EU Criticises Protectionism among Trading Partners

(Europolitics – Chiade O’Shea)

The European Union has expressed concerns that its trading partners are using too many restrictive commercial measures, posing a threat to a speedy recovery from the financial and economic crisis. Trade Commissioner Karel De Gucht on 25 October called for an end to the practice.

“With the economic recovery still fragile, the world’s major economies must remove the trade restrictive measures that put a break on growth,” De Gucht said as he published a new report detailing the extent of these tariff and non-tariff barriers. The report, which De Gucht says is an important tool to monitor rises in protectionism, lays out over 300 restrictive trade measures taken by the European Union’s 30 top trade partners in the two years since the crisis began in 2008. They included so-called ‘classical trade barriers’ like import bans and tariff increases, but also the now infamous ‘non-tariff barriers’ such internal incentives to “buy national”. Read the complete report here.

9th Carrefour Europe 2010 – Montreal, October 26

The largest gathering of the European Canadian business community in Montreal!

October 26, 2010; 2:00 – 7:30 p.m., Palais des congrès de Montréal

Eight European Chambers of Commerce, Consulates and Trade Commissions in Montreal are organizing the 9th Carrefour Europe 2010. You will have the opportunity to meet members and contacts of the Montreal European Chambers of Commerce and Trade Commissions in Montreal from Belgium, France, Germany, Hungary, Ireland, Italy, Poland, and Switzerland.

2 workshops will provide you with hands-on information on doing business with Europe:• Workshop I: Doing Business in Europe - How to Export and Invest in Europe.
• Workshop II: How to Prepare and Finance Your Exports to Europe?

For complete details consult: http://www.carrefour-europe.org or contact Ms. Anna-Lena Gruenagel at (514) 844-3051 or consulting.montreal@germanchamber.ca

EU About to Simplify VAT Collection Rules in Relation to Centralized Customs Clearance?

(Lexology – Erik de Bie, Greenberg Traurig LLP)

The European Commission circulated a document for consultation to parties concerned in the context of a preparation of a possible legislative proposal on the simplification of VAT collection procedures in relation to centralized customs clearance. Bearing in mind the growing demand of companies to organize EU customs clearance cross-border, this is an important consultation. The current VAT rules do not provide clear and efficient solutions for centralized customs clearance. To facilitate the developments in the customs arena, it is crucial that the European Commission and the EU Member States implement a solution soon.

What is the problem? The Modernized Customs Code allows the customs authorities to authorize importers to declare and pay customs duties to the customs office that is competent for such importer, independent from where the goods are physically imported and where they are transported to within the EU. Read more here.

Champagne And Cheese Could Bring Down Anti-Piracy Talks

(European Voice)

Karel De Gucht, the European trade commissioner, has declared his readiness to walk away from international talks on an anti-counterfeiting pact if it does not include the EU’s list of protected products such as champagne and Parma ham.

De Gucht told MEPs during a debate on Wednesday (8 September) on the Anti-Counterfeiting Trade Agreement (ACTA) that the EU had to have the so-called geographic indicators (GI) included in the final deal.

The United States is blocking the EU’s request to include GIs in the accord and De Gucht said negotiations on the issue during the last round of talks in Washington, DC, last month were “disappointing”. The issue is threatening to become the main stumbling-block to completing a deal. Read more here.

Related: Talks On Anti-Counterfeiting Agreement Must Be More Transparent, Say Meps (European Parliament)

EU Considers Big Tariff Cuts to Help Manufacturers

(Juliane von Reppert-Bismarck — Reuters)

European Union countries are in a deepening dispute over an Italian proposal to temporarily drop import tariffs on dozens of raw industrial goods, a move supposed to help EU manufacturers weather the economic crisis. The Italian proposal was put to the European Commission, the EU's executive, several months ago, prompting the Commission to ask other EU member states for their input.

As a result, the Commission has now compiled a list of 92 products from which tariffs could be cut, sparking a row between member states who support the move and those who say doing so would damage their own manufacturing industries.

The Commission's list, seen by Reuters, covers products in the steel, cosmetics, shoemaking, textile, furniture and car-manufacturing industries, among others. Read more here.

World Shipping Council Briefs U.S. Shippers on EU Rules

(JOC Sailings.com – Peter T. Leach)

The World Shipping Council met with U.S.-based shipper and forwarder trade associations Thursday to explain the European Union’s new customs cargo security filing requirements, which are scheduled to enter into force on January 1, 2011. The new European rules will require the documentation of containerized cargo shipments that will arrive in European ports to be electronically filed with European customs authorities no later than 24 hours before vessel loading. Read more here.

What Crisis? The Euro Zone Adds Estonia

(New York Times – James Kanter)

Guess what? The funniest thing happened in Europe on Thursday. A new country joined (yes, joined) the euro zone. And the mood here was upbeat.

With a debt crisis that appears to be spreading from Greece to Spain, membership for the country, Estonia, might seem more curse than blessing. There had been speculation that countries might abandon the single currency. And some doubt Estonia is even ready for the move.

“Maintaining low inflation rates in Estonia will be very challenging,” the European Central Bank warned last month.

Still, the euro remains among the strongest currencies in the world, and membership opens the door to a club with global influence. For small and unsure countries on the fringes of the European Union, it doesn’t get much better – no matter the mounting downsides for countries already on the inside.

“Joining the euro is a status issue for countries seeking to cement their position at Europe’s top table,” said Simon Tilford, the chief economist for the Center for European Reform, a research organization based in London. “But you also could call it sheer bloody-mindedness of Estonia to join now with the outlook for the currency so uncertain.” Read more here

Price Impact of EU Food Standards Limited

(FlexNews – Reuters)

A senior European Commission official on Thursday backed the idea of forcing farm imports to meet European Union production standards, but said the move would not give EU producers a significant new price advantage.

French President Nicolas Sarkozy said in March that he would be prepared to discuss a cut in the EU's 50 billion euro ($60.19 billion) annual farm budget in return for tougher conditions on imports to protect European produce.

"We believe in our model not only for safety, but for environmental protection and also animal welfare standards, so we should continue to defend it at international level," Paola Testori Coggi, head of the Commission's health and consumers department, said at a conference in Brussels on Thursday. Read more here.

Canada Minister Confident Of EU Trade Pact Before End 2011

(The Wall Street Journal)

Canada is optimistic that it can sign a free trade agreement with the European Union before the end-2011 target, International Trade Minister Peter Van Loan said Thursday.

The two sides have concluded three rounds of negotiations, with a fourth planned for July and a fifth in October. This will be followed by a “stock-taking exercise,” and then a political and drafting phase that had been expected to take a year, Van Loan said.

“That has been moving ahead of schedule,” he told reporters on a conference call from Spain at the conclusion of a five-day trip to Europe. “So, we’re optimistic we will be able to complete it before the end of 2011,” he said.

Van Loan said both sides “appear to have a very strong commitment, very strong interest in an agreement, and one that aims high.” He said he doesn’t foresee negotiations extending beyond the fifth round. He said the two sides have set aside “sticky” matters for discussion later, and the fourth and fifth rounds of negotiations will wrestle with the “really difficult issues.” Read more here.

Big Stakes in Canada-Europe Trade Talks, but Little Attention

(The Canadian Press – Julian Beltrame)

It may well be the biggest and most important trade negotiation that most Canadians have never heard of.

While most of the news out of Europe of late has had to do with the Greek debt crisis and an ash-spewing volcano in Iceland, about 60 Canadian officials have been huddled in contentious trade talks with their European counterparts – at least video images of their counterparts – in what used to be Ottawa’s city hall by the Rideau.

There have been no demonstrators in front of the building denouncing a sell-off of Canadian sovereignty, and hardly a mention in the media or the House of Commons. But if you listen to the critics, what is at stake is in some ways more troubling than the Canada-U.S. free trade talks of the late 1980s – over which an election was fought – or the NAFTA deal that followed.

“What we want is the most ambitious trade agreement we’ve ever had,” federal Trade Minister Peter van Loan said in an interview with The Canadian Press. “We’re looking for something that is deeper and broader than even NAFTA, and this is with the world’s largest economy.”

The two sides are now in the third round of talks, with two more planned. If all goes well, Van Loan hopes to see ink on the Comprehensive Economic and Trade Agreement or CETA by late next year. Read more here.

U.S. Seeks to Push Ahead With Trade Deal on Green Technologies

(Bloomberg BusinessWeek – Mark Drajem)

The U.S. is talking with Canada, the European Union and Australia about eliminating tariffs on solar, wind and related energy technologies to spur their use, U.S. Trade Representative Ron Kirk said today. Kirk said the U.S. is seeking an “early harvest” for an agreement on so-called green technologies, which means an environmental deal wouldn’t have to wait for completion of the Doha Round of World Trade Organization talks. Negotiations on environmental goods have taken place since 2008.

“We think it only makes sense to make the trade of those goods more open,” Kirk said at a Washington event on patent protections. “We think it is important enough” that it could move ahead on its own, he said. Read more here.

New European Portal: Customs Security Procedures

(CIFFA eBulletin)

The European Commission has launched the first phase of a new web portal to help businesses to understand and follow the customs procedures for importing goods into and exporting goods from the EU. Designed as a single point of access to relevant and practical information, the portal includes animated scenarios to explain each step of the import, export and transit procedures.

For further information visit the European Customs Information Portal.

Canada Begins Third Round of Economic and Trade Negotiations with European Union

(Foreign Affairs & International Trade Canada)

The Honourable Peter Van Loan, Minister of International Trade, today met with officials from Canada and the European Union in Ottawa, where a third round of negotiations toward a comprehensive economic and trade agreement are being held.

“An agreement of this magnitude with the European Union represents a huge opportunity for Canadians,” said Minister Van Loan. “A future agreement would give Canada preferential access to the wealthiest single market in the world.”

The Canada-European Union joint economic study, released in October 2008, shows that a stronger economic partnership could boost Canadian gross domestic product by $12 billion annually, and two-way trade with Europe could increase by $38 billion.

“At a time when Canadian business needs it most, our government is ensuring that Canadians can compete and succeed in a global marketplace,” said Minister Van Loan. “Our commitment to free trade is clear and this agreement will benefit many sectors of the Canadian economy, ensuring a lasting recovery and long-term economic growth.”

Video teleconferencing services will be used to assist in this week’s negotiations, as a volcanic ash cloud has caused air travel disruptions across Europe. The talks may be extended into the weekend.

Canada and the European Union have had successful rounds of negotiations in October 2009 and January 2010. Significant progress has been achieved in such areas as goods and services, government procurement, regulatory cooperation and dispute settlement. The fourth round of negotiations is scheduled to take place in Brussels during the second week of July 2010. Read more here.

Europe’s Biodiesel Producers Seek EU Anti-Fraud Probe of Canadian Shipments

(Juliane Von Reppet-Bismark — Globe & Mail)

The seizure by Italian customs officials of a shipload of Canadian biodiesel highlights the global battle for a slice of the growing renewable energy market.

A regional judge in Italy on Wednesday approved the seizure of 10,000 tonnes of biodiesel labelled as coming from Quebec and bound for the ports of Venice and Trieste. Italian customs officials blocked the cargo last month after receiving a tip that the material originally came from the United States.

Last May, the European Commission imposed duties on U.S. biodiesel for a five-year period, in response to what it said were illegal U.S. subsidies and export pricing practices. The duties have sent U.S. exports to Europe plummeting, to less than 400,000 tonnes in 2009 from 1.5 million tonnes in 2008.

The European Biodiesel Board (EBB), which represents European producers, believes the duties are being circumvented by the shipment of U.S. biodiesel through other countries, including Canada. The European producers claim the U.S. fuel is being labelled as coming from Canada, or that it is being mixed into Canadian biodiesel, for sale at a lower price than EU biodiesel of comparable quality. Read more here.

EU Takes Aim at Canada Post, Ontario Green Energy Act

(Embassy – Lee Berthiaume)

Canada Post, provincial liquor boards across the country and Ontario’s new Green Energy Act are all being targeted by the European Union in its trade talks with Canada, confidential EU briefing notes show. While none are considered deal breakers, several touch on long-standing irritants between the two sides and go a long way to revealing just how far-reaching a deal negotiations are hoping for.

Last May, the Ontario government passed the Green Energy Act. The intent was to lay the foundation for a new renewable energy industry in the province. One of the key aspects was feed-in tariffs, in which the government pays individuals, communities and businesses that generate electricity from renewable sources like solar or wind. The idea is to offset the cost of implementing such projects.

However, in order to take advantage of the feed-in tariff program, or FIT program, a certain percentage of the project must include provincially-made goods and labour. […]

“The idea behind the domestic content regulations is to encourage investment, green manufacturing and construction and installation jobs in Ontario,” reads one of the EU documents. A second document (neither are dated) reads that the EU’s objective is “to convince the governments of Ontario and Canada to abandon the requirement to use domestically produced equipment to produce renewable electricity in order to benefit from high feed-in tariffs.” It goes on to state that the medium-term objective is to avoid the Ontario initiative becoming a precedent for other provinces. Read more here.

EU Wants All-Access Pass to Canadian Procurement

(Embassy – Laura Payton)

Confidential European briefing notes show a desire to bid on contracts with utilities, port and airport authorities

European Union negotiators want access to procurement competitions in an extensive list of Canadian cities, utilities and Crown corporations in a market they estimate is worth $86 billion, according to confidential EU briefing notes provided to Embassy.

The documents, including the EU’s “initial market access request to Canada,” dated December 2009, detail some of what the trading bloc is seeking in opening up bilateral trade, investment and labour mobility. And when it comes to government procurement, they want it all.

“All central government entities and all other central public entities,” should be open to contracting European goods and services, the request says, pointing to the federal level. At the provincial and territorial level, the request is similar: “All sub-central government entities including those operating at the local, regional or municipal level.”

That includes, for example, opening up bidding for goods and services for the Prime Minister’s Office, the House of Commons, the Senate, Elections Canada, the Library of Parliament and Public Safety and Emergency Preparedness Canada. Two of the government’s biggest buyers, Public Works and Government Services Canada and Transport Canada, are also on the list. Read more here.

EU Trade Chief-Designate Rejects Carbon Border Tariffs

(Reuters – Pete Harrison and Darren Ennis)

The European Union should not impose border tariffs on goods from countries that fail to cut back their climate-damaging emissions, the EU’s trade commissioner-designate said on Tuesday.

“I don’t think that’s the right approach myself,” Karel de Gucht told members of the European Parliament, which will vote whether to approve the European Commission line-up on January 26. “It’s an approach that will run into many practical problems.”

Europe has pledged to cut its emissions of carbon dioxide, which are blamed for climate change, to a fifth below 1990 levels over the next decade. But manufacturers worry that the cost of cleaning up factories and power-generators will make their products more expensive and less attractive than cheap imports from rivals in India and China.

Some politicians, particularly in France, have said that imposing carbon tariffs on goods from carbon-intensive manufacturing regions would level out the playing field. Read more here.

EU-Canada Trade Talks: The Devil Is in the Details

(Troy Media – Robert Gallagher)

In an age where coupling the words “economic” and “crisis” comes as naturally as the union of rhythm and blues or bacon and eggs, ticking off the projected benefits of the Canada–European Union Comprehensive Economic and Trade Agreement (CETA) evokes the stuff of dreams.

The aim is for completely open, bilateral competition for public and government contracts, harmonization of regulations to make trade transparent, and free movement of qualified, professional employees. The hoped-for result is that within three years there will be a 20% increase in bilateral trade and a $12-billion boost in Canadian Gross Domestic Product.

Too good to pass up? Or too good to be true? Mooted for some years now, the first round of talks aimed at hammering out the agreement took place in Ottawa last year. Public releases were couched in vague platitudes with not a bracing of hard facts. Read more here.

The EU and Canada Agree on an Air Transport Deal

(New Europe)

The European Union (EU) has completed several aviation agreements, including a comprehensive Air Transport Agreement with Canada, which will allow unlimited access to Canadian cargo operators and commercial airliners, and vice versa. Air carriers will also be able to pick up traffic in each partner’s territory and continue to a third country as part of a service to or from their home territory. All 27 EU member states signed the agreement.

Canada’s Transport Minister, John Baird, said: “Our government has moved at an unprecedented pace since 2006 to negotiate or enhance existing air travel agreements with other countries, and we are proud to now be signing our largest ever with the European Union. For the first time, Canadian air carriers will be able to access and expand into all EU member states, and EU carriers will be able to expand into Canada. The result will be better air travel choices and new opportunities for Canadian businesses by 2010,” Tax-News.com reported.

The EU is Canada’s second-largest bilateral aviation, trade and investment market. In 2008, Canadian exports to the EU totaled $52.2 billion, an increase of 3.9% from 2007. “This comprehensive air transport agreement will help boost Canada’s economy by creating new jobs, expanding our commercial links and building connections for our citizens,” said Stockwell Day, Canada’s Minister of International Trade. Read more here.

EU Demands in Free Trade Talks Would Retool Our Copyright Laws

(Michael Geist — Toronto Star)

Earlier this year, Canada and the European Union announced plans to negotiate a Comprehensive Economic and Trade Agreement (CETA), possibly the biggest Canadian trade negotiations since NAFTA. The first round of talks took place in Ottawa in October, yet the treaty has generated practically no public scrutiny.

That may change following the leak last week of the European Union's proposed intellectual property chapter.

Simply put, the EU demands target the entire Canadian economy. They include increased patent protection for pharmaceutical companies, heightened support for famous trademarks and new rules for industrial designs. Read more here.