Showing posts with label Trade Policy. Show all posts
Showing posts with label Trade Policy. Show all posts

Friday, June 4, 2010

China Warns U.S. on Steel Dispute

(The Wall Street Journal)

China lashed out at the U.S. over a final decision to slap duties on imports of Chinese steel gratings, warning that the rising number of U.S.-initiated trade disputes against Beijing hurts economic ties between the two powers.

“The Chinese government and industry cannot accept this,” the Ministry of Commerce said in a statement issued on its website late Wednesday, referring to what it said was an incorrect investigation conducted by the U.S.

It urged the U.S. to practice restraint in resorting to such trade remedies and called on it to oppose protectionism.

The response came after the U.S. Commerce Department announced a final decision Tuesday to impose duties against some steel grating imports from China, setting countervailing duties at 62.46% and antidumping duties ranging between 136.76% and 145.18%. Read more here.

Friday, August 28, 2009

Canada Names Social Democrat as Envoy to U.S.

(Video: CBC/Hudson Institute • Story: Reuters)



Conservative Prime Minister Stephen Harper on Friday named a member of the left-leaning New Democratic Party to be Canada’s new ambassador to the United States, as Ottawa seeks to keep trade flowing with its largest trading partner.

Harper said ambassador-designate Gary Doer had been “a strong advocate of both good, close and assertive relations with the United States.”Doer said on Thursday that he was stepping down as premier of the prairie province of Manitoba, but declined at that time to say what he would do next. Read more here.

Wednesday, August 19, 2009

Persuasion Key to Countering U.S. Protectionism, McGuinty Argues

(Toronto Star – Joanna Smith)

Ontario Premier Dalton McGuinty is encouraging municipal governments to combat “Buy American” policies by reaching out to their neighbours below the border instead of adopting protectionist measures of their own.

“We are kidding ourselves if we think we can be safe by building a lifeboat just for the people in our communities,” McGuinty told the annual conference of the Association of Municipalities of Ontario this afternoon according to an advance copy of his speech. “In an age of globalization, at a time when our jobs depend on strong trade, what's called for is not a lifeboat for a select few. We need an ark, for all of us.”

McGuinty said the best way to recover from the economic downturn is by working together. “I want to thank all of you who have spoken out against 'Buy American' protectionism and reached out to your counterparts across the border,” McGuinty said, adding that he and other premiers have endorsed efforts by Prime Minister Stephen Harper to ask the U.S. to exempt Canada from the protectionist provision in its federal stimulus bill. “I strongly encourage you to do the same,” McGuinty said. Read more here.

Monday, August 10, 2009

ITC Issues Year in Trade Report for 2008

(World Trade Interactive)

The International Trade Commission released July 30 The Year in Trade 2008, its annual review of U.S. trade-related activities. This publication reviews the administration of U.S. trade laws and regulations, the operation of the World Trade Organization, U.S. free trade agreements and negotiations, and relations with major trading partners. It includes:

• complete listings of antidumping, countervailing, safeguard, intellectual property rights infringement and section 301 investigations undertaken in 2008;

• the operation of trade preference programs such as the Generalized System of Preferences, the African Growth and Opportunity Act, the Andean Trade Preference Act and the Caribbean Basin Economic Recovery Act;

• significant activities in the WTO, including its dispute settlement mechanism, and the Organization for Economic Cooperation and Development;

• developments in bilateral and regional FTAs; and

• trade relations with major trading partners such as the European Union, Canada, China, Mexico, Japan, Korea, Taiwan, Brazil and India.

The report can be downloaded here (217 pages PDF).

Wednesday, August 5, 2009

Experts Want New Policy on Trade Disputes

(Embassy)

Trade lawyers say the government’s decision to challenge the European Union’s ban on seal products at the World Trade Organization sends a strong signal Canada is prepared to stand up to trading partners that go back on their commitments.

In fact, they are hoping the seal ban challenge and two others launched in recent months represent a major change in Canadian trade policy, with the country joining what they describe as a new trend toward actively enforcing international trade rules.

Others, however, feel the challenges are more about satisfying specific interest groups rather than the start of a badly needed “offensive strategy” when it comes to Canada and trade disputes.

Over the years, Canada has initiated trade actions against a number of states over a variety of issues. Some, like a challenge over an EU ban on genetically modified foods, went all the way to a trade dispute panel. Others, such as a joint Canadian-Brazilian challenge over U.S. farm subsidies, are still ongoing, while some have stalled. Read more here.

Thursday, July 16, 2009

Supporters Cite Economic, Employment Gains in Pushing for Misc. Trade Bill

(World Trade Interactive)

The Tariff Action Coalition, a group of domestic chemical and other companies, released July 10 a report arguing that congressional approval of a miscellaneous trade bill this year would have a positive effect on domestic economic output and employment. The MTB would lower or suspend tariffs on imports of key manufacturing and production inputs that are not made in the U.S. or where there is no domestic opposition. Supporters are seeking to push lawmakers to enact an MTB before current duty breaks provided under the last MTB expire at the end of this year.

The report estimates that the tariff suspension bills now being considered by Congress as part of a potential MTB would result in $4.6 billion in additional domestic production, which would expand real gross domestic product by $3.5 billion and support nearly 90,000 U.S. jobs. The report notes that the economic benefits derived from the MTB are proportionately higher than those derived from other types of tariff reductions (e.g., under free trade agreements) because there is no domestic production of MTB products that would be displaced by rising imports. Read more here.

Monday, June 29, 2009

Obama Opposes Trade Sanctions in Climate Bill

(New York Times – John M. Broder)

President Obama on Sunday praised the energy bill passed by the House late last week as an “extraordinary first step,” but he spoke out against a provision that would impose trade penalties on countries that do not accept limits on global warming pollution.

“At a time when the economy worldwide is still deep in recession and we’ve seen a significant drop in global trade,” Mr. Obama said, “I think we have to be very careful about sending any protectionist signals out there.” He added, “I think there may be other ways of doing it than with a tariff approach.”

The passage of the House bill on Friday night was an important, if tentative, victory for the president, becoming the first time either chamber of Congress had approved a mandatory ceiling on the gases linked to global warming. Read more here.

Wednesday, June 17, 2009

There Are Better Plans Than Buy Canadian

(Embassy – Leslie Campbell)

After enduring years of border thickening and complaining with little result, the “Buy American” provision in President Obama’s stimulus bill may have gone one step too far, awakening Canada from its torpor and simultaneously uniting the federal, provincial and municipal governments around one problem – something few other issues can do.

As is now well known, Obama’s stimulus plan, formally called the American Recovery and Reinvestment Act of 2009, contained a provision stipulating that all of the “iron, steel and manufactured goods used in the project are [to be] produced in the United States.”

The Canadian Manufacturers and Exporters (CME) noted in a May 25 briefing document that two subsequent bills, the Water Quality Investment Act, and the Green Schools Act contain similar protectionist clauses and the CME fears that most new appropriations bills will contain similar language.

Initial hopes that Canada would be protected by existing trade agreements proved mostly false. Much of the stimulus money is transferred to the states and local government for “shovel-ready” public projects to be started immediately. State and municipal procurement preferences are not covered under existing international treaties.

The Canadian government has been active on the issue since Buy American first emerged, and the Canadian Embassy in Washington brought all 13 of Canada’s consul generals to Capitol Hill on June 9 [see video below] to hold meetings with a reported total of 75 members of Congress and staff. Read more here.

All Politics Is Local

(Canadian Embassy, Washington DC)



On June 9, 2009, Canada’s most senior diplomats in the U.S. met with over 75 members of Congress and staff to drive home the message that the Buy American restrictions in the U.S. Recovery Act are costing jobs on both sides of the border. The Canadian delegation was accompanied by close to 30 American business leaders who support the message that by working together our two countries can kick-start the North American economy.

Monday, June 15, 2009

What To Do About Buy America?

(Globe & Mail)

U.S. states and municipalities buying goods for infrastructure projects are discriminating against Canadian manufacturers, despite Ottawa's lobbying efforts. Six panelists offer their solutions: William Robson (president of the C.D. Howe Institute), Ken Lewenza (president of the Canadian Auto Workers union), Chuck Gastle (a trade lawyer at Bennett Gastle P.C.), John Hayward (president of pump maker Hayward Gordon Ltd.), Gordon Giffin (former U.S. ambassador to Canada) and David Miller (mayor of Toronto).

Click here to read the article.

Thursday, June 4, 2009

Ottawa Pushes for New Chapter in Free Trade with U.S.

(The Globe and Mail – Campbell Clark and Rhéal Séguin)

To get around Buy American provisions, PM hopes to bring awarding of local contracts under the free-trade umbrella

The Canadian government is asking the provinces to join it in creating a new trade deal with the United States. Motivated by growing concern that Canadian firms are being frozen out of billions of dollars worth of bids in an increasingly protectionist United States, the Prime Minister is attempting to redraw the U.S.-Canada trade map.

Because the 1993 North American free-trade agreement does not include spending by local jurisdictions, contracts across North America involving everything from sewage systems to subway repairs are being awarded outside the framework of continental free trade.

And as the recession continues, Canadian firms have reported it is increasingly difficult to win rich contracts in U.S. cities because of the Buy American provisions of President Barack Obama’s massive economic stimulus package, even though NAFTA countries are supposed to be exempt from them.

So at a press conference yesterday, Prime Minister Stephen Harper said he wants to bring the awarding of local contracts – in both the United States and Canada – under the free-trade umbrella.

Any Canadian proposal to add a new chapter to NAFTA, however carries the risk that the United States will demand trade concessions in other areas. Read more here.

Tuesday, June 2, 2009

In Tough Times, We Can’t Afford Provincial Barriers

(The Globe and Mail – Gordon Gibson)

Section 121 of the BNA Act needs teeth

A reason for the success of our federalism is decentralization of power, from Ottawa to the provinces and from the provinces to towns and the private sector. Indeed, we need more of this. But there is one area where the feds should take a legal sledgehammer to the provinces and do what the Americans call a “cramdown” to free up trade in this country.

Petty impediments to interprovincial trade in terms of local licensing and standards and particularly in provincial and municipal procurement have always been a nuisance. Now they’re a major problem, driven by tough times.

First, the United States is turning more protectionist and inserting “Buy American” requirements into more and more government projects. In some cases, NAFTA offers no defence and, even when it does, the rules take years to enforce. When a town in California instructs a contractor to rip up some piping because the valves were made in Canada, you know you have a problem. But the Americans can reply: “Your provinces do the same thing”

Second, Ottawa is working hard to negotiate a free-trade agreement with the European Union. This would be a good thing on its own merits, with the additional advantage of making us a bit less reliant on America. But there’s a huge stumbling block for the Eurocrats. Since so much of the purchasing in Canada is controlled by the provinces, the EU wants any deal to be enforceable on provincial and municipal procurement as well. This is a deal breaker. Read more here.

Sunday, May 10, 2009

Obama’s Trade Stance Keeps Partners Guessing

(Edward Luce — Financial Times)

During last year’s US presidential campaign Austan Goolsbee, then Barack Obama’s economic adviser, got into hot water when he told a Canadian diplomat not to pay too much attention to his candidate’s tough rhetoric on the North America Free Trade Agreement.

Mr. Obama’s spin doctors quickly locked Mr. Goolsbee away in a dark room.

A year later Mr. Goolsbee, who is now at the Council of Economic Advisers, a group that answers to the president, is being vindicated. On Wednesday Mr. Obama issued a statement on trade that contained little of the language he deployed on the campaign trail.

The president’s statement also flagged up a new “plan of action” on three unconsummated trade agreements – with South Korea, Colombia and Panama – all of which are deeply unpopular with trade unions and all of which Mr. Obama opposed on the campaign trail. Wednesday’s statement followed a clear hint last month from Ron Kirk, Mr. Obama’s trade representative, that NAFTA would not formally be reopened for negotiation. […]

Trade watchers in Washington are divided between those who believe Mr. Obama is moving rapidly towards a Clintonite position in favour of new trade deals and those who believe the president is simply moving away from the protectionist wing of the Democratic party without developing a proactive new agenda on trade. Read more here.

Wednesday, April 15, 2009

Day Launches New Trade Offices in China to Help Canadian Business

(Minister of International Trade)

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today launched new Canadian trade offices in Chengdu and Shenzhen, China. These will help Canadian companies gain access to one of the world’s fastest-growing economies.

“Expanding trade opportunities for Canadians is a top priority for our government. These cities present some of the greatest prospects in China,” said Minister Day. “Expected to open on July 1, the two offices will further strengthen Canada’s commercial footprint and expand the business connections that are so critical to trade in China.”

An additional four Canadian trade offices – in Nanjing, Qingdao, Shenyang and Wuhan – are expected to open before the end of the year. Together, these six cities are home to almost 50 million people.

“A great number of opportunities exist for Canadian companies in sectors such as construction, agriculture, machinery and equipment, and technology,” said Minister Day. “These new offices will be central points of contact for Canadian firms and our Chinese business partners seeking to establish new links with everything Canada has to offer.”

In 2008, Canadian merchandise exports to China totalled $10.4 billion, up 9.1% from the previous year. Merchandise imports from China totalled $42.6 billion, up 11.3%.

Additional information can be obtained on this matter at the DFAIT website.

Wednesday, March 25, 2009

2009 Trade Agenda: Emphasis on Enforcement, Changes in Trade Policy

(World Trade Interactive)

A new U.S. trade representative is in place and the congressional committees that oversee trade policy are already moving forward on issues affecting global commerce. Following our recent articles on the 2009 trade agenda for the Obama administration and the House Ways and Means Committee, this article provides additional details on the trade issues likely to be in play this year, based on recent comments by administration officials and key lawmakers. This is the first in a three-part series and focuses on the priority being given to trade enforcement as well as possible changes in trade policy. Read the complete article here.

Monday, March 23, 2009

U.S. Moves to Patch Mexico Rift

(Wall Street Journal – Christopher Conkey)

The Obama administration began efforts Friday to ease an erupting trade dispute with Mexico by starting work on a new program to give Mexican truckers broader access to U.S. highways.

Transportation Secretary Ray LaHood met with officials from the State Department and the Office of the U.S. Trade Representative to design a cross-border trucking program “that will meet the legitimate concerns of Congress and our [North American Free Trade Agreement] commitments,” said a White House spokesman.

A person familiar with the meeting said the participants “are going to work to get a proposal everyone likes before [President Barack] Obama’s trip to Mexico in April.”

The administration’s move comes after Mexico earlier this week slapped tariffs on $2.4 billion in U.S. goods ranging from grapes to toilet paper. Mexico said its action was retaliation for a provision in a budget bill Mr. Obama signed earlier this month that effectively shut down a pilot program that had allowed some Mexican truckers to transport cargo beyond a 25-mile commercial zone inside the U.S. border. Mexico says the U.S. is failing to meet its obligations to cut barriers under NAFTA.

Business interests ranging from Pennsylvania-based Hershey Co. to the USA Rice Federation are urging the White House to permit qualified Mexican truckers to drive on U.S. roads.

Exporters affected by the tariffs say the government is causing economic damage by catering to unions that are more concerned with protecting jobs than improving safety. Read more here.

Friday, March 20, 2009

Mexico’s Retaliation List

(American Association of Importers & Exporters)

AAEI is calling on the Obama Administration to negotiate an acceptable compromise with Mexico to avoid higher duties on 90 U.S. export products.

This week, Mexico announced its intention to raise duty fees in response to the passage of the Omnibus bill, which eliminates funding for a NAFTA pilot program for Mexican cross-border trucking. The retaliatory tariffs add up to $2.4 billion. The list is available in English and Spanish on the AAEI website.

AAEI supports the free flow of trade. Blocking compliant Mexican carriers from the U.S. border impedes the free flow of trade. Retaliatory duties imposed on U.S. exporters hurts U.S. workers. Most of the products on the retaliatory list are agricultural produce.

If you have any comments or questions, contact AAEI at feedback@aaei.org

Sunday, March 1, 2009

Harper in New York: Interview with Fox Business

(Video: Fox Business • Story: Canadian Press)

Prime Minister Stephen Harper was in the Big Apple on Monday [February 23], capitalizing on the goodwill from last week's presidential visit to extol Canada's virtues to American business representatives.

Harper began his day with an interview with Fox News, where he reminded an American audience of the value of the relationship between the two countries - even if one of them isn't prone to blowing its own horn very much. Read more here.



Tuesday, February 24, 2009

Harper Stresses Importance of Trade

(Sinclair Stewart — Globe & Mail)

Prime Minister Stephen Harper swept into Manhattan for a series of high-level meetings on the economic crisis Monday, publicly promoting open trade between Canada and the United States while privately casting about for input on how best to deal with worsening financial conditions at home.

Mr. Harper, looking to extend the momentum generated by U.S. President Barack Obama’s inaugural visit to Ottawa last week, warned against the escalating protectionist rhetoric in the United States and overseas, and took pains to remind Americans that cross-border trade will play a vital role in the recovery of both countries.

However, he also insisted that the global economy will remain mired in recession until Washington figures out a way to revive its ailing banks.

“The fact of the matter is, President Obama has a massive mess on his hands – and it is essential that the United States somehow stabilize its financial sector,” he said during an interview with Fox Business News. “Because if we don’t stabilize the financial sector, in the United States and abroad, we will not turn this recession around.” Read more here.

Monday, February 23, 2009

Harper on U.S. Sales Job

(Kathleen Harris — Sun Media)

Trip south on heels of Obama meeting

Prime Minister Stephen Harper will remind Americans that Canada is doing its part to fuel the global economic recovery, while warning of the pitfalls of protectionism when he meets with business leaders in New York today.

In a bid to build momentum from last week’s visit from U.S. President Barack Obama, Harper and key ministers are holding a series of meetings with Americans.

Harper will hold a business roundtable in New York, while Foreign Affairs Minister Lawrence Cannon heads to Washington to meet his U.S. counterpart, Secretary of State Hillary Clinton.

Harper’s chief spokesman Kory Teneycke said the PM will get the word out that Canada is on the job when it comes to buoying the slumping economy.

“Broadly speaking, our message is one of ‘we’re all in this together,’ “he said. “Economic recovery in Canada will only be successful if there’s economic recovery in the U.S. and likewise, given the depth of our trading relationship with the U.S., it’s important for their economic recovery that Canada be doing well also. Our economies are very heavily integrated.” Read more here.