(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.
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
Tuesday, October 26, 2010
Friday, October 15, 2010
Five Lessons from Germany About Winning on Exports
(Wall Street Journal Blogs – Ed Gershwin)
Sprechen Sie Trade?
When it comes to exports, the United States could learn something from Germany.
In the second quarter, Germany’s economy grew at a blistering annual rate of 9%, almost all of which was due to robust exports. In August, German manufacturing orders expanded by a healthy 3.4%, driven by strong foreign demand for products like Audis in China. America’s economy is four times larger than Germany’s, but Germans export more manufactured goods than us, and those exports account for over a third of Germany’s GDP.
Germany exports aggressively because it must. Unlike the United States, where private consumption fueled 70% of our economy in pre-crisis years, Germany’s famously frugal consumers contribute only 57%. Germans can only prosper if exports fill the gap.
But after being battered by recession, America’s consumers are now almost Germanic – saving more and spending less. Economists estimate that, over the next several years, the private sector share of U.S. GDP will remain about three percentage points below 2003-07 levels.
President Obama is wisely seeking to close this gap – and to create good American jobs – by doubling U.S. exports, but there are no magic formulas for doing this. So, as it pursues this vital goal, America might ask: “What would Dieter do?” Read more here.
Tuesday, April 27, 2010
Debt Crisis Spreads Through Europe
(The Globe and Mail – Eric Reguly)
Investors are treating Portugal as the next Greece as the sovereign debt crisis spreads through the Mediterranean. Portuguese bonds slumped again Tuesday as bond holders took the view that the country’s credit quality is deteriorating, even though its deficit and debt ratios are not as dire as Greece’s. “Investors are looking for the next weak link in the euro zone,” Simon Ballard, credit analyst in London with RBC Dominion Securities, said in a phone interview. “That may be Portugal, though it’s a bad day for everyone in Club Med.”
Credit default swaps on Portuguese debt soared to as high as 380 basis points, up about 40 points from Monday, in early afternoon trading in Europe. That means it costs $380,000 (U.S.) to insure every $10-million of Portugal’s debt against default. Credit default swaps in other Mediterranean countries also rose. Italy, which has one of the world’s highest debt-to-GDP ratios, saw its credit default swaps widen by about 10 basis points, to 160 points.
“The contagion is definitely spreading and spreading quite rapidly to Portugal, Spain, Ireland and Italy,” Mehernosh Engineer, a credit strategist at BNP Paribas, said in a report published Tuesday. “The market has been in a show-me-the-money mode for well over three months and the lack of guidance is slowly and steadily sowing the seeds of a double-dip.” Most European stock indexes were down by 1 per cent or more on fears the debt crisis is spreading. The euro lost 0.68 per cent against the U.S. dollar. Read more here.
Investors are treating Portugal as the next Greece as the sovereign debt crisis spreads through the Mediterranean. Portuguese bonds slumped again Tuesday as bond holders took the view that the country’s credit quality is deteriorating, even though its deficit and debt ratios are not as dire as Greece’s. “Investors are looking for the next weak link in the euro zone,” Simon Ballard, credit analyst in London with RBC Dominion Securities, said in a phone interview. “That may be Portugal, though it’s a bad day for everyone in Club Med.”
Credit default swaps on Portuguese debt soared to as high as 380 basis points, up about 40 points from Monday, in early afternoon trading in Europe. That means it costs $380,000 (U.S.) to insure every $10-million of Portugal’s debt against default. Credit default swaps in other Mediterranean countries also rose. Italy, which has one of the world’s highest debt-to-GDP ratios, saw its credit default swaps widen by about 10 basis points, to 160 points.
“The contagion is definitely spreading and spreading quite rapidly to Portugal, Spain, Ireland and Italy,” Mehernosh Engineer, a credit strategist at BNP Paribas, said in a report published Tuesday. “The market has been in a show-me-the-money mode for well over three months and the lack of guidance is slowly and steadily sowing the seeds of a double-dip.” Most European stock indexes were down by 1 per cent or more on fears the debt crisis is spreading. The euro lost 0.68 per cent against the U.S. dollar. Read more here.
Wednesday, April 21, 2010
Forwarders Report Cargo Backlogs Already Reducing
(International Freighting Weekly – Damian Brett & Will Waters)
Airlines moving shipments faster than expected
Airlines are clearing cargo backlogs in Europe more quickly than expected, although the logjam in Asia continues to mount, according to forwarders.
Ceva Logistics said it had obtained information from carriers that indicated it would take three to five days to clear export backlogs from Amsterdam, Frankfurt, Charles de Gaulle and London Heathrow, subject to destination and carrier.
Following the opening of some of the major European cargo airports yesterday, Rhenus Logistics expected it to take around five days to clear cargo backlogs at Amsterdam, but has since said it could be done by the weekend. “The backlog of freight is going faster than expected,” the company said. “This means a number of airlines are already accepting new bookings.” Read more here.
Airlines moving shipments faster than expected
Airlines are clearing cargo backlogs in Europe more quickly than expected, although the logjam in Asia continues to mount, according to forwarders.
Ceva Logistics said it had obtained information from carriers that indicated it would take three to five days to clear export backlogs from Amsterdam, Frankfurt, Charles de Gaulle and London Heathrow, subject to destination and carrier.
Following the opening of some of the major European cargo airports yesterday, Rhenus Logistics expected it to take around five days to clear cargo backlogs at Amsterdam, but has since said it could be done by the weekend. “The backlog of freight is going faster than expected,” the company said. “This means a number of airlines are already accepting new bookings.” Read more here.
Monday, April 19, 2010
Ash Cloud Halts Northern European Air Cargo – No End in Sight
(Video: RT News • Story: Transport Intelligence)
The eruption of the Eyjafjallajökull volcano in Iceland has had an extraordinary effect on the air transport system of northern Europe. Since Thursday the air space of first Britain, Norway, the Netherlands and now Germany, Austria, Belgium, Denmark, Finland, France, Germany, Latvia, Luxembourg, Poland, Slovakia, the Czech Republic, Bulgaria, Sweden and Switzerland have been shut to all commercial traffic. The suspension of activity is set to continue into at least the beginning of the week. Further disruption seems likely as the volcano will certainly continue to erupt. […]
The obvious reaction by logistics planners will be to use other modes of transport. This is not as difficult as it might first appear. Air freight for traffic within Europe is of secondary importance.
Although the location of a number of very large airports, it is often just as quick to move goods within Europe by road. A good example of this is traffic between Britain and France. This route has access to good ferry services and roads. These can easily be stretched to more distant locations such as Spain or Germany. Read more here.
Related:
• Shippers Face Steep Air Cargo Rate Hikes (JOC)
• Air Freight Backlogs Build Across Asia (International Freighting Weekly)
The eruption of the Eyjafjallajökull volcano in Iceland has had an extraordinary effect on the air transport system of northern Europe. Since Thursday the air space of first Britain, Norway, the Netherlands and now Germany, Austria, Belgium, Denmark, Finland, France, Germany, Latvia, Luxembourg, Poland, Slovakia, the Czech Republic, Bulgaria, Sweden and Switzerland have been shut to all commercial traffic. The suspension of activity is set to continue into at least the beginning of the week. Further disruption seems likely as the volcano will certainly continue to erupt. […]
The obvious reaction by logistics planners will be to use other modes of transport. This is not as difficult as it might first appear. Air freight for traffic within Europe is of secondary importance.
Although the location of a number of very large airports, it is often just as quick to move goods within Europe by road. A good example of this is traffic between Britain and France. This route has access to good ferry services and roads. These can easily be stretched to more distant locations such as Spain or Germany. Read more here.
Related:
• Shippers Face Steep Air Cargo Rate Hikes (JOC)
• Air Freight Backlogs Build Across Asia (International Freighting Weekly)
Monday, March 15, 2010
Memorandum D11-5-7: Canada-European Free Trade Association Free Trade Agreement (CEFTA) Rules of Origin
(CBSA)
1. The following provisions of Annex C to the version of the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), signed on January 26, 2008, have the force of law in Canada: a. Articles 1 to 8; b. Article 9, paragraph 1; c. Articles 10 to 12; d. Article 14; and e. Appendix I.
2. These Regulations come into force on July 1, 2009, but if they are registered after that day, they come into force on the day they are registered.
Complete memorandum here.
1. The following provisions of Annex C to the version of the Free Trade Agreement between Canada and the States of the European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland), signed on January 26, 2008, have the force of law in Canada: a. Articles 1 to 8; b. Article 9, paragraph 1; c. Articles 10 to 12; d. Article 14; and e. Appendix I.
2. These Regulations come into force on July 1, 2009, but if they are registered after that day, they come into force on the day they are registered.
Complete memorandum here.
Thursday, August 13, 2009
France and Germany Report Economic Growth
(World Focus Online)
Two of Europe’s biggest economies — Germany and France — reported signs of a recovery. Each saw growth of 0.3 percent in this year’s second quarter.
But despite a turnaround for those countries, much of Europe is still mired in recession.
Roben Farzad, a senior writer for BusinessWeek, joins Martin Savidge to discuss how fast the world economy is rebounding and to analyze what it will mean for the United States.
Two of Europe’s biggest economies — Germany and France — reported signs of a recovery. Each saw growth of 0.3 percent in this year’s second quarter.
But despite a turnaround for those countries, much of Europe is still mired in recession.
Roben Farzad, a senior writer for BusinessWeek, joins Martin Savidge to discuss how fast the world economy is rebounding and to analyze what it will mean for the United States.
Thursday, July 16, 2009
Western Europe: Leader or Laggard?
(Economic Development Canada – Peter G. Hall)
A year ago, Europe was being touted as the resilient zone. Inflation was the big worry, not recession. Interest rates were hiked 25 basis points on July 9th, 2008. But the zone’s analysts were wrong. Along with the rest of the world, Europe tumbled. Brighter signs have emerged recently, enough to prompt calls for a scaling-back of government stimulus. Is Europe poised to lead the world back to growth?
It certainly didn’t look that way a few weeks ago. Europeans were shocked enough by the 6.8% annualized drop in output in the final months of 2008, but the 9.1% slump in the January-March period was a stunning blow. Most other big economies also contracted in the quarter, but Europe’s accelerated decline set it apart from all other zones. Economic momentum was clearly in the wrong direction, and led to significant downgrades of the pan-European growth forecast for 2009.
Recent signals are more upbeat. Industrial production posted gains in Germany, France and Italy during May. The trade balance for the Eurozone marched further into the black during the month. Germany also saw a surprising surge in new manufacturing orders in May, and both business and investor confidence are on the upswing, kindling hopes that recovery is imminent.
Click here to read more or watch the video.
A year ago, Europe was being touted as the resilient zone. Inflation was the big worry, not recession. Interest rates were hiked 25 basis points on July 9th, 2008. But the zone’s analysts were wrong. Along with the rest of the world, Europe tumbled. Brighter signs have emerged recently, enough to prompt calls for a scaling-back of government stimulus. Is Europe poised to lead the world back to growth?
It certainly didn’t look that way a few weeks ago. Europeans were shocked enough by the 6.8% annualized drop in output in the final months of 2008, but the 9.1% slump in the January-March period was a stunning blow. Most other big economies also contracted in the quarter, but Europe’s accelerated decline set it apart from all other zones. Economic momentum was clearly in the wrong direction, and led to significant downgrades of the pan-European growth forecast for 2009.
Recent signals are more upbeat. Industrial production posted gains in Germany, France and Italy during May. The trade balance for the Eurozone marched further into the black during the month. Germany also saw a surprising surge in new manufacturing orders in May, and both business and investor confidence are on the upswing, kindling hopes that recovery is imminent.
Click here to read more or watch the video.
Tuesday, May 12, 2009
European Freight: ‘The Worst Is Over’
(International Freighting Weekly – Gavin van Marle)
Increasing levels of business and confidence, according to Danske Bank survey
Latest figures from some major research departments have suggested that the worst of the recession for the European freight industry may now be over. In its latest European Freight Forwarding Index, Danish national bank Danske Bank recorded increased levels of both volumes and business confidence among forwarders, compared with two months ago.
Author of the report, Danske Bank transport equity analyst Johannes Møller, told IFW: “The good news is that the index on the current situation is now above 50, indicating that the participants are today handling more volumes than they did two months ago. We see this as a clear indication that the recovery in the freight markets has begun.”
Respondents to the Danske Bank survey were asked two questions: what volumes their company handles today compared with two months previously; and how they expect volumes to develop over the following two months. Respondents were given three options to reply: lower volumes, unchanged volumes, and higher volumes.
The answers were then translated into an index ranging from 0 to 100, in which a value above 50 represents an improvement in business levels. The survey questioned 123 forwarders in Scandinavia, the UK, Germany and east Europe, and the index for current business in May was at 59, compared with 46 in April, 27 in March and 28 in February. It also found improved confidence going forward, with an index of 60 for the next two months. Read more here.
Increasing levels of business and confidence, according to Danske Bank survey
Latest figures from some major research departments have suggested that the worst of the recession for the European freight industry may now be over. In its latest European Freight Forwarding Index, Danish national bank Danske Bank recorded increased levels of both volumes and business confidence among forwarders, compared with two months ago.
Author of the report, Danske Bank transport equity analyst Johannes Møller, told IFW: “The good news is that the index on the current situation is now above 50, indicating that the participants are today handling more volumes than they did two months ago. We see this as a clear indication that the recovery in the freight markets has begun.”
Respondents to the Danske Bank survey were asked two questions: what volumes their company handles today compared with two months previously; and how they expect volumes to develop over the following two months. Respondents were given three options to reply: lower volumes, unchanged volumes, and higher volumes.
The answers were then translated into an index ranging from 0 to 100, in which a value above 50 represents an improvement in business levels. The survey questioned 123 forwarders in Scandinavia, the UK, Germany and east Europe, and the index for current business in May was at 59, compared with 46 in April, 27 in March and 28 in February. It also found improved confidence going forward, with an index of 60 for the next two months. Read more here.
Saturday, May 9, 2009
Tear Down That (Trade) Wall
(Globe & Mail)
Former trade minister David Emerson on what Stephen Harper was negotiating in Europe this week, why it might only be the start and whether the seal hunt is more trouble than it's worth
Adam Radwanski, globeandmail.com: Mr. Emerson, thanks for taking the time to help shed a little light on what the Prime Minister has been doing this week in Europe. It strikes me, given the potentially massive changes to our trade policy that could ultimately result from Mr. Harper's talks with the EU, that there's been surprisingly little focus on what's being discussed (other than the seal hunt). Should Canadians be paying more attention to what's going on there?
David Emerson: There is no doubt that Canadians should be paying close attention to the government's attempts to move trade policy forward more aggressively. Canada has always been, and always will be, a trading economy. Today 80 per cent of our exports go to the U.S., and with protectionism on the rise we absolutely must build deeper relationships across both the Atlantic and Pacific.
The EU is a market of roughly three quarters of a billion people, with 27 countries' markets at various stages of development and with enormous potential for trade and investment linkages to Canada. With Europe, we are also dealing with relatively stable and advanced democracies. If we can strike a comprehensive trade deal expeditiously, it strengthens Canada's position relative to the U.S. and builds on a market where we have begun to see significant growth and success.
Adam Radwanski: There have been rumblings about knocking down trade barriers between Canada and the EU for years, but rarely have they amounted to much. What's changed?
David Emerson: Probably the biggest change has been the willingness of provinces to consider being bound by the obligations such a deal may involve.
Procurement practices of sub-national governments have been major barriers to the success of past negotiations. Policies limiting mobility of skilled and educated people are another example.
Quebec, for example, has moved from a historically reluctant jurisdiction to a strong advocate of a deeper economic relationship with Europe.
We still are likely to have problems dealing with agriculture to any substantial degree; both the EU and Canada are strongly protectionist and timid with respect to certain agricultural interests. Canada will also have to show increased flexibility when it comes to protectionist limits on foreign ownership and investment in certain sectors.
I do think, perhaps wishfully so, that Canadians are more informed than ever about the economic perils of protectionism. Let us hope our leaders continue to lead and take advantage of the opportunity.
Read the complete interview here.
Friday, May 8, 2009
Minister Day Wraps Up European Trade Promotion Visit
(Foreign Affairs and International Trade Canada)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today concluded a five-day visit to Lithuania, Latvia, the Czech Republic and Romania, where he was opening doors to new opportunities for Canadian companies.
During his visit, Minister Day signed foreign investment promotion and protection agreements (FIPAs) with Latvia and the Czech Republic. Tomorrow, he will sign a FIPA with Romania. These agreements will protect and promote Canadian investments so that businesses can invest with confidence.
“Renewing these FIPAs represents a concrete step in moving Canada’s trade agenda forward,” said Minister Day. “These agreements also help deliver on the government’s commitment to create the right conditions for Canadian businesses to compete internationally.”
Minister Day met with key ministers and senior officials in each country to discuss areas of mutual interest, such as energy security in the region. He also promoted the benefits of a closer Canada-EU economic relationship.
The launch of negotiations with the EU toward a comprehensive economic partnership agreement was officially announced by Prime Minister Stephen Harper, Czech Prime Minister Mirek Topolánek and European Commission President José Manuel Barroso at the Canada-EU Summit on May 6. The agreement could provide a $12-billion boost to the Canadian economy and a 20-percent increase in bilateral trade between Canada and the EU.
While in Lithuania, Latvia and Romania, Minister Day promoted Canada’s expertise in the energy sector and raised the profile of Canadian companies, particularly those in the nuclear industry, as world-class suppliers of quality goods and services. Atomic Energy of Canada Ltd. and the Canadian nuclear industry have the technological expertise to participate in the construction of a Lithuanian-led nuclear power project for the region, and for phases three and four of Romania’s Cernavoda nuclear power plant. These multibillion-dollar projects could create new jobs in Canada and Europe.
In Romania, the minister promoted Canada’s new measures to help Canadian mining and oil and gas companies meet and exceed their social and environmental responsibilities when operating abroad.
More details about Minister Day’s trip to Europe can be found here.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today concluded a five-day visit to Lithuania, Latvia, the Czech Republic and Romania, where he was opening doors to new opportunities for Canadian companies.
During his visit, Minister Day signed foreign investment promotion and protection agreements (FIPAs) with Latvia and the Czech Republic. Tomorrow, he will sign a FIPA with Romania. These agreements will protect and promote Canadian investments so that businesses can invest with confidence.
“Renewing these FIPAs represents a concrete step in moving Canada’s trade agenda forward,” said Minister Day. “These agreements also help deliver on the government’s commitment to create the right conditions for Canadian businesses to compete internationally.”
Minister Day met with key ministers and senior officials in each country to discuss areas of mutual interest, such as energy security in the region. He also promoted the benefits of a closer Canada-EU economic relationship.
The launch of negotiations with the EU toward a comprehensive economic partnership agreement was officially announced by Prime Minister Stephen Harper, Czech Prime Minister Mirek Topolánek and European Commission President José Manuel Barroso at the Canada-EU Summit on May 6. The agreement could provide a $12-billion boost to the Canadian economy and a 20-percent increase in bilateral trade between Canada and the EU.
While in Lithuania, Latvia and Romania, Minister Day promoted Canada’s expertise in the energy sector and raised the profile of Canadian companies, particularly those in the nuclear industry, as world-class suppliers of quality goods and services. Atomic Energy of Canada Ltd. and the Canadian nuclear industry have the technological expertise to participate in the construction of a Lithuanian-led nuclear power project for the region, and for phases three and four of Romania’s Cernavoda nuclear power plant. These multibillion-dollar projects could create new jobs in Canada and Europe.
In Romania, the minister promoted Canada’s new measures to help Canadian mining and oil and gas companies meet and exceed their social and environmental responsibilities when operating abroad.
More details about Minister Day’s trip to Europe can be found here.
Thursday, April 30, 2009
New Free Trade Agreement Opens Doors for Canadian Business in Iceland, Liechtenstein, Norway and Switzerland
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, announced today that the free trade agreement (FTA) with the states of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway and Switzerland – has received Royal Assent. The agreement is on track to come into effect on July 1, 2009.
“Trade is extremely important to Canada’s continued prosperity,” said Minister Day.
“Implementing this agreement – the first free trade agreement Canada has ever completed with European countries – will open more doors for Canadian producers and exporters by increasing their access to the wealthy and sophisticated EFTA markets.”
Canada’s producers and exporters will benefit immediately from the elimination of duties on all Canadian non-agricultural merchandise exports upon entry into force of the FTA. Tariffs will also be eliminated or reduced on selected Canadian agricultural exports such as durum wheat, frozen french fries, beer and crude canola oil. As well, Canadian companies will be able to access innovative technologies and other inputs from EFTA markets at lower costs, including through the importation of machinery and scientific and precision instruments.
“This agreement will provide not only a strategic opportunity for Canadian companies to tap directly into EFTA value chains, but also indirect access to the European Union,” said Minister Day. “The Government of Canada is committed to opening up new markets for Canadian business and expanding existing ones. During this period of extraordinary global economic challenges and uncertainty, it is more important than ever that we pursue international trade opportunities.”
Together, the EFTA countries were Canada’s seventh-largest merchandise export destination in 2008. Canada exported $4.2 billion in merchandise to the EFTA countries in 2008, with two-way merchandise trade valued at $13.2 billion.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, announced today that the free trade agreement (FTA) with the states of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway and Switzerland – has received Royal Assent. The agreement is on track to come into effect on July 1, 2009.
“Trade is extremely important to Canada’s continued prosperity,” said Minister Day.
“Implementing this agreement – the first free trade agreement Canada has ever completed with European countries – will open more doors for Canadian producers and exporters by increasing their access to the wealthy and sophisticated EFTA markets.”
Canada’s producers and exporters will benefit immediately from the elimination of duties on all Canadian non-agricultural merchandise exports upon entry into force of the FTA. Tariffs will also be eliminated or reduced on selected Canadian agricultural exports such as durum wheat, frozen french fries, beer and crude canola oil. As well, Canadian companies will be able to access innovative technologies and other inputs from EFTA markets at lower costs, including through the importation of machinery and scientific and precision instruments.
“This agreement will provide not only a strategic opportunity for Canadian companies to tap directly into EFTA value chains, but also indirect access to the European Union,” said Minister Day. “The Government of Canada is committed to opening up new markets for Canadian business and expanding existing ones. During this period of extraordinary global economic challenges and uncertainty, it is more important than ever that we pursue international trade opportunities.”
Together, the EFTA countries were Canada’s seventh-largest merchandise export destination in 2008. Canada exported $4.2 billion in merchandise to the EFTA countries in 2008, with two-way merchandise trade valued at $13.2 billion.
Wednesday, December 24, 2008
Brussels “Postpones” Start of 24-hour Container Regulations
(Janet Porter — Lloyd’s List)
Plans by the European Union to tighten container security through a scheme modelled on one already operational in the US are falling behind schedule, partly because of the difficulty of obtaining uniformity across member states.
Requirements to complete security clearance for containers 24 hours before vessel loading have been in place for US-bound boxes for some time and have worked well, largely because of close co-operation between the authorities and shipping lines when the rules were being drafted.
The Washington-based World Shipping Council, which represents most global carriers, now hopes to repeat that success story in Europe, where Brussels is working on a similar set of rules.
One of the biggest lessons learned from the US when the 24-hour rule was being developed was the importance of consistency and the need for security assessments to be conducted in the same way at ports across the country, said Crowley Maritime chairman and chief executive Tom Crowley. Read more here.
Plans by the European Union to tighten container security through a scheme modelled on one already operational in the US are falling behind schedule, partly because of the difficulty of obtaining uniformity across member states.
Requirements to complete security clearance for containers 24 hours before vessel loading have been in place for US-bound boxes for some time and have worked well, largely because of close co-operation between the authorities and shipping lines when the rules were being drafted.
The Washington-based World Shipping Council, which represents most global carriers, now hopes to repeat that success story in Europe, where Brussels is working on a similar set of rules.
One of the biggest lessons learned from the US when the 24-hour rule was being developed was the importance of consistency and the need for security assessments to be conducted in the same way at ports across the country, said Crowley Maritime chairman and chief executive Tom Crowley. Read more here.
Monday, December 15, 2008
Benefits of Canada-EU Open Skies Deal Likely to be Delayed by Economic Turmoil
(CEP News – Sean McKibbon)
A new air transport agreement announced between the EU and Canada could eventually mean lower fares and greater choice for trans-Atlantic travellers, but the global economic crisis could delay those benefits, says the president of the Tourism Industry Association of Canada (TIAC).
The agreement, announced this week by federal Transport Minister John Baird, will open access to all 27 EU member states for Canadian airlines and all points in Canada for EU air carriers. The agreement replaces 19 bilateral agreements with a single comprehensive one and allows the development of new markets, new services and greater competition, a Transport Canada news release said.
But TIAC president Randy Williams said the ongoing weakness in the economy will likely delay implementation of the agreement. "With the economic downturn, the airlines are just not looking at expanding routes and increasing their capacity at this time," he said.
Transport Canada officials could not give a precise date for implementation of the new agreement, but Williams said he hopes to see it in effect within the next three to four months.
"We're excited about this agreement. The discussion has been underway for some time," said Williams, adding that TIAC members are hoping it will foster greater travel, particularly by EU residents to Canada. Estimates are for travel between the two jurisdictions to increase 25-40% with an extra 8-14 million visitors to Canada, Williams said.
However, he said those estimates may be a little too optimistic given the current economic downturn. Read more here.
A new air transport agreement announced between the EU and Canada could eventually mean lower fares and greater choice for trans-Atlantic travellers, but the global economic crisis could delay those benefits, says the president of the Tourism Industry Association of Canada (TIAC).
The agreement, announced this week by federal Transport Minister John Baird, will open access to all 27 EU member states for Canadian airlines and all points in Canada for EU air carriers. The agreement replaces 19 bilateral agreements with a single comprehensive one and allows the development of new markets, new services and greater competition, a Transport Canada news release said.
But TIAC president Randy Williams said the ongoing weakness in the economy will likely delay implementation of the agreement. "With the economic downturn, the airlines are just not looking at expanding routes and increasing their capacity at this time," he said.
Transport Canada officials could not give a precise date for implementation of the new agreement, but Williams said he hopes to see it in effect within the next three to four months.
"We're excited about this agreement. The discussion has been underway for some time," said Williams, adding that TIAC members are hoping it will foster greater travel, particularly by EU residents to Canada. Estimates are for travel between the two jurisdictions to increase 25-40% with an extra 8-14 million visitors to Canada, Williams said.
However, he said those estimates may be a little too optimistic given the current economic downturn. Read more here.
Tuesday, December 2, 2008
Legislation for Canada’s Free Trade Agreement with EFTA Countries Tabled in Parliament
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today tabled legislation in Parliament to implement Canada’s free trade agreement (FTA) with the states of the European Free Trade Association (EFTA) (Iceland, Liechtenstein, Norway and Switzerland). It is Canada’s first such agreement with European countries.
“In a time of global economic instability, free trade is more important than ever. Canada already exports more than $5 billion per year to EFTA countries, and that figure will grow under this agreement,” said Minister Day. “The agreement demonstrates that our government is taking action to help create opportunities in the international marketplace. It will benefit Canadian businesses by reducing barriers to trade. At the same time, Canadian consumers will have access to a more affordable and diverse selection of goods from EFTA countries.”
The Canada-EFTA FTA provides for the elimination of tariffs in all non-agricultural sectors including aluminum and cosmetics, prefabricated buildings, coldwater shrimp and apparel products.
It will also provide for the elimination or reduction of tariffs on selected Canadian agricultural and agri-food products such as durum wheat, frozen blueberries, frozen french fries, beer and Canadian crude canola oil.
The Government of Canada held extensive consultations with stakeholders throughout the negotiation of the agreement to ensure that their interests and concerns were taken into account.
The Canada-EFTA FTA is part of Canada’s Global Commerce Strategy, which aims to advance Canada’s commercial interests in key markets through an ambitious free trade agenda. For more information on the strategy, please visit the International Trade website here.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today tabled legislation in Parliament to implement Canada’s free trade agreement (FTA) with the states of the European Free Trade Association (EFTA) (Iceland, Liechtenstein, Norway and Switzerland). It is Canada’s first such agreement with European countries.
“In a time of global economic instability, free trade is more important than ever. Canada already exports more than $5 billion per year to EFTA countries, and that figure will grow under this agreement,” said Minister Day. “The agreement demonstrates that our government is taking action to help create opportunities in the international marketplace. It will benefit Canadian businesses by reducing barriers to trade. At the same time, Canadian consumers will have access to a more affordable and diverse selection of goods from EFTA countries.”
The Canada-EFTA FTA provides for the elimination of tariffs in all non-agricultural sectors including aluminum and cosmetics, prefabricated buildings, coldwater shrimp and apparel products.
It will also provide for the elimination or reduction of tariffs on selected Canadian agricultural and agri-food products such as durum wheat, frozen blueberries, frozen french fries, beer and Canadian crude canola oil.
The Government of Canada held extensive consultations with stakeholders throughout the negotiation of the agreement to ensure that their interests and concerns were taken into account.
The Canada-EFTA FTA is part of Canada’s Global Commerce Strategy, which aims to advance Canada’s commercial interests in key markets through an ambitious free trade agenda. For more information on the strategy, please visit the International Trade website here.
Saturday, September 20, 2008
Editorial: Free Trade with Europe Is Worth Some Concessions
(National Post – Kelly McParland)
Yesterday’s revelation that Canada and the European Union will shortly begin negotiations on a plan for “deep economic integration” was buried under news of two election campaigns and a financial meltdown. But it deserves attention.
For decades now, the idea of a Canada-Europe free trade agreement has been knocking around our halls of power. But until now, the first and in some ways most formidable barrier to progress has been getting the EU interested. If this week’s reports are to be believed, that problem now appears to be solved.
There are obvious geographical limits to EU-Canada trade, even under the most liberal trade regime imaginable. For many years, moreover, we proved hard to take seriously as a partner because our own interprovincial trade barriers have remained high (a situation recently remedied). Nor has it helped impress anyone with our commitment to globalization that a huge chunk of our economy has remained subject to old-fashioned nationalist limits on foreign direct investment.
But with the collapse this summer of the Doha Round of World Trade Organization negotiations, Canada has suddenly been thrust into the EU spotlight. EU trade experts, led by new Trade Commissioner Peter Mandelson, are coming to grips with the notion that the continued expansion of free trade will have to be carried out in painful bilateral steps, rather than in one orgasmic, globe-girdling moment of concord.
As a bonus, much of the underlying econometric study has already commenced as part of the carefully circumscribed, Doha-friendly talks toward a Canada-EU Trade and Investment Enhancement Agreement, which began in 2004. All 10 premiers are said to be on board, provisionally, with getting a deal done.
Former French prime minister Edouard Balladur, an old political mentor to current President Nicolas Sarkozy, has been a major voice promoting Canada as a good place to construct an initial model for bilateral progress. Indeed, he has spoken of a Canada-EU agreement as a potential foundation for the eventual rebuilding of the now-fractured U.S.-EU relationship. Direct free-trade negotiations between America and Europe are currently impossible to contemplate, given the mood of the European public, but the idea is that Canada could serve as a sort of rope line around which a bridge can later be built.
Probably no one in Canada needs to be talked into seeing the advantages of a solid labour-mobility deal with the Continent. With the U.S. dollar and the Euro now established as the world’s two overwhelmingly significant stores of value, increasing the share of our international trade destined for Europe, which has dwindled in the NAFTA era, would provide a useful hedge against relative fluctuations in the two currencies.
And symbolically, it already seems some Canadian nationalists like the idea of having a heavier counterbalance against the perennial threat of U.S. encroachment on Canadian sovereignty. The concept is especially popular in Quebec, where Premier Jean Charest has been pounding the pulpit for it.
Once the full details are known, the price of EU integration is likely to prove higher than the Canadian left, and indeed some on the right, would like.
Effectively joining the EU as a satellite participant would probably mean heavy concessions in such areas as labour standards and product labelling. But becoming the world’s main conduit between its two largest free trade areas is worth a few sacrifices – especially since the protectionist policies to be sacrificed do us no good anyway, but are in fact sentimental vestiges of a Trudeauvian era of command-and-control. And those who suffer continual nightmares about the increasing competitiveness of China and India should not be afraid of taking bold steps to keep pace with the Asian giants.
Free trade has lifted the fortunes of nations around the world – including Canada, which has benefitted greatly under NAFTA and the Canada-U.S. Free Trade Agreement before it. There is no reason that a free trade agreement with Europe would not also be beneficial. We urge our government to do everything in its power to make it reality.
Yesterday’s revelation that Canada and the European Union will shortly begin negotiations on a plan for “deep economic integration” was buried under news of two election campaigns and a financial meltdown. But it deserves attention.
For decades now, the idea of a Canada-Europe free trade agreement has been knocking around our halls of power. But until now, the first and in some ways most formidable barrier to progress has been getting the EU interested. If this week’s reports are to be believed, that problem now appears to be solved.
There are obvious geographical limits to EU-Canada trade, even under the most liberal trade regime imaginable. For many years, moreover, we proved hard to take seriously as a partner because our own interprovincial trade barriers have remained high (a situation recently remedied). Nor has it helped impress anyone with our commitment to globalization that a huge chunk of our economy has remained subject to old-fashioned nationalist limits on foreign direct investment.
But with the collapse this summer of the Doha Round of World Trade Organization negotiations, Canada has suddenly been thrust into the EU spotlight. EU trade experts, led by new Trade Commissioner Peter Mandelson, are coming to grips with the notion that the continued expansion of free trade will have to be carried out in painful bilateral steps, rather than in one orgasmic, globe-girdling moment of concord.
As a bonus, much of the underlying econometric study has already commenced as part of the carefully circumscribed, Doha-friendly talks toward a Canada-EU Trade and Investment Enhancement Agreement, which began in 2004. All 10 premiers are said to be on board, provisionally, with getting a deal done.
Former French prime minister Edouard Balladur, an old political mentor to current President Nicolas Sarkozy, has been a major voice promoting Canada as a good place to construct an initial model for bilateral progress. Indeed, he has spoken of a Canada-EU agreement as a potential foundation for the eventual rebuilding of the now-fractured U.S.-EU relationship. Direct free-trade negotiations between America and Europe are currently impossible to contemplate, given the mood of the European public, but the idea is that Canada could serve as a sort of rope line around which a bridge can later be built.
Probably no one in Canada needs to be talked into seeing the advantages of a solid labour-mobility deal with the Continent. With the U.S. dollar and the Euro now established as the world’s two overwhelmingly significant stores of value, increasing the share of our international trade destined for Europe, which has dwindled in the NAFTA era, would provide a useful hedge against relative fluctuations in the two currencies.
And symbolically, it already seems some Canadian nationalists like the idea of having a heavier counterbalance against the perennial threat of U.S. encroachment on Canadian sovereignty. The concept is especially popular in Quebec, where Premier Jean Charest has been pounding the pulpit for it.
Once the full details are known, the price of EU integration is likely to prove higher than the Canadian left, and indeed some on the right, would like.
Effectively joining the EU as a satellite participant would probably mean heavy concessions in such areas as labour standards and product labelling. But becoming the world’s main conduit between its two largest free trade areas is worth a few sacrifices – especially since the protectionist policies to be sacrificed do us no good anyway, but are in fact sentimental vestiges of a Trudeauvian era of command-and-control. And those who suffer continual nightmares about the increasing competitiveness of China and India should not be afraid of taking bold steps to keep pace with the Asian giants.
Free trade has lifted the fortunes of nations around the world – including Canada, which has benefitted greatly under NAFTA and the Canada-U.S. Free Trade Agreement before it. There is no reason that a free trade agreement with Europe would not also be beneficial. We urge our government to do everything in its power to make it reality.
Friday, September 5, 2008
French Businesses Loath to End 35-Hour Week
(The Associated Press)
France’s decade-long experiment with a 35-hour work week is coming to an end, sort of.
A new law allows companies to negotiate their way out of a rule that has drawn both ridicule and envy in other countries and that France’s labor minister calls a “straitjacket” on the economy.
Yet the law, which took effect just before France began returning from its long summer vacation, is meeting resistance from both workers and the employers it was meant to benefit, suggesting President Nicolas Sarkozy’s headline reform may do little to boost growth.
The 35-hour law wasn’t just about France. It set economists well beyond its borders to wondering: Is this the future of work in the developed world? Instead, the ensuing decade saw rich nations’ workers laboring ever more and more. Indeed, even French workers today average 41 hours a week of labor, despite the 35-hour rule, thanks to overtime and the time worked by those, such as farmers and the self-employed, who aren’t subject to the measure.
Nuclear plant technician Mikael Perniceni figures his free time is secure, regardless of this law being called the “coup de grace” for the 35-hour week.
The 28-year-old still expects to use some of his almost eight weeks of annual paid time off to travel to Salt Lake City next year to hear the University of Utah Singers, with plenty of time left over for visiting friends and family.
The reason for his insouciance: While the law permits companies to negotiate new, longer working time agreements with employees, few employers are expected to do so, because of a widespread reluctance to relive the often fraught negotiations that led to the current working time agreements, businesses and economists say. And a tough economic climate isn’t helping.
The new law is the most high-profile of a series of economic reforms promised by the conservative Sarkozy, and workers’ and employers’ response will be watched closely as a barometer of how much further Sarkozy can go without unleashing the fearsome street protests that have stymied past attempts at reform.
France began its experiment with a shortened work week in 1998. The idea was that by shortening the work day, employers would be forced to hire more workers in a giant work-share scheme, helping reduce the country’s chronically high unemployment rate of around 10 percent.
The measure attracted considerable attention abroad, with some envy at the extra free time enjoyed by French workers offset by mocking references to the supposedly “lazy French” (despite the stereotype, the French rank among the world’s most productive workers). Belgium, for example, cut its working week to 38 hours in 2003.
A report by national statistics agency Insee estimated that around 350,000 new jobs were created between 1998 and 2002 thanks to the 35-hour-week policy.“But the boom was followed by a bust, with very slow job creation over the ensuing years, so for the whole 10-year period, the net result was zero,” said Nicolas Bouzou, an economist at economic research firm Asteres.
Reforming the 35-hour law was one of Sarkozy’s main pledges during last year’s presidential campaign. Sarkozy says the measure was an economic mistake that did not create jobs as it was intended to do.
Lawmakers approved the new law in late July, and it came into force in mid-August, just in time for the mass return from vacation that the French refer to as “La Rentrée.”
Employers’ reluctance to make use of the law’s provisions means its economic impact is likely to be minimal, Bouzou said.
Bouzou estimated that the whole package of economic reforms instituted so far by Sarkozy, of which the 35-hour reform is part, would tack on an additional 0.3 percentage point to economic growth next year.
The reform “is probably badly timed,” agreed Laurence Boone, chief French economist at Barclays Capital. With the economy close to a recession, declining by 0.3 percent in the second quarter according to a provisional estimate, companies have little need for longer work weeks, Boone said.
Even businessmen who rail against the 35-hour workweek say they don’t plan to make use of the new law, at least for now.
The 35-hour week is “a very bad thing, it devalued work, it’s unhealthy and difficult,” said Gilles Lecointre, founder and chief executive of Intercessio, a 150-person economic consulting firm in Paris.
But Lecointre, who also teaches at French business school Essec and has written a book on small and medium-sized companies, says he has no intention of ditching his company’s 35-hour agreement.
“At Intercessio, the negotiations over the 35 hours for salaried employees were long and terrible. It destroyed relationships,” Lecointre said, “We’re not going to go back through that.”
Lecointre recalls a bitter exchange with an employee who was blocking a deal because of a dispute over a few extra minutes of work per day. The working time debate resembled “haggling over a carpet with a rug merchant,” Lecointre said.
Under the complicated legislation passed in 1998 and 1999, the legal work week was shortened from 39 to 35 hours, with no reduction in pay. Overtime was limited to 130 hours per year. White collar employees whose work schedules didn’t permit a strict application of a seven-hour day were given about two weeks worth of extra holiday, so that once averaged out over the year their work week was also 35 hours.
In practice, French workers average 41 hours of labor a week, according to recent figures from France’s statistics agency. That’s more than Germany or Britain — and not much less than the 41.7 hours worked in the United States in 2006. Read the complete article.
France’s decade-long experiment with a 35-hour work week is coming to an end, sort of.
A new law allows companies to negotiate their way out of a rule that has drawn both ridicule and envy in other countries and that France’s labor minister calls a “straitjacket” on the economy.
Yet the law, which took effect just before France began returning from its long summer vacation, is meeting resistance from both workers and the employers it was meant to benefit, suggesting President Nicolas Sarkozy’s headline reform may do little to boost growth.
The 35-hour law wasn’t just about France. It set economists well beyond its borders to wondering: Is this the future of work in the developed world? Instead, the ensuing decade saw rich nations’ workers laboring ever more and more. Indeed, even French workers today average 41 hours a week of labor, despite the 35-hour rule, thanks to overtime and the time worked by those, such as farmers and the self-employed, who aren’t subject to the measure.
Nuclear plant technician Mikael Perniceni figures his free time is secure, regardless of this law being called the “coup de grace” for the 35-hour week.
The 28-year-old still expects to use some of his almost eight weeks of annual paid time off to travel to Salt Lake City next year to hear the University of Utah Singers, with plenty of time left over for visiting friends and family.
The reason for his insouciance: While the law permits companies to negotiate new, longer working time agreements with employees, few employers are expected to do so, because of a widespread reluctance to relive the often fraught negotiations that led to the current working time agreements, businesses and economists say. And a tough economic climate isn’t helping.
The new law is the most high-profile of a series of economic reforms promised by the conservative Sarkozy, and workers’ and employers’ response will be watched closely as a barometer of how much further Sarkozy can go without unleashing the fearsome street protests that have stymied past attempts at reform.
France began its experiment with a shortened work week in 1998. The idea was that by shortening the work day, employers would be forced to hire more workers in a giant work-share scheme, helping reduce the country’s chronically high unemployment rate of around 10 percent.
The measure attracted considerable attention abroad, with some envy at the extra free time enjoyed by French workers offset by mocking references to the supposedly “lazy French” (despite the stereotype, the French rank among the world’s most productive workers). Belgium, for example, cut its working week to 38 hours in 2003.
A report by national statistics agency Insee estimated that around 350,000 new jobs were created between 1998 and 2002 thanks to the 35-hour-week policy.“But the boom was followed by a bust, with very slow job creation over the ensuing years, so for the whole 10-year period, the net result was zero,” said Nicolas Bouzou, an economist at economic research firm Asteres.
Reforming the 35-hour law was one of Sarkozy’s main pledges during last year’s presidential campaign. Sarkozy says the measure was an economic mistake that did not create jobs as it was intended to do.
Lawmakers approved the new law in late July, and it came into force in mid-August, just in time for the mass return from vacation that the French refer to as “La Rentrée.”
Employers’ reluctance to make use of the law’s provisions means its economic impact is likely to be minimal, Bouzou said.
Bouzou estimated that the whole package of economic reforms instituted so far by Sarkozy, of which the 35-hour reform is part, would tack on an additional 0.3 percentage point to economic growth next year.
The reform “is probably badly timed,” agreed Laurence Boone, chief French economist at Barclays Capital. With the economy close to a recession, declining by 0.3 percent in the second quarter according to a provisional estimate, companies have little need for longer work weeks, Boone said.
Even businessmen who rail against the 35-hour workweek say they don’t plan to make use of the new law, at least for now.
The 35-hour week is “a very bad thing, it devalued work, it’s unhealthy and difficult,” said Gilles Lecointre, founder and chief executive of Intercessio, a 150-person economic consulting firm in Paris.
But Lecointre, who also teaches at French business school Essec and has written a book on small and medium-sized companies, says he has no intention of ditching his company’s 35-hour agreement.
“At Intercessio, the negotiations over the 35 hours for salaried employees were long and terrible. It destroyed relationships,” Lecointre said, “We’re not going to go back through that.”
Lecointre recalls a bitter exchange with an employee who was blocking a deal because of a dispute over a few extra minutes of work per day. The working time debate resembled “haggling over a carpet with a rug merchant,” Lecointre said.
Under the complicated legislation passed in 1998 and 1999, the legal work week was shortened from 39 to 35 hours, with no reduction in pay. Overtime was limited to 130 hours per year. White collar employees whose work schedules didn’t permit a strict application of a seven-hour day were given about two weeks worth of extra holiday, so that once averaged out over the year their work week was also 35 hours.
In practice, French workers average 41 hours of labor a week, according to recent figures from France’s statistics agency. That’s more than Germany or Britain — and not much less than the 41.7 hours worked in the United States in 2006. Read the complete article.
Tuesday, May 6, 2008
Government Tables Bill to Approve First Free Trade Deal in Six Years
(The Canadian Press)
The federal government says it will introduce legislation today [Monday] to approve a free trade agreement with four small European nations. The deal, the first comprehensive free trade agreement Canada has negotiated in six years, was negotiated last year and went through a 21-day opening for debate in the House of Commons without discussion.
Canadian two-way trade with the countries that make up the European Free Trade Association – Iceland, Liechtenstein, Norway and Switzerland – is estimated at $11 billion annually.
Trade Minister David Emerson trumpeted the deal last summer as a directional change for Canada, and vowed more deals in the future. But although the government has pursued negotiations with several countries, including Colombia and South Korea, none have been concluded since. The talks with Colombia and South Korea have met stiff resistance from opposition parties and affected industries and unions.
The federal government says it will introduce legislation today [Monday] to approve a free trade agreement with four small European nations. The deal, the first comprehensive free trade agreement Canada has negotiated in six years, was negotiated last year and went through a 21-day opening for debate in the House of Commons without discussion.
Canadian two-way trade with the countries that make up the European Free Trade Association – Iceland, Liechtenstein, Norway and Switzerland – is estimated at $11 billion annually.
Trade Minister David Emerson trumpeted the deal last summer as a directional change for Canada, and vowed more deals in the future. But although the government has pursued negotiations with several countries, including Colombia and South Korea, none have been concluded since. The talks with Colombia and South Korea have met stiff resistance from opposition parties and affected industries and unions.
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