Russia Most Corrupt Among Global Powers, Study Says; U.S. Ranking Also Worsens

(Washington Post – Will Englund)
Corruption in Russia has grown even more blatant over the past year, according to  a report issued Tuesday by Transparency International, and the country has fallen from 146th place to 154th on the organization's Corruption Perceptions Index. Russia tied with Tajikistan, Papua New Guinea and several African countries, and was ranked most corrupt among the G-20 nations.

For the first time since Transparency International began issuing its annual list 15 years ago, the United States dropped out of the top 20 least-corrupt nations, because of financial scandals it has endured. The United States fell from 19th place to 22nd, behind Chile. [Canada is 6th from top]

Denmark, New Zealand and Singapore topped the list as least corrupt, and Somalia was at the bottom, just below Afghanistan and Burma. 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.

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.

Tokyo Anti-Counterfeiting Talks Deliver Deal

(Business Spectator – Reuters)

Nearly 40 nations on Saturday reached basic agreement in international trade talks aimed at reducing copyright and trademark theft that causes losses of billions of dollars annually.

One of the key features of the Anti-Counterfeiting Trade Agreement (ACTA) will mandate that customs officials have “ex officio” authority to seize counterfeit goods without a request from the rights holders or a court order, according to statements from Japan’s Ministry of Economy, Trade and Industry (METI). Read more here.

The Case for an Integrated Trade Compliance Strategy – October 19

79th Annual Conference & Trade Show – October 18-20, 2010
Delta Meadowvale Conference Centre, 6750 Mississauga Rd., Toronto Airport

The Case for an Integrated Trade Compliance Strategy – October 19, 2:00 p.m.

Canadian importers and exporters are rapidly diversifying their global supply chains and markets in search of a competitive edge and increased margins. The new trade reality is a complex mix of origins, production locations, and destinations for finished goods. A pro-active and diligent approach to managing regulatory obligations is necessary to ensure the enterprise is compliant at all stages of the sourcing, production, and sales cycles. This session will unpack the case for involvement and visibility of trade activities across the operations, finance, business development, executive, and board levels, and provide ideas on how to make such an integrated approach a reality.

Speaker:
Reynold Martens, Executive Vice President, GHY International

For more information on the program or to register, please click here: 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.

Trade: Canada’s Great Hope

(Export Development Canada – Peter G. Hall)

Gloom abounds in the world economy, and with good reason. Surviving the current episode is critical, but growth eventually will recover, and hopes for longer-term prosperity will brighten. Strategies for success in the coming growth cycle are already being crafted. Is Canada well-placed to succeed?

Canada’s economic challenges don’t end when recovery begins. At that point, market watchers will no doubt say in unison, “The long run is now”. Ageing of the population is no longer tomorrow’s issue, as Canada, for the first time ever, soon moves to the point where potential retirees outnumber young labour force entrants. Low trend investment threatens to further hobble recovery, and Canada’s poor productivity record won’t help. What makes these challenges more serious is that they affect the key building blocks of the economy: labour, capital and productivity. Future constraints on all three elements have led to estimates of potential growth that pale in comparison to recent experience.

Read more and/or watch the video here.

Second-Quarter Shock in America

(Peter G. Hall, EDC)

That famous hole in Wyoming where central bankers and other key economy-watchers convened two weekends ago was a fitting metaphor for the post factum sentiment of delegates. Or at least, the American ones. Sentiments were decidedly gloomy, noteworthy for a group that eschews herd hysterics. The mood was fed by the latest US GDP data, released just a day before the conference.

Monthly indicators had long since fed expectations of slower second-quarter growth. Following gains of 5% and 3.7% in the two preceding quarters, the April-June period was projected to be in the 2.5% range. But late-breaking data felled that forecast, and the final number rang in at a thin 1.6%. While surprises like this have occurred in the past, given the current context, this one was a nasty shock.

Who was the culprit? Consumers didn’t help. Weak employment and ongoing deleveraging kept spending growth to 2% for the quarter, but no one was wildly surprised. In contrast, investment data – hard to anticipate at the best of times – were a surprise, but in the other direction. Businesses ramped up spending on equipment by a stunning 25%, and the gain was matched by a stimulus-related one-off increase in residential investment. Numbers like this would normally yield a better bottom line.

Read more and/or watch the video here.

Van Loan Says Canada in Early Stages of Mercosur Trade Talks

(Bloomberg)

Canadian Trade Minister Peter Van Loan said the goverment has started exploratory trade discussions with South America’s Mercosur bloc, which consists of Argentina, Brazil, Paraguay and Uruguay.

“While it’s in an early stage yet, we are pleased with the first steps,” Van Loan said on a conference call with reporters.

Brazil’s Trade Mission to Canada, September 22- 24, 2010

(Them Concept)

The Ministry of Development, Industry and Foreign Trade of Brazil (MDIC) and the Brazilian Agency for Export Promotion and Investment (Apex-Brazil), in partnership with the Ministry of Foreign Affairs, will promote Brazil´s Trade Mission to Canada. The goal is to expand and diversify the flow of trade and investment between the two countries and explore possibilities for cooperation between the productive sectors. The agenda will focus on the business meetings that will take place on September 23 in Toronto, where Brazilian companies will meet with potential local buyers, who will be identified and selected by the Canadian consulting company Them Concept, specialized in “matchmaking”.

For more information please contact Them Concept:
Johanne Fondrouge Email: jfondrouge@themconcept.ca, Tel: 514-274-0151 x 101

Nordic Telecom Summit – Stockholm, September 28-29, 2010

(DFAIT)

The Nordic Telecom Summit, the leading event of its kind in the region, will feature the latest trends and technologies shaping the industry as well as new business models for growth and profitability, successful partnering strategies and innovative approaches in telecoms.

Event website: http://www.nordictelecomsummit.com/

Contact: Euan Scott, Canadian Trade Commissioner Service in Sweden, tel.: (011-46-8) 453-3000, stkhm-commerce@international.gc.ca

In Search of Growth... Elsewhere

(Export Development Canada – Peter G. Hall)

Recent international trade statistics corroborate what is obvious in other economic indicators: growth is slowing worldwide. For the trade stats, it’s a new phenomenon, but other, forward-looking data suggest that weakness will linger through the second half of this year. Governments, worried enough about local demand, are busy implementing trade promotion policies. Are they likely to succeed?

The rebound from the drubbing trade took in late 2008 makes it look like a great solution to domestic woes. Worldwide, export growth vaulted from deep negatives back into a solid, double-digit pace, recovering a good chunk of lost ground over the past three quarters. It’s the very recent data that rings a more ominous tone. Exports had become an engine of U.S. growth, but in June they shrunk back by 1.3%. At the same time, exports fell 2.5% in Canada and 0.6% in Japan, while they were flat in Singapore, the Asian trade hub. Numbers aren’t down universally, but there are questions about the sustainability of the recent spurts in the UK and Germany, and of ongoing Chinese growth.

What makes the impending slowing more dangerous is the extent to which the rebound in trade has influenced overall GDP growth. During the good quarters, U.S. trade activity was up 14%, while GDP growth averaged 3.4%. German GDP growth was modest at 2%, but trade expanded on average by 12%. Japan, which in recent years has been particularly trade-dependent, saw 22% trade growth while GDP averaged just 3.3%. Canada has likewise seen an eye-catching increase in exports and imports, averaging 15% while GDP tracked at 4%. In these locations, the trade balance wasn’t necessarily contributing to the bottom line, but both rapid export and import activity creates local jobs.

Read more or watch the video here.

China Overtakes Japan in 2Q as World’s No. 2 Economy Amid Slowdown in Recovery

(Tomoko A. Hosaka — The Associated Press)

Japan lost its place as the world’s No. 2 economy to China in the second quarter as receding global growth sapped momentum and stunted a shaky recovery. Gross domestic product grew at an annualized rate of just 0.4%, the government said Monday, far below the annualized 4.4% expansion in the first quarter and adding to evidence the global recovery is facing strong headwinds.

The figures underscore China’s emergence as an economic power that is changing everything from the global balance of military and financial power to how cars are designed. It is already the biggest exporter, auto buyer and steel producer, and its global influence is expanding. [...]

China has been a major force behind the world’s emergence from deep recession, delivering much-needed juice to the U.S., Japan and Europe. Tokyo’s latest numbers, however, suggest that Chinese demand alone may not be enough for Japan or other economic giants. Read more here.

Canadian Trade Missions Ineffective: Study

(Tim Kiladze — Globe & Mail)

Report contradicts other countries’ analyses of impact on trade

Canadian trade missions designed to bolster business relationships and increase bilateral trade don’t do their job, according to a new report by the University of British Columbia.

The study, the first of its kind in Canada, contradicts other countries’ analyses. Two of those reports found that short international visits by French, American and German heads of state increased exports by 6 to 10 per cent, as did setting up the first consulate in a new country.

Canada’s highly publicized trips don’t appear to have the same effect. “If following the mission there’s no increase in trade, how can we say there are any benefits?” asked Keith Head, professor at UBC’s Sauder School of Business, who co-chaired the study with John Ries. Read more here.

Commerce Secretary on Upping U.S. Exports

(Fox Business News)



Commerce Secretary Gary Locke on America’s new export initiative.

Obama Says New Export Initiative Off to Good Start

(Video: C-SPAN2 via MoxNews • Story: AP)





President Barack Obama declared good progress Wednesday on his pledge to double U.S. exports over the next five years, saying the nation’s sales abroad were up 17 percent in first four months of this year.

Speaking at the White House to a gathering of government and corporate officials, Obama said his administration is “bringing to bear the full resources of the United States government.”

“Our efforts are off to a solid start,” he said.

Obama has been emphasizing his efforts on the economy with increasing frequency lately, as fears rise that the nation’s already fragile recovery is weakening and perhaps headed to a second recession. Later in the week, he is scheduled to talk on the economy twice more, on a trip to Missouri and Nevada.

The topic of exports is especially important because the recovery has been driven far more by sales abroad and business and government spending than it has by consumer spending. And with critical midterm elections drawing closer, the White House want to burnish the administration’s image on the job-creation front. Read more here.

Related: The Grip of the Old Economy (Huffington Post)

Diversify Our Trade? Go Right Ahead!

(Ottawa Citizen – William Watson)

Listening to CFRA on July 4th, I heard one of this country’s better-known financial analysts celebrate the 234th anniversary of the Americans’ declaration of their independence by arguing that, because the U.S. is now a falling economic star, it is imperative we Canadians reduce our economic dependence on them. To that end, we should set a goal of reducing our American trade from 80 per cent of our total trade to 60 per cent.

As an economist, it makes my head spin to hear such talk from supposedly reputable people.

First of all, though this is a technicality, we’re close to the goal already. Last year trade with the U.S. was just 64% of our total trade. That was down sharply from 82% in 2008 – a much more typical year. Though it might be aesthetically pleasing to have international trade statistics that are less lopsided, I suspect just about all Canadians would prefer to avoid years in which exports to the U.S. plummet by $100 billion, as they did from 2008 to 2009, the most disastrous year for international trade since the 1930s.

But last year probably was exceptional: For the last several years our trade with the U.S. has been running at just above or just below 80% of our total trade. Read more here.

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

New Exporters to Border States (NEBS) Mission to Buffalo – July 21-22, 2010

(DFAIT)

You are cordially invited to participate in the next NEBS Mission to Buffalo on Wednesday, July 21 and Thursday, July 22, 2010.

NEBS is a practical, cost-effective program ideally suited to give Ontario manufacturers, distributors, agents and other business professionals the tools they need to easily expand their business interests across the border. The NEBS program offers guidelines to Ontario businesses for USA sales, shipping and business transactions.

Expert briefings on a range of topics include dealing with border issues such as U.S. business travel and immigration requirements, currency exchange options, business planning, taxation, and legal considerations and U.S. Customs clearance procedures. Participants will visit a fulfillment warehouse in Buffalo. In addition, a briefing on provincial and federal trade programs and services will be provided along with one-on-one meetings with the trade commissioners at the Canadian Consulate in Buffalo.

NEBS is run by the International Trade Branch of the Ministry of Economic Development and Trade in co-operation with the Canadian Consulate General in Buffalo.

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

What people are saying about the NEBS program:

“For anyone even remotely thinking of exporting, NEBS will make you aware of key issues and how to tackle them – like regulations, border issues, NAFTA compliance, and even insuring your receivables.” (Alison Prentice – Creo Mundi)

“A super program, which really helped us to understand the behind-the-scenes exporting process” (R. Schmind – ThinkNet Inc.)

“A first-class workshop with informative, knowledgeable speakers, lot’s of literature, and contact names and numbers for future reference.” (Mary-Lynn Banks – Ron Bankes Marines Services)

Growing Global Web of Trade Helping to Blunt Protectionism: Conference Board

(Canadian Business – The Canadian Press)

The economic interdependence fostered by global trade may have sharpened the bite of the recession but is also working to quash protectionist responses, according to a report from the Conference Board of Canada. “The highly integrated nature of global production” could be a pillar of the world’s economic recovery if political policy-makers don’t stand in its way and move to impose measures to protect their own, the think-tank said Thursday. “The prevalence of global supply chains pulled Canada and the world more deeply into recession than would otherwise have been the case,” the board said in its report.

The private-sector forecaster cited Research In Motion’s BlackBerry smartphone as an example of how disruptive new barriers might be, since it’s produced in many locations and “encounters multiple borders.” “Component parts come from Asia, Europe, and the United States,” the board stated in its report. “The device is manufactured in Hungary and Mexico. Research and development and global after-sales service are based in Canada, and the units are sold around the world.”

“Any new trade barriers will not only reduce the flow of final goods exports, but will have a domino effect on all of the related intermediate inputs.” Read more here.