Canada Will Be `Relentless' in Pressuring China on Yuan After G-20 Meeting

(Bloomberg – Paul Badertscher)
Canadian policy makers said they will be “relentless” in keeping pressure on China and other economies with fixed exchange rates to allow their currencies to appreciate, following meetings with colleagues from the Group of 20 nations last weekend.

Finance Minister Jim Flaherty and central bank Governor Mark Carney said that while the G-20 made progress on promoting flexible currencies and other issues, they remain a long way from the ultimate goal. “We’re not satisfied with the degree of exchange rate flexibility, the moves on exchange rate flexibility, in key emerging markets,” Carney said in an interview following the meeting in Gyeongju, South Korea. Read more here.

New Agreements Between Canada and Switzerland

(Prime Minister’s Office)
One of Canada’s top-20 international air travel markets, Switzerland is an important aviation partner for Canada. In this context, Canada and Switzerland have successfully concluded negotiations toward an Open Skies-type air transportation agreement, which modernizes the 1975 agreement (last amended in 2002) to better reflect today’s market realities.

The agreement now contains expanded operating rights for airlines from Canada and Switzerland to operate air transportation between each other’s territory and third countries, in conjunction with scheduled passenger and/or all-cargo air services between the two countries. It also enables airlines to adjust their prices with greater flexibility to meet current market conditions.

Overall, the agreement provides more flexibility for airlines and airports to consider commercial opportunities, facilitates greater economic activity, strengthens ties with Switzerland and ultimately benefits passengers and shippers by allowing more flight options and routings. Read more here.

‘Sensitive’ Round of Canada-EU Trade Talks Kick Off

(Toronto Sun – Stefania Moretti, QMI Agency)

Canada and European Union trade officials met in Ottawa Monday to kick off the fifth and perhaps toughest round of negotiations to date on a free trade accord that could give a $12 billion annual boost to the economy.

Since the Comprehensive Economic and Trade Agreement (CETA) was first outlined in May 2009, progress has been relatively easy and has included some of the more obvious concessions such as reduced duties between Canada and the EU.

“As this round begins, we’re coming face to face with some of the tougher questions,” International Trade Minister Peter Van Loan said. “I thought that as we entered this crucial phase, it was important to be here personally, to underscore Canada’s commitment to these negotiations.” Read more here.

Bisphenol A Officially Declared Toxic by Canada

(FoodProductionDaily.com – Rory Harrington)

Canada became the first country in the world yesterday [October 13] to declare bisphenol A (BPA) to be a toxic substance that poses risks to human health and the environment. The announcement by the Canadian Health and Environment Ministries confirmed the chemical had formally been added Schedule 1 of the Canadian Environmental Protection Act, 1999 (CEPA 1999).

“The Government of Canada has a strong record of taking action on Bisphenol A to protect the environment and health of Canadians,” said Environment Minister Jim Prentice. “We are continuing our leadership on this issue and...working hard to monitor and manage Bisphenol A.”

BPA is an industrial chemical used to make a hard, clear plastic such as re-usable polycarbonate baby bottles. It is also used in the manufacture of epoxy resins, which act as a protective lining on the inside of metal-based food and beverage cans. Read more here.

Van Loan Tours Middle Eastern Countries, Talks Trade

(CTV News – The Canadian Press)

International Trade Minister Peter Van Loan is touring parts of the Middle East in a week-long effort to boost trade and encourage investment in Canada.

Much of the trip will be spent in Saudi Arabia where he will meet with his counterparts to lay the groundwork for better business relations between the two countries. Van Loan told the Saudi English newspaper Arab News he plans to discuss full access to the Saudi beef market, co-operation in the agriculture sector and the Kingdom’s threat to ban certain BlackBerry services. [...]

The newspaper also reports Van Loan will witness the signing of a memorandum of understanding committing both countries to strengthening their relationship in the health-care field. Read more here.

Harper Government Announces Exploratory Talks to Expand the Canada-Israel Free Trade Agreement

(Minister of International Trade)

The Honourable Peter Van Loan, Minister of International Trade, today [Sunday] concluded a two-day visit to Israel to promote closer commercial relations, including exploratory talks in order to expand the Canada-Israel Free Trade Agreement (FTA).

“The Canada-Israel Free Trade Agreement has been tremendously beneficial for our two countries. Two-way merchandise trade has more than doubled since its implementation,” said Minister Van Loan. “Canada’s ties to Israel are very deep, and our friendship is important. Our government is building on these ties and looking at opportunities to expand our trade relationship. We are committed to creating new sources of jobs, growth and prosperity for both of our countries in the years ahead.” [...]

Israel is a key economic partner for Canada. Since the Canada-Israel Free Trade Agreement came into force, two-way merchandise trade has more than doubled, reaching $1.3 billion last year. Israel is Canada’s sixth-largest merchandise export market in the Middle East.

For additional details on Minister Van Loan’s visit, consult Ministerial visit to Israel here.

Terrible Trade Move by Feds Could Cripple Canadian Shipbuilding, CAW says

(Exchange Magazine)

After a written promise to proceed tactfully on policy to support Canada’s all-important shipbuilding industry, the Harper government’s rash decision to kill a customs tariff will reverse years of progress, deter domestic investment and wipe out jobs at Canadian shipyards, said CAW President Ken Lewenza.

“The Harper government has sold-out Canada’s domestic shipbuilding industry, full stop,” Lewenza said responding to Finance Minister Jim Flaherty’s announcement on October 1 that Canada will eliminate a long-standing customs tariff on foreign-built ships.

“The Conservative government has just given international shipbuilders an overnight 25 per cent cost advantage when selling ships into our market, after former trade minister David Emerson notified our union this would not happen. It’s shameful.” Read more here.

Canada Must Show Leadership on Trade

(The Globe and Mail – John Weekes)

Big challenges and opportunities face Canadian trade negotiators in the months ahead, as a visit to the website of the Department of Foreign Affairs and International Trade will show you. What’s missing is a signal from the political masters in Ottawa that they have the willpower to make trade decisions that will benefit most Canadians, but will certainly be unpopular in some parts of the country.

On Oct. 18, Canadian team members sit down in Ottawa with their European counterparts to continue crafting what is called a comprehensive economic and trade agreement. At the WTO in Geneva, Canada is trying to breathe life into the long delayed WTO Doha Round negotiations, and in Seoul on Nov. 11 and 12, Prime Minister Stephen Harper and other G20 leaders will continue the discussion they had in Toronto on the challenge of concluding this multilateral marathon.

Canadian negotiators also need to pick up on the recent Canada U.S. Agreement on Government Procurement by exploring “an agreement that would expand, on a reciprocal basis, commitments with respect to market access for government procurement”. Read more here.

Canada Waives Import Taxes on Some Ships

(Marine Log)

Jim Flaherty, Canada’s Minister of Finance, has announced a waiver of Canada’s 25 percent import tariff on imports of all general cargo vessels and tankers, as well as ferries longer than 129 meters.

Remitting the 25-per-cent tariff is expected to save shipowners $25 million per year over the next decade.

“This duty relief will accelerate the renewal of the Canadian marine fleet across the country and will help replace aging vessels with cleaner, safer and more efficient ships,” said the Chuck Strahl, Minister of Transport, Infrastructure and Communities. “All the while, it will build on unprecedented investments our Government has made in Canada’s infrastructure and gateways by contributing to the upgrading of marine transportation links across the country.”

Under the Customs Tariff imported ships are subject to a tariff rate of 25 per cent, the highest rate of duty for industrial goods. Read more here.

Canada To Issue Electronic Passports In 2012

(AHN)

Ottawa will issue electronic passports to Canadian citizens starting in 2012. To begin the process, Public Works and Government Services Canada sought potential suppliers to submit letters of interest this summer.

The ePassport will have a proximity contactless chip which could only be read within 10 centimeters (3.93 inches) of a reader. But the machine-readable zone on page 2 of the passport must be scanned first. Among the data on the chip are the holder’s name, gender, date and place of birth and a digital photo of the citizen’s face.

Customs officials will compare the information on the chip with the printed information and photo in the passport. Read more here.

Ministers Announce Findings of Study on Trade Agreement Between Canada and India

(Minister of International Trade)

(The Honourable Peter Van Loan, Minister of International Trade, today [Friday] announced public release of the results of a joint study on the benefits of free trade between Canada and India. The Minister made the announcement in Ottawa together with India’s Minister of Commerce and Industry, Anand Sharma, following the First Annual Ministerial Dialogue on Trade and Investment.

“Minister Sharma and I welcomed and endorsed the Joint Study Group recommendation that negotiations should be initiated toward a substantive and ambitious trade agreement that would be to our countries’ mutual benefit,” said Minister Van Loan. “The agreement would help us meet our mutual goal of increasing bilateral trade to $15 billion annually within the next five years.”

The study shows that freer trade in goods and services between Canada and India could also increase Canada’s gross domestic product by at least US$6 billion, boost bilateral trade with India by 50 percent, and directly benefit Canadian sectors like forestry, energy and manufacturing.

“Canada’s trade and investment partnership with India is on an exciting path, and an economic partnership agreement will further broaden and deepen that partnership,” said Minister Van Loan. “Our government has made India a key priority in Canada’s foreign and trade policy agenda.”
Prime Minister Stephen Harper and Prime Minister Manmohan Singh of India announced the establishment of the Ministerial Dialogue during Prime Minister Singh’s recent visit to Canada. That visit and last year’s visit to India by Prime Minister Harper have underlined both countries’ dedication to their bilateral relationship.

During their meeting, Ministers Van Loan and Sharma reviewed the progress of negotiations on a foreign investment promotion and protection agreement, which will stimulate increased investment flows between the two countries.

The ministers place a high value on the input of Canadian and Indian businesses, and look forward to the prompt establishment of an India-Canada Chief Executive Officer (CEO) forum. The forum was one of the initiatives discussed during Prime Minister Harper’s visit to India in November 2009.

The CEO forum will be made up of leading Canadian and Indian business representatives, who will provide advice on improving investment and trade between Canada and India. The CEO forum will regularize the India-Canada CEO round tables that have been taking place on the margins of ministerial visits. Later today, the ministers will participate in the third such round table, with key CEOs and business leaders, including Pierre Duhaime, President and CEO of SNC-Lavalin Group; Richard Legault, President and CEO of Brookfield Renewable Power; Hari Bhartia, President of the Confederation of Indian Industry, and Co-Chairman and Managing Director of Jubilant Organosys Ltd.; and Deep Kapuria, Chairman of Hi-Tech Gears Ltd.

“The Government of Canada is creating an environment that allows Canadian technological innovations and commercial expertise to reach more markets,” said Minister Van Loan. “Our government is committed to opening global markets, including India, for Canadian companies through an aggressive free trade agenda that includes promoting investment and fighting protectionism.”

For more information, please see the Canada-India Joint Study Group Report.

Canada Introduces Bill to Enact Panama Free Trade Agreement

(Bloomberg BusinessWeek – Theophilos Argitis)

Canadian Trade Minister Peter Van Loan introduced legislation today to implement the country’s free-trade agreement with Panama.

The trade agreement was signed in May, and will give Canadian companies access to the government procurement market in the Central American country, including the expansion of the Panama Canal, Van Loan said at the time.

Passenger Train Between U.S., Vancouver Could Halt Over Customs Fee

(The Canadian Press)

A passenger train running between Portland, Ore., and Vancouver could be cancelled because the Canadian government wants $550,000 a year for extra customs services.

Paula Hammond, transportation secretary for Washington state, said Ottawa wants her department to pay the fee to cover additional border staffing for the evening Amtrak Cascades train.

That doesn't make sense, she said, because that second daily train has brought nearly $12 million in economic benefits to British Columbia in the year it's been operating. Read more here.

Canada to Bolster Latin American Relations

(The Globe and Mail)

Canada will continue to bolster relationships in Latin America through more free-trade agreements and the support of Canadian companies doing business there, Canada’s trade minister said Friday.

The federal government is in free-trade talks with many countries in the region, including Guatemala and Honduras, and will table a bill this fall for an FTA with Panama, Peter Van Loan said in a speech to a Toronto audience. Canada has strengthened ties with the region in recent years, and more Canadian companies are expanding there because of its high growth potential and geographic proximity.

“These countries are aggressively moving forward, embracing science, technology and innovation as never before, and reaching out to the world for business opportunities,” he said. Panama, he added, is a key market because of its “unique place in the global trading system,” where expansion plans for the canal are generating opportunities for Canadian companies.

Canadian Farmers Challenge U.S. Labelling Requirements at WTO

(Bridges Weekly)

Canada is challenging the U.S.’s country-of-origin labelling (COOL) requirements for beef and pork at a meeting of the WTO’s Dispute Settlements Body (DSB). The Canadian government, backed by several business groups – including some from the U.S., claims that the implementation of COOL requirements is immensely costly forcing Canadian businesses to seek less money for their beef so as to absorb the cost of implementing the requirement. They maintain that COOL is a technical barrier to trade (TBT) and as such illegal under WTO law.

“The COOL measure is not intended to address health or safety concerns,” Canada said in its opening statement. “The objective of the COOL measure was to distort the conditions of competition in the U.S. market to favour U.S. cattle and hogs compared to imported livestock.”

The COOL act requires that consumers be informed of the country of origin of meat by a label on the sales package. To receive an “A” label, cattle must be born, raised, and slaughtered in the United States. Meat from cattle with a mixed life – for example, born and raised in Canada but slaughtered in the U.S. – must have a label indicating the mix. Read more here.

Canadian Food Producers ‘Burdened’ by Regulations: Survey

(Montreal Gazette – Sara Schmidt, Postmedia News)

Canadian producers think governments overreact to food safety incidences and overburden them with rules to prevent the spread of diseases on their farms, a newly released government survey has found.

Producers from British Columbia, Saskatchewan, Ontario, Quebec and Nova Scotia – representing a broad range of agricultural products – also delivered a blunt message to consumers about imports during 10 focus groups commissioned by Agriculture Canada. The sessions were held earlier this year to get their views on agricultural issues, including competitiveness, sustainability and food safety.

“Generally speaking, producers felt that bio-security regulations and protocols were putting an unnecessary burden on producers, particularly smaller ones,” according to a summary of the focus groups led by Ekos Research Associates Inc. “Those who were being most affected by these measures felt that governments and retail industry giants had overreacted in the face of Mad Cow and other food safety incidences, as well as bowing to pressure from the United States and other countries.” Read more here.

Canada Concerned About Weakness in Exports-Flaherty

(Reuters)

Canadian Finance Minister Jim Flaherty said on Thursday he is concerned by Canada’s record trade deficit and he called on the private sector to “step up” investment to become more productive to help support economic growth.

“We are concerned about some weakness in exports,” Flaherty told reporters in Kitchener, Ontario. “We need the private sector to continue to step up, start to invest ... to help create more jobs than we’ve seen in Canada, more investment in machinery and equipment.”

Flaherty said that data was starting to show that business investment was coming back, which was encouraging when looking at the longer-term view of the economy.

Only A Few Weeks Left For OEMs Exporting To The US

(EngineerLive)

Time is now running out for orginial equipment manufacturers (OEM) that export equipment to the North American continent. The Energy Independence and Security Act (EISA) of 2007, comes into effect on 19th December this year throughout the USA. Canada is also adopting such legislation that will go into effect on the 1st January 2011, governing the efficiency of electric motors incorporated into all machinery.

The act will replace the current EPAct legislation which has been in force since 1997 and covers low voltage, “General Purpose” 3-phase electric motors from 1-200HP (0.75 - 150 kW). It will enforce a rise in the minimum efficiency of these machines from NEMA Energy Efficient to NEMA Premium Efficient. The new law will go further as it also encompasses motors not previously within the EPAct scope. The result is that almost all low voltage, 3-phase electrical induction motors will be covered by this new legislation. It can be summarised as follows:

- 1-200 HP General Purpose motors currently covered by EPAct will change from NEMA Energy Efficient to NEMA Premium Efficient.

- 1-200 HP motors not covered in point 1 above will comply with NEMA Energy Efficient.

- 201-500 HP motors will comply with NEMA Energy Efficient.

The new EISA legislation is very broad in its coverage (contrary to the EU’s new legislation), as it encompasses virtually all types of low voltage, 3 phase motor such as Explosion proof; Severe Duty; Vertical duty; 2, 4, 6 and 8 pole; Brake motors; all mounting types and any frame type, NEMA or IEC metric.

By the end of this year, almost all low voltage, 3-phase electric motors exported to the US and Canada will be subject to new legislation. Therefore, it would be wise to be ready for this and review any machinery designs that incorporate such motors as soon as possible. Read more here.

Canada and Costa Rica Set to Enhance Free Trade Agreement

(Minister of International Trade)

The Honourable Peter Van Loan, Minister of International Trade, announced yesterday that Canada and Costa Rica have agreed to work toward modernizing the existing bilateral free trade agreement. Minister Van Loan made the announcement following his meeting with the Costa Rican Foreign Trade Minister, Anabel Gonzalez.

“Our government’s aggressive free trade agenda is creating opportunities for Canadian businesses and workers and is securing future prosperity for Canadians and our trading partners in the hemisphere,” said Minister Van Loan. “Costa Rica is our largest trading partner in the region, and updating our free trade agreement is the logical next step in our growing commercial relationship.”

Canada and Costa Rica have enjoyed excellent bilateral relations, enhanced by the entry into force of the Canada-Costa Rica Free Trade Agreement in 2002, a first-generation agreement that focuses mainly on trade in goods and excludes substantive provisions in areas such as cross-border trade in services, government procurement, financial services and investment.

An updated free trade agreement could lower tariffs on goods and remove trade barriers in a broad range of sectors, creating new opportunities for the Canadian construction, manufacturing and agricultural industries. It could also expand market access for cross-border trade in services, financial services, electronic commerce, telecommunications and investment, as well as secure access to the government procurement market.

Two-way trade between Canada and Costa Rica totalled $441.8 million in 2009. In the same year, Canadian exports consisted mainly of preserved foods, machinery, and paper and paperboard.

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.