in the $787 stimulus bill that required U.S. content in projects as long as that did not violate trade deals.
The Canadian bill’s intent is to make tobacco products less affordable and accessible to young people by prohibiting candy-flavorings in cigarettes used to turn children on to smoking.
But the ban on flavorings would also include mild flavorings used in the processing of American-blend cigarettes made from burley tobacco. The flavorings are intended to make the products taste less harsh and are not detectable to smokers, according to Roger Quarles, president of the Kentucky’s Burley Tobacco Cooperative. Read more here.
World Bank Cuts Forecast for Developed Economies
(New York Times – Bettina Wassener)
Companies in Japan and Germany may have become less gloomy about their prospects in recent months, as surveys showed Monday, but neither they nor businesses elsewhere have much to cheer about as the world economy remains mired in a recession that could see it shrink by about 2.9% this year. Forecasts from the World Bank on Monday highlighted just how painful the recessions will be in various regions, despite mounting signs that the very worst of the downturn may be over.
The bank earlier this month said it expected a deeper global recession, forecasting a 2.9% contraction in gross domestic product for this year, rather than 1.7%, as it projected as recently as March. More detailed forecasts released Monday showed that much of this pain will be in high-income areas like the euro zone, the United States and Japan. The bank said that it expected economies in high-income nations to contract a total of 4.2% this year.
It expects the U.S. economy to shrink 3% and the euro zone 4.5%, rather than the 2.4% and 2.7% it forecast in March. For Japan, the World Bank now projects contraction of as much as 6.8% this year – significantly higher than the 5.3% it forecast three months ago. Read more here.
Companies in Japan and Germany may have become less gloomy about their prospects in recent months, as surveys showed Monday, but neither they nor businesses elsewhere have much to cheer about as the world economy remains mired in a recession that could see it shrink by about 2.9% this year. Forecasts from the World Bank on Monday highlighted just how painful the recessions will be in various regions, despite mounting signs that the very worst of the downturn may be over.
The bank earlier this month said it expected a deeper global recession, forecasting a 2.9% contraction in gross domestic product for this year, rather than 1.7%, as it projected as recently as March. More detailed forecasts released Monday showed that much of this pain will be in high-income areas like the euro zone, the United States and Japan. The bank said that it expected economies in high-income nations to contract a total of 4.2% this year.
It expects the U.S. economy to shrink 3% and the euro zone 4.5%, rather than the 2.4% and 2.7% it forecast in March. For Japan, the World Bank now projects contraction of as much as 6.8% this year – significantly higher than the 5.3% it forecast three months ago. Read more here.
Revised D-Memo
(CBSA)
D10-14-57
Revised: Tariff Classification of Certain Articles Using Bluetooth® Technology
This memorandum (PDF) explains the Canada Border Services Agency administrative policy for the tariff classification of certain articles using Bluetooth® technology. The “Guidelines and General Information” outline the Bluetooth® protocol, and list several types of Bluetooth® adapters and Bluetooth®-enabled devices. The memorandum provides examples of Bluetooth® adapters and Bluetooth®-enabled devices and suggests appropriate tariff classifications.
Friday, June 19, 2009
$1B for Pulp Firms Threatens Trade Fight
(Winnipeg Free Press – Julian Beltrame, The Canadian Press)
The federal government has extended a $1-billion lifeline to Canada’s struggling pulp and paper industry in an effort to match billions of dollars in subsidies available to U.S. rivals. But the irony is that the effort may have the effect of touching off another costly and protracted trade fight with the United States over whether Canada is unfairly subsidizing its forestry industry.
The government’s announcement Wednesday was quickly followed by a release from the notoriously litigious U.S. Coalition for Fair Lumber Imports, which labelled the program an unfair subsidy. “To the extent that the subsidy goes to corporate groups that produce softwood lumber, this likely constitutes a violation of the U.S.-Canada Softwood Lumber Agreement,” said the group’s chairman Steve Swanson in a release.
Trade Minister Stockwell Day said the Canadian program is designed to level the playing field with the U.S., adding that the government has sought legal advice to ensure it does not contravene the agreement. “I would suggest anyone on the U.S. side who thinks this is not compliant with (the softwood agreement) needs to look in the mirror,” he told reporters late Wednesday. Read more here.
The federal government has extended a $1-billion lifeline to Canada’s struggling pulp and paper industry in an effort to match billions of dollars in subsidies available to U.S. rivals. But the irony is that the effort may have the effect of touching off another costly and protracted trade fight with the United States over whether Canada is unfairly subsidizing its forestry industry.
The government’s announcement Wednesday was quickly followed by a release from the notoriously litigious U.S. Coalition for Fair Lumber Imports, which labelled the program an unfair subsidy. “To the extent that the subsidy goes to corporate groups that produce softwood lumber, this likely constitutes a violation of the U.S.-Canada Softwood Lumber Agreement,” said the group’s chairman Steve Swanson in a release.
Trade Minister Stockwell Day said the Canadian program is designed to level the playing field with the U.S., adding that the government has sought legal advice to ensure it does not contravene the agreement. “I would suggest anyone on the U.S. side who thinks this is not compliant with (the softwood agreement) needs to look in the mirror,” he told reporters late Wednesday. Read more here.
N. America’s Empty Ports to Get Busier as Year Ends – Analyst
(Wall Street Journal – Laura Mandaro)
The sharp drop in container volume at North America’s largest ports is likely to moderate toward year-end as consumer demand picks up for boxed goods like TV sets and sneakers, says a forecasting firm. IHS Global Insight, which estimates the volume of inbound container shipments at about a dozen U.S. and Canadian ports, expects volumes to fall at a slower pace as the year winds down and to even flatten.
“By the fourth quarter there will be signs of a turnaround. We will have stopped declining in terms of volume,” said Paul Bingham, managing director in global commerce and transportation at IHS Global Insight.
Supporting forecasts for a recovery is the recent improvement in consumer sentiment surveys that suggest households will buy more of the manufactured goods that Asia exports to the U.S. and Canada on large ocean-going ships, he said. Read more here.
The sharp drop in container volume at North America’s largest ports is likely to moderate toward year-end as consumer demand picks up for boxed goods like TV sets and sneakers, says a forecasting firm. IHS Global Insight, which estimates the volume of inbound container shipments at about a dozen U.S. and Canadian ports, expects volumes to fall at a slower pace as the year winds down and to even flatten.
“By the fourth quarter there will be signs of a turnaround. We will have stopped declining in terms of volume,” said Paul Bingham, managing director in global commerce and transportation at IHS Global Insight.
Supporting forecasts for a recovery is the recent improvement in consumer sentiment surveys that suggest households will buy more of the manufactured goods that Asia exports to the U.S. and Canada on large ocean-going ships, he said. Read more here.
Manufacturers Say 10+2 Costs $20 Billion
(Journal of Commerce Online – Alan Field)
Manufacturers say operations, delays to double cost of tariffs
U.S. Customs and Border Protection’s Importer Security Filing rule will impose an annual cost of more than $20 billion on the U.S. economy, according to a study by a manufacturers’ group. The “10+2” rule will require manufacturers and other importers to provide expensive new data to the government, says a report by the Customs and Border Coalition, a group launched by the National Association of Manufacturers in December.
Based on a survey of companies accounting for nearly 60% of seaborne manufactured imports, the survey corroborates an earlier report issued by the NAM, said NAM President John Engler. “The potential impact of this rule is huge,” Engler said. “To put the cost in perspective, it is virtually the equivalent of doubling the import tariffs that manufacturers now pay to bring products and components into the United States.” Read more here.
Manufacturers say operations, delays to double cost of tariffs
U.S. Customs and Border Protection’s Importer Security Filing rule will impose an annual cost of more than $20 billion on the U.S. economy, according to a study by a manufacturers’ group. The “10+2” rule will require manufacturers and other importers to provide expensive new data to the government, says a report by the Customs and Border Coalition, a group launched by the National Association of Manufacturers in December.
Based on a survey of companies accounting for nearly 60% of seaborne manufactured imports, the survey corroborates an earlier report issued by the NAM, said NAM President John Engler. “The potential impact of this rule is huge,” Engler said. “To put the cost in perspective, it is virtually the equivalent of doubling the import tariffs that manufacturers now pay to bring products and components into the United States.” Read more here.
Thursday, June 18, 2009
Exporters’ Abject Pessimism Fades
(Export Development Canada – Peter G. Hall)
Last fall’s crisis of confidence sent worldwide gauges of business and consumer sentiment reeling. A growing sense that the global economy is no longer in freefall has recently increased the feel-good factor. Canadian exporters concur: the abject pessimism recorded six months ago has faded, with the Spring 2009 Trade Confidence Index posting its largest one-period gain since the post-9/11 surge.
The jump in confidence is needed relief. The Spring result interrupted a three-period tumble dating back to the fall of 2007, with each successive drop setting a new record low level. Market turbulence in the fall of 2008 only deepened what was already a serious loss of confidence. As impressive as the current gain is, it lifted the Index to just a whisker above the previous low point in the Fall of 2001.
Key to improved sentiment is a sense that both global and domestic economic conditions will improve. About one-quarter of respondents see brighter near-term prospects, up sharply from the previous survey. There was an even more dramatic change in the share of those expecting worse conditions. From a clear majority in the past survey, the pessimists shrunk back to about a quarter of total respondents. The remaining half of exporters in the survey expect current conditions to persist – hardly comforting, given the very subdued current levels of international trade activity.
Exporters are less enthusiastic about actual sales prospects. Although 37% of respondents expect near-term international sales to increase, the share fell slightly from the Fall 2008 result, and is well below the 50% norm. Domestic sales are not expected to fill the gap. True, 30% actually expect domestic sales to climb in the coming months, a slight gain over the previous survey – but the share is down from 40% a year earlier. For both foreign and domestic sales, the dominant group is the share of exporters expecting no growth – again, a sobering result given the current state of demand. Read more here.
Last fall’s crisis of confidence sent worldwide gauges of business and consumer sentiment reeling. A growing sense that the global economy is no longer in freefall has recently increased the feel-good factor. Canadian exporters concur: the abject pessimism recorded six months ago has faded, with the Spring 2009 Trade Confidence Index posting its largest one-period gain since the post-9/11 surge.
The jump in confidence is needed relief. The Spring result interrupted a three-period tumble dating back to the fall of 2007, with each successive drop setting a new record low level. Market turbulence in the fall of 2008 only deepened what was already a serious loss of confidence. As impressive as the current gain is, it lifted the Index to just a whisker above the previous low point in the Fall of 2001.
Key to improved sentiment is a sense that both global and domestic economic conditions will improve. About one-quarter of respondents see brighter near-term prospects, up sharply from the previous survey. There was an even more dramatic change in the share of those expecting worse conditions. From a clear majority in the past survey, the pessimists shrunk back to about a quarter of total respondents. The remaining half of exporters in the survey expect current conditions to persist – hardly comforting, given the very subdued current levels of international trade activity.
Exporters are less enthusiastic about actual sales prospects. Although 37% of respondents expect near-term international sales to increase, the share fell slightly from the Fall 2008 result, and is well below the 50% norm. Domestic sales are not expected to fill the gap. True, 30% actually expect domestic sales to climb in the coming months, a slight gain over the previous survey – but the share is down from 40% a year earlier. For both foreign and domestic sales, the dominant group is the share of exporters expecting no growth – again, a sobering result given the current state of demand. Read more here.
Beijing Orders ‘Buy China’ for Stimulus Projects
(The Associated Press – Joe McDonald)
China has imposed a requirement for its stimulus projects to use domestically made goods – a move that could strain ties with trading partners after Beijing criticized Washington’s “Buy American” stimulus provisions.
Projects must obtain official permission to use imported goods, said an order issued by China’s main planning agency and eight other government bodies.
Even before the order, business groups worried that foreign companies might be excluded from construction and other projects financed by Beijing’s 4 trillion yuan ($586 billion) stimulus. Foreign makers of wind turbines complain they have been shut out of bidding on a $5 billion stimulus-financed power project.
“Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China,” says the order, dated June 1 and reported this week by state media. “Projects that really need to buy imports should be approved by the relevant government departments before purchasing activity starts.” Read more here.
China has imposed a requirement for its stimulus projects to use domestically made goods – a move that could strain ties with trading partners after Beijing criticized Washington’s “Buy American” stimulus provisions.
Projects must obtain official permission to use imported goods, said an order issued by China’s main planning agency and eight other government bodies.
Even before the order, business groups worried that foreign companies might be excluded from construction and other projects financed by Beijing’s 4 trillion yuan ($586 billion) stimulus. Foreign makers of wind turbines complain they have been shut out of bidding on a $5 billion stimulus-financed power project.
“Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China,” says the order, dated June 1 and reported this week by state media. “Projects that really need to buy imports should be approved by the relevant government departments before purchasing activity starts.” Read more here.
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