Rush to Asian Gateways for Around-the-World Services

(Cargonews Asia – Ian Putzger)

Airlines have rushed freighters to Asian gateways to take advantage of the expected peak season surge in demand. Both European and Asian carriers have inaugurated new routes, several of them moving east around the world in a bid for better yields. [...]

The rush of freighters to Asia’s major gateways reflects the bullish mood in the air cargo industry. In preparation for a strong peak season, carriers have built up capacity in the market over the past few months. Read more here.

Developing Asia-Pacific States Press for Less Red Tape in Trade

(BusinessWorld Online)

Over 200 individuals from 33 Asia-Pacific economies participating in the Asia-Pacific Trade Facilitation Forum in Kuala Lumpur, Malaysia last Oct. 5-6 urged their governments to streamline international trade procedures and ensure that regulations are simple, consistent and transparent, a statement the United Nations released yesterday read.

The hidden cost of red tape amounts to $300 billion a year in the Asia-Pacific region, the statement read, and it takes an average of 30 days to move goods from factory to ship deck in countries of the region, compared with 10 days on average for members of the Organisation for Economic Cooperation and Development (OECD).

Brought together by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the United Nations Economic Commission for Europe (UNECE) and the Asian Development Bank (ADB), forum participants also called for greater regional cooperation to promote paperless trading systems and increase trade in agricultural products. Read more here.

EFCA Makes Taiwan a New Gateway to China

(Lexology – Jack J.T. Huang et al., Jones Day)

On June 29, 2010, Taiwan and China signed the Economic Cooperation Framework Agreement (“ECFA”), a landmark bilateral trade agreement that will make Taiwan a new gateway to China. The ECFA, which came into effect on September 12, 2010, is the latest, and the most significant, installment in a series of cross-strait agreements signed between Taiwan and China over the past few years to foster closer economic relationships between the two sides of the Taiwan Strait.

The ECFA seeks to provide a framework for Taiwan and China to gradually reduce tariffs on goods, remove non-tariff trade barriers, open up service sectors, and lift investment restrictions, thereby promoting closer cross-strait economic cooperation and interaction. The ECFA is essentially a free trade agreement (“FTA”), encouraged by the World Trade Organization (“WTO”) to be entered into among its members.

The ECFA provides a mechanism pursuant to which Taiwan has an opportunity to be placed on par with, if not more favorably than, ASEAN and other countries having FTAs with China, with respect to exports to China. The Early Harvest List for Export Goods (Schedule 1 of the ECFA) seeks to progressively cut tariffs to zero within three years on hundreds of Taiwanese export goods to China (currently valued at US$13.84 billion per annum).

Read the complete article here.

EU to Ratify First Free Trade Deal with Asian Partner

(New York Times – Stephen Castle)

The European Union agreed Thursday to sign a sweeping new free trade agreement with South Korea – its first with an Asian trade partner – after Italy removed objections that had threatened to block the deal.

Politicians and officials welcomed the announcement as an important signal for free trade and proof that protectionist pressures are being resisted, despite the uncertainty in the global economy.

“This the first generation of bilateral trade agreements which will bind Europe and Asia together in an ever-closer economic bond,” said Steven Vanackere, vice prime minister and foreign minister of Belgium, which holds the EU’s rotating presidency. “This is a very big step in opening markets in Asia for our companies.” Read more here.

Manitoba Premier to Lead Trade Mission to China and Philippines

(Canada-Asia News – Government of Manitoba)

Manitoba Premier Greg Selinger and Lt.-Gov. Philip Lee will lead a trade mission of 40 individuals representing almost 30 companies and organizations to the Asia-Pacific region later this month to promote trade and tourism. The 11-day mission will include stops in Beijing, Shanghai, Hong Kong and Manila.

Premier Selinger noted the province’s new inland port, CentrePort Canada, is attracting a lot of attention in China. “One of the ways Manitoba is building its trading relationships with China and other markets is through its support for CentrePort, Manitoba’s new 20,000-acre inland port and multi-modal transportation hub, which is part of Canada’s Asia-Pacific Gateway and offers supply-chain options for companies doing business in international and North American markets.”

In 2009, Manitoba’s total trade with the Asia-Pacific region was $2 billion.

Canada Can’t Ignore ASEAN Region

(Canadian Manufacturing.com)

Already seen as a laggard in China and India, Canada can ill afford to miss out on the economic boom in Southeast Asia

Canada has dragged its heels developing trade with southeast Asian nations, and a scathing report says that gaffe has left us on the margins while other countries organize lucrative pacts in one of the most important economic regions in the world. The report, released today by the Asia Pacific Foundation of Canada, a Vancouver-based think-tank that assesses Canada’s relations with Asia, says Canada’s lack of a “consistent and sustained policy” towards the region was ill-advised and now puts us behind economic forces such as India, China and the US in trying to organize trade with those countries.

The region, commonly known as the Association of Southeast Asian Nations, includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam. Individually, these nations have little economic clout, but together they represent a market of 600 million people with a burgeoning middle class.

The association’s statistics-gathering agency ASEANStats has GDP pegged at US$1.5 trillion and 2008 trade of nearly US$1.9 trillion. If this were one country, it would represent the world’s 10th largest economy.

The report criticizes Canada for failing to sign free-trade agreements with any of these countries while New Zealand and Australia, India and South Korea already have agreements and the U.S. has begun negotiating.

Read more here and click here to view the report.

Governments of Canada and BC Launch Asia Trade Program

(Canada Asia News – BC Ministry of Small Business, Technology and Economic Development)

Joint funding of $2,030,000 for the BC Economic Innovation Partnership Program, a program to boost trade and investment with Asia, was announced by the Government of Canada and the Province of BC. The BC Economic Innovation Partnership Program supports activities that promote trade and investment between Asia and BC such as seminars, inbound and outbound trade missions and online marketing initiatives.

The program involves businesses, academia, industry associations and various levels of government. One element of the program is an initial business accelerator pilot project operating out of the Province’s Trade and Investment Representative Office in Bangalore, India. Through this pilot project, companies from BC can temporarily set-up shop at the trade office and tap the staff’s on-the-ground expertise and network of contacts while exploring the Indian market, developing partnerships and creating business opportunities.

Box Surcharges Soar on Asia-Canada Run

(Cargonews Asia)

The cost of shipping consumer goods from Asia to Canada is surging, with another price increase kicking in Sunday, as freight forwarders face a shortage of containers this summer and fall, reported The Globe and Mail.

"This is traditionally the peak season for imports coming from China to Canada," said Perry Lo, president of Canaan Transport Group Inc, a freight forwarding firm based in Mississauga, Ontario. "And now we face a huge price hike." Lo's company, which serves as an intermediary between ocean-going vessel owners and retailers, will have to pay an extra US$900 for each larger-sized container transported, starting this Sunday. The increase comes on top of $1,500 in new charges since February, raising the total cost of importing each container to more than $6,000 – nearly triple the rates from early 2009, when the recession crushed global shipping. [...]

"The container prices are going up, up, up," said Ruth Snowden, executive director of the Canadian International Freight Forwarders Association. Read more here.

New Wrinkle for Trans-Pacific Peak Shipping Season, Retail Importers Push Asian Suppliers Further into Supply Chain

(PRNewswire)

Facing greater uncertainty in the consumer market, North American retailers are trying to hold off purchases of finished goods until as late as possible by pushing their suppliers in Asia to retain ownership of products deeper into the supply chain, reports The Journal of Commerce. The retailers are trying to hedge their risks and hold onto cash, and that means more suppliers that provided goods on the docks in Asia are being called on to manage the transportation of finished products through increasingly congested trans-Pacific distribution channels.

Many suppliers previously required to just move their products to Asian shores must now get their goods from factory floor to U.S. retail door. The impact of the change in procedure is stretching from the docks of Hong Kong and Shanghai to intermodal networks in North America, where decreased equipment and drivers are already increasing pressure on transload operators. Reduced cycle time and cost savings make this appealing to importers, but it’s causing panic among suppliers and a splintering of the supply chain at a critical moment, with volumes increasing but resources limited.

“The long-existing supply chain model is broken,” said Patrick Ahern, vice president for international at National Retail Systems, a New Jersey-based provider of logistics to retail importers. “And it hasn’t been replaced by a new model.”

Leveraging the Trade Commissioner Service to Expand Your Markets in Asia

(Hong Kong-Canada Business Association)

Date: Thursday July 15, 2010

Location: HKCBA Offices, Hong Kong Trade Building, 9 Temperance Street, 2/F, Toronto

12:00 pm – Registration
12:15 pm – Networking and Lunch
12:35-1:30 pm – Presentation by Mr. Jim Feir, followed by Q & A

As part of its “Hong Kong – Your Business Platform in Asia Business Workshop Series 2010” The Hong Kong-Canada Business Association (“HKCBA”) invites interested Canadian traders and manufacturers, importers and exporters to join us on Thursday, July 15th 2010 for a Special Business Networking Luncheon Workshop at which Mr. Jim Feir, Director and Senior Trade Commissioner Ontario Region, Foreign Affairs International Trade Canada, will discuss how the Department of Foreign Affairs and International Trade Canada, and its Canadian Trade Commissioner Service, helps Canadian companies and organizations succeed globally and lower their costs of doing business.

This session will provide an overview of the free services available to companies through Canada's network of Embassies and Consulates in 150 cities worldwide and 18 offices across Canada, and, of course, with particular emphasis on Hong Kong, Mainland China, and the Asia Pacific Region.

Other participants in this Workshop include:

• Mr. Robert Amstrong, President HKCBA (Toronto) and President, Supply Chain & Logistics Association Canada
• Ms. Maureen Siu, Director, Hong Kong Economic and Trade Office (Toronto)
• Mr. Andrew Yui, Director Canada, Hong Kong Trade Development Council

Plan now to join us on July 15th to listen and learn; ask questions, meet and network.

I.E. Canada Members please register at the HKCBA Member rate – $20.00

Online Registration here. Full Information and Registration here or email bob@hkcba.com. HKCBA Offices: 416-366-2642

Canada Strengthens Its Cargo Security with Japan, Singapore and South Korea

(CBSA)

The Canada Border Services Agency (CBSA) announced today that it has signed three Mutual Recognition Arrangements (MRAs) with customs organizations in Japan, Singapore and South Korea. The new arrangements will promote a smarter, more secure and efficient border.

The signing took place at the World Customs Organization in Brussels, Belgium. The MRAs confirm that Japan, Singapore and South Korea are using criteria similar to those used by Canada’s Partners in Protection (PIP) program when granting companies membership to their respective cross-border programs: Japan’s Authorized Economic Operator (AEO) program, Singapore’s Secure Trade Partnership program and South Korea’s AEO program.

“The signing of these three arrangements is an excellent opportunity for Canada to further develop its trade relationships with Japan, Singapore and South Korea,” said Stephen Rigby, President of the CBSA. “This will provide Canadian companies greater facilitation in these key foreign markets, while further ensuring the security of the supply chain.”

This international cooperation will allow customs agents to focus their efforts on unknown or high-risk areas – a demonstration of how Canada is moving forward to increase cargo security on an international scale while continuing to support economic prosperity.

Members of the CBSA’s Partners in Protection program benefit from having an enhanced reputation as low-risk companies and attract business partners looking for companies with high security standards. In addition, participation in PIP is a prerequisite for expedited cross-border clearance through their participation in Canada’s Free and Secure Trade program.

‘Doha Round’s Success Depends on India, China’

(Press Trust of India – Lalit K Jha)

Alleging that some key global players were acting as a roadblock in international trade negotiations, a top U.S. trade official said on Wednesday that the success or failure of the Doha Round depends on countries like India, China and Brazil.

“Today, the key roadblock is the continued resistance of some important partners to engage in sustained, meaningful negotiations,” said U.S. Deputy Trade Representative Demetrois Marantis during his speech at the 25th annual World Trade Day in Rhode Island. “The success or failure of the Doha Round depends on whether advanced developing countries like China, India and Brazil accept the responsibility that comes along with their growing roles in the global economy,” he said.

The Obama administration is gearing up to host the Asia Pacific Economic Cooperation (APEC) forum in 2011

Canadian International Council GPS Report Supports Expansion of Pacific Gateway, New Approach to China

(Canada-Asia News Service)

The Canadian International Council has released a report, Open Canada: A Global Positioning Strategy for a Networked Age, which offers a vision of a Canadian role in a world where power is shifting and pressing international issues present serious challenges to the status quo. A chapter focused on Canada’s relations with Asia examines the encumbered execution that continually hampers Canada’s ability to punch above (or even equivalent to) its weight in Asia.

The rise of Asia, particularly China and India, is identified as a key ‘game changer’ of the global economic and governance landscape. The report outlines recommendations for Canada to advance its relationship with these strategic partners including: the need to expand the Pacific Gateway strategy to encourage Chinese and Indian companies to locate their headquarters and distribution centers in BC, effectively turning Vancouver into North America’s premier Asian business hub; and to build an Economic Bridge Agreement with China that includes a strong human connection component, including promoting the first-ever dual-citizenship arrangement with China.

Yuen Pau Woo, President and CEO of the Asia Pacific Foundation of Canada, was a panel member of a small group that acted as the advisory committee for the global positioning strategy project. The full report can be accessed t here.

Japan Questions Local-Content Requirements in [Ontario’s] Energy Programme

(WTO News)

Japan, at the meeting of the Council for Trade in Goods on 21 May 2010, expressed concern over what it said were local-content requirements in a renewable-energy programme in Canada’s province of Ontario. It asked Canada to explain the consistency of the requirements with various WTO agreements, including the GATT 1994 provision on equal treatment for imports, and the Agreement on Trade-Related Investment Measures. The European Union and the United States expressed interest on this matter.

Canada said that its trade officials are reviewing the programme, and that Japan's questions had been forwarded to Ontario.

On another matter, Chinese Taipei expressed concern that Canada imposes higher tariffs on products from Chinese Taipei as compared to products from developing economies with higher levels of per capita GDP. It urged Canada to provide non-discriminatory tariff treatment to products from Chinese Taipei as Canada had done with other members that are at comparable levels of development.

Canada said that it already maintains very low tariffs, and that recently, it had eliminated tariffs on manufacturing inputs and machinery. It added that these measures have benefited its trading partners, including Chinese Taipei.

The Goods Council approved requests by the European Union to extend deadlines on its tariff negotiations with other members on its enlargements in 2004 and in 2007 respectively. It also approved a request by Argentina to extend its waiver related to the introduction of the Harmonized System 1996 changes, and forwarded the decision to the General Council for adoption.

Battle for Space on the Transpacific

(International Freighting Weekly – Mike King)

Capacity squeeze and cargo backlogs at Chinese ports will force early surcharge

Carriers are poised to bring forward peak season surcharges on the transpacific trade as cargo piles up at ports across China due to a lack of containership capacity.

Paul Tsui, Chairman of the Hong Kong Association of Freight Forwarding and Logistics (HAFFA), said most sailings to the U.S. were hugely overbooked, resulting in the constant rollover of consignments. […]

Lines have been squeezing capacity on the transpacific trades in the lead-up to the annual contracting season, which is now almost complete. Read more here.

Cash to Help Canadian Processors Expand in Asia Pacific

(FoodNavigator-USA.com)

Food processors in one region of Canada are to receive almost C$1m to help access new markets in the Asia-Pacific region. The Canadian Government announced C$961,000 (€753,000) will be made available to processors from western Canada to help increase the availability of their value-added food product exports in Asia-Pacific markets.

Saskatchewan Food Processors Association, Inc. (SFPA), as the lead organization in partnership with associations in Manitoba, Alberta and British Columbia, and with Food Beverage Canada, will direct the trade missions to and from China, Hong Kong, South Korea, India, Malaysia, Pakistan, Philippines, Thailand, Cambodia and Vietnam.

Up to 900 food processing companies could be set to benefit from the scheme. The government forecasts the marketing initiative to return approximately C$13.5 million in sales and foreign direct investment from Asia-Pacific countries to Western Canada over the next four years.

Related: Western Economic Diversification press release and contact information available here.

Department of Commerce Imposes AD/CV Duty Orders on Plastic Grocery and Shopping Bags from Indonesia, Taiwan, and Vietnam

(Business Wire)

The U.S. Department of Commerce today published antidumping duty orders on imports of plastic grocery and shopping bags (referred to as polyethylene retail carrier bags) from Indonesia, Taiwan, and Vietnam and a countervailing duty (anti-subsidy) order on plastic bags from Vietnam. Today’s actions follow last month’s affirmative determination by the U.S. International Trade Commission (“ITC”) that the U.S. industry is threatened with material injury by reason of the dumped and subsidized imports. The orders reflect the high levels of dumping and subsidization found by the Department in March.

The antidumping orders direct U.S. Customs to collect antidumping duty cash deposits from U.S. importers on all covered plastic bags from Indonesia, Taiwan, and Vietnam. The duty rates are 69.64 to 85.17 percent for imports from Indonesia, 36.54 to 95.81 percent for imports from Taiwan, and 52.30 to 76.11 percent for imports from Vietnam. Certain Vietnamese imports also will be subject to countervailing duty cash deposits of up to 52.56 percent. Thus, for example, if an importer enters subject bags from Vietnam, the importer could be required to pay combined antidumping and countervailing duty cash deposits of up to 128.67 percent of the customs value at the time of entry. Read more here.

Canada Risks Being Shut Out of Pacific Trade Pact, New Zealand PM Warns

(John Ibbitson — Globe & Mail)

Ottawa’s insistence on protecting dairy industry with tariffs at issue

New Zealand’s Prime Minister is warning that unless Canada abandons its protections for the dairy industry, it will not be allowed to join a landmark trade agreement being negotiated among Pacific nations.

Canada has no free trade agreements anywhere in Asia, and a failure to sign on to an expanded Trans-Pacific Partnership would leave this country shut out of the Asia-Pacific region, which is widely viewed as the engine of economic growth in the 21st century.

John Key, who was in Ottawa on Wednesday for talks and dinner with Stephen Harper, said he told the Prime Minister that he hoped Canada would ultimately join the TPP, as it is commonly called.

But “I made it clear, from New Zealand’s point of view, we would want to engage in flexible and comprehensive agreements,” he maintained.

When asked whether any nation would be permitted to join the agreement while carving out protections for its dairy industry, he replied: “That is not our intention. No.” Read more here.

Lines Play Waiting Game on Transpacific

(International Freighting Weekly – Damian Brett)

Carriers keep capacity tight ahead of contract negotiations and rate rises

U.S.-destined containers are piling up in Chinese ports and bookings are being delayed as carriers keep a tight control on capacity in the run up to annual contract negotiations and May’s rate increases. Industry contacts told IFW that carriers had avoided re-introducing tonnage to the trade because they do not want there to be spare capacity while annual contracts are being negotiated at the end of April and because they want to implement rate hikes of between US$800 and $1,000 per 40ft container in May.

The tight capacity has created an auction for space, with carriers prepared to roll containers – cancel the booking on one ship for a ship leaving later – in favour of higher-paying cargo.

One contact said space from north China, particularly Tianjin, Qingdao and Dalian, was extremely tight, with most vessels heading to Vancouver, Tacoma and Seattle running full. Space from south China was slightly easier to come by.

GAC regional logistics manager Peter Orange said: “The carriers are pushing for general rate increases (GRIs) – whether they get the full amount depends on how the contract negotiations go. Contracts are very important to us, not just in terms of space, but also in terms of access to capacity – particularly out of China.” Read more here.

Canada Misses its Chance to Join Major Pacific Free-Trade Deal

(John Ibbitson — Globe & Mail)

Ottawa refused to join the pact in 2006, now told it’s too late

Canada has been shut out of a potentially historic Pacific free trade agreement involving the United States and seven other countries.

When asked in 2006 to join the Trans-Pacific Partnership negotiations that only recently got under way in Australia, the Harper government refused, largely to protect the Quebec and Ontario dairy industry from foreign competition. When Canada changed its mind earlier this year and asked to join, we were told it was too late, according to several sources.

As a result, this country could miss out on being part of a new free trade zone that would encompass 470 million people with a combined GDP of more than $16-trillion.

“It is foolish to hamstring our participation in these negotiations” just to protect the dairy industry, said Jayson Myers, president of the Canadian Manufacturers and Exporters association. Read more here.