(American Shipper – Eric Kulisch)
Situation still fluid as agencies still taking feedback and hashing out details on new wood product regulations.
Federal agencies involved in implementing a new requirement for documenting all wood or plant-based imports have reached preliminary consensus with industry groups on a compromise intended to calm the fears of importers nervous about their ability to comply, according to a U.S. Department of Agriculture official.
Lawmakers included a provision in this summer’s Farm Bill amending the Lacey Act, which regulates trade in fish and wildlife, designed to stem the flow of goods made from illegally harvested wood. Under the law, importers face a December 15 deadline to begin filing declarations specifying the scientific name and species of any wood or plant material contained in a product, and the country of harvest.
The broad nature of the act has many international traders worried that even products with trace amounts of wood byproduct would be covered, leaving them flailing for ways to obtain the information from their overseas suppliers. They envision an administrative nightmare heightened by the prospect that U.S. Customs and the USDA were prepared to require the use of paper documents, erasing the benefit of the efficient electronic process most importers use to file their customs entries.
Customs and Border Protection and the Agriculture Department’s Animal Plant Health Inspection Service (APHIS) have nearly completed an implementation plan that would phase in the requirements for the production of the declaration, officials at both agencies said.
Under the preliminary plan, which still needed to be signed off on by key lawmakers and committees on Capitol Hill, the act would be implemented in stages. During the first phase, covering the period between December 15 and April 1, 2009, submission of the paper plant declaration will be voluntary. Importers will be required to file the information after April 1, but in electronic form – although the paper option will remain available.
“We realize that trade is done electronically and that analysis of the data is best done electronically. We’re working hard to make that available on April 1,” Alex Belano, assistant branch chief for commodity, import and analysis at APHIS, told American Shipper.
Belano said the USDA and CBP will use the time until April to meet with industry groups and disseminate information about the compliance program as it is developed.
Phase two is also limited to the most obvious wood and plant-related items, such as flooring, furniture, paperboard and plywood, while deferring enforcement of gray areas involving processed wood byproducts until the scope of the Lacey Act can be administratively or legislatively narrowed a bit, Belano said. Read the complete article.
Friday, September 12, 2008
Shipments of Radioactive Materials Requiring DOT Placarding
(CBP — U.S. Customs)
Due to the significant hazards that may be posed to the traveling public, port personnel, and the disruption of the importation of other commercial shipments, the Area Service Port of Champlain is instituting the following requirements for the importation of radioactive materials requiring placarding under U.S. DOT regulations:
1) Carriers must notify the Commercial Operations Duty Supervisor at least 8 hours prior to the projected arrival of the conveyance at the port.
2) Copies of US State Department Licenses and shipping documents must be faxed to the Radiation Determination Office (VACIS) at least 8 hours prior to the projected arrival.
3) The Commercial Operations Duty Supervisor and/or the Non-Invasive Inspection (NII) Supervisor will determine the actual allowable arrival time of the conveyance within the confines of the port.
4) Carriers not adhering to this timeframe may be denied clearance and returned to Canada.
5) Circumstances that make it impossible for a carrier to adhere to this timetable must be fully explained – in detail – to the Commercial Operations Duty Supervisor. Such circumstances will be considered on a case-by-case basis.
The authority and rationale to institute this policy is found in the CBP Hazardous Materials Handbook, CIS HB 5200-18, Chapter 5 and is cited below:
“Port Directors may limit the importation and/or exportation of dangerous cargo to a specified location within the port, and to specify the hours of service for the importation and exportation of hazardous or dangerous goods based on availability of properly trained personnel, and/or in the interest of the safety of Customs employees and the traveling public. Other considerations are the port’s or facility’s ability to properly and safely inspect shipments of hazardous materials or dangerous goods without adversely affecting the importation or exportation of other commercial shipments.”
Due to the significant hazards that may be posed to the traveling public, port personnel, and the disruption of the importation of other commercial shipments, the Area Service Port of Champlain is instituting the following requirements for the importation of radioactive materials requiring placarding under U.S. DOT regulations:
1) Carriers must notify the Commercial Operations Duty Supervisor at least 8 hours prior to the projected arrival of the conveyance at the port.
2) Copies of US State Department Licenses and shipping documents must be faxed to the Radiation Determination Office (VACIS) at least 8 hours prior to the projected arrival.
3) The Commercial Operations Duty Supervisor and/or the Non-Invasive Inspection (NII) Supervisor will determine the actual allowable arrival time of the conveyance within the confines of the port.
4) Carriers not adhering to this timeframe may be denied clearance and returned to Canada.
5) Circumstances that make it impossible for a carrier to adhere to this timetable must be fully explained – in detail – to the Commercial Operations Duty Supervisor. Such circumstances will be considered on a case-by-case basis.
The authority and rationale to institute this policy is found in the CBP Hazardous Materials Handbook, CIS HB 5200-18, Chapter 5 and is cited below:
“Port Directors may limit the importation and/or exportation of dangerous cargo to a specified location within the port, and to specify the hours of service for the importation and exportation of hazardous or dangerous goods based on availability of properly trained personnel, and/or in the interest of the safety of Customs employees and the traveling public. Other considerations are the port’s or facility’s ability to properly and safely inspect shipments of hazardous materials or dangerous goods without adversely affecting the importation or exportation of other commercial shipments.”
WTO Chief Aims to Restart Trade Talks
(CBC News)
The World Trade Organization can revive its defunct Doha round of negotiations as long as major countries can see eye to eye on a crucial agricultural issue, the group’s director-general, Pascal Lamy, said Thursday.
“My sense today is that there is scope for renewed engagement over the coming weeks, as confirmed by the technical discussions that have been held here in Geneva these past two days,” Lamy said at a speech in Geneva, according to the Reuters news agency.
Lamy has been on a globe-trotting tour since a series of world trade talks, begun seven years ago in Doha, Qatar, collapsed in July. The WTO chief has been pressing for compromise, principally between major players India and the United States.
The talks among the WTO’s 158 members were aiming to reduce and eliminate duties on trade in agricultural and industrial goods and services, and to establish international rules for intellectual property.
But before they were willing to lower trade tariffs, India and a majority of developing countries wanted protections for their farmers so they wouldn’t be battered by volatile global commodity prices. India, which has hundreds of millions of poor farmers, sought to be able to raise protective tariffs if food imports suddenly surged 15% or if global prices collapsed. The United States was adamant that special duties should only be allowed if a country’s agricultural market faces a 40% jump in imports.
Other outstanding issues simmered below the surface, including the sometimes lavish subsidies many developed countries hand out to their farmers – subsidies that are seen to undermine the competitiveness of agricultural producers in poor countries.
But if member states can compromise on the issue of the special protective duties, then the Doha round can move forward to discuss the few remaining items on its agenda, Lamy said Thursday.
“If we cannot complete the Doha round by the end of the year, let’s at least aim to complete these modalities that would take us 80 to 90% of the way in 2008 so as to conclude the round in 2009,” he said.
The talks over trade in industrial goods were being moderated by Donald Stephenson, Canada’s ambassador to the WTO, but will need a new chair as he is returning to Ottawa.
The World Trade Organization can revive its defunct Doha round of negotiations as long as major countries can see eye to eye on a crucial agricultural issue, the group’s director-general, Pascal Lamy, said Thursday.
“My sense today is that there is scope for renewed engagement over the coming weeks, as confirmed by the technical discussions that have been held here in Geneva these past two days,” Lamy said at a speech in Geneva, according to the Reuters news agency.
Lamy has been on a globe-trotting tour since a series of world trade talks, begun seven years ago in Doha, Qatar, collapsed in July. The WTO chief has been pressing for compromise, principally between major players India and the United States.
The talks among the WTO’s 158 members were aiming to reduce and eliminate duties on trade in agricultural and industrial goods and services, and to establish international rules for intellectual property.
But before they were willing to lower trade tariffs, India and a majority of developing countries wanted protections for their farmers so they wouldn’t be battered by volatile global commodity prices. India, which has hundreds of millions of poor farmers, sought to be able to raise protective tariffs if food imports suddenly surged 15% or if global prices collapsed. The United States was adamant that special duties should only be allowed if a country’s agricultural market faces a 40% jump in imports.
Other outstanding issues simmered below the surface, including the sometimes lavish subsidies many developed countries hand out to their farmers – subsidies that are seen to undermine the competitiveness of agricultural producers in poor countries.
But if member states can compromise on the issue of the special protective duties, then the Doha round can move forward to discuss the few remaining items on its agenda, Lamy said Thursday.
“If we cannot complete the Doha round by the end of the year, let’s at least aim to complete these modalities that would take us 80 to 90% of the way in 2008 so as to conclude the round in 2009,” he said.
The talks over trade in industrial goods were being moderated by Donald Stephenson, Canada’s ambassador to the WTO, but will need a new chair as he is returning to Ottawa.
Dion Pledges $50M to Bolster Food Inspection Agency
(CBC News)
A Liberal government will invest an additional $50 million to build a more robust food inspection system in Canada in the wake of a listeriosis outbreak across the country, Stéphane Dion said Wednesday.
The boost in funding will allow the hiring of 100 additional Canadian Food Inspection Agency inspectors, an eight per cent increase of those working “on the ground,” he said during a campaign stop in Walkerton, Ont., for the October 14 federal election. “Canadians have been alarmed by recent revelations about unsafe food making it to our store shelves,” Dion said.
The Liberal leader added that Walkerton, where seven people lost their lives in 2000 during an E. coli outbreak in the community’s water supply, served as a tragic reminder to all parties. “A government cannot cut corners when it comes time to protecting the health and safety of Canadians for the sake of so-called efficiencies,” he said.
The listeriosis outbreak has killed 14 people across Canada and been linked to tainted meat products processed at a Maple Leaf Foods plant in Toronto. Conservative Leader Stephen Harper has promised an investigation into the outbreak. Maple Leaf has said the most likely cause of the outbreak was bacteria embedded deep inside meat slicing equipment at the plant.
Critics have increasingly voiced their concerns over the Conservatives’ plans for food inspection reform, while opposition members have accused the Tories of downloading responsibility for food inspection onto the industry. But Agriculture Minister Gerry Ritz has said the federal inspectors in charge of overseeing health standards at the plant were doing their job properly.
A Liberal government will invest an additional $50 million to build a more robust food inspection system in Canada in the wake of a listeriosis outbreak across the country, Stéphane Dion said Wednesday.
The boost in funding will allow the hiring of 100 additional Canadian Food Inspection Agency inspectors, an eight per cent increase of those working “on the ground,” he said during a campaign stop in Walkerton, Ont., for the October 14 federal election. “Canadians have been alarmed by recent revelations about unsafe food making it to our store shelves,” Dion said.
The Liberal leader added that Walkerton, where seven people lost their lives in 2000 during an E. coli outbreak in the community’s water supply, served as a tragic reminder to all parties. “A government cannot cut corners when it comes time to protecting the health and safety of Canadians for the sake of so-called efficiencies,” he said.
The listeriosis outbreak has killed 14 people across Canada and been linked to tainted meat products processed at a Maple Leaf Foods plant in Toronto. Conservative Leader Stephen Harper has promised an investigation into the outbreak. Maple Leaf has said the most likely cause of the outbreak was bacteria embedded deep inside meat slicing equipment at the plant.
Critics have increasingly voiced their concerns over the Conservatives’ plans for food inspection reform, while opposition members have accused the Tories of downloading responsibility for food inspection onto the industry. But Agriculture Minister Gerry Ritz has said the federal inspectors in charge of overseeing health standards at the plant were doing their job properly.
Canadian Industries Operate at Lower Capacity in Second Quarter as Demand Stalls
(The Canadian Press)
Canadian industries operated at 78.9% of their capacity in the second quarter of 2008, down from 79.6% in the first quarter. It was the fourth straight quarterly drop as the automotive and forestry sectors saw a continued drop in demand from abroad, Statistics Canada said Friday.
The drop, which affected all sectors in the second quarter, was less pronounced than in the two previous quarters, the agency noted.
“The decline in the utilization rate, while general, was especially pronounced in the forestry, mining and electrical power sectors,” Statistics Canada said. Manufacturers reduced production capacity utilization, operating at 76.7% compared with 77.2% in the first quarter, mostly due to reductions in the transportation equipment, wood products and plastic and rubber products industries. Transportation equipment manufacturing industry utilization fell 2.4 points to 74.5% on a slowdown in U.S. demand for automobile products. Wood products makers saw production capacity fall to 65% from 66.8%, also on weaker U.S. demand.
Increases were seen in machinery manufacture and the petroleum and coal products industries. Machinery manufacturers boosted production capacity utilization four points to 84.5% on increased production of machinery for agriculture, construction and mining extraction. Oil and gas and coal products sharply increased capacity utilization 5.2 points to 82.9%. Output rose 5.9%.
The forestry sector’s dismal performance continued, with output down 4.3% and capacity utilization falling to 74.8% from 76.8%, the lowest rate since the first quarter of 2002.
Summary statistics and a link to the data file are on the Statistics Canada website.
Canadian industries operated at 78.9% of their capacity in the second quarter of 2008, down from 79.6% in the first quarter. It was the fourth straight quarterly drop as the automotive and forestry sectors saw a continued drop in demand from abroad, Statistics Canada said Friday.
The drop, which affected all sectors in the second quarter, was less pronounced than in the two previous quarters, the agency noted.
“The decline in the utilization rate, while general, was especially pronounced in the forestry, mining and electrical power sectors,” Statistics Canada said. Manufacturers reduced production capacity utilization, operating at 76.7% compared with 77.2% in the first quarter, mostly due to reductions in the transportation equipment, wood products and plastic and rubber products industries. Transportation equipment manufacturing industry utilization fell 2.4 points to 74.5% on a slowdown in U.S. demand for automobile products. Wood products makers saw production capacity fall to 65% from 66.8%, also on weaker U.S. demand.
Increases were seen in machinery manufacture and the petroleum and coal products industries. Machinery manufacturers boosted production capacity utilization four points to 84.5% on increased production of machinery for agriculture, construction and mining extraction. Oil and gas and coal products sharply increased capacity utilization 5.2 points to 82.9%. Output rose 5.9%.
The forestry sector’s dismal performance continued, with output down 4.3% and capacity utilization falling to 74.8% from 76.8%, the lowest rate since the first quarter of 2002.
Summary statistics and a link to the data file are on the Statistics Canada website.
Canada’s Trade Surplus to Trend Lower in Coming Months
(CEP News)
Economists say Canada’s trade surplus with the rest of the world is likely to shrink further from July’s $4.85 billion figure reported Thursday by Statistics Canada.
The July reading was well below the $5.6 billion consensus estimate of analysts and the previous month’s revised surplus of $5.6 billion, which was originally reported as $5.8 billion.
Exports were 2.2% higher than in the previous month at $44.3 billion on stronger volumes and increased prices. Meanwhile, imports rose 4.5% to $39.4 billion. Both figures represent records for a single month.
Canada’s trade surplus has remained above $4 billion for six consecutive months after falling to $2.1 billion in December 2007 and $2.5 billion in January 2008. The monthly surplus hit a record high of $8.6 billion in January 2001.
Energy exports slipped 1.5% in July to $12.8 billion, but were 76% higher on an annual basis. Exports of industrial goods and materials rose 5% month-over-month and 10.6% on an annual basis to $10.1 billion. Exports of automotive products were up 2.4% from June but down 17% on an annual basis at $5.4 billion.
BMO deputy chief economist Doug Porter said the August swoon in commodity prices will see the merchandise trade surplus narrow more sharply in the months ahead, “probably to below the $3 billion mark in short order.”
The surplus on energy imports and exports dipped to $7.2 billion from the record high of $7.5 billion in the two prior months, Porter said, while the trade deficit on auto products hit a record high of $1.6 billion. “As recently as the start of 2007, Canada was still running a trade surplus on autos,” he said. Read the complete article.
Economists say Canada’s trade surplus with the rest of the world is likely to shrink further from July’s $4.85 billion figure reported Thursday by Statistics Canada.
The July reading was well below the $5.6 billion consensus estimate of analysts and the previous month’s revised surplus of $5.6 billion, which was originally reported as $5.8 billion.
Exports were 2.2% higher than in the previous month at $44.3 billion on stronger volumes and increased prices. Meanwhile, imports rose 4.5% to $39.4 billion. Both figures represent records for a single month.
Canada’s trade surplus has remained above $4 billion for six consecutive months after falling to $2.1 billion in December 2007 and $2.5 billion in January 2008. The monthly surplus hit a record high of $8.6 billion in January 2001.
Energy exports slipped 1.5% in July to $12.8 billion, but were 76% higher on an annual basis. Exports of industrial goods and materials rose 5% month-over-month and 10.6% on an annual basis to $10.1 billion. Exports of automotive products were up 2.4% from June but down 17% on an annual basis at $5.4 billion.
BMO deputy chief economist Doug Porter said the August swoon in commodity prices will see the merchandise trade surplus narrow more sharply in the months ahead, “probably to below the $3 billion mark in short order.”
The surplus on energy imports and exports dipped to $7.2 billion from the record high of $7.5 billion in the two prior months, Porter said, while the trade deficit on auto products hit a record high of $1.6 billion. “As recently as the start of 2007, Canada was still running a trade surplus on autos,” he said. Read the complete article.
Thursday, September 11, 2008
Canada Ranks 8th in Ease of Doing Business
(Globe & Mail via CSCB)
The World Bank ranked Singapore as the easiest country to do business, followed by New Zealand and the U.S. for the third year in a row. The top eight countries – Hong Kong, Denmark, United Kingdom, Ireland and Canada – were also unchanged from the previous report.
The bank ranks economies based on 10 indicators that measure the time and cost of government requirements in starting, operating and closing a business, trading across borders and paying taxes. The rankings don’t reflect macroeconomic policy, infrastructure, currency volatility, investor perceptions or crime rates.
Large economies that fell in the rankings include Germany, which dropped to 25 from 20, Mexico, to 56 from 42, and Russia, to 120 from 112.
“Economies need rules that are efficient, easy to use, and accessible to all,” Michael Klein, a World Bank vice president, said in a statement. “Otherwise, businesses get trapped in the unregulated, informal economy.”
Eastern Europe and Central Asia, led by Azerbaijan, made more changes than any other region to make doing business easier over the past year, according to annual rankings of 181 countries by the World Bank. The bank heralded the 28 countries in the two regions for streamlining regulations, boosting property rights and widening access to credit.
Azerbaijan jumped 64 spots from last year to 33 by cutting bureaucratic delays to start a business and sell property, making employment laws more flexible and simplifying tax payment. Albania, the Kyrgyz Republic and Belarus were other top reformers, the bank said….
Venezuela was the lowest-ranked Latin American country at 174 and the only country in the bottom 10 not in Africa, the bank said. Venezuelan companies must pay more than 50 taxes during the year. Read the complete article here and view the World Bank report here.
The World Bank ranked Singapore as the easiest country to do business, followed by New Zealand and the U.S. for the third year in a row. The top eight countries – Hong Kong, Denmark, United Kingdom, Ireland and Canada – were also unchanged from the previous report.
The bank ranks economies based on 10 indicators that measure the time and cost of government requirements in starting, operating and closing a business, trading across borders and paying taxes. The rankings don’t reflect macroeconomic policy, infrastructure, currency volatility, investor perceptions or crime rates.
Large economies that fell in the rankings include Germany, which dropped to 25 from 20, Mexico, to 56 from 42, and Russia, to 120 from 112.
“Economies need rules that are efficient, easy to use, and accessible to all,” Michael Klein, a World Bank vice president, said in a statement. “Otherwise, businesses get trapped in the unregulated, informal economy.”
Eastern Europe and Central Asia, led by Azerbaijan, made more changes than any other region to make doing business easier over the past year, according to annual rankings of 181 countries by the World Bank. The bank heralded the 28 countries in the two regions for streamlining regulations, boosting property rights and widening access to credit.
Azerbaijan jumped 64 spots from last year to 33 by cutting bureaucratic delays to start a business and sell property, making employment laws more flexible and simplifying tax payment. Albania, the Kyrgyz Republic and Belarus were other top reformers, the bank said….
Venezuela was the lowest-ranked Latin American country at 174 and the only country in the bottom 10 not in Africa, the bank said. Venezuelan companies must pay more than 50 taxes during the year. Read the complete article here and view the World Bank report here.
Wednesday, September 10, 2008
‘No Paper, Thanks’
(Air Cargo News)
Swiss WorldCargo has been selected by IATA to pioneer the introduction of a new ‘e-freight’ facility. To recognise its status, Swiss is introducing a new motto: ‘No paper, thanks!’ From the beginning of 2009 Swiss will record and handle cargo consignments in electronic form.
“We are honoured to be chosen by IATA to trial e-freight in a practical working environment and help this new facility achieve its worldwide breakthrough as swiftly as possible,” said Markus Loeffler, senior manager e-freight, Swiss WorldCargo.
“We see our selection as a ‘paperless pioneer’ by the airline sector’s umbrella organisation as a clear confirmation that Swiss WorldCargo is one of our industry’s most innovative cargo service providers. But we also view it as an incentive and a commitment to further refine this forward-looking cargo handling approach.”
The new e-freight facility will initially be introduced at Zurich Airport – again on IATA’s initiative. In practical terms, this means that not only Swiss WorldCargo, but all the parties involved in the local logistics chain will exchange their consignment details online.
IATA’s overall aim is to ensure that air cargo consignments are handled electronically as extensively as possible by the end of 2010.
“E-freight represents a quantum leap in the air cargo sector,” said Oliver Evans, chief cargo officer at Swiss International Air Lines. “And as one of its pioneering practitioners, Swiss WorldCargo will be playing a key role in ushering-in this new paperless era.”
Swiss WorldCargo has been selected by IATA to pioneer the introduction of a new ‘e-freight’ facility. To recognise its status, Swiss is introducing a new motto: ‘No paper, thanks!’ From the beginning of 2009 Swiss will record and handle cargo consignments in electronic form.
“We are honoured to be chosen by IATA to trial e-freight in a practical working environment and help this new facility achieve its worldwide breakthrough as swiftly as possible,” said Markus Loeffler, senior manager e-freight, Swiss WorldCargo.
“We see our selection as a ‘paperless pioneer’ by the airline sector’s umbrella organisation as a clear confirmation that Swiss WorldCargo is one of our industry’s most innovative cargo service providers. But we also view it as an incentive and a commitment to further refine this forward-looking cargo handling approach.”
The new e-freight facility will initially be introduced at Zurich Airport – again on IATA’s initiative. In practical terms, this means that not only Swiss WorldCargo, but all the parties involved in the local logistics chain will exchange their consignment details online.
IATA’s overall aim is to ensure that air cargo consignments are handled electronically as extensively as possible by the end of 2010.
“E-freight represents a quantum leap in the air cargo sector,” said Oliver Evans, chief cargo officer at Swiss International Air Lines. “And as one of its pioneering practitioners, Swiss WorldCargo will be playing a key role in ushering-in this new paperless era.”
Start Talking Free Trade Deal with India: CEOs
(Embassy – Michelle Collins)
With the rest of the world already knocking on India’s door for trade and economic partnerships, Canadian business leaders are calling for trade negotiations with the emerging Asian economic power and for the prime minister to meet with India’s prime minister – on the double.
Over the last year, Canadian and Indian CEOs have met and studied the feasibility of launching free trade negotiations in response to a request from the countries’ trade ministers in June 2007.
In report released September 2, the Canadian Council of Chief Executives and its Indian counterpart, the Confederation of Indian Industry, make several recommendations and strongly endorse advancing economic and political ties far beyond current levels.
This would include annual meetings between the prime ministers, more active private sector engagement, increased educational exchanges and augmenting those agreements already in place into a “modern, high-quality and comprehensive Free Trade Agreement.”
In a letter sent to International Trade Minister Michael Fortier last week, the president of the Canadian Council, Thomas D’Aquino, and chief mentor of the Indian Confederation, Tarun Das, encouraged the minister to “seek a mandate” from the prime minister to begin discussions.
Indeed, throughout the report, considerable emphasis is placed on the need for meetings between the countries’ leaders, stating that “the robustness of our relationship” will depend on the commitment of political, business and non-governmental leaders.
“Canada and India should enter into a new era of co-operation, and should move quickly to deepen and accelerate the growing ties between our countries,” the report states. It goes on to declare: “Our Ministers should begin negotiations as soon as possible but should be mindful that more study will be needed in a number of sensitive sectors, including the agriculture and culture sectors.”
Both Canada and India are sensitive about opening the agricultural and film and television industries to foreign trade.
The agreements off which Canada and India should build include the recently concluded foreign investment protection and promotion agreement and a 2005 scientific and technological co-operation deal the report said. The two countries are also working on a forum for environmental collaboration and to share educational exchanges through forums such as the Shastri Indo-Canadian Institute in Calgary.
Liberal Trade critic Navdeep Bains, who travelled to India three years ago with then-prime minister Paul Martin for the signing of the science and technology agreement, said he is very supportive of launching a trade agreement with India.
Mr. Bains said the trip to meet with high-level officials in India, including the prime minister, “spoke volumes,” and he was critical of the Conservatives’ lack of leadership on the file.
“[Mr. Martin’s visit] sent a clear signal right from the top of our government, and the fact that Mr. Harper hasn’t travelled there sends, in my opinion, the wrong signal,” Mr. Bains said. “It indicates that it’s not a priority, and I genuinely believe that it’s a lot of window dressing that they’ve just been working on smaller agreements, and trade in general, they’ve really taken a step back.”
Indeed, the scope in which to advance bilateral relations is described as “limitless” in the report, and there is value given to the vibrant Indo-Canadian community as an untapped potential in the relationship.
Notably, Canadian business leaders in particular appear to be driven by an urgency to reach out to India. As stated in the report, a Canadian participant declared in one meeting that “India may not need Canada, but Canada certainly needs India.”
With an enormous need for developing its infrastructure, one official at the Canadian Council of Chief Executives told Embassy he expects the Indian government would welcome greater private sector involvement in this area, and that Canada’s private sector would greatly benefit.
“India has huge requirements for infrastructure development, in particular in transportation and telecommunications, and Canadian business is there and interested,” the official said.
The official said there has been no response to the report yet from the government, and with an election underway, it is unlikely one will come anytime soon. He said he hopes that the next government, whichever party it may be, will take the recommendations seriously, and act immediately. Read the complete article.
With the rest of the world already knocking on India’s door for trade and economic partnerships, Canadian business leaders are calling for trade negotiations with the emerging Asian economic power and for the prime minister to meet with India’s prime minister – on the double.
Over the last year, Canadian and Indian CEOs have met and studied the feasibility of launching free trade negotiations in response to a request from the countries’ trade ministers in June 2007.
In report released September 2, the Canadian Council of Chief Executives and its Indian counterpart, the Confederation of Indian Industry, make several recommendations and strongly endorse advancing economic and political ties far beyond current levels.
This would include annual meetings between the prime ministers, more active private sector engagement, increased educational exchanges and augmenting those agreements already in place into a “modern, high-quality and comprehensive Free Trade Agreement.”
In a letter sent to International Trade Minister Michael Fortier last week, the president of the Canadian Council, Thomas D’Aquino, and chief mentor of the Indian Confederation, Tarun Das, encouraged the minister to “seek a mandate” from the prime minister to begin discussions.
Indeed, throughout the report, considerable emphasis is placed on the need for meetings between the countries’ leaders, stating that “the robustness of our relationship” will depend on the commitment of political, business and non-governmental leaders.
“Canada and India should enter into a new era of co-operation, and should move quickly to deepen and accelerate the growing ties between our countries,” the report states. It goes on to declare: “Our Ministers should begin negotiations as soon as possible but should be mindful that more study will be needed in a number of sensitive sectors, including the agriculture and culture sectors.”
Both Canada and India are sensitive about opening the agricultural and film and television industries to foreign trade.
The agreements off which Canada and India should build include the recently concluded foreign investment protection and promotion agreement and a 2005 scientific and technological co-operation deal the report said. The two countries are also working on a forum for environmental collaboration and to share educational exchanges through forums such as the Shastri Indo-Canadian Institute in Calgary.
Liberal Trade critic Navdeep Bains, who travelled to India three years ago with then-prime minister Paul Martin for the signing of the science and technology agreement, said he is very supportive of launching a trade agreement with India.
Mr. Bains said the trip to meet with high-level officials in India, including the prime minister, “spoke volumes,” and he was critical of the Conservatives’ lack of leadership on the file.
“[Mr. Martin’s visit] sent a clear signal right from the top of our government, and the fact that Mr. Harper hasn’t travelled there sends, in my opinion, the wrong signal,” Mr. Bains said. “It indicates that it’s not a priority, and I genuinely believe that it’s a lot of window dressing that they’ve just been working on smaller agreements, and trade in general, they’ve really taken a step back.”
Indeed, the scope in which to advance bilateral relations is described as “limitless” in the report, and there is value given to the vibrant Indo-Canadian community as an untapped potential in the relationship.
Notably, Canadian business leaders in particular appear to be driven by an urgency to reach out to India. As stated in the report, a Canadian participant declared in one meeting that “India may not need Canada, but Canada certainly needs India.”
With an enormous need for developing its infrastructure, one official at the Canadian Council of Chief Executives told Embassy he expects the Indian government would welcome greater private sector involvement in this area, and that Canada’s private sector would greatly benefit.
“India has huge requirements for infrastructure development, in particular in transportation and telecommunications, and Canadian business is there and interested,” the official said.
The official said there has been no response to the report yet from the government, and with an election underway, it is unlikely one will come anytime soon. He said he hopes that the next government, whichever party it may be, will take the recommendations seriously, and act immediately. Read the complete article.
Manitoba Designates Land in Winnipeg as Proposed Location of Inland Port
(The Canadian Press – Winnipeg Free Press)
The Manitoba government has identified a chunk of land in northwest Winnipeg as the location of a proposed inland port for Manitoba. The designation was made Wednesday under the CentrePort Canada Act, which also establishes a non-profit corporation to promote and administer the proposed port.
The plan is to use the airport and its geographic location in North America as a hub to import goods from Asia and Europe, then distribute those goods throughout the rest of Canada and parts of the United States by air, rail and truck.
The inland port designation also helps qualify the province and city for millions more in federal money to build new roads, rail lines and add new infrastructure like sewers and utilities around the airport.
Dave Angus, president of the Winnipeg Chamber of Commerce, says this is the best economic opportunity for the province.
But critics say the plan is out of touch with economic and geographic reality. They say Minneapolis-St. Paul is better suited as a distribution hub, as it’s closer to major markets and also connected by rail to ports on the West Coast.
“All they’re doing is banging their head against the wall,” trucker George Smith said, adding higher Canadian fuel prices means more goods go through the U.S. rather than Canada. “There are not enough loads,” Smith said. “There isn’t an intermodal hub for that.”
Premier Gary Doer said this project won’t be Winnport, a similar plan 20 years ago that never got off the ground. “We have everyone working together now. Why didn’t past endeavours work? I don’t think everyone was at the table,” he said.
Last week, Ottawa and Manitoba pledged $85 million to fixing up Highway 75 from Emerson at the U.S. border north to Morris. The project is also being done, in part, to deal with heavier truck traffic heading north and south.
Bob Silver, co-chair of Doer’s Economic Advisory Council, said the hope is that when these things start coming together, more private investment will follow. That, in turn, creates jobs.
“Government will not build a building that says, ‘CentrePort’,” said Silver, president of Western Glove Works. “Private business will build the buildings when the infrastructure is there, the roads and sewers.”
Tory Opposition Leader Hugh McFayden said he supports the project, but want to examine the province’s plan to use tax-increment financing to fund it.
The TIF legislation, introduced on the last day of the spring session, is designed to create “tax-increment financing zones,” which are areas where increased tax revenue from improved properties are shovelled straight back into the same few city blocks.
The Manitoba government has identified a chunk of land in northwest Winnipeg as the location of a proposed inland port for Manitoba. The designation was made Wednesday under the CentrePort Canada Act, which also establishes a non-profit corporation to promote and administer the proposed port.
The plan is to use the airport and its geographic location in North America as a hub to import goods from Asia and Europe, then distribute those goods throughout the rest of Canada and parts of the United States by air, rail and truck.
The inland port designation also helps qualify the province and city for millions more in federal money to build new roads, rail lines and add new infrastructure like sewers and utilities around the airport.
Dave Angus, president of the Winnipeg Chamber of Commerce, says this is the best economic opportunity for the province.
But critics say the plan is out of touch with economic and geographic reality. They say Minneapolis-St. Paul is better suited as a distribution hub, as it’s closer to major markets and also connected by rail to ports on the West Coast.
“All they’re doing is banging their head against the wall,” trucker George Smith said, adding higher Canadian fuel prices means more goods go through the U.S. rather than Canada. “There are not enough loads,” Smith said. “There isn’t an intermodal hub for that.”
Premier Gary Doer said this project won’t be Winnport, a similar plan 20 years ago that never got off the ground. “We have everyone working together now. Why didn’t past endeavours work? I don’t think everyone was at the table,” he said.
Last week, Ottawa and Manitoba pledged $85 million to fixing up Highway 75 from Emerson at the U.S. border north to Morris. The project is also being done, in part, to deal with heavier truck traffic heading north and south.
Bob Silver, co-chair of Doer’s Economic Advisory Council, said the hope is that when these things start coming together, more private investment will follow. That, in turn, creates jobs.
“Government will not build a building that says, ‘CentrePort’,” said Silver, president of Western Glove Works. “Private business will build the buildings when the infrastructure is there, the roads and sewers.”
Tory Opposition Leader Hugh McFayden said he supports the project, but want to examine the province’s plan to use tax-increment financing to fund it.
The TIF legislation, introduced on the last day of the spring session, is designed to create “tax-increment financing zones,” which are areas where increased tax revenue from improved properties are shovelled straight back into the same few city blocks.
CBP Rules of Origin Proposal Could Mean Compliance Headaches
(World Trade Interactive)
Importers are faced with a number of potential problems from a recent U.S. Customs and Border Protection proposal to change the way the country of origin of most imported goods is determined. CBP recently extended the comment period on the proposed rule to October 23, leaving importers just over a month to review the rule’s impact on their operations and notify CBP of any recommended changes.
At present, the origin of non-NAFTA goods is determined by the case-by-case application of a “substantial transformation” test under which a good is considered to be a product of a particular country if the processing in that country is sufficient to substantially transform that good into one having a new name, character and use. Under the proposed rule, however, CBP intends to extend the “tariff shift” rules applicable to virtually all non-textile/apparel goods under NAFTA to imports from all countries. This approach would require companies to classify foreign inputs used in the manufacture of a finished product and then apply sometimes complicated tariff shift rules to determine the origin of that good. (The proposed rule would also amend the tariff shift rules relating to specific products (e.g., pipe fittings and flanges) and make corrections to the rules of origin for textile and apparel goods of HTSUS chapter 59 and heading 6212.)
There are a number of compliance concerns associated with CBP’s proposal.
• Depending on your supply chain, it may be difficult to obtain information relating to the origin of various inputs and/or information sufficient to classify those inputs in order to apply the proposed rules of origin to the finished product.
• Although the origin of many products may remain the same under the new rules, it is likely that there will be a number of changes as well.
• Qualification for trade preference programs such as the Generalized System of Preferences, as well as certain duty preferences available under HTSUS chapter 98, could be affected.
Accordingly, importers should quickly review the rules applicable to their products to determine their impact and submit comments to CBP if warranted.
Importers are faced with a number of potential problems from a recent U.S. Customs and Border Protection proposal to change the way the country of origin of most imported goods is determined. CBP recently extended the comment period on the proposed rule to October 23, leaving importers just over a month to review the rule’s impact on their operations and notify CBP of any recommended changes.
At present, the origin of non-NAFTA goods is determined by the case-by-case application of a “substantial transformation” test under which a good is considered to be a product of a particular country if the processing in that country is sufficient to substantially transform that good into one having a new name, character and use. Under the proposed rule, however, CBP intends to extend the “tariff shift” rules applicable to virtually all non-textile/apparel goods under NAFTA to imports from all countries. This approach would require companies to classify foreign inputs used in the manufacture of a finished product and then apply sometimes complicated tariff shift rules to determine the origin of that good. (The proposed rule would also amend the tariff shift rules relating to specific products (e.g., pipe fittings and flanges) and make corrections to the rules of origin for textile and apparel goods of HTSUS chapter 59 and heading 6212.)
There are a number of compliance concerns associated with CBP’s proposal.
• Depending on your supply chain, it may be difficult to obtain information relating to the origin of various inputs and/or information sufficient to classify those inputs in order to apply the proposed rules of origin to the finished product.
• Although the origin of many products may remain the same under the new rules, it is likely that there will be a number of changes as well.
• Qualification for trade preference programs such as the Generalized System of Preferences, as well as certain duty preferences available under HTSUS chapter 98, could be affected.
Accordingly, importers should quickly review the rules applicable to their products to determine their impact and submit comments to CBP if warranted.
Tuesday, September 9, 2008
Environmentalists Sue Over Canadian Timber Agreement
(Seattle Post Intelligencer – Lisa Stiffler)
Environmentalists are filing a lawsuit this week against the federal government for what they say was an illegal and unfair agreement with Canadian leaders to settle a dispute over timber sales.
The deal funneled nearly $1 billion in tariffs collected on Canadian softwood lumber into the pockets of the U.S. timber industry and timber-friendly groups, said Peter Goldman, the lead attorney for those opposed to the deal. Instead, the money should have gone into the U.S. Treasury to be distributed by Congress, he said. “The U.S. cannot get around that legal duty by laundering the money through Canada.”
The environmental groups Conservation Northwest and the Center for Biological Diversity are filing their suit in U.S. District Court in Seattle and in the U.S. Court of International Trade in New York. It names the Office of the U.S. Trade Representative and other federal agencies as defendants. Read the complete article.
Environmentalists are filing a lawsuit this week against the federal government for what they say was an illegal and unfair agreement with Canadian leaders to settle a dispute over timber sales.
The deal funneled nearly $1 billion in tariffs collected on Canadian softwood lumber into the pockets of the U.S. timber industry and timber-friendly groups, said Peter Goldman, the lead attorney for those opposed to the deal. Instead, the money should have gone into the U.S. Treasury to be distributed by Congress, he said. “The U.S. cannot get around that legal duty by laundering the money through Canada.”
The environmental groups Conservation Northwest and the Center for Biological Diversity are filing their suit in U.S. District Court in Seattle and in the U.S. Court of International Trade in New York. It names the Office of the U.S. Trade Representative and other federal agencies as defendants. Read the complete article.
Saturday, September 6, 2008
The Lacey Act Amendments: An Approaching Catastrophe At the Border
(NCBFAA: The National Customs Brokers & Forwarders Association of America)
Included in the recently enacted Farm Bill is a provision to expand the scope of plants covered by the Lacey Act, a law that prohibits trade in wildlife, fish and plants that have been illegally taken, possessed, transported or sold. The Lacey Act Amendments are designed to prevent illegal logging and illegal harvesting of protected plants and trees.
One feature of the Lacey Act Amendments is a new import declaration requirement for plants and plant products beginning December 15, 2008. The declaration must contain precise sourcing information, including the scientific name of any and all plant/wood (including the genus and species) contained in the product and the name of the country from which the plant/wood was taken, among other things.
This seemingly simple requirement raises significant concerns:
• The sheer scope of products that will be subject to the import declaration is extraordinary. “Plants and plant products” is defined to include such widely disparate products as furniture, wine with corks, umbrellas, boats, cars, chewing gum, rayon, books, pots and pans with wood handles, maple syrup. In fact, CBP reports that the import declaration requirement will impact 85 out of the 97 chapters in the Harmonized Tariff Schedules.
• The import declaration will have to be collected manually, since CBP lacks the programming funds to collect this data electronically. Moreover, there is not sufficient time to develop the needed substantive programming changes before the deadline, even if funding were not an issue. This will remove an estimated 50% of import transactions from CBP’s electronic processing system, with profound repercussions on the supply chain. This means millions of pieces of paper injected into a process that is now essentially paperless.
• CBP and USDA have no electronic interface so the data will be manually shared and reviewed. This is absurdly inefficient and, given the volume of trade, it will be a futile exercise yielding little environmental benefit.
• The required scientific information for the import declaration is often unobtainable for products that incorporate many types of plant/wood species. In situations in which the original tree or plant source is not known, the law requires the filing of even more detailed certifications – the name of each species of plant/wood that mighthave been used to produce the product or the name of each country from which the plant/wood might have been taken. How meaningful is this expanded list of speculative possibilities to anyone?
The Lacey Amendments were passed with the best of intentions but without a complete understanding of the far-reaching and disruptive impact on the supply chain and, in turn, the economy, which is so dependent on the smooth flow of commerce. Implementation of a paper-intensive requirement for nearly half the 30 million annual import transactions moving in a fast-paced, fully automated trade environment is unthinkable. We urge Congress to roll back the implementation of the import declaration requirement for two years while a review is conducted by an independent agency, such as the Government Accountability Office, to suggest ways that the proposal can be more focused, realistic and enforceable.
Included in the recently enacted Farm Bill is a provision to expand the scope of plants covered by the Lacey Act, a law that prohibits trade in wildlife, fish and plants that have been illegally taken, possessed, transported or sold. The Lacey Act Amendments are designed to prevent illegal logging and illegal harvesting of protected plants and trees.
One feature of the Lacey Act Amendments is a new import declaration requirement for plants and plant products beginning December 15, 2008. The declaration must contain precise sourcing information, including the scientific name of any and all plant/wood (including the genus and species) contained in the product and the name of the country from which the plant/wood was taken, among other things.
This seemingly simple requirement raises significant concerns:
• The sheer scope of products that will be subject to the import declaration is extraordinary. “Plants and plant products” is defined to include such widely disparate products as furniture, wine with corks, umbrellas, boats, cars, chewing gum, rayon, books, pots and pans with wood handles, maple syrup. In fact, CBP reports that the import declaration requirement will impact 85 out of the 97 chapters in the Harmonized Tariff Schedules.
• The import declaration will have to be collected manually, since CBP lacks the programming funds to collect this data electronically. Moreover, there is not sufficient time to develop the needed substantive programming changes before the deadline, even if funding were not an issue. This will remove an estimated 50% of import transactions from CBP’s electronic processing system, with profound repercussions on the supply chain. This means millions of pieces of paper injected into a process that is now essentially paperless.
• CBP and USDA have no electronic interface so the data will be manually shared and reviewed. This is absurdly inefficient and, given the volume of trade, it will be a futile exercise yielding little environmental benefit.
• The required scientific information for the import declaration is often unobtainable for products that incorporate many types of plant/wood species. In situations in which the original tree or plant source is not known, the law requires the filing of even more detailed certifications – the name of each species of plant/wood that mighthave been used to produce the product or the name of each country from which the plant/wood might have been taken. How meaningful is this expanded list of speculative possibilities to anyone?
The Lacey Amendments were passed with the best of intentions but without a complete understanding of the far-reaching and disruptive impact on the supply chain and, in turn, the economy, which is so dependent on the smooth flow of commerce. Implementation of a paper-intensive requirement for nearly half the 30 million annual import transactions moving in a fast-paced, fully automated trade environment is unthinkable. We urge Congress to roll back the implementation of the import declaration requirement for two years while a review is conducted by an independent agency, such as the Government Accountability Office, to suggest ways that the proposal can be more focused, realistic and enforceable.
Friday, September 5, 2008
U.S. Pallet Industry Urges Domestic Action Against Wood-Eating Pests
(American Shipper – Chris Gillis)
The U.S. wood pallet industry has an effective plan for its part to prevent the spread of invasive wood-eating pests throughout the nation’s forests, but is increasingly frustrated by what it says is a failure by the Department of Agriculture’s Animal and Plant Health Inspection Service to act upon it.
The Alexandria, Va.-based National Wooden Pallet and Container Association proposed that APHIS quickly adopt a national standard consistent with the international standard for treating wood packaging against pest infestations.
“You might well ask why an industry would advocate implementation of a new government regulation on their product,” said Bruce Scholnick, NWPCA president and chief executive officer, in a Sept. 5 letter to U.S. Agriculture Secretary Edward Schafer. “The threat of invasive species destroying our nation’s trees is a crisis of such magnitude it warrants immediate decisive action.
“Failure to act puts our forests in peril and threatens our industry, and in fact all wood-related industries, with extinction,” Scholnick warned. Read the complete article.
The U.S. wood pallet industry has an effective plan for its part to prevent the spread of invasive wood-eating pests throughout the nation’s forests, but is increasingly frustrated by what it says is a failure by the Department of Agriculture’s Animal and Plant Health Inspection Service to act upon it.
The Alexandria, Va.-based National Wooden Pallet and Container Association proposed that APHIS quickly adopt a national standard consistent with the international standard for treating wood packaging against pest infestations.
“You might well ask why an industry would advocate implementation of a new government regulation on their product,” said Bruce Scholnick, NWPCA president and chief executive officer, in a Sept. 5 letter to U.S. Agriculture Secretary Edward Schafer. “The threat of invasive species destroying our nation’s trees is a crisis of such magnitude it warrants immediate decisive action.
“Failure to act puts our forests in peril and threatens our industry, and in fact all wood-related industries, with extinction,” Scholnick warned. Read the complete article.
Minister Ritz Releases Statement as Canada Tables its Official Comments on U.S. Mandatory Country-Of-Origin Labelling
(Agriculture & Agri-Food Canada)
Federal Agriculture Minister Gerry Ritz issued the following statement today as the Government of Canada tabled its official comments on the U.S. Department of Agriculture (USDA) regarding its recently published interim final rule on implementation of the mandatory country-of-origin labelling (COOL).
“The Government of Canada is disappointed the U.S. is moving forward with the COOL legislation,” said Minister Ritz. “The possibility that this may discriminate against Canadian products is a concern, therefore, the Government of Canada is working with industry and the provinces and territories to minimize any impact on Canadian farmers and ranchers.”
“Trade between Canada and the U.S. has tripled since the Canada-U.S. Free Trade Agreement, and then the North American Free Trade Agreement,” Minister Ritz noted. “Reducing obstacles to trade has contributed to mutually-beneficial supply chains, making both countries more competitive domestically and internationally.”
The U.S. Congress passed the Food, Conservation and Energy Act of 2008 (the 2008 U.S. Farm Bill) in June. This legislation requires the mandatory COOL rule for beef, lamb, pork, chicken and goat meat, along with perishable agricultural commodities, peanuts, pecans, ginseng and macadamia nuts, to be implemented by September 30, 2008.
The implementation of the COOL rule for food products has happened in stages. Implementation for fish and shellfish was effective April 4, 2005. However, implementation for all other commodities was delayed until September 2008. As it did in 2003, 2005 and 2007, the Government of Canada today submitted comments to the U.S. Federal Register, outlining its views on the rule.
Federal Agriculture Minister Gerry Ritz issued the following statement today as the Government of Canada tabled its official comments on the U.S. Department of Agriculture (USDA) regarding its recently published interim final rule on implementation of the mandatory country-of-origin labelling (COOL).
“The Government of Canada is disappointed the U.S. is moving forward with the COOL legislation,” said Minister Ritz. “The possibility that this may discriminate against Canadian products is a concern, therefore, the Government of Canada is working with industry and the provinces and territories to minimize any impact on Canadian farmers and ranchers.”
“Trade between Canada and the U.S. has tripled since the Canada-U.S. Free Trade Agreement, and then the North American Free Trade Agreement,” Minister Ritz noted. “Reducing obstacles to trade has contributed to mutually-beneficial supply chains, making both countries more competitive domestically and internationally.”
The U.S. Congress passed the Food, Conservation and Energy Act of 2008 (the 2008 U.S. Farm Bill) in June. This legislation requires the mandatory COOL rule for beef, lamb, pork, chicken and goat meat, along with perishable agricultural commodities, peanuts, pecans, ginseng and macadamia nuts, to be implemented by September 30, 2008.
The implementation of the COOL rule for food products has happened in stages. Implementation for fish and shellfish was effective April 4, 2005. However, implementation for all other commodities was delayed until September 2008. As it did in 2003, 2005 and 2007, the Government of Canada today submitted comments to the U.S. Federal Register, outlining its views on the rule.
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.
Thursday, September 4, 2008
New U.S. Law to Require Reporting of all Trees and Tree Products (Including Species & Genus)
(GHY International)
A new law will go into effect on December 15 and will have far-reaching consequences for international trade and will require an enormous amount of resources for CBP to implement.
Sec. 8204 of the Farm Bill broadens the definition of "plant" under the Lacey Act to include trees and products that come from trees, and requires additional reporting (detailed below) for imports of these products. CPB is working with USDA to determine what products will be subject to this new law. Exclusions include common food crops and common cultivars (yet to be fully defined; it is not clear if cotton will be exempted). Outside of these and some other specific exclusions identified in Sec. 8204, CBP says the new law does not provide them with much wiggle room.
What products will be subject to this law?
The question at hand is: what products will be covered by this new law? The answer will almost certainly surprise you (hint: it’s just about everything).
Here is a small part of a very long list of items (aside from obvious examples such as furniture, paper and wood flooring that are likely to be covered by this law:
• Wine with corks;
• Pots and pans with wooden handles;
• Musical instruments, such as violins;
• Pharmaceutical products;
• Textiles;
• Lipstick (made in part from wax from carob tree);
• Dried soup (that contains cellulose, which is a major component of wood);
• Hairspray (that is made in part from tree resins); and
• Anything that comes with an instruction booklet (even if the product itself contains no wood or wood by-product).
Reporting Requirements:
Sec. 8204 requires that import declarations state the scientific name of any plant (including genus and species) used to produce the plant product and the country of origin of the plant. If the genus and species is not known, then the declaration must contain the name of every species of plant that may have been used to produce the plant product; and if the country from which the plant was taken and used to produce the imported plant product is unknown, the name of every country from which the plant may have been taken must be stated. Packaging material that supports, protects, or carries another item is exempted, unless the packaging material itself is the item being imported.
Sec. 8204 makes commerce in products made from illegally harvested or traded plants and plant products, including wood, a federal crime and is going to be enforced by the US Department of Justice. CBP has managed to get Congress to agree to a phased-in implementation schedule, but Congress has not approved the actual schedule.
Lobbying efforts to minimize impact to trade community:
Efforts are getting underway to lobby Congress to make changes to Sec. 8204, or at the very least, delay implementation
A new law will go into effect on December 15 and will have far-reaching consequences for international trade and will require an enormous amount of resources for CBP to implement.
Sec. 8204 of the Farm Bill broadens the definition of "plant" under the Lacey Act to include trees and products that come from trees, and requires additional reporting (detailed below) for imports of these products. CPB is working with USDA to determine what products will be subject to this new law. Exclusions include common food crops and common cultivars (yet to be fully defined; it is not clear if cotton will be exempted). Outside of these and some other specific exclusions identified in Sec. 8204, CBP says the new law does not provide them with much wiggle room.
What products will be subject to this law?
The question at hand is: what products will be covered by this new law? The answer will almost certainly surprise you (hint: it’s just about everything).
Here is a small part of a very long list of items (aside from obvious examples such as furniture, paper and wood flooring that are likely to be covered by this law:
• Wine with corks;
• Pots and pans with wooden handles;
• Musical instruments, such as violins;
• Pharmaceutical products;
• Textiles;
• Lipstick (made in part from wax from carob tree);
• Dried soup (that contains cellulose, which is a major component of wood);
• Hairspray (that is made in part from tree resins); and
• Anything that comes with an instruction booklet (even if the product itself contains no wood or wood by-product).
Reporting Requirements:
Sec. 8204 requires that import declarations state the scientific name of any plant (including genus and species) used to produce the plant product and the country of origin of the plant. If the genus and species is not known, then the declaration must contain the name of every species of plant that may have been used to produce the plant product; and if the country from which the plant was taken and used to produce the imported plant product is unknown, the name of every country from which the plant may have been taken must be stated. Packaging material that supports, protects, or carries another item is exempted, unless the packaging material itself is the item being imported.
Sec. 8204 makes commerce in products made from illegally harvested or traded plants and plant products, including wood, a federal crime and is going to be enforced by the US Department of Justice. CBP has managed to get Congress to agree to a phased-in implementation schedule, but Congress has not approved the actual schedule.
Lobbying efforts to minimize impact to trade community:
Efforts are getting underway to lobby Congress to make changes to Sec. 8204, or at the very least, delay implementation
Wednesday, September 3, 2008
Canadian Input for New U.S. Border Plan
(Embassy Magazine)
Jerry Grafstein and Rob Merrifield have been working with Louise Slaughter to devise a strategy for the next U.S. administration.
Democrats and Republicans are working together to draw up a new Canada-U.S. border management plan for the incoming American administration, and have asked Canadian politicians for their input after years of poor management following 9/11.
Work on a new border plan has begun at the request of the speaker of the U.S. Congress, California Democrat Nancy Pelosi.
The Canadian point men on the project are the co-chairs of the Canada-United States Inter-Parliamentary Group: Conservative MP Rob Merrifield and Liberal Senator Jerry Grafstein.
The pair have spent much of the summer south of the border, attending the various legislative councils held each summer across the United States, in addition to the Democratic and Republican national conventions.
…At the request of his American allies, Mr. Grafstein has drawn up a series of preliminary recommendations about what can be done to achieve a better-managed border. A letter, containing eight points, was prepared at the request of Republican Senator and former governor of Ohio George Voinovich on July 31 and later passed to Ms. Slaughter.
Mr. Grafstein’s recommendations touch on points that would ease the flow of both people and goods across the border, and apply to air travel, trucking regulations and infrastructure.
To address trucking snags, he recommends lower inspection rates for members of trusted-shipper programs, such as the Free and Secure Trade (FAST) system, and that an agreement be put in place so “that rail and truck cargo inspected, cleared and secured at a Canadian port should not be subject to further inspections at the U.S. border.”
On the air travel side, the senator recommends that the United States accept Canadian baggage screening as equivalent to U.S. standards so Canadian baggage being transferred in the U.S. does not have to be re-screened.
In addition, Mr. Grafstein requests U.S. authorities address the problem of understaffing at border crossings, with the assertion that major border crossings are lacking as much as 40 per cent of their required American staff.
He also asks for “continued U.S. priority attention” to the Detroit River International Crossing, where the Ambassador Bridge now connects Detroit, Michigan with Windsor, Ontario.
This bridge currently carries some 25 per cent of total Canadian-American trade. To cope with congestion, Mr. Grafstein encourages his American counterparts to proceed with the construction of a second bridge or tunnel.
Finally, Mr. Grafstein asks for continued co-operation in the run up to the June 1, 2009 full implementation of the Western Hemisphere Travel Initiative (WHTI), which will require Canadian and U.S. citizens to use passports when crossing land and sea borders.
The American public, he writes, must be made aware of the need for passports so as to stop any further drop in tourist traffic, which “which has substantially reduced in the last five years because of delays and additional documentation. Read the complete article.
Jerry Grafstein and Rob Merrifield have been working with Louise Slaughter to devise a strategy for the next U.S. administration.
Democrats and Republicans are working together to draw up a new Canada-U.S. border management plan for the incoming American administration, and have asked Canadian politicians for their input after years of poor management following 9/11.
Work on a new border plan has begun at the request of the speaker of the U.S. Congress, California Democrat Nancy Pelosi.
The Canadian point men on the project are the co-chairs of the Canada-United States Inter-Parliamentary Group: Conservative MP Rob Merrifield and Liberal Senator Jerry Grafstein.
The pair have spent much of the summer south of the border, attending the various legislative councils held each summer across the United States, in addition to the Democratic and Republican national conventions.
…At the request of his American allies, Mr. Grafstein has drawn up a series of preliminary recommendations about what can be done to achieve a better-managed border. A letter, containing eight points, was prepared at the request of Republican Senator and former governor of Ohio George Voinovich on July 31 and later passed to Ms. Slaughter.
Mr. Grafstein’s recommendations touch on points that would ease the flow of both people and goods across the border, and apply to air travel, trucking regulations and infrastructure.
To address trucking snags, he recommends lower inspection rates for members of trusted-shipper programs, such as the Free and Secure Trade (FAST) system, and that an agreement be put in place so “that rail and truck cargo inspected, cleared and secured at a Canadian port should not be subject to further inspections at the U.S. border.”
On the air travel side, the senator recommends that the United States accept Canadian baggage screening as equivalent to U.S. standards so Canadian baggage being transferred in the U.S. does not have to be re-screened.
In addition, Mr. Grafstein requests U.S. authorities address the problem of understaffing at border crossings, with the assertion that major border crossings are lacking as much as 40 per cent of their required American staff.
He also asks for “continued U.S. priority attention” to the Detroit River International Crossing, where the Ambassador Bridge now connects Detroit, Michigan with Windsor, Ontario.
This bridge currently carries some 25 per cent of total Canadian-American trade. To cope with congestion, Mr. Grafstein encourages his American counterparts to proceed with the construction of a second bridge or tunnel.
Finally, Mr. Grafstein asks for continued co-operation in the run up to the June 1, 2009 full implementation of the Western Hemisphere Travel Initiative (WHTI), which will require Canadian and U.S. citizens to use passports when crossing land and sea borders.
The American public, he writes, must be made aware of the need for passports so as to stop any further drop in tourist traffic, which “which has substantially reduced in the last five years because of delays and additional documentation. Read the complete article.
C$ Rises as Bank of Canada Leaves Rates Unchanged, Notes Domestic Demand Strong
(The Canadian Press)
The Canadian dollar moved higher Wednesday after the Bank of Canada decided to leave its key rate unchanged at three per cent, noting that “overall, the level of economic activity is slightly lower than expected in July but still close to the economy’s production capacity.”
The currency was up 0.15 cent after the announcement to 93.73 cents US as the bank said that “domestic demand has slowed modestly but remains strong.” “It continues to be supported by financial conditions that remain significantly better than those in most other major economies and by income gains stemming from past improvements in the terms of trade.”
Meanwhile, another day of retreating oil prices is expected to drive the Toronto stock market lower while New York indexes are also likely in for a negative opening on more jitters in the financial sector and geneal worries about the overall economy. Find out more.
The Canadian dollar moved higher Wednesday after the Bank of Canada decided to leave its key rate unchanged at three per cent, noting that “overall, the level of economic activity is slightly lower than expected in July but still close to the economy’s production capacity.”
The currency was up 0.15 cent after the announcement to 93.73 cents US as the bank said that “domestic demand has slowed modestly but remains strong.” “It continues to be supported by financial conditions that remain significantly better than those in most other major economies and by income gains stemming from past improvements in the terms of trade.”
Meanwhile, another day of retreating oil prices is expected to drive the Toronto stock market lower while New York indexes are also likely in for a negative opening on more jitters in the financial sector and geneal worries about the overall economy. Find out more.
Dion Announces Green Shift Changes
(The Canadian Press)
Adjustments to carbon tax proposal would include up to $1 billion in aid for truckers and other groups.
Liberal Leader Stéphane Dion has fined-tuned his party’s main election plank, which he says will “reconcile the economy with the environment.”
Speaking to his caucus on Wednesday, Mr. Dion said a Liberal government would set aside hundreds of millions of dollars to help groups likely to be hard hit by his proposed new fossil fuel taxes.
The sweeteners include $400-million in emission-reduction credits for farmers and forestry workers under the proposed Green Shift and a $250-million “green farms fund” to support environmentally friendly research aimed at cutting fuel consumption and greenhouse-gas emissions.
Another $250-million fund would help fishermen and truckers go green.
Countering dire economic warnings from the Conservatives and concerns within his own ranks, Mr. Dion called his plan a “progressive, ambitious and generous project for a richer, fairer, greener Canada.”
“Canadians need a government that will be guided by science and fact, not narrow-minded ideology,” Mr. Dion said in what was likely his last major speech before a general election call.
“Canadians want to do the right thing for their wallet and for the environment.”
Prime Minister Stephen Harper is expected to ask the Governor-General to dissolve Parliament and call a general election by week’s end.
Mr. Harper’s Conservatives have been targeting Mr. Dion’s green plan in television and radio ads, saying it will kill jobs and drive up the cost of living.
In Windsor, Ont., Mr. Harper said shortly before Mr. Dion spoke that changing the tax structure is folly in the face of economic hard times.
“I think it’s a crazy time for the country to take risks,” the Prime Minister said.
“I think when at the middle of a slowdown an opposition leader is proposing new taxes and tells the Canadian people after several months that he’s still changing it on the back of envelopes after meetings, I think people’s alarm bells should be up.”
Mr. Dion has argued the Tory plan to regulate emissions will also increase costs to consumers, but without the offsetting tax cuts to help people adjust — a plan he’s referred to as “all the pain, no gain.”
Mr. Dion said a typical family of four earning $40,000 a year would save $1,900 in taxes in the fourth year of his Green Shift. Read the complete article.
Adjustments to carbon tax proposal would include up to $1 billion in aid for truckers and other groups.
Liberal Leader Stéphane Dion has fined-tuned his party’s main election plank, which he says will “reconcile the economy with the environment.”
Speaking to his caucus on Wednesday, Mr. Dion said a Liberal government would set aside hundreds of millions of dollars to help groups likely to be hard hit by his proposed new fossil fuel taxes.
The sweeteners include $400-million in emission-reduction credits for farmers and forestry workers under the proposed Green Shift and a $250-million “green farms fund” to support environmentally friendly research aimed at cutting fuel consumption and greenhouse-gas emissions.
Another $250-million fund would help fishermen and truckers go green.
Countering dire economic warnings from the Conservatives and concerns within his own ranks, Mr. Dion called his plan a “progressive, ambitious and generous project for a richer, fairer, greener Canada.”
“Canadians need a government that will be guided by science and fact, not narrow-minded ideology,” Mr. Dion said in what was likely his last major speech before a general election call.
“Canadians want to do the right thing for their wallet and for the environment.”
Prime Minister Stephen Harper is expected to ask the Governor-General to dissolve Parliament and call a general election by week’s end.
Mr. Harper’s Conservatives have been targeting Mr. Dion’s green plan in television and radio ads, saying it will kill jobs and drive up the cost of living.
In Windsor, Ont., Mr. Harper said shortly before Mr. Dion spoke that changing the tax structure is folly in the face of economic hard times.
“I think it’s a crazy time for the country to take risks,” the Prime Minister said.
“I think when at the middle of a slowdown an opposition leader is proposing new taxes and tells the Canadian people after several months that he’s still changing it on the back of envelopes after meetings, I think people’s alarm bells should be up.”
Mr. Dion has argued the Tory plan to regulate emissions will also increase costs to consumers, but without the offsetting tax cuts to help people adjust — a plan he’s referred to as “all the pain, no gain.”
Mr. Dion said a typical family of four earning $40,000 a year would save $1,900 in taxes in the fourth year of his Green Shift. Read the complete article.
Airlines to lose US$5.2 billion in 2008 - Slowing Demand and High Oil to Blame
(IATA)
The International Air Transport Association (IATA) today announced a revised industry financial forecast that would see the global airline industry post losses of US$5.2 billion in 2008 based on an average crude oil price of US$113 per barrel (US$140 for jet fuel).
“The situation remains bleak. The toxic combination of high oil prices and falling demand continues to poison the industry’s profitability. We expect losses of US$5.2 billion this year,” said Giovanni Bisignani, IATA’s Director General and CEO. “While there has been some relief in the oil price in recent months, the year-to-date average is US$113 per barrel. That’s US$40 per barrel more than the US$73 per barrel average for 2007, pushing the industry fuel bill up by US$50 billion to an expected US$186 billion this year,” said Bisignani.
Fuel is expected to rise to 36% of operating costs, up from 13% in 2002. IATA also announced industry traffic data for July which showed a continued slowing of demand. July year-on-year passenger demand growth fell to 1.9% - the lowest in five years.
Capacity increased by double that - 3.8% - indicating that service cuts are not keeping pace with the fall in demand. This pushed the load factor for the month to 79.9%, a drop of more than 1% compared to July 2007.
The surprise of July was a 0.5% drop in passenger demand by Asia-Pacific carriers partly attributable to a change in Chinese visa requirements but also showing that economic weakness is spreading to previously robust economies.
Cargo demand in July contracted by 1.9% compared to 2007. Asia-Pacific carriers - the largest players in the cargo market - were hit hard with a 6.5% drop in demand. As a result of the weaker economic outlook, IATA significantly revised downward its traffic forecast for domestic and international markets combined. Passenger traffic is now expected to grow on average by 3.2% (was 3.9%) and air freight volumes by just 1.8% (was 3.9%).
This is only half the pace of expansion seen in 2007 and is boosted by the stronger growth seen at the start of the year. Strong traffic growth allowed the industry to partly absorb the rise in fuel costs from 2003-2007.
The International Air Transport Association (IATA) today announced a revised industry financial forecast that would see the global airline industry post losses of US$5.2 billion in 2008 based on an average crude oil price of US$113 per barrel (US$140 for jet fuel).
“The situation remains bleak. The toxic combination of high oil prices and falling demand continues to poison the industry’s profitability. We expect losses of US$5.2 billion this year,” said Giovanni Bisignani, IATA’s Director General and CEO. “While there has been some relief in the oil price in recent months, the year-to-date average is US$113 per barrel. That’s US$40 per barrel more than the US$73 per barrel average for 2007, pushing the industry fuel bill up by US$50 billion to an expected US$186 billion this year,” said Bisignani.
Fuel is expected to rise to 36% of operating costs, up from 13% in 2002. IATA also announced industry traffic data for July which showed a continued slowing of demand. July year-on-year passenger demand growth fell to 1.9% - the lowest in five years.
Capacity increased by double that - 3.8% - indicating that service cuts are not keeping pace with the fall in demand. This pushed the load factor for the month to 79.9%, a drop of more than 1% compared to July 2007.
The surprise of July was a 0.5% drop in passenger demand by Asia-Pacific carriers partly attributable to a change in Chinese visa requirements but also showing that economic weakness is spreading to previously robust economies.
Cargo demand in July contracted by 1.9% compared to 2007. Asia-Pacific carriers - the largest players in the cargo market - were hit hard with a 6.5% drop in demand. As a result of the weaker economic outlook, IATA significantly revised downward its traffic forecast for domestic and international markets combined. Passenger traffic is now expected to grow on average by 3.2% (was 3.9%) and air freight volumes by just 1.8% (was 3.9%).
This is only half the pace of expansion seen in 2007 and is boosted by the stronger growth seen at the start of the year. Strong traffic growth allowed the industry to partly absorb the rise in fuel costs from 2003-2007.
The Government of Canada Will Invest Over $3.5 million in Prince George, B.C. Transportation Infrastructure
(Transport Canada)
The federal government, under the Asia-Pacific Gateway and Corridor Initiative, will invest a total of $3.5 million in two road projects in Prince George.
This represents a joint investment in excess of $7 million with the City of Prince George. Richard Harris, MP for Cariboo-Prince George, made the announcement today on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities and the Honourable James Moore, Secretary of State (Asia-Pacific Gateway) (2010 Olympics) (Official Languages).
“Connecting North America and the Asia-Pacific more efficiently and reliably benefits local communities, the Canadian economy as well as Canada’s trading partners,” said Mr. Harris. “These projects will help relieve road congestion and make roads in our community safer.”
“The Government of Canada is committed to concrete measures that contribute to a more productive and competitive economy. The Asia-Pacific Gateway and Corridor Initiative is an important example,” said the Honourable James Moore.
“These projects will enhance transportation infrastructure safety and efficiency related to the movement of international trade through Canada’s Asia-Pacific Gateway and Corridor.”
Improvements to two concurrent sections of River Road were selected for funding, following a call for proposals.
The projects involve:
• upgrading of 1.9 km between Cameron Street Bridge and Foley Crescent; and
• widening of 1.7 km between Foley Crescent and the CN Fraser River Bridge and installing left turn lanes to access the CN facility.
River Road is the primary road access to CN’s Intermodal facility in Prince George and improving traffic flow along this corridor is essential to the community and the businesses that use this route.
“The Government of Canada has made the economic growth and competitiveness of northern British Columbia with Asia top priorities,” said Minister Cannon. “The Asia-Pacific Gateway and Corridor Initiative reflects the importance this government places in an integrated, safe, secure, and sustainable transportation system.”
On October 11, 2006, Prime Minister Stephen Harper announced the Asia-Pacific Gateway and Corridor Initiative (APGCI), with an initial investment of $591 million. A further commitment of $410 million was made in Budget 2007, bringing total federal funding for the APGCI to more than $1 billion.
In two years, the Government of Canada has partnered with British Columbia and other western provinces, municipalities and the private sector, to announce strategic infrastructure projects worth more than $2.4 billion, including federal contributions of almost $900 million.
Through its unprecedented $33-billion Building Canada plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada. Federal funding for these projects is conditional upon the negotiation of contribution agreements, approval by the federal Treasury Board and completion of any applicable federal environmental assessments required under the Canadian Environmental Assessment Act.
The federal government, under the Asia-Pacific Gateway and Corridor Initiative, will invest a total of $3.5 million in two road projects in Prince George.
This represents a joint investment in excess of $7 million with the City of Prince George. Richard Harris, MP for Cariboo-Prince George, made the announcement today on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities and the Honourable James Moore, Secretary of State (Asia-Pacific Gateway) (2010 Olympics) (Official Languages).
“Connecting North America and the Asia-Pacific more efficiently and reliably benefits local communities, the Canadian economy as well as Canada’s trading partners,” said Mr. Harris. “These projects will help relieve road congestion and make roads in our community safer.”
“The Government of Canada is committed to concrete measures that contribute to a more productive and competitive economy. The Asia-Pacific Gateway and Corridor Initiative is an important example,” said the Honourable James Moore.
“These projects will enhance transportation infrastructure safety and efficiency related to the movement of international trade through Canada’s Asia-Pacific Gateway and Corridor.”
Improvements to two concurrent sections of River Road were selected for funding, following a call for proposals.
The projects involve:
• upgrading of 1.9 km between Cameron Street Bridge and Foley Crescent; and
• widening of 1.7 km between Foley Crescent and the CN Fraser River Bridge and installing left turn lanes to access the CN facility.
River Road is the primary road access to CN’s Intermodal facility in Prince George and improving traffic flow along this corridor is essential to the community and the businesses that use this route.
“The Government of Canada has made the economic growth and competitiveness of northern British Columbia with Asia top priorities,” said Minister Cannon. “The Asia-Pacific Gateway and Corridor Initiative reflects the importance this government places in an integrated, safe, secure, and sustainable transportation system.”
On October 11, 2006, Prime Minister Stephen Harper announced the Asia-Pacific Gateway and Corridor Initiative (APGCI), with an initial investment of $591 million. A further commitment of $410 million was made in Budget 2007, bringing total federal funding for the APGCI to more than $1 billion.
In two years, the Government of Canada has partnered with British Columbia and other western provinces, municipalities and the private sector, to announce strategic infrastructure projects worth more than $2.4 billion, including federal contributions of almost $900 million.
Through its unprecedented $33-billion Building Canada plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada. Federal funding for these projects is conditional upon the negotiation of contribution agreements, approval by the federal Treasury Board and completion of any applicable federal environmental assessments required under the Canadian Environmental Assessment Act.
Harper to Aid Ontario’s Ailing Auto Sector
(Globe & Mail)
The Harper government will move to shore up its economic credentials in hard-hit and vote-rich Ontario today by doling out cash to key Detroit auto makers just days before an expected election call.
Prime Minister Stephen Harper will announce in Windsor, Ont., that his government will offer financial support to Ford Motor Co. of Canada for an engine plant in that city. He is expected to follow that up within days with money for a General Motors of Canada Ltd. transmission plant in St. Catharines, Ont., auto industry and government sources said yesterday. Sources said the government is also preparing announcements for other sectors.
Industry Minister Jim Prentice will join Mr. Harper in Windsor at Ford's Essex engine plant. The combined amount for the two companies could be as high as $200-million, sources familiar with the Ford and GM proposals said yesterday.
The money is expected to come from a five-year, $250-million fund announced this year for green initiatives. The government has not provided funds to any specific company since it was elected in 2006. Read the complete article.
Update: More on the announcement here.
The Harper government will move to shore up its economic credentials in hard-hit and vote-rich Ontario today by doling out cash to key Detroit auto makers just days before an expected election call.
Prime Minister Stephen Harper will announce in Windsor, Ont., that his government will offer financial support to Ford Motor Co. of Canada for an engine plant in that city. He is expected to follow that up within days with money for a General Motors of Canada Ltd. transmission plant in St. Catharines, Ont., auto industry and government sources said yesterday. Sources said the government is also preparing announcements for other sectors.
Industry Minister Jim Prentice will join Mr. Harper in Windsor at Ford's Essex engine plant. The combined amount for the two companies could be as high as $200-million, sources familiar with the Ford and GM proposals said yesterday.
The money is expected to come from a five-year, $250-million fund announced this year for green initiatives. The government has not provided funds to any specific company since it was elected in 2006. Read the complete article.
Update: More on the announcement here.
Canadian National Expands Network
(Cargonews Asia)
Canadian National Railway (CN) has inked a deal with the city of Joliet regarding CN's proposed acquisition of the major portion of the Elgin, Joliet and Eastern Railway Company (EJ&E).
The agreement resolves the concerns the city had related to quiet zones, operations, and communications surrounding the transaction.
The conditions of the negotiations are contingent upon approval of CN's proposal to acquire control of the EJ&E, which is being considered by the federal Surface Transportation Board (STB).
As stated in STB's draft environmental impact statement, the board has encouraged voluntary agreements between CN and communities.
CN has been actively engaged in the environmental review process and will participate in the public hearings later in the year.
Canadian National Railway (CN) has inked a deal with the city of Joliet regarding CN's proposed acquisition of the major portion of the Elgin, Joliet and Eastern Railway Company (EJ&E).
The agreement resolves the concerns the city had related to quiet zones, operations, and communications surrounding the transaction.
The conditions of the negotiations are contingent upon approval of CN's proposal to acquire control of the EJ&E, which is being considered by the federal Surface Transportation Board (STB).
As stated in STB's draft environmental impact statement, the board has encouraged voluntary agreements between CN and communities.
CN has been actively engaged in the environmental review process and will participate in the public hearings later in the year.
John Deere Factory in Ontario to Close, 800 Jobs Lost
(The Canadian Press)
Tractor maker Deere & Company (NYSE:DE) is closing its factory in Welland, Ont., and moving the work outside Canada by the end of 2009, costing the Ontario economy another 800 manufacturing jobs.
The Welland factory, one of the city’s largest employers, makes utility vehicles and attachments for commercial and consumer equipment and for agricultural uses.
The U.S.-based company says it’s consolidating its manufacturing operations to improve efficiency and profits, and the work will be moved to plants in Wisconsin and Mexico.
Deere, makers of the famed green-painted John Deere tractor, announced Tuesday that it will take a US$90 million after-tax hit related to the closure. It said about half of this charge will be recorded in the fourth quarter of this year.
Gator utility vehicles, now made at Welland, will move to Horicon, Wis. Cutting and loading attachments will be transferred to Deere's operations in Monterrey and Saltillo, Mexico.
On the New York Stock Exchange, the company’s shares were trading down $1.83 at $68.74.
Tractor maker Deere & Company (NYSE:DE) is closing its factory in Welland, Ont., and moving the work outside Canada by the end of 2009, costing the Ontario economy another 800 manufacturing jobs.
The Welland factory, one of the city’s largest employers, makes utility vehicles and attachments for commercial and consumer equipment and for agricultural uses.
The U.S.-based company says it’s consolidating its manufacturing operations to improve efficiency and profits, and the work will be moved to plants in Wisconsin and Mexico.
Deere, makers of the famed green-painted John Deere tractor, announced Tuesday that it will take a US$90 million after-tax hit related to the closure. It said about half of this charge will be recorded in the fourth quarter of this year.
Gator utility vehicles, now made at Welland, will move to Horicon, Wis. Cutting and loading attachments will be transferred to Deere's operations in Monterrey and Saltillo, Mexico.
On the New York Stock Exchange, the company’s shares were trading down $1.83 at $68.74.
Tuesday, September 2, 2008
Canada’s Economy Will Slow to a Crawl: OECD
(CBC News)
The OECD has chopped its outlook for Canada for 2008 and now predicts the national economy will expand at the second slowest pace in the industrialized world.
The Organisation for Economic Co-operation and Development said Tuesday Canada’s economy will expand by only 0.8 per cent for the year, down from its previous prediction for annual growth of 1.2 per cent.
Only Italy, which the international organization forecasts to grow by a feeble 0.5 per cent, would perform worse than Canada among the G7 economies if the prediction holds. Read more.
The OECD has chopped its outlook for Canada for 2008 and now predicts the national economy will expand at the second slowest pace in the industrialized world.
The Organisation for Economic Co-operation and Development said Tuesday Canada’s economy will expand by only 0.8 per cent for the year, down from its previous prediction for annual growth of 1.2 per cent.
Only Italy, which the international organization forecasts to grow by a feeble 0.5 per cent, would perform worse than Canada among the G7 economies if the prediction holds. Read more.
Border Patrol Battles Invaders from Canada
(Dan Catchpole — AP/San Diego Union Tribune)
Officers keep eye out for bugs that threaten species in United States
Alishia Beckham uses a hand-mirror and a flashlight to defend the United States from foreign invaders.
Working aboard ships three football fields long that arrive in Seattle’s bustling port stacked with truck-sized cargo containers, the U.S. Customs and Border Protection agricultural specialist scours for bugs, plants or pathogens that could lay waste to native species.
She checks around door frames, pipes, lifeboat winches and other nooks where an Asian gypsy moth might have laid its eggs.
Invasive species can quickly become ecological and economical disasters. The emerald ash borer beetle has killed over 30 million ash trees since it was detected in North America in 2002. European gypsy moths defoliate millions of forested acres every year from North Carolina to Wisconsin to Maine.
“There are so many places on a ship, it could literally take all day if you inspected every inch of the ship,” Beckham said. We do what we can.”
Beckham carries a backpack full of tools: cards illustrating the moth’s life stages, binoculars to inspect areas of the ship she can’t reach, a paint scraper to pry off any egg masses, and a plastic container with a dead adult male and an egg mass to show crew members what she’s looking for.
Most crews are very cooperative and want to know what to look for, Beckham says.
The Asian gypsy moth, like its European cousin, is a rapacious leaf-eater, but it eats a wider variety of trees. Unlike the flightless European female, the Asian female can fly up to 25 miles before laying its eggs, meaning it could quickly spread across the country. Read the complete story.
Officers keep eye out for bugs that threaten species in United States
Alishia Beckham uses a hand-mirror and a flashlight to defend the United States from foreign invaders.
Working aboard ships three football fields long that arrive in Seattle’s bustling port stacked with truck-sized cargo containers, the U.S. Customs and Border Protection agricultural specialist scours for bugs, plants or pathogens that could lay waste to native species.
She checks around door frames, pipes, lifeboat winches and other nooks where an Asian gypsy moth might have laid its eggs.
Invasive species can quickly become ecological and economical disasters. The emerald ash borer beetle has killed over 30 million ash trees since it was detected in North America in 2002. European gypsy moths defoliate millions of forested acres every year from North Carolina to Wisconsin to Maine.
“There are so many places on a ship, it could literally take all day if you inspected every inch of the ship,” Beckham said. We do what we can.”
Beckham carries a backpack full of tools: cards illustrating the moth’s life stages, binoculars to inspect areas of the ship she can’t reach, a paint scraper to pry off any egg masses, and a plastic container with a dead adult male and an egg mass to show crew members what she’s looking for.
Most crews are very cooperative and want to know what to look for, Beckham says.
The Asian gypsy moth, like its European cousin, is a rapacious leaf-eater, but it eats a wider variety of trees. Unlike the flightless European female, the Asian female can fly up to 25 miles before laying its eggs, meaning it could quickly spread across the country. Read the complete story.
Friday, August 29, 2008
Flaherty Warns of Bumps Ahead for Canadian Economy
(CEP News)
Canadian Finance Minister Jim Flaherty says Canada is well positioned to weather the current global economic downturn, but warns of more economic bumps on the road to recovery, “particularly in the auto sector.”
“We will have modest economic growth” in the remainder of this year, Flaherty told journalists in Toronto, but Canadians should anticipate more slowness in the economy, especially in Ontario’s beleaguered manufacturing sector.
Flaherty was reacting to the latest release of Canadian GDP numbers, which were lower than expected, but showed that Canada avoided the technical definition of a recession by posting a 0.3% annualized growth in Gross Domestic Product in the second quarter of 2008. Analysts had been looking for an increase of 0.6%.
Statistics Canada reported Friday that the economy edged up in the second quarter after slipping a revised 0.2% (-0.8% annualized) in the first three months of the year.
The second quarter’s growth came even as domestic demand grew 0.5% and foreign demand for Canadian goods and services registered a fourth consecutive decline.
Flaherty said although Canadian GDP figures released Friday fell short of economists’ expectations, Canada still boasts stable core inflation, a jobless rate that is at a 33-year low, a $1.7-billion dollar surplus as of June, and “a housing market [that] is sound.” Read the complete article.
Canadian Finance Minister Jim Flaherty says Canada is well positioned to weather the current global economic downturn, but warns of more economic bumps on the road to recovery, “particularly in the auto sector.”
“We will have modest economic growth” in the remainder of this year, Flaherty told journalists in Toronto, but Canadians should anticipate more slowness in the economy, especially in Ontario’s beleaguered manufacturing sector.
Flaherty was reacting to the latest release of Canadian GDP numbers, which were lower than expected, but showed that Canada avoided the technical definition of a recession by posting a 0.3% annualized growth in Gross Domestic Product in the second quarter of 2008. Analysts had been looking for an increase of 0.6%.
Statistics Canada reported Friday that the economy edged up in the second quarter after slipping a revised 0.2% (-0.8% annualized) in the first three months of the year.
The second quarter’s growth came even as domestic demand grew 0.5% and foreign demand for Canadian goods and services registered a fourth consecutive decline.
Flaherty said although Canadian GDP figures released Friday fell short of economists’ expectations, Canada still boasts stable core inflation, a jobless rate that is at a 33-year low, a $1.7-billion dollar surplus as of June, and “a housing market [that] is sound.” Read the complete article.
Grace Period Set for Implementation of First Sale Declaration Requirement
(USCBP)
A grace period that is being granted to importers with regard to the implementation of the First Sale Declaration Requirement established under section 15422(a) in the Food, Conservation and Energy Act of 2008, commonly referred to as the Farm Bill.
The First Sale Declaration Requirement refers to the requirement for importers to provide a declaration to CBP at the time of entry for all goods entered for consumption or withdrawn from warehouse whether the value was determined on the basis of price paid by the buyer in the first or earlier sale occurring prior to introduction of the merchandise into the United States.
To meet this requirement the First Sale Declaration Requirement requires that an importer of merchandise must enter an “F” next to the declared value at the line level on CBP Form 7501, or the electronic filing equivalent, when the declared transaction value of the imported merchandise is determined on the basis of the price paid by the buyer in a sale occurring earlier than the last sale prior to the introduction of the merchandise into the United States.
Under the Farm Bill, the First Sale Declaration Requirement is effective for a one-year period beginning August 20, 2008.
The interim rule describing the First Sale Declaration Requirement will be on public display at the Federal Register on August 20, 2008, but will not be published until after August 20, 2008.
Further, the Trade has advised CBP that, due to the complexity of the programming changes required, it will not be ready to comply with the First Sale Declaration Requirement on August 20, 2008.
Accordingly, in order to permit the trade sufficient time to comply with the requirements in the First Sale Declaration Requirement, and thereby ensure the integrity of the data collected on importations, CBP will delay the enforcement of the First Sale Declaration Requirement for 30 days.
Thus, CBP will commence the enforcement of the data collection requirements contained in the First Sale Declaration Requirement on September 20, 2008.
Entries subject to the First Sale Declaration Requirement made between August 20 and September 19 will not be rejected based on any First Sale Declaration requirements.
However, entries subject to the First Sale Declaration Requirement made between August 20 and September 19 will require amendment. Information describing how the amendments will be made will be forthcoming.
The Trade is, however, strongly encouraged to implement the requirements of the First Sale Declaration Requirement as soon as feasible before September 19, 2008
A grace period that is being granted to importers with regard to the implementation of the First Sale Declaration Requirement established under section 15422(a) in the Food, Conservation and Energy Act of 2008, commonly referred to as the Farm Bill.
The First Sale Declaration Requirement refers to the requirement for importers to provide a declaration to CBP at the time of entry for all goods entered for consumption or withdrawn from warehouse whether the value was determined on the basis of price paid by the buyer in the first or earlier sale occurring prior to introduction of the merchandise into the United States.
To meet this requirement the First Sale Declaration Requirement requires that an importer of merchandise must enter an “F” next to the declared value at the line level on CBP Form 7501, or the electronic filing equivalent, when the declared transaction value of the imported merchandise is determined on the basis of the price paid by the buyer in a sale occurring earlier than the last sale prior to the introduction of the merchandise into the United States.
Under the Farm Bill, the First Sale Declaration Requirement is effective for a one-year period beginning August 20, 2008.
The interim rule describing the First Sale Declaration Requirement will be on public display at the Federal Register on August 20, 2008, but will not be published until after August 20, 2008.
Further, the Trade has advised CBP that, due to the complexity of the programming changes required, it will not be ready to comply with the First Sale Declaration Requirement on August 20, 2008.
Accordingly, in order to permit the trade sufficient time to comply with the requirements in the First Sale Declaration Requirement, and thereby ensure the integrity of the data collected on importations, CBP will delay the enforcement of the First Sale Declaration Requirement for 30 days.
Thus, CBP will commence the enforcement of the data collection requirements contained in the First Sale Declaration Requirement on September 20, 2008.
Entries subject to the First Sale Declaration Requirement made between August 20 and September 19 will not be rejected based on any First Sale Declaration requirements.
However, entries subject to the First Sale Declaration Requirement made between August 20 and September 19 will require amendment. Information describing how the amendments will be made will be forthcoming.
The Trade is, however, strongly encouraged to implement the requirements of the First Sale Declaration Requirement as soon as feasible before September 19, 2008
Thursday, August 28, 2008
U.S. GDP Rebounds with 3.3% Growth
(BBC News)
The U.S. economy grew at a revised 3.3% annually in the second quarter of 2008, the Commerce Department said, much higher than its first estimate of 1.9%. The rebound was linked to strong U.S. exports, helped by the weak dollar, while government tax rebates also boosted consumer spending.
GDP grew at a rate of 0.9% in the first quarter, after a 0.2% contraction in the last three months of 2007. The Federal Reserve has warned the economy will remain weak this year.
Exports grew at an annualised rate of 13.2%, higher than the government’s initial estimate of 9.2%. Imports fell at a rate of 7.6% as the U.S. economic slowdown reduced demands for goods made overseas. The improved trade balance added 3.1 percentage points to second-quarter GDP, the biggest since 1980.
The slowdown in the housing market was evident, as builders cut back and businesses reduced their spending. Consumer spending, boosted by the government’s $600 tax rebate payments, rose by 1.7%, slightly higher than the previous quarter’s 1.5%.
The U.S. economy grew at a revised 3.3% annually in the second quarter of 2008, the Commerce Department said, much higher than its first estimate of 1.9%. The rebound was linked to strong U.S. exports, helped by the weak dollar, while government tax rebates also boosted consumer spending.
GDP grew at a rate of 0.9% in the first quarter, after a 0.2% contraction in the last three months of 2007. The Federal Reserve has warned the economy will remain weak this year.
Exports grew at an annualised rate of 13.2%, higher than the government’s initial estimate of 9.2%. Imports fell at a rate of 7.6% as the U.S. economic slowdown reduced demands for goods made overseas. The improved trade balance added 3.1 percentage points to second-quarter GDP, the biggest since 1980.
The slowdown in the housing market was evident, as builders cut back and businesses reduced their spending. Consumer spending, boosted by the government’s $600 tax rebate payments, rose by 1.7%, slightly higher than the previous quarter’s 1.5%.
Participate in an Authoritative Report on Transportation Management, Benchmarks and Practices
(Canadian Transportation & Logistics)
All supply chain professionals have an opportunity to participate in the 4th annual CITA members’ confidential benchmarking survey and receive the comprehensive report – at no charge.
The survey has traditionally been offered each year as a value-added service to CITA members to help members better manage their transportation and logistics activities. CITA, however, is opening up participation to non members this year in order to expand the coverage of the survey in selected areas.
This year’s survey deals with a full range of important transportation management issues, including:
• Carrier service and quality
• Performance benchmarks
• Management practices
• Current issues, such as fuel surcharges, speed limiters, use of long combination vehicles (LCV’s), hedging of fuel charges
• In-depth review of rail carload value and service
• In-depth review of truckload value and service
This is an unusual opportunity to be part of this highly regarded group.
If you would like to participate, e-mail your request to Dr, Alan Saipe, President of Supply Chain Surveys, Inc. at the following address: asaipe@sc-surveys.com
All supply chain professionals have an opportunity to participate in the 4th annual CITA members’ confidential benchmarking survey and receive the comprehensive report – at no charge.
The survey has traditionally been offered each year as a value-added service to CITA members to help members better manage their transportation and logistics activities. CITA, however, is opening up participation to non members this year in order to expand the coverage of the survey in selected areas.
This year’s survey deals with a full range of important transportation management issues, including:
• Carrier service and quality
• Performance benchmarks
• Management practices
• Current issues, such as fuel surcharges, speed limiters, use of long combination vehicles (LCV’s), hedging of fuel charges
• In-depth review of rail carload value and service
• In-depth review of truckload value and service
This is an unusual opportunity to be part of this highly regarded group.
If you would like to participate, e-mail your request to Dr, Alan Saipe, President of Supply Chain Surveys, Inc. at the following address: asaipe@sc-surveys.com
CBP Moves Forward on Trade Facilitation Strategy
(American Shipper – Eric Kulisch)
U.S. Customs and Border Protection plans to implement its enhanced trade strategy on Oct. 1, according to Brenda Smith, executive director, trade policy and programs.
On Monday, the Commercial Operations Advisory Committee, an industry sounding board, submitted comments on the 30-page draft policy to the border management agency.
CBP has followed several aspects of the strategy in the past, but is now sharing its strategy with the public for the first time. The broad themes for returning more focus to trade issues instead of just priority security matters were unveiled in May:
• Trade facilitation and enforcement.
• Modernizing trade processes.
• Using a multilayered approach, using risk-management principles for enforcement as is done for allocating resources for security inspections.
• Industry partnerships to enhance compliance.
• Collecting advance information from the supply chain.
• Reviewing customs documents for potential fraud away from the border so that cargo shipments are not unnecessarily delayed.
The Bush administration has cleared CBP to go ahead with its trade plan, Smith told COAC at its quarterly meeting in Seattle earlier this month. She asked the 20-member panel to identify new ways to implement the strategy and submit suggestions at COAC’s next meeting in November to help the agency build off the priority trade issues established for the 2009 fiscal year budget plan.
U.S. Customs and Border Protection plans to implement its enhanced trade strategy on Oct. 1, according to Brenda Smith, executive director, trade policy and programs.
On Monday, the Commercial Operations Advisory Committee, an industry sounding board, submitted comments on the 30-page draft policy to the border management agency.
CBP has followed several aspects of the strategy in the past, but is now sharing its strategy with the public for the first time. The broad themes for returning more focus to trade issues instead of just priority security matters were unveiled in May:
• Trade facilitation and enforcement.
• Modernizing trade processes.
• Using a multilayered approach, using risk-management principles for enforcement as is done for allocating resources for security inspections.
• Industry partnerships to enhance compliance.
• Collecting advance information from the supply chain.
• Reviewing customs documents for potential fraud away from the border so that cargo shipments are not unnecessarily delayed.
The Bush administration has cleared CBP to go ahead with its trade plan, Smith told COAC at its quarterly meeting in Seattle earlier this month. She asked the 20-member panel to identify new ways to implement the strategy and submit suggestions at COAC’s next meeting in November to help the agency build off the priority trade issues established for the 2009 fiscal year budget plan.
Government Set for Surplus, Conference Board Says
(The Canadian Press)
The federal government will easily manage to avoid slipping into a deficit position despite the slumping economy and will almost certainly record higher surpluses than forecast, says a new analysis by the Conference Board of Canada.
The private sector think-tank says higher- than-projected inflation, along with other factors, have boosted government revenues and almost completely countered the impact of slower growth and tax cuts that went into effect in January.
Finance Minister Jim Flaherty had forecast a $2.3-billion surplus this fiscal year and a slim $1.3-billion surplus in 2009-2010, but the Conference Board believes Ottawa will be able to better both targets.
“Federal revenues should have been down nearly $20 billion in the first quarter, given the measures set out in last fall’s economic statement,” said chief economist Glen Hodgson. “Instead, only a ($1.1 billion) reduction is showing up in the national accounts” for the first three months of the fiscal year. Read more.
The federal government will easily manage to avoid slipping into a deficit position despite the slumping economy and will almost certainly record higher surpluses than forecast, says a new analysis by the Conference Board of Canada.
The private sector think-tank says higher- than-projected inflation, along with other factors, have boosted government revenues and almost completely countered the impact of slower growth and tax cuts that went into effect in January.
Finance Minister Jim Flaherty had forecast a $2.3-billion surplus this fiscal year and a slim $1.3-billion surplus in 2009-2010, but the Conference Board believes Ottawa will be able to better both targets.
“Federal revenues should have been down nearly $20 billion in the first quarter, given the measures set out in last fall’s economic statement,” said chief economist Glen Hodgson. “Instead, only a ($1.1 billion) reduction is showing up in the national accounts” for the first three months of the fiscal year. Read more.
Canada’s Current Account Surplus Widens on Commodity Prices
(Bloomberg – Alexandre Deslongchamps)
Canada’s current account, the broadest measure of international trade, grew to the highest in a year in the second quarter as prices for exported commodities such as oil and natural gas rose.
Receipts from outside Canada exceeded payments sent abroad by C$6.76 billion ($6.47 billion), after a revised C$4.46 billion first-quarter surplus, Statistics Canada said today [Thursday] in Ottawa.
Economists surveyed by Bloomberg forecast an C$8 billion surplus from April to June, the median of 20 estimates, after the initially reported first-quarter surplus of C$5.6 billion.
The report indicates commodity exports are helping the economy weather slower growth in the U.S., Canada’s main trading partner, so the central bank may be able to delay cutting interest rates to stimulate spending. Economic growth in Canada will be 1% this year, the slowest since 1992, the central bank said last month.
The surplus in goods trade grew to C$16.4 billion, the most since the fourth quarter of 2005, as oil and natural gas prices surged, Statistics Canada said. Natural gas appreciated 33 percent during the quarter, and oil gained 25%, boosting the value of sales even as they declined in volume terms. Sales of coal more than doubled on high global demand.
Canadian automotive exports fell for a fifth straight quarter to the lowest since the fourth quarter of 1996, Statistics Canada said today.
While companies’ sales abroad continue to be crimped by Canada’s high currency, the so-called loonie has weakened about 11% from a record 90.58 Canadian cents per U.S. dollar reached on November 7.
The deficit in travel narrowed for a second straight quarter to C$3.15 billion, as Canadians took fewer trips across the U.S. border.
The deficit in investment income widened for a second straight quarter to C$3.39 billion, the agency said.
Canada’s current account – the most complete measure of trade because it includes exports and imports of goods and services, transfers and investment income – has slumped from a record C$12.3 billion surplus two years ago.
Summary data and a link to the report are on the Statistics Canada website.
Canada’s current account, the broadest measure of international trade, grew to the highest in a year in the second quarter as prices for exported commodities such as oil and natural gas rose.
Receipts from outside Canada exceeded payments sent abroad by C$6.76 billion ($6.47 billion), after a revised C$4.46 billion first-quarter surplus, Statistics Canada said today [Thursday] in Ottawa.
Economists surveyed by Bloomberg forecast an C$8 billion surplus from April to June, the median of 20 estimates, after the initially reported first-quarter surplus of C$5.6 billion.
The report indicates commodity exports are helping the economy weather slower growth in the U.S., Canada’s main trading partner, so the central bank may be able to delay cutting interest rates to stimulate spending. Economic growth in Canada will be 1% this year, the slowest since 1992, the central bank said last month.
The surplus in goods trade grew to C$16.4 billion, the most since the fourth quarter of 2005, as oil and natural gas prices surged, Statistics Canada said. Natural gas appreciated 33 percent during the quarter, and oil gained 25%, boosting the value of sales even as they declined in volume terms. Sales of coal more than doubled on high global demand.
Canadian automotive exports fell for a fifth straight quarter to the lowest since the fourth quarter of 1996, Statistics Canada said today.
While companies’ sales abroad continue to be crimped by Canada’s high currency, the so-called loonie has weakened about 11% from a record 90.58 Canadian cents per U.S. dollar reached on November 7.
The deficit in travel narrowed for a second straight quarter to C$3.15 billion, as Canadians took fewer trips across the U.S. border.
The deficit in investment income widened for a second straight quarter to C$3.39 billion, the agency said.
Canada’s current account – the most complete measure of trade because it includes exports and imports of goods and services, transfers and investment income – has slumped from a record C$12.3 billion surplus two years ago.
Summary data and a link to the report are on the Statistics Canada website.
Zoom Airlines Shuts Down
(Brent Jang — Globe & Mail)
Zoom Cargo operations grounded.
Zoom Airlines said Thursday that it has halted flights and grounded its planes, leaving hundreds of passengers stranded and tempers flaring at airports.
“We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff,” Zoom co-founders Hugh and John Boyle said in a statement. “We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights.”
The Ottawa-based carrier took down its website Thursday afternoon, preventing consumers from making online bookings. Earlier in the day, a Zoom sales agent said bookings were still being accepted in the morning, despite dozens of travellers being stranded on various flights.
“We have done everything we can to support the airline and left no stone unturned to secure a refinancing package that would have kept our aircraft flying. Even as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying,” the Boyle Brothers said. Read the complete article. Announcement from Zoom Air here.
Zoom Cargo operations grounded.
Zoom Airlines said Thursday that it has halted flights and grounded its planes, leaving hundreds of passengers stranded and tempers flaring at airports.
“We deeply regret the fact that we have been forced to cease all Zoom operations. It is a tragic day for our passengers and more than 600 staff,” Zoom co-founders Hugh and John Boyle said in a statement. “We are desperately sorry for the inconvenience that this will cause passengers and those who have booked flights.”
The Ottawa-based carrier took down its website Thursday afternoon, preventing consumers from making online bookings. Earlier in the day, a Zoom sales agent said bookings were still being accepted in the morning, despite dozens of travellers being stranded on various flights.
“We have done everything we can to support the airline and left no stone unturned to secure a refinancing package that would have kept our aircraft flying. Even as late as yesterday we had secured a new investment package but the actions of creditors meant we could not continue flying,” the Boyle Brothers said. Read the complete article. Announcement from Zoom Air here.
Wednesday, August 27, 2008
Travel Reminder for Labor Day Border Crossers in North Dakota
(U.S. CBP — Pembina)
U.S. Customs and Border Protection is reminding travelers planning trips across the border into the United States to make sure they have their proper documents and to anticipate heavy traffic during the celebration of the Labor Day holiday.
Labor Day is celebrated in both Canada and the United States as a federal holiday observed since the late 1880s on the first Monday in September originating as a day off for working laborers and is the symbolic end of summer. Border traffic volumes are expected to be greatly increased during this holiday weekend and all travelers are reminded of a few simple steps they can employ to cross the border.
1) Plan your trip and allow extra time for crossing the border. Consult the CBP website site to monitor border wait times and review the “Know Before You Go.”
2) Avoid peak travel times when at all possible. The heaviest traffic periods are typically between the hours of 7 a.m. and 7 p.m.
3) Be prepared to show proof of citizenship and identity to enter the United States. This can include a passport, trusted traveler program card (NEXUS), an enhanced driver’s license or a birth certificate with a conventional driver’s license. Travelers 18 and under can present just a birth certificate.
4) Travelers are advised to declare all agriculture products including firewood and kindling, and those who are transporting either are subject to additional inspection by CBP agriculture specialists. Agriculture specialists recently intercepted wood boring beetles at the Pembina port of entry. The beetles were discovered in firewood that a traveler was transporting from Canada into the United States. If your firewood and/or kindling is suspected to contain any harmful pests it will be refused at the border and you may be required to return it home or otherwise properly dispose of it. Failure to declare agriculture products, including firewood and kindling will result in delays and can incur on the spot civil penalties.
Contacts and further information from CBP available here.
U.S. Customs and Border Protection is reminding travelers planning trips across the border into the United States to make sure they have their proper documents and to anticipate heavy traffic during the celebration of the Labor Day holiday.
Labor Day is celebrated in both Canada and the United States as a federal holiday observed since the late 1880s on the first Monday in September originating as a day off for working laborers and is the symbolic end of summer. Border traffic volumes are expected to be greatly increased during this holiday weekend and all travelers are reminded of a few simple steps they can employ to cross the border.
1) Plan your trip and allow extra time for crossing the border. Consult the CBP website site to monitor border wait times and review the “Know Before You Go.”
2) Avoid peak travel times when at all possible. The heaviest traffic periods are typically between the hours of 7 a.m. and 7 p.m.
3) Be prepared to show proof of citizenship and identity to enter the United States. This can include a passport, trusted traveler program card (NEXUS), an enhanced driver’s license or a birth certificate with a conventional driver’s license. Travelers 18 and under can present just a birth certificate.
4) Travelers are advised to declare all agriculture products including firewood and kindling, and those who are transporting either are subject to additional inspection by CBP agriculture specialists. Agriculture specialists recently intercepted wood boring beetles at the Pembina port of entry. The beetles were discovered in firewood that a traveler was transporting from Canada into the United States. If your firewood and/or kindling is suspected to contain any harmful pests it will be refused at the border and you may be required to return it home or otherwise properly dispose of it. Failure to declare agriculture products, including firewood and kindling will result in delays and can incur on the spot civil penalties.
Contacts and further information from CBP available here.
Free Trade and the Presidential Race
(Wall Street Journal)
Wall Street Journal Washington bureau chief John Bussey talks with WSJ business reporter Kelsey Hubbard about how the presidential candidates will tackle the global economy and free trade.
Canadian Gas Prices Aren’t So Bad, Industry Expert Insists
(CBC News)
While Canadians complain about the soaring price of gasoline at the pumps, an oil industry spokesman says people in this country actually have it pretty good.
Peter Boag, testifying before a parliamentary committee on Tuesday, told MPs that fuel prices are lower in Canada than they are in every other Western country, except the United States.
And the fact that Canadian gas prices jump up and down from day to day is actually a good sign, he said.
“We do understand Canadians' frustration with fuel price volatility in particular, but at the same time in our view that's the best evidence of a well-functioning, competitive market,” said Boag, president of the Canadian Petroleum Product Institute.
His association represents Canadian fuel companies like Petro-Canada, Shell, Ultramar, Chevron, Husky and Imperial Oil.
“In our view, Canadians are well-served by a competitive marketplace and today they still pay the second-lowest price for fuel in the Western world,” he added.
He was one of three petroleum industry experts testifying before the Subcommittee on Oil and Gas and Other Energy Prices. The committee is investigating the reasons behind the high prices of fuel in the country.
While Canadians complain about the soaring price of gasoline at the pumps, an oil industry spokesman says people in this country actually have it pretty good.
Peter Boag, testifying before a parliamentary committee on Tuesday, told MPs that fuel prices are lower in Canada than they are in every other Western country, except the United States.
And the fact that Canadian gas prices jump up and down from day to day is actually a good sign, he said.
“We do understand Canadians' frustration with fuel price volatility in particular, but at the same time in our view that's the best evidence of a well-functioning, competitive market,” said Boag, president of the Canadian Petroleum Product Institute.
His association represents Canadian fuel companies like Petro-Canada, Shell, Ultramar, Chevron, Husky and Imperial Oil.
“In our view, Canadians are well-served by a competitive marketplace and today they still pay the second-lowest price for fuel in the Western world,” he added.
He was one of three petroleum industry experts testifying before the Subcommittee on Oil and Gas and Other Energy Prices. The committee is investigating the reasons behind the high prices of fuel in the country.
Listeria Hysteria Can’t Hurt
(Globe and Mail – Sylvain Charlebois, University of Regina)
The latest listeria outbreak is a warning that cannot be ignored. It reminds us how vulnerable we are to threats generated from our food supply. And the simple fact is, our government-monitored food supply is no longer capable of protecting us.
It is chilling to read forecasts published in the past decade by food-safety experts. Some analysts suggest the next 9/11 will occur through our food supplies. Such a menace is particularly imaginable because our food-safety architecture is inadequate. It took seven months to find the source of contamination in the 2006 American spinach recall. Even worse, we still don’t know whether tomatoes were the culprit of the salmonella outbreak earlier this year. Our ability to track products in North America, let alone Canada, is highly deficient.
No individual organization is capable of meeting these challenges. In recent years, Canadians have had faith that government knows best when it comes to public health issues, and rightly so. Our public health system has served us so well that it has become unnatural to think that profit-driven organizations care for the common good. But while many Canadians believe we should rely solely on publicly funded authorities, the expanding scope of modern food systems is debunking such wishful thinking.
The food industry is a loose collective of organizations whose primary goal is to provide safe food. But its efforts are failing. Studies suggest that only 2% of everything we eat in Canada is audited by competent public authorities. The entire Canadian food industry represents more than $100-billion in annual revenue, so the scope of our food industry is barely riotous.
For the food industry to be capable of meeting its mandate, the private sector needs to play a pro-active role with public agencies in food-safety practices. Food-safety authorities need to build reliable partnerships to counter potential threats from the food supply, human induced or not. Accountability, transparency and responsiveness are key qualities we need to foster in order to manage risk.
With 5,000 on staff, the Canadian Food Inspection Agency has the capacity to investigate outbreaks, but it needs to modify its role as authority. Since its inception in 1997, the CFIA has matured into a competent organization that is willing to learn from the past. Nonetheless, markets and consumer behaviour are changing rapidly. The CFIA and provincial/municipal food-safety authorities cannot keep up, and public food-safety resources are overdrawn. The CFIA’s priority should be to promote shared interests among food-industry players.
We also need to redefine the geographical scope of our food-safety systems. We import more than $25-billion worth of food products every year in Canada. We need to include the Americans in our monitoring practices. Setting up a continentally based system would be challenging but necessary to manage future risks.
When developing food risk management strategies, it is crucial to consider how consumers evaluate risk practices. Pro-active consumer protection, for example, is often positively related to consumer evaluation of risk management quality. Pro-active measures include enhanced food traceability, education and awareness, surveillance, proper risk management certifications, and improved supply chain control. These responsibilities should be shared between the public and private sectors. Closer co-operation will help identify problems and anticipate threats.
The “us versus them” culture is too prevalent in the food business. We are faced with a threat - but also an opportunity to improve Canadian food safety. Rather than forcing government to play the role of industry enforcer, we must protect the rapport between consumers and the food industry before it is too late. See also this article in the Regina Leader-Post.
The latest listeria outbreak is a warning that cannot be ignored. It reminds us how vulnerable we are to threats generated from our food supply. And the simple fact is, our government-monitored food supply is no longer capable of protecting us.
It is chilling to read forecasts published in the past decade by food-safety experts. Some analysts suggest the next 9/11 will occur through our food supplies. Such a menace is particularly imaginable because our food-safety architecture is inadequate. It took seven months to find the source of contamination in the 2006 American spinach recall. Even worse, we still don’t know whether tomatoes were the culprit of the salmonella outbreak earlier this year. Our ability to track products in North America, let alone Canada, is highly deficient.
No individual organization is capable of meeting these challenges. In recent years, Canadians have had faith that government knows best when it comes to public health issues, and rightly so. Our public health system has served us so well that it has become unnatural to think that profit-driven organizations care for the common good. But while many Canadians believe we should rely solely on publicly funded authorities, the expanding scope of modern food systems is debunking such wishful thinking.
The food industry is a loose collective of organizations whose primary goal is to provide safe food. But its efforts are failing. Studies suggest that only 2% of everything we eat in Canada is audited by competent public authorities. The entire Canadian food industry represents more than $100-billion in annual revenue, so the scope of our food industry is barely riotous.
For the food industry to be capable of meeting its mandate, the private sector needs to play a pro-active role with public agencies in food-safety practices. Food-safety authorities need to build reliable partnerships to counter potential threats from the food supply, human induced or not. Accountability, transparency and responsiveness are key qualities we need to foster in order to manage risk.
With 5,000 on staff, the Canadian Food Inspection Agency has the capacity to investigate outbreaks, but it needs to modify its role as authority. Since its inception in 1997, the CFIA has matured into a competent organization that is willing to learn from the past. Nonetheless, markets and consumer behaviour are changing rapidly. The CFIA and provincial/municipal food-safety authorities cannot keep up, and public food-safety resources are overdrawn. The CFIA’s priority should be to promote shared interests among food-industry players.
We also need to redefine the geographical scope of our food-safety systems. We import more than $25-billion worth of food products every year in Canada. We need to include the Americans in our monitoring practices. Setting up a continentally based system would be challenging but necessary to manage future risks.
When developing food risk management strategies, it is crucial to consider how consumers evaluate risk practices. Pro-active consumer protection, for example, is often positively related to consumer evaluation of risk management quality. Pro-active measures include enhanced food traceability, education and awareness, surveillance, proper risk management certifications, and improved supply chain control. These responsibilities should be shared between the public and private sectors. Closer co-operation will help identify problems and anticipate threats.
The “us versus them” culture is too prevalent in the food business. We are faced with a threat - but also an opportunity to improve Canadian food safety. Rather than forcing government to play the role of industry enforcer, we must protect the rapport between consumers and the food industry before it is too late. See also this article in the Regina Leader-Post.
Food Inspection System Needs Revamping, Says PM
(Winnipeg Free Press – Gregory Bonnell, The Canadian Press)
Canada’s listeriosis outbreak is a tragic example of why the food inspection system should be revamped, Prime Minister Stephen Harper said yesterday as he spoke publicly about the crisis for the first time, offering condolences to those whose loved ones have died or fallen ill.
In Ontario – home to all six deaths conclusively linked to the outbreak, and a province that’s no stranger to serious health crises – Health Minister David Caplan expressed concern about reports the federal Tories intend to allow the food industry to police itself.
The outbreak, which has been linked to meat products recalled by Maple Leaf Foods, shows why Ottawa needs to act, Harper said during a news conference in Ottawa. “This is a serious concern. That’s why I indicated ... that it’s necessary to reform and revamp our food and product inspection regimes.”
An additional nine deaths across Canada – six in Ontario and one each in B.C., Saskatchewan and Quebec – remain under investigation for possible links to the outbreak. Two new confirmed cases in Ontario and one more in Quebec have brought the total of known cases with a definitive link to the outbreak to 29.
Food tracking system
Health Minister Tony Clement, in Denver for the Democratic National Convention, said he has legislation before Parliament in the hopes of creating a national food tracking system. “We can track a given food source, a given food supply (and) if there’s a problem, find out quickly, deal with the problem and make sure Canadians are protected,” Clement told the CBC.
Caplan, Clement’s counterpart in Ontario, expressed concern over the Conservative government’s proposed reforms.
Ontario’s previous Conservative government, in which Clement was a cabinet minister, removed safety protocols from the province’s water inspection system – a move a judicial inquiry found contributed to the E. coli water crisis in Walkerton that killed seven people in May 2000.
“I want to make sure that we have the highest public safeguards and safety nets in place. That’s where my focus has been,” Caplan said. “I would be concerned about any proposal which might weaken Ontario and-or Canadian safety guidelines.”
A secret federal cabinet document leaked last month suggested the Tories intend to hand responsibility for inspections over to the food industry. The government has neither confirmed nor denied details of its planned changes.
More than 220 meat products have been recalled by Maple Leaf or companies that used recalled meat, including yesterday’s announcement of three additional brands of ready-made sandwiches sold in the Maritimes and Ontario. Maple Leaf initiated its recall after the Listeria bacterium was detected in some of the goods produced in one of its Toronto plants, but eventually ordered the recall of all products made at the facility as the outbreak escalated. Maple Leaf’s stock has taken a pounding as a result of the recall, which the company estimates will cost about $20 million – not including the potential impact on sales down the road.
Canada’s listeriosis outbreak is a tragic example of why the food inspection system should be revamped, Prime Minister Stephen Harper said yesterday as he spoke publicly about the crisis for the first time, offering condolences to those whose loved ones have died or fallen ill.
In Ontario – home to all six deaths conclusively linked to the outbreak, and a province that’s no stranger to serious health crises – Health Minister David Caplan expressed concern about reports the federal Tories intend to allow the food industry to police itself.
The outbreak, which has been linked to meat products recalled by Maple Leaf Foods, shows why Ottawa needs to act, Harper said during a news conference in Ottawa. “This is a serious concern. That’s why I indicated ... that it’s necessary to reform and revamp our food and product inspection regimes.”
An additional nine deaths across Canada – six in Ontario and one each in B.C., Saskatchewan and Quebec – remain under investigation for possible links to the outbreak. Two new confirmed cases in Ontario and one more in Quebec have brought the total of known cases with a definitive link to the outbreak to 29.
Food tracking system
Health Minister Tony Clement, in Denver for the Democratic National Convention, said he has legislation before Parliament in the hopes of creating a national food tracking system. “We can track a given food source, a given food supply (and) if there’s a problem, find out quickly, deal with the problem and make sure Canadians are protected,” Clement told the CBC.
Caplan, Clement’s counterpart in Ontario, expressed concern over the Conservative government’s proposed reforms.
Ontario’s previous Conservative government, in which Clement was a cabinet minister, removed safety protocols from the province’s water inspection system – a move a judicial inquiry found contributed to the E. coli water crisis in Walkerton that killed seven people in May 2000.
“I want to make sure that we have the highest public safeguards and safety nets in place. That’s where my focus has been,” Caplan said. “I would be concerned about any proposal which might weaken Ontario and-or Canadian safety guidelines.”
A secret federal cabinet document leaked last month suggested the Tories intend to hand responsibility for inspections over to the food industry. The government has neither confirmed nor denied details of its planned changes.
More than 220 meat products have been recalled by Maple Leaf or companies that used recalled meat, including yesterday’s announcement of three additional brands of ready-made sandwiches sold in the Maritimes and Ontario. Maple Leaf initiated its recall after the Listeria bacterium was detected in some of the goods produced in one of its Toronto plants, but eventually ordered the recall of all products made at the facility as the outbreak escalated. Maple Leaf’s stock has taken a pounding as a result of the recall, which the company estimates will cost about $20 million – not including the potential impact on sales down the road.
Meat Inspectors Stretched Too Thin: Union
(Canwest News Service – Sarah Schmidt)
The inspector stationed at the Toronto plant at the centre of a deadly food-borne outbreak is responsible for six other facilities under a new inspection system that’s drawn complaints that staff “are working off their feet.”
Complaints of being stretched too thin have flooded in from some inspectors in “resource stressed” areas like Ontario and Alberta since March, when the Canadian Food Inspection Agency brought in a new compliance verification system (CVS), according to Bob Kingston, head of the agriculture unit of the Public Service Alliance of Canada, which represents food inspectors across Canada.
“They’re facing a choice of, ‘OK, do I concentrate more on doing a thorough inspection or do I concentrate more on getting the paperwork done that says I’ve been to that plant, I’ve looked at the records and that satisfies the legal requirement for international trade.”
The new inspection program resembles more of an auditing system and requires government inspectors to review a company’s records to monitor and verify food-safety practices at all critical points during production, including ventilation at the facility, equipment maintenance and calibration, personnel training, sanitation and pest control programs, and product code identification in case of recalls.
In correspondence to union officials provided to Canwest News Service, one inspector complained, “We do not have the same presence we used to have in the processing facilities.
When the cat is away the mice will play.” Another noted that, “We are not making the observations we used to make when we had more of a hands-on approach. We spend more time looking at paper than anything else.”
Another inspector was more blunt. “We’ve had all our authority taken away and now we are just paper pushers.”
The inspector stationed at the Maple Leaf Foods plant in Toronto is responsible for another two meat processing plants and four cold storage facilities. Storage facilities require less rigorous inspection processes.
CFIA said Tuesday the three meat processing facilities require daily visits, as does one of the cold storage facilities.
Richard Arsenault, who oversees meat inspection for the agency, said it’s “normal and usual” for inspectors to be responsible for more than one plant and this is not a new feature of the inspection system. Arsenault says the feedback he’s been getting about the new verification system has been positive. Read the complete article.
The inspector stationed at the Toronto plant at the centre of a deadly food-borne outbreak is responsible for six other facilities under a new inspection system that’s drawn complaints that staff “are working off their feet.”
Complaints of being stretched too thin have flooded in from some inspectors in “resource stressed” areas like Ontario and Alberta since March, when the Canadian Food Inspection Agency brought in a new compliance verification system (CVS), according to Bob Kingston, head of the agriculture unit of the Public Service Alliance of Canada, which represents food inspectors across Canada.
“They’re facing a choice of, ‘OK, do I concentrate more on doing a thorough inspection or do I concentrate more on getting the paperwork done that says I’ve been to that plant, I’ve looked at the records and that satisfies the legal requirement for international trade.”
The new inspection program resembles more of an auditing system and requires government inspectors to review a company’s records to monitor and verify food-safety practices at all critical points during production, including ventilation at the facility, equipment maintenance and calibration, personnel training, sanitation and pest control programs, and product code identification in case of recalls.
In correspondence to union officials provided to Canwest News Service, one inspector complained, “We do not have the same presence we used to have in the processing facilities.
When the cat is away the mice will play.” Another noted that, “We are not making the observations we used to make when we had more of a hands-on approach. We spend more time looking at paper than anything else.”
Another inspector was more blunt. “We’ve had all our authority taken away and now we are just paper pushers.”
The inspector stationed at the Maple Leaf Foods plant in Toronto is responsible for another two meat processing plants and four cold storage facilities. Storage facilities require less rigorous inspection processes.
CFIA said Tuesday the three meat processing facilities require daily visits, as does one of the cold storage facilities.
Richard Arsenault, who oversees meat inspection for the agency, said it’s “normal and usual” for inspectors to be responsible for more than one plant and this is not a new feature of the inspection system. Arsenault says the feedback he’s been getting about the new verification system has been positive. Read the complete article.
Scotiabank Mexico Signs Exclusive Guarantee Agreement with EDC for Mexican Market
(Canada NewsWire)
Export Development Canada (EDC) and Scotiabank Mexico today announced an agreement through which EDC will guarantee Scotiabank Mexico loans in Mexico to either importers of Canadian goods and services or subsidiaries of Canadian companies operating in Mexico. This is the first Guarantee Agreement that EDC has signed with a Financial Institution in Mexico.
“Scotiabank is extremely pleased to be exclusively partnering with EDC to assist companies in the importing of Canadians goods and services to Mexico and facilitating the establishment of Canadian subsidiaries in Mexico,” said Alberta G. Cefis, Executive Vice-President and Group Head, Global Transaction Banking, Scotiabank. “This new partnership will enable Scotiabank to provide customers in Canada and Mexico with end-to-end supply chain financing solutions.”
“EDC and Scotiabank’s interests in the Mexican market are very well aligned, and this agreement reflects our shared interest in doing more business there and growing the presence of Canadian companies in this vital market,” said Eric Siegel, President and CEO of EDC.
“EDC and Scotiabank have a long and strong relationship and this new exclusive partnership builds on our shared commitment to helping Canadian and Mexican companies involved in international trade,” said Nicole Reich de Polignac, President and CEO, Scotiabank Mexico. “This partnership with EDC is very exciting because it will help Canadian companies to enter Mexico and invest in this booming economy.”
Under the agreement, EDC will guarantee up to 75% of the loan amount, to a maximum of USD $5 million. EDC’s participation is predicated upon loans that support Canadian export contracts or facilitate Canadian capacity in Mexico. The agreement will provide for loans in U.S. dollars or in Mexican pesos.
Mexico is a key market for EDC, averaging CAD $2.3 billion in business volume since 2005, largely focussed on the extractive, transport, infrastructure, and information communication technology sectors. EDC has permanent representations in Mexico City and Monterrey that develop relationships with Mexican Companies, Canadian suppliers and Canadian subsidiaries operating in the country. In 2007 EDC served over 500 Canadian companies doing business with Mexico.
Through this exclusive partnership with EDC, Grupo Scotiabank seeks to increase its product offering and provide customers in Canada and Mexico with the best end-to-end supply chain financing solutions, designed to facilitate international trade and mitigate risk. Scotiabank Mexico serves 1.8 million customers in 635 branches throughout Mexico.
Export Development Canada (EDC) and Scotiabank Mexico today announced an agreement through which EDC will guarantee Scotiabank Mexico loans in Mexico to either importers of Canadian goods and services or subsidiaries of Canadian companies operating in Mexico. This is the first Guarantee Agreement that EDC has signed with a Financial Institution in Mexico.
“Scotiabank is extremely pleased to be exclusively partnering with EDC to assist companies in the importing of Canadians goods and services to Mexico and facilitating the establishment of Canadian subsidiaries in Mexico,” said Alberta G. Cefis, Executive Vice-President and Group Head, Global Transaction Banking, Scotiabank. “This new partnership will enable Scotiabank to provide customers in Canada and Mexico with end-to-end supply chain financing solutions.”
“EDC and Scotiabank’s interests in the Mexican market are very well aligned, and this agreement reflects our shared interest in doing more business there and growing the presence of Canadian companies in this vital market,” said Eric Siegel, President and CEO of EDC.
“EDC and Scotiabank have a long and strong relationship and this new exclusive partnership builds on our shared commitment to helping Canadian and Mexican companies involved in international trade,” said Nicole Reich de Polignac, President and CEO, Scotiabank Mexico. “This partnership with EDC is very exciting because it will help Canadian companies to enter Mexico and invest in this booming economy.”
Under the agreement, EDC will guarantee up to 75% of the loan amount, to a maximum of USD $5 million. EDC’s participation is predicated upon loans that support Canadian export contracts or facilitate Canadian capacity in Mexico. The agreement will provide for loans in U.S. dollars or in Mexican pesos.
Mexico is a key market for EDC, averaging CAD $2.3 billion in business volume since 2005, largely focussed on the extractive, transport, infrastructure, and information communication technology sectors. EDC has permanent representations in Mexico City and Monterrey that develop relationships with Mexican Companies, Canadian suppliers and Canadian subsidiaries operating in the country. In 2007 EDC served over 500 Canadian companies doing business with Mexico.
Through this exclusive partnership with EDC, Grupo Scotiabank seeks to increase its product offering and provide customers in Canada and Mexico with the best end-to-end supply chain financing solutions, designed to facilitate international trade and mitigate risk. Scotiabank Mexico serves 1.8 million customers in 635 branches throughout Mexico.
Developing Nations Trying to Break WTO Impasse: Minister
(Video: Wharton School • Story: Agence France-Presse)
Developing nations are working on a compromise which they hope can help break a deadlock in global trade talks, Indonesian Trade Minister Mari Pangestu said Wednesday.
The Group of 33 (G33) developing states’ secretariat was working to convene a meeting of officials to draw up a compromise, Pangestu said on the sidelines of an Association of Southeast Asian Nations (ASEAN) meeting in Singapore.
“We’re working hard to come up with a compromise which we think is doable,” she told reporters. Indonesia is coordinator of the G33. “The secretariat of G33 is working hard right now as we speak. There will be, probably beginning next week, the beginning of informal discussions between senior officials to find the technical compromise.”
The Doha Round of global trade negotiations broke down in Geneva last month after India and the U.S. failed to agree on a safeguard mechanism allowing for special tariffs on agricultural goods if imports surge or prices fall.
Washington rejected Indian proposals that developing nations should be allowed to boost duties by an additional 25% on farm products if imports surged by 15%. Washington insisted extra duties should be allowed only if imports rose by 40%.
Pangestu said a compromise was needed on the issue, adding the mechanism must be effective and easy to use, as requested by developing countries, but also “that this is not being abused, that there’s discipline to using it.” She said the technical discussions hope to make progress by September in order to get the World Trade Organisation ministers back to a meeting.
Indonesian President Susilo Bambang Yudhoyono has called on the leaders of fellow developing countries Brazil, China and India to help revive the stalled negotiations.
Pangestu said Yudhoyono and the other leaders were trying to “ensure that the political commitment and will to resume negotiations comes from the highest level.
The trade minister said the danger of countries backsliding towards protectionism was real. “When you have an economic slowdown as is being predicted in the US as well as Europe and Japan, then this is often the time when you have unilateral protectionism. We certainly would be very concerned about that,” she said. “The answer to that is to ensure that the multilateral trading system is preserved and that means again prioritising at the highest level of political commitment to resume negotiations as soon as possible.”
Singapore Prime Minister Lee Hsien Loong warned against reverting to protectionism when he opened the five-day ASEAN economic ministers meeting on Tuesday. He said a strong rules-based global trading regime remained the best option for the world economy.
What is the Tipping Point for Bringing Back Production to Domestic Market?
(Supply Chain Digest)
With the dramatic rise in fuel prices and thus transportation costs, there is growing evidence that some companies are relooking at the numbers and, in some cases, deciding to bring back production from Asia to domestic sources or “nearshore” low-cost countries, such as Mexico for the U.S. or Eastern European countries for Europe.
“For every company and product, there is of course a “tipping point” where rising logistics costs negate the unit cost advantages of China or other Asian countries,” says Dr. David Simchi-Levi of MIT, who has been doing research in this area.
Earlier this year, Simchi-Levi did an analysis for Supply Chain Digest that showed how rising transportation costs would impact optimal network design as the price of oil reached progressively higher levels. In one case, using real customer data, the analysis showed that as the price of oil went over $150 per barrel, triggering a corresponding increase in transportation costs, one consumer goods company should move a substantial amount of production volume from Mexico to a factory in Omaha to have the lowest total supply chain cost. Even though the U.S. unit manufacturing costs were higher, they were offset by lower shipping costs to customers.
“Now, what we are starting to see is that, what we predicted might happen then, actually beginning to occur,” Simchi-Levi said. He added that he has seen a number of companies that either put Asian offshoring plans on hold or, in some cases, brought production back to domestic or nearshore sources.
Simchi-Levi said he has been looking at a variety of macro-economic data for the past 4-5 years. He said that during that time, transportation costs have risen by about 40% – and not surprisingly, inventory carrying costs have also risen about 50%.
Why? In the constant trade-off between transportation and inventory costs, rising fuel costs ultimately mean it is cheaper on the margin to hold more inventory if doing so can reduce other logistics costs. Read the complete article (PDF).
With the dramatic rise in fuel prices and thus transportation costs, there is growing evidence that some companies are relooking at the numbers and, in some cases, deciding to bring back production from Asia to domestic sources or “nearshore” low-cost countries, such as Mexico for the U.S. or Eastern European countries for Europe.
“For every company and product, there is of course a “tipping point” where rising logistics costs negate the unit cost advantages of China or other Asian countries,” says Dr. David Simchi-Levi of MIT, who has been doing research in this area.
Earlier this year, Simchi-Levi did an analysis for Supply Chain Digest that showed how rising transportation costs would impact optimal network design as the price of oil reached progressively higher levels. In one case, using real customer data, the analysis showed that as the price of oil went over $150 per barrel, triggering a corresponding increase in transportation costs, one consumer goods company should move a substantial amount of production volume from Mexico to a factory in Omaha to have the lowest total supply chain cost. Even though the U.S. unit manufacturing costs were higher, they were offset by lower shipping costs to customers.
“Now, what we are starting to see is that, what we predicted might happen then, actually beginning to occur,” Simchi-Levi said. He added that he has seen a number of companies that either put Asian offshoring plans on hold or, in some cases, brought production back to domestic or nearshore sources.
Simchi-Levi said he has been looking at a variety of macro-economic data for the past 4-5 years. He said that during that time, transportation costs have risen by about 40% – and not surprisingly, inventory carrying costs have also risen about 50%.
Why? In the constant trade-off between transportation and inventory costs, rising fuel costs ultimately mean it is cheaper on the margin to hold more inventory if doing so can reduce other logistics costs. Read the complete article (PDF).
Tuesday, August 26, 2008
Fuel Surcharge Hits Record Level in September
(Transport Weekly)
More recent easing of prices likely to bring down surcharges beginning in October; shipping lines hold firm on floating bunker contract terms.
Container lines in the Transpacific Stabilization Agreement (TSA) have confirmed that their floating bunker fuel surcharge, adjusted monthly according to a formula that tracks world fuel prices at key loading locations, will spike to a record level effective September 1. The higher surcharge reflects record fuel prices that topped $767 per ton in mid-July, up from $500 at the beginning of 2008 and $296 at the beginning of 2007.
Responding to questions that have been raised as to why the bunker charge is increasing at a time when fuel prices have been falling, N.Y.K. Line vice president and TSA revenue policy committee member Bill Payne emphasized that each month’s surcharge reflects average fuel prices during a reporting period 30-60 days earlier. This is done to comply with U.S. law requiring a minimum 30 days’ advance notice to the market in the event a particular rate or surcharge is to be raised. “Carriers pay the higher fuel costs out of pocket as those costs rise, cushioning the impact on shippers, and then must pass them through after the fact,” Payne said. “The good news with a floating formula is that, as prices fall, customers will start to see savings 30 to 60 days out.”
The TSA surcharge is posted by the carrier group as a guideline for the market, but service contracts with customers – including bunker surcharge terms – are addressed individually by the lines. APL senior vice president Bob Sappio, also an RPC committee member, noted that while carriers and shippers have made significant progress in agreeing on a floating fuel surcharge, much more work remains. “If people think the high price of fuel is temporary they are mistaken”, Sappio said. “The transpacific trade is simply not sustainable as it is presently constituted; carriers must recover a greater percentage of actual dollars spent on fuel.”
More recent easing of prices likely to bring down surcharges beginning in October; shipping lines hold firm on floating bunker contract terms.
Container lines in the Transpacific Stabilization Agreement (TSA) have confirmed that their floating bunker fuel surcharge, adjusted monthly according to a formula that tracks world fuel prices at key loading locations, will spike to a record level effective September 1. The higher surcharge reflects record fuel prices that topped $767 per ton in mid-July, up from $500 at the beginning of 2008 and $296 at the beginning of 2007.
Responding to questions that have been raised as to why the bunker charge is increasing at a time when fuel prices have been falling, N.Y.K. Line vice president and TSA revenue policy committee member Bill Payne emphasized that each month’s surcharge reflects average fuel prices during a reporting period 30-60 days earlier. This is done to comply with U.S. law requiring a minimum 30 days’ advance notice to the market in the event a particular rate or surcharge is to be raised. “Carriers pay the higher fuel costs out of pocket as those costs rise, cushioning the impact on shippers, and then must pass them through after the fact,” Payne said. “The good news with a floating formula is that, as prices fall, customers will start to see savings 30 to 60 days out.”
The TSA surcharge is posted by the carrier group as a guideline for the market, but service contracts with customers – including bunker surcharge terms – are addressed individually by the lines. APL senior vice president Bob Sappio, also an RPC committee member, noted that while carriers and shippers have made significant progress in agreeing on a floating fuel surcharge, much more work remains. “If people think the high price of fuel is temporary they are mistaken”, Sappio said. “The transpacific trade is simply not sustainable as it is presently constituted; carriers must recover a greater percentage of actual dollars spent on fuel.”
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