(Canwest News Service – Sarah Schmidt)
Ready-to-eat meats can be imported without new, rigourous CFIA requirements
Importers of ready-to-eat meats can continue to ship their products into Canada without having to disassemble and “aggressively clean” their meat slicers to check for listeria - a directive that Canadian operators now face.
The Canadian Food Inspection Agency issued the advisory earlier this month to federally registered ready-to-eat meat plants operating in Canada after Maple Leaf Foods announced listeria building up “deep inside” two slicing machines at its Toronto plant was the most likely source of the deadly listeriosis outbreak.
The company made the discovery after completely disassembling the machines, where the bacteria had accumulated and eluded Maple Leaf’s “rigorous sanitization procedures.”
Importers of ready-to-eat meats are not required to follow the same protocol to maintain access to the Canadian market, a spokeswoman for the Food Safety and Inspection Service of the U.S. Department of Agriculture confirmed Thursday.
The CFIA is not “requiring us to do anything additional. We have controls in place and we verify them. They are not requiring anything of us.”
The spokeswoman also confirmed that the sanitation protocols in the United States are not prescriptive and do not require the complete disassembly of meat slicers. Formax Inc., the manufacturer of the meat slicers at the Maple Leaf plant, also does not prescribe complete disassembly of the equipment on a periodic or annual basis.
In Canada, federally registered plants are required, at their next scheduled line sanitation, to disassemble and perform a “systematic and thorough aggressive cleaning and sanitation procedure” of all meat slicing equipment, including all internal parts, “to address this potential risk factor,” according to CFIA’s advisory, issued September 5.
Operators in Canada must also review their sanitation procedures of meat slicers with CFIA inspectors to ensure that the “internal working parts are being suitably cleaned and disinfected on an ongoing basis.”
Maple Leaf Foods on Thursday confirmed that it had never completely disassembled the meat slicers since they became operational nearly 11 years ago; spokeswoman Linda Smith said the company followed the manufacturer’s recommendations, which included the daily removal of some parts to get at and sanitize all surfaces that come into contact with food.
As a result of the outbreak, Maple Leaf will now completely disassemble its 84 meat slicers at the plant on the weekly basis “for the foreseeable future,” said Smith.
According to Statistics Canada, more than 86 million kilograms of processed meats, worth about $403 million, were imported into Canada last year.
The United States is the single largest importer. Since the beginning of 2008, about 38.3 million kilograms of meats – worth US $173.6 million – have been imported, according to the U.S. Meat Export Federation.
It’s not uncommon for foreign governments to slap restrictions on countries that import foods out of safety concerns. In the past week, for example, the CFIA has directed border officials to refer any shipments of baby formula or yogurt from China to its Import Service Unit for further inspection and testing amid a growing scandal in China involving contaminated formula.
The U.S. government temporarily ramped up testing last November for listeria and salmonella in ready-to-eat deli meat imports from Canada after an annual audit by its Food Safety and Inspection Service showed multiple violations of food-safety protocols at Canadian meat plants.
The increased product exams – at the rate of about double that of the past year – was in place for a few weeks before the U.S. agency returned to normal levels of testing.
In Canada, the CFIA advisory only applies to federally registered meat plants in the country, and cannot be enforced at provincially registered facilities, which outnumber federal ones.
The CFIA declined requests to explain its decision to limit its advisory to disassemble meat slicers to domestic plants.
Monday, September 22, 2008
Saturday, September 20, 2008
Canada Proposes to Eliminate Industrial Tariffs
(Blake, Cassels & Graydon LLP - Greg Kanargelidis et al.)
On August 30, 2008, the Canadian government invited submissions from the public on its proposal to eliminate the Most-Favoured-Nation (MFN) tariff on certain types of machinery and equipment. This initiative is in response to a report that was produced by the House of Commons Standing Committee on International Trade in April 2007, entitled Ten Steps To a Better Trade Policy. The report recommended that the feasibility and consequences of unilaterally eliminating industrial tariffs should be studied. Shortly after the report was released, the government began reviewing Canadian tariff policy with a view to enhancing the competitiveness of Canadian exporters in the global economy.
The government has since identified several opportunities for Canadian manufacturers to maintain or improve their competitiveness, including the proposed elimination of MFN tariffs. The government has worked alongside a number of stakeholders to create a list of proposed machinery and equipment for tariff elimination.
The particular tariff items were selected based on several criteria, such as whether the goods covered by these tariff items are used in the production of other goods, whether tariff elimination could reduce the cost of imported machinery and equipment as well as the impact on Canadian businesses producing similar or substitute goods.
The proposed tariff elimination will affect some 239 tariff items found among more than 50 tariff headings in Chapters 84 and 85 of Canada’s List of Tariff Provisions. These items include: steam and other vapour boilers and turbines; industry or lab furnaces and ovens; weighing machines; fork lifts; mechanical appliances; printing machinery; electrical transformers, static converters and inductors; electric, laser or photon beams; electrical apparatus for circuits; and insulated wire or cable and other insulated electrical conductors. The current tariff rates on these items range from 2% to 11%. The average rate is 5.2%.
This government initiative is a positive step for Canadian manufacturers. Even so, the manufacturers of similar or competing goods may have some concerns about the potential loss of a protective tariff barrier. The government is welcoming the comments and concerns of interested parties. In addition, the government will consider new proposals for further tariff elimination initiatives that may assist Canadian industry.
Interested parties should act quickly as written submissions are requested by September 30, 2008. The tariff elimination initiative should be welcome by manufacturers in Canada, whose costs of production will be reduced by the elimination of the tariffs thereby allowing such manufacturers to become more competitive, both within Canada as well as in export markets. On the other hand, machinery and equipment companies in Canada who produce identical or similar goods should review the detailed list carefully with a view to determining whether the protection afforded by the existing tariff barriers should be continued despite the tariff elimination initiative.
On August 30, 2008, the Canadian government invited submissions from the public on its proposal to eliminate the Most-Favoured-Nation (MFN) tariff on certain types of machinery and equipment. This initiative is in response to a report that was produced by the House of Commons Standing Committee on International Trade in April 2007, entitled Ten Steps To a Better Trade Policy. The report recommended that the feasibility and consequences of unilaterally eliminating industrial tariffs should be studied. Shortly after the report was released, the government began reviewing Canadian tariff policy with a view to enhancing the competitiveness of Canadian exporters in the global economy.
The government has since identified several opportunities for Canadian manufacturers to maintain or improve their competitiveness, including the proposed elimination of MFN tariffs. The government has worked alongside a number of stakeholders to create a list of proposed machinery and equipment for tariff elimination.
The particular tariff items were selected based on several criteria, such as whether the goods covered by these tariff items are used in the production of other goods, whether tariff elimination could reduce the cost of imported machinery and equipment as well as the impact on Canadian businesses producing similar or substitute goods.
The proposed tariff elimination will affect some 239 tariff items found among more than 50 tariff headings in Chapters 84 and 85 of Canada’s List of Tariff Provisions. These items include: steam and other vapour boilers and turbines; industry or lab furnaces and ovens; weighing machines; fork lifts; mechanical appliances; printing machinery; electrical transformers, static converters and inductors; electric, laser or photon beams; electrical apparatus for circuits; and insulated wire or cable and other insulated electrical conductors. The current tariff rates on these items range from 2% to 11%. The average rate is 5.2%.
This government initiative is a positive step for Canadian manufacturers. Even so, the manufacturers of similar or competing goods may have some concerns about the potential loss of a protective tariff barrier. The government is welcoming the comments and concerns of interested parties. In addition, the government will consider new proposals for further tariff elimination initiatives that may assist Canadian industry.
Interested parties should act quickly as written submissions are requested by September 30, 2008. The tariff elimination initiative should be welcome by manufacturers in Canada, whose costs of production will be reduced by the elimination of the tariffs thereby allowing such manufacturers to become more competitive, both within Canada as well as in export markets. On the other hand, machinery and equipment companies in Canada who produce identical or similar goods should review the detailed list carefully with a view to determining whether the protection afforded by the existing tariff barriers should be continued despite the tariff elimination initiative.
Editorial: Free Trade with Europe Is Worth Some Concessions
(National Post – Kelly McParland)
Yesterday’s revelation that Canada and the European Union will shortly begin negotiations on a plan for “deep economic integration” was buried under news of two election campaigns and a financial meltdown. But it deserves attention.
For decades now, the idea of a Canada-Europe free trade agreement has been knocking around our halls of power. But until now, the first and in some ways most formidable barrier to progress has been getting the EU interested. If this week’s reports are to be believed, that problem now appears to be solved.
There are obvious geographical limits to EU-Canada trade, even under the most liberal trade regime imaginable. For many years, moreover, we proved hard to take seriously as a partner because our own interprovincial trade barriers have remained high (a situation recently remedied). Nor has it helped impress anyone with our commitment to globalization that a huge chunk of our economy has remained subject to old-fashioned nationalist limits on foreign direct investment.
But with the collapse this summer of the Doha Round of World Trade Organization negotiations, Canada has suddenly been thrust into the EU spotlight. EU trade experts, led by new Trade Commissioner Peter Mandelson, are coming to grips with the notion that the continued expansion of free trade will have to be carried out in painful bilateral steps, rather than in one orgasmic, globe-girdling moment of concord.
As a bonus, much of the underlying econometric study has already commenced as part of the carefully circumscribed, Doha-friendly talks toward a Canada-EU Trade and Investment Enhancement Agreement, which began in 2004. All 10 premiers are said to be on board, provisionally, with getting a deal done.
Former French prime minister Edouard Balladur, an old political mentor to current President Nicolas Sarkozy, has been a major voice promoting Canada as a good place to construct an initial model for bilateral progress. Indeed, he has spoken of a Canada-EU agreement as a potential foundation for the eventual rebuilding of the now-fractured U.S.-EU relationship. Direct free-trade negotiations between America and Europe are currently impossible to contemplate, given the mood of the European public, but the idea is that Canada could serve as a sort of rope line around which a bridge can later be built.
Probably no one in Canada needs to be talked into seeing the advantages of a solid labour-mobility deal with the Continent. With the U.S. dollar and the Euro now established as the world’s two overwhelmingly significant stores of value, increasing the share of our international trade destined for Europe, which has dwindled in the NAFTA era, would provide a useful hedge against relative fluctuations in the two currencies.
And symbolically, it already seems some Canadian nationalists like the idea of having a heavier counterbalance against the perennial threat of U.S. encroachment on Canadian sovereignty. The concept is especially popular in Quebec, where Premier Jean Charest has been pounding the pulpit for it.
Once the full details are known, the price of EU integration is likely to prove higher than the Canadian left, and indeed some on the right, would like.
Effectively joining the EU as a satellite participant would probably mean heavy concessions in such areas as labour standards and product labelling. But becoming the world’s main conduit between its two largest free trade areas is worth a few sacrifices – especially since the protectionist policies to be sacrificed do us no good anyway, but are in fact sentimental vestiges of a Trudeauvian era of command-and-control. And those who suffer continual nightmares about the increasing competitiveness of China and India should not be afraid of taking bold steps to keep pace with the Asian giants.
Free trade has lifted the fortunes of nations around the world – including Canada, which has benefitted greatly under NAFTA and the Canada-U.S. Free Trade Agreement before it. There is no reason that a free trade agreement with Europe would not also be beneficial. We urge our government to do everything in its power to make it reality.
Yesterday’s revelation that Canada and the European Union will shortly begin negotiations on a plan for “deep economic integration” was buried under news of two election campaigns and a financial meltdown. But it deserves attention.
For decades now, the idea of a Canada-Europe free trade agreement has been knocking around our halls of power. But until now, the first and in some ways most formidable barrier to progress has been getting the EU interested. If this week’s reports are to be believed, that problem now appears to be solved.
There are obvious geographical limits to EU-Canada trade, even under the most liberal trade regime imaginable. For many years, moreover, we proved hard to take seriously as a partner because our own interprovincial trade barriers have remained high (a situation recently remedied). Nor has it helped impress anyone with our commitment to globalization that a huge chunk of our economy has remained subject to old-fashioned nationalist limits on foreign direct investment.
But with the collapse this summer of the Doha Round of World Trade Organization negotiations, Canada has suddenly been thrust into the EU spotlight. EU trade experts, led by new Trade Commissioner Peter Mandelson, are coming to grips with the notion that the continued expansion of free trade will have to be carried out in painful bilateral steps, rather than in one orgasmic, globe-girdling moment of concord.
As a bonus, much of the underlying econometric study has already commenced as part of the carefully circumscribed, Doha-friendly talks toward a Canada-EU Trade and Investment Enhancement Agreement, which began in 2004. All 10 premiers are said to be on board, provisionally, with getting a deal done.
Former French prime minister Edouard Balladur, an old political mentor to current President Nicolas Sarkozy, has been a major voice promoting Canada as a good place to construct an initial model for bilateral progress. Indeed, he has spoken of a Canada-EU agreement as a potential foundation for the eventual rebuilding of the now-fractured U.S.-EU relationship. Direct free-trade negotiations between America and Europe are currently impossible to contemplate, given the mood of the European public, but the idea is that Canada could serve as a sort of rope line around which a bridge can later be built.
Probably no one in Canada needs to be talked into seeing the advantages of a solid labour-mobility deal with the Continent. With the U.S. dollar and the Euro now established as the world’s two overwhelmingly significant stores of value, increasing the share of our international trade destined for Europe, which has dwindled in the NAFTA era, would provide a useful hedge against relative fluctuations in the two currencies.
And symbolically, it already seems some Canadian nationalists like the idea of having a heavier counterbalance against the perennial threat of U.S. encroachment on Canadian sovereignty. The concept is especially popular in Quebec, where Premier Jean Charest has been pounding the pulpit for it.
Once the full details are known, the price of EU integration is likely to prove higher than the Canadian left, and indeed some on the right, would like.
Effectively joining the EU as a satellite participant would probably mean heavy concessions in such areas as labour standards and product labelling. But becoming the world’s main conduit between its two largest free trade areas is worth a few sacrifices – especially since the protectionist policies to be sacrificed do us no good anyway, but are in fact sentimental vestiges of a Trudeauvian era of command-and-control. And those who suffer continual nightmares about the increasing competitiveness of China and India should not be afraid of taking bold steps to keep pace with the Asian giants.
Free trade has lifted the fortunes of nations around the world – including Canada, which has benefitted greatly under NAFTA and the Canada-U.S. Free Trade Agreement before it. There is no reason that a free trade agreement with Europe would not also be beneficial. We urge our government to do everything in its power to make it reality.
Friday, September 19, 2008
New Declaration Requirement for Imported Goods of Wood or Plants to be Delayed
(World Trade Interactive)
Congressional staff said this week that enforcement of a sweeping new requirement for importers of plants or plant products, including wood and wood products, to bring their goods into the U.S. will be delayed past the statutory December 15 deadline. Under provisions in the 2008 Farm Bill that amended the Lacey Act, such importers must submit upon entry a declaration that includes the genus and species of the plant(s) used, the value and quantity of the importation, and the country of origin of the imported product. Industry representatives as well as federal agencies have expressed concern about the scope and implementation of this new requirement, and there have been numerous discussions and meetings in recent weeks in an effort to determine the details.
Delayed Enforcement. At a September 17 meeting with industry and environmental groups that followed a September 15 meeting with the affected federal agencies, congressional staff indicated that Congress appears to have given its blessing to the delayed implementation of the declaration requirement. As a result, while the statutory enforcement date is December 15, neither U.S. Customs and Border Protection nor the Department of Justice will enforce the requirement until April 1, 2009. The interim period will be considered an “education period,” and CBP is contemplating the use of a voluntary paper declaration during this time, but details of this provision still need to be worked out.
There also appears to be an agreement that implementation of the declaration requirement will be phased in, but it remains in draft form. The concept is that CBP will begin requiring declarations for core timber products first, then over time work its way out to other plant and wood products. There is still discussion about whether the phases will go HTSUS chapter by chapter or line by line. In addition, the schedule of the phased-in implementation has not been determined, nor is there agreement on the list of products and when/if they will be phased in. Click here for the complete article.
Congressional staff said this week that enforcement of a sweeping new requirement for importers of plants or plant products, including wood and wood products, to bring their goods into the U.S. will be delayed past the statutory December 15 deadline. Under provisions in the 2008 Farm Bill that amended the Lacey Act, such importers must submit upon entry a declaration that includes the genus and species of the plant(s) used, the value and quantity of the importation, and the country of origin of the imported product. Industry representatives as well as federal agencies have expressed concern about the scope and implementation of this new requirement, and there have been numerous discussions and meetings in recent weeks in an effort to determine the details.
Delayed Enforcement. At a September 17 meeting with industry and environmental groups that followed a September 15 meeting with the affected federal agencies, congressional staff indicated that Congress appears to have given its blessing to the delayed implementation of the declaration requirement. As a result, while the statutory enforcement date is December 15, neither U.S. Customs and Border Protection nor the Department of Justice will enforce the requirement until April 1, 2009. The interim period will be considered an “education period,” and CBP is contemplating the use of a voluntary paper declaration during this time, but details of this provision still need to be worked out.
There also appears to be an agreement that implementation of the declaration requirement will be phased in, but it remains in draft form. The concept is that CBP will begin requiring declarations for core timber products first, then over time work its way out to other plant and wood products. There is still discussion about whether the phases will go HTSUS chapter by chapter or line by line. In addition, the schedule of the phased-in implementation has not been determined, nor is there agreement on the list of products and when/if they will be phased in. Click here for the complete article.
Thursday, September 18, 2008
Wholesale Trade: July
(Statistics Canada)
Wholesale sales rose 2.3% in July to $46.2 billion as increases across a number of sectors contributed to a fifth consecutive monthly gain. Price effects were minimal in July, as sales in volume terms rose 2.2%.
July’s gains were spread across six of the seven wholesale sectors, with food, beverages and tobacco products the only sector reporting lower sales.
The largest contribution came from the "other products" sector, which rebounded from a 3.4% drop in June to post a 6.0% rise in July. Sales in this sector have increased significantly over the past year, mostly as a result of higher global demand for agricultural supplies. Exports of fertilizers and fertilizer material rose by more than 30% in July and have more than doubled over the past year.
The building materials sector also made a significant contribution (+4.8%) to July’s increase, as all three components of this sector reported higher sales. Wholesalers of metal products registered the largest increase, gaining 10.8% in July after a 7.9% rise in June. The value of metal products sales has risen sharply since the end of 2007, mostly due to higher world prices.
The other increase (+3.1%) of note was observed in the machinery and electronic equipment sector and was largely the result of higher sales (+5.1%) in the machinery and equipment trade group, which accounts for half of all sales in this sector. This was the seventh consecutive rise for this trade group, which in recent months has benefited from strong demand for agricultural machinery as well as sales to the oil and gas sector.
Overall, six provinces reported higher sales in July. Summary statistics and a link to the data set are on the Statistics Canada website.
Wholesale sales rose 2.3% in July to $46.2 billion as increases across a number of sectors contributed to a fifth consecutive monthly gain. Price effects were minimal in July, as sales in volume terms rose 2.2%.
July’s gains were spread across six of the seven wholesale sectors, with food, beverages and tobacco products the only sector reporting lower sales.
The largest contribution came from the "other products" sector, which rebounded from a 3.4% drop in June to post a 6.0% rise in July. Sales in this sector have increased significantly over the past year, mostly as a result of higher global demand for agricultural supplies. Exports of fertilizers and fertilizer material rose by more than 30% in July and have more than doubled over the past year.
The building materials sector also made a significant contribution (+4.8%) to July’s increase, as all three components of this sector reported higher sales. Wholesalers of metal products registered the largest increase, gaining 10.8% in July after a 7.9% rise in June. The value of metal products sales has risen sharply since the end of 2007, mostly due to higher world prices.
The other increase (+3.1%) of note was observed in the machinery and electronic equipment sector and was largely the result of higher sales (+5.1%) in the machinery and equipment trade group, which accounts for half of all sales in this sector. This was the seventh consecutive rise for this trade group, which in recent months has benefited from strong demand for agricultural machinery as well as sales to the oil and gas sector.
Overall, six provinces reported higher sales in July. Summary statistics and a link to the data set are on the Statistics Canada website.
Leading Indicator Climbs in August
(Reuters – Louise Egan)
Canada’s composite leading indicator climbed 0.2% in August from July, Statistics Canada said on Thursday, correcting its report of a 0.3% rise earlier in the day.
Statscan said there was no change in the indicator in July, rather than the 0.1% increase it had originally reported.
The agency is still looking over the numbers provided for the specific components of the index and will publish corrected figures as soon as possible, an official said.
Summary statistics and a link to the data set are on the Statistics Canada website.
Canada’s composite leading indicator climbed 0.2% in August from July, Statistics Canada said on Thursday, correcting its report of a 0.3% rise earlier in the day.
Statscan said there was no change in the indicator in July, rather than the 0.1% increase it had originally reported.
The agency is still looking over the numbers provided for the specific components of the index and will publish corrected figures as soon as possible, an official said.
Summary statistics and a link to the data set are on the Statistics Canada website.
Canada-EU Trade Proposal Rivals Scope of NAFTA
(Doug Saunders — Globe & Mail)
Plan to lift barriers for goods and labour to be discussed at summit after election
Canadian and European officials say they plan to begin negotiating a massive agreement to integrate Canada's economy with the 27 nations of the European Union, with preliminary talks to be launched at an Oct. 17 summit in Montreal three days after the federal election.
Trade Minister Michael Fortier and his staff have been engaged for the past two months with EU Trade Commissioner Peter Mandelson and the representatives of European governments in an effort to begin what a senior EU official involved in the talks described in an interview yesterday as “deep economic integration negotiations.”
If successful, Canada would be the first developed nation to have open trade relations with the EU, which has completely open borders between its members but imposes steep trade and investment barriers on outsiders.
The proposed pact would far exceed the scope of older agreements such as NAFTA by encompassing not only unrestricted trade in goods, services and investment and the removal of tariffs, but also the free movement of skilled people and an open market in government services and procurement – which would require that Canadian governments allow European companies to bid as equals on government contracts for both goods and services and end the favouring of local or national providers of public-sector services.
Previous efforts to reach a trade pact with Europe have failed, most recently in 2005 with the collapse of the proposed Trade and Investment Enhancement Agreement.
But with the breakdown of World Trade Organization talks in July, European officials have become much more interested in opening a bilateral trade and economic integration deal with North America.
A pact with the United States would be politically impossible in Europe, senior European Commission officials said.
A newly completed study of the proposed deal, which European officials said Prime Minister Stephen Harper decided not to release until after the election, concludes that the pact would increase bilateral trade and investment by at least $40-billion a year, mainly in trade in services. Read the complete article.
Plan to lift barriers for goods and labour to be discussed at summit after election
Canadian and European officials say they plan to begin negotiating a massive agreement to integrate Canada's economy with the 27 nations of the European Union, with preliminary talks to be launched at an Oct. 17 summit in Montreal three days after the federal election.
Trade Minister Michael Fortier and his staff have been engaged for the past two months with EU Trade Commissioner Peter Mandelson and the representatives of European governments in an effort to begin what a senior EU official involved in the talks described in an interview yesterday as “deep economic integration negotiations.”
If successful, Canada would be the first developed nation to have open trade relations with the EU, which has completely open borders between its members but imposes steep trade and investment barriers on outsiders.
The proposed pact would far exceed the scope of older agreements such as NAFTA by encompassing not only unrestricted trade in goods, services and investment and the removal of tariffs, but also the free movement of skilled people and an open market in government services and procurement – which would require that Canadian governments allow European companies to bid as equals on government contracts for both goods and services and end the favouring of local or national providers of public-sector services.
Previous efforts to reach a trade pact with Europe have failed, most recently in 2005 with the collapse of the proposed Trade and Investment Enhancement Agreement.
But with the breakdown of World Trade Organization talks in July, European officials have become much more interested in opening a bilateral trade and economic integration deal with North America.
A pact with the United States would be politically impossible in Europe, senior European Commission officials said.
A newly completed study of the proposed deal, which European officials said Prime Minister Stephen Harper decided not to release until after the election, concludes that the pact would increase bilateral trade and investment by at least $40-billion a year, mainly in trade in services. Read the complete article.
Wednesday, September 17, 2008
CBP Withdraws Proposal to Eliminate First Sale Rule
(Vicki DeLuca — VP Operations, GHY USA, Inc.)
Attention: GHY Customers
The First Sale option for Valuation will stay in effect — nothing changes as far as the regulations for using the First Sale and the required back up to prove it if customs comes calling.
Keep in mind that the litmus test for sales qualifying under the “First or Earlier Sale Rule” is that the material must be sourced by the middleman in accordance with a predetermined sales agreement with the U.S. buyer, that the articles were made for the U.S. buyer (supported by a P.O. from the buyer to the middleman dated prior to the middleman’s P.O. to the source), with shipping documents from the source supporting that the articles are being shipped direct to the middleman’s buyer or the buyer’s designated consignee. It’s advisable to secure an acceptance of such pricing from CBP before filing entries in this manner.
It will be more important than ever to have supporting documents and ensure all is in order if you are using this method — as effective YESTERDAY (only US Customs can get away with making something effective yesterday and publishing it this coming Monday) — if you are using the First Sale Method it must be clearly marked on your US Customs Invoice so the Customs Broker can clearly see that you want that method reported to CBP. We now have to flag an indicator in the US Customs entry. Which ultimately means they can now run reports on importers - the # of shipments, values, origins etc that are using First Sale method of valuation and send out requests and audit those importers. They are very aggressive with issuing penalties for non-compliance.
Click here to view a Trade Notice regarding this issue from one of our trade associates, the U.S. trade law firm of Sandler, Travis & Rosenberg, P.A.
If you have any questions about this, on’t hesitate to contact Joan Studeny in Pembina or Bob Cowie in Winnipeg.
Attention: GHY Customers
The First Sale option for Valuation will stay in effect — nothing changes as far as the regulations for using the First Sale and the required back up to prove it if customs comes calling.
Keep in mind that the litmus test for sales qualifying under the “First or Earlier Sale Rule” is that the material must be sourced by the middleman in accordance with a predetermined sales agreement with the U.S. buyer, that the articles were made for the U.S. buyer (supported by a P.O. from the buyer to the middleman dated prior to the middleman’s P.O. to the source), with shipping documents from the source supporting that the articles are being shipped direct to the middleman’s buyer or the buyer’s designated consignee. It’s advisable to secure an acceptance of such pricing from CBP before filing entries in this manner.
It will be more important than ever to have supporting documents and ensure all is in order if you are using this method — as effective YESTERDAY (only US Customs can get away with making something effective yesterday and publishing it this coming Monday) — if you are using the First Sale Method it must be clearly marked on your US Customs Invoice so the Customs Broker can clearly see that you want that method reported to CBP. We now have to flag an indicator in the US Customs entry. Which ultimately means they can now run reports on importers - the # of shipments, values, origins etc that are using First Sale method of valuation and send out requests and audit those importers. They are very aggressive with issuing penalties for non-compliance.
Click here to view a Trade Notice regarding this issue from one of our trade associates, the U.S. trade law firm of Sandler, Travis & Rosenberg, P.A.
If you have any questions about this, on’t hesitate to contact Joan Studeny in Pembina or Bob Cowie in Winnipeg.
Latest Quarterly Shippers’ Survey
(Supply Chain Digest)
Some Signs of Truckload Capacity Tightening, Continued Move of Freight from Truck to Rail
With the collapse of Bear Stearns, we were glad to see top-notch transportation industry analyst Ed Wolfe move forward with his own firm, Wolfe Research, and that he is continuing the always informative Shippers Survey he published for many years at his old firm. It is now called The State of the Freight, and the results from the Q2 2008 survey of some 200 shippers is now out.
One of the more interesting findings is that shippers perceive tightening in terms of truckload carrier capacity, after almost two years of increasing perceptions of overcapacity that reached record levels for the 7+ year history of the report.
Now, Wolfe Research says, “the truckload market has reached a state of equilibrium… and expectations are for further tightening.” Only 38% of shippers said they thought the TL market was characterized by “overcapacity,” versus an amazing 75% who said the same in Q1. 35% see tight TL capacity, while 27% saw balanced supply and demand.It appears quite likely that the substantial number of carriers and independents exiting the market is having an impact on bringing capacity back into balance even in the face of a slow growth economy, and “after two years of a TL market awash with trucks.” Read more here.
Some Signs of Truckload Capacity Tightening, Continued Move of Freight from Truck to Rail
With the collapse of Bear Stearns, we were glad to see top-notch transportation industry analyst Ed Wolfe move forward with his own firm, Wolfe Research, and that he is continuing the always informative Shippers Survey he published for many years at his old firm. It is now called The State of the Freight, and the results from the Q2 2008 survey of some 200 shippers is now out.
One of the more interesting findings is that shippers perceive tightening in terms of truckload carrier capacity, after almost two years of increasing perceptions of overcapacity that reached record levels for the 7+ year history of the report.
Now, Wolfe Research says, “the truckload market has reached a state of equilibrium… and expectations are for further tightening.” Only 38% of shippers said they thought the TL market was characterized by “overcapacity,” versus an amazing 75% who said the same in Q1. 35% see tight TL capacity, while 27% saw balanced supply and demand.It appears quite likely that the substantial number of carriers and independents exiting the market is having an impact on bringing capacity back into balance even in the face of a slow growth economy, and “after two years of a TL market awash with trucks.” Read more here.
A Long Period of Slow Growth Bigger Worry Than Recession for Ontario: Duncan
(The Canadian Press)
Ontario’s finance minister says people should be more concerned about a long period of slow growth rather than the possibility of a recession amid turbulence in U.S. financial markets.
Dwight Duncan says financial uncertainty south of the border will continue to provide challenges for Ontario as weak economic conditions carry over into next year.
While there’s no data to show the province is headed into a recession, Duncan says he’s more worried about a protracted period of relatively modest growth.
He says a few negative quarters wouldn’t be as bad as a slowdown in real growth.
Premier Dalton McGuinty says Ontario is inextricably linked to the U.S. and has no way of completely shielding itself from that country’s challenges.
But McGuinty says that doesn’t make Ontario helpless and points out that, for the first quarter of the year, the province’s numbers are on budget.
Ontario’s finance minister says people should be more concerned about a long period of slow growth rather than the possibility of a recession amid turbulence in U.S. financial markets.
Dwight Duncan says financial uncertainty south of the border will continue to provide challenges for Ontario as weak economic conditions carry over into next year.
While there’s no data to show the province is headed into a recession, Duncan says he’s more worried about a protracted period of relatively modest growth.
He says a few negative quarters wouldn’t be as bad as a slowdown in real growth.
Premier Dalton McGuinty says Ontario is inextricably linked to the U.S. and has no way of completely shielding itself from that country’s challenges.
But McGuinty says that doesn’t make Ontario helpless and points out that, for the first quarter of the year, the province’s numbers are on budget.
Tuesday, September 16, 2008
Trade Group Optimistic About ACE System Development
(Journal of Commerce via CSCB)
Customs and Border Protection is regrouping and re-prioritizing development of the Automated Commercial Environment, members of the Trade Support Network said Monday.
During a telephone news conference, TSN representatives said Customs ordered a review of ACE to identify “core functions” of the new system. The high-level objectives for ACE that had been laid out seven years ago had been lost in a sea of details that bogged down progress.
The network is Customs’ trade advisory group for ACE development.
By focusing on the basics, Customs will be able to turn off the Eighties-vintage Automated Commercial System earlier than planned, and also save the government money, the group said.
Cindy Allen, vice president of customs compliance for Argents Air Express, said that ACE development will become more process-oriented.
“It’s going to more clearly mirror how trade works in the private sector. When we develop software, we don’t look at each individual function that the system is going to do. We look at how we do our work, and develop our systems around that.”
Users also will be able to customize reports…
With ACS, Customs issued standardized reports, and importers would have to order several different reports to get the information they needed.
Customs also reported, however, that there would be about a six-month delay in switching two manifest systems, ocean vessels and rail, from ACS to ACE. Originally scheduled for the end of 2008, ACE vessel and rail manifest systems will be available between March and June, 2009.
Members of TSN said that they were satisfied with the overall progress Customs is making, even though the agency won’t deliver the perfect system once hoped for by traders….
Beginning next year, importers, brokers and others stakeholders in the international supply chain will finally be able to use ACE the way it was intended – to file cargo manifests and Customs entries, manage accounts, pay duties, and secure bonds…
Customs and Border Protection is regrouping and re-prioritizing development of the Automated Commercial Environment, members of the Trade Support Network said Monday.
During a telephone news conference, TSN representatives said Customs ordered a review of ACE to identify “core functions” of the new system. The high-level objectives for ACE that had been laid out seven years ago had been lost in a sea of details that bogged down progress.
The network is Customs’ trade advisory group for ACE development.
By focusing on the basics, Customs will be able to turn off the Eighties-vintage Automated Commercial System earlier than planned, and also save the government money, the group said.
Cindy Allen, vice president of customs compliance for Argents Air Express, said that ACE development will become more process-oriented.
“It’s going to more clearly mirror how trade works in the private sector. When we develop software, we don’t look at each individual function that the system is going to do. We look at how we do our work, and develop our systems around that.”
Users also will be able to customize reports…
With ACS, Customs issued standardized reports, and importers would have to order several different reports to get the information they needed.
Customs also reported, however, that there would be about a six-month delay in switching two manifest systems, ocean vessels and rail, from ACS to ACE. Originally scheduled for the end of 2008, ACE vessel and rail manifest systems will be available between March and June, 2009.
Members of TSN said that they were satisfied with the overall progress Customs is making, even though the agency won’t deliver the perfect system once hoped for by traders….
Beginning next year, importers, brokers and others stakeholders in the international supply chain will finally be able to use ACE the way it was intended – to file cargo manifests and Customs entries, manage accounts, pay duties, and secure bonds…
WCO – Percentage of National Revenue Represented by Customs Duties
(CIFFA eBulletin)
This WCO publication provides information about the share of national revenues represented by Customs duties. The survey is based on information obtained mainly from publications issued by other international organizations such as the IMF (International Monetary Fund) and the European Union, and the governments of some countries. The survey covers 142 countries, territories and economic unions using the Harmonized System for whom published data were available from the above referenced sources. The document can be viewed here (6 pages PDF).
This WCO publication provides information about the share of national revenues represented by Customs duties. The survey is based on information obtained mainly from publications issued by other international organizations such as the IMF (International Monetary Fund) and the European Union, and the governments of some countries. The survey covers 142 countries, territories and economic unions using the Harmonized System for whom published data were available from the above referenced sources. The document can be viewed here (6 pages PDF).
Canada: FAIRS Country Report
(USDA Foreign Agricultural Service)
Summary of food importing regulations in Canada. Updates to the following sections were made in August 2008: Food Allergen Labeling, Guide to Food Labeling, Import Safety Legislation,
Compositional Standards for Cheese, Organic Food, Benzene, Canada’s Enhanced Feed Ban, and the GOC Policy on Trans Fats. All website links were refreshed. The report is available here (PDF format – 31 pages).
Summary of food importing regulations in Canada. Updates to the following sections were made in August 2008: Food Allergen Labeling, Guide to Food Labeling, Import Safety Legislation,
Compositional Standards for Cheese, Organic Food, Benzene, Canada’s Enhanced Feed Ban, and the GOC Policy on Trans Fats. All website links were refreshed. The report is available here (PDF format – 31 pages).
Canada’s Financial Firewall: The Border
(James Bagnall — The Ottawa Citizen)
Analysis: An awful lot of things will have to go wrong — a string of financial bankruptcies, a plunge in spending — before we find ourselves in the same leaky boat as the U.S.
Should we be concerned when two of the United States' largest investment banks -- Lehman Brothers and Merrill Lynch — disappear in a single day, and when stock markets collapse another four per cent in the same 24-hour period after an already abysmal year?
To put it another way, is Canada about to lose its immunity from the financial contagion spreading out of Manhattan?
The answers, unfortunately, are simply unknowable at the moment because so much depends on psychology. If enough people become concerned about the stability of the financial system itself, and move to protect their own interests, no amount of reassurance by central bankers would be enough to stem that awful tide.
But this remains a worst-case kind of thing, requiring an awful lot of things to go wrong -- a string of financial bankruptcies, accompanied by an abrupt decline in consumer spending. And this sort of cascade seems highly improbable in Canada.
… There are a number of explanations for this state of affairs, but a key one is that Canada’s bankers have resisted copying the more aggressive U.S. financial institutions.
This stance might have been much more difficult had Canadian trade negotiators not consistently opposed the idea of opening up our financial services industry to greater foreign ownership.
For instance, had Lehman Brothers acquired control of a major Canadian bank under relaxed ownership rules, the ripple effect of its demise yesterday would now be a scary thing.
As it is, less than a handful of Canadian firms with direct links to Lehman have been caught short by the investment bank’s troubles. These include: Sun Life Financial, which said yesterday it holds more than $300 million worth of Lehman’s bonds; and Canadian Imperial Bank of Commerce, which owns $25 million worth of Lehman securities.
This counts as relatively minor exposure, especially in relation to CIBC’s market capitalization of more than $23.3 billion.
No foreign individual or institution can acquire more than 10 per cent of a major Canadian bank, without the blessing of Canada’s minister of finance.
As of June, the single biggest investor in Canada’s big banks has been a mutual fund owned by one of the other banks — usually no more than five per cent of total equity.
It’s a family compact, in other words. And while this cozy reality has driven free traders to distraction, it also created a risk-averse culture. Read the complete article.
Analysis: An awful lot of things will have to go wrong — a string of financial bankruptcies, a plunge in spending — before we find ourselves in the same leaky boat as the U.S.
Should we be concerned when two of the United States' largest investment banks -- Lehman Brothers and Merrill Lynch — disappear in a single day, and when stock markets collapse another four per cent in the same 24-hour period after an already abysmal year?
To put it another way, is Canada about to lose its immunity from the financial contagion spreading out of Manhattan?
The answers, unfortunately, are simply unknowable at the moment because so much depends on psychology. If enough people become concerned about the stability of the financial system itself, and move to protect their own interests, no amount of reassurance by central bankers would be enough to stem that awful tide.
But this remains a worst-case kind of thing, requiring an awful lot of things to go wrong -- a string of financial bankruptcies, accompanied by an abrupt decline in consumer spending. And this sort of cascade seems highly improbable in Canada.
… There are a number of explanations for this state of affairs, but a key one is that Canada’s bankers have resisted copying the more aggressive U.S. financial institutions.
This stance might have been much more difficult had Canadian trade negotiators not consistently opposed the idea of opening up our financial services industry to greater foreign ownership.
For instance, had Lehman Brothers acquired control of a major Canadian bank under relaxed ownership rules, the ripple effect of its demise yesterday would now be a scary thing.
As it is, less than a handful of Canadian firms with direct links to Lehman have been caught short by the investment bank’s troubles. These include: Sun Life Financial, which said yesterday it holds more than $300 million worth of Lehman’s bonds; and Canadian Imperial Bank of Commerce, which owns $25 million worth of Lehman securities.
This counts as relatively minor exposure, especially in relation to CIBC’s market capitalization of more than $23.3 billion.
No foreign individual or institution can acquire more than 10 per cent of a major Canadian bank, without the blessing of Canada’s minister of finance.
As of June, the single biggest investor in Canada’s big banks has been a mutual fund owned by one of the other banks — usually no more than five per cent of total equity.
It’s a family compact, in other words. And while this cozy reality has driven free traders to distraction, it also created a risk-averse culture. Read the complete article.
US Customs and Border Protection Launches WHTI Advertising Campaign in Canada
(Adam Ledlow — Truck News)
The US Department of Homeland Security’s Customs and Border Protection is launching a television and print advertising campaign in Canada today to remind the Canadian public about travel document requirements for entry into the US that go into effect on June 1.
The Western Hemisphere Travel Initiative establishes document requirements for travellers entering the US who were previously exempt, including citizens of the US, Canada, and Bermuda. This phase of CBP’s WHTI outreach efforts will include French and English-language advertising on Canadian television and in newspapers and magazines; advertising on the Web; public service announcements; the launch of new Web sites (www.KnowYourBorder.gov and www.VersLesUsa.gov) and interactive widget; as well as distribution of related information through the media and various travel stakeholders.
“We take seriously the obligation to inform travellers on both sides of the border of the change in procedures,” stated CBP Commissioner W. Ralph Basham. “This multi-faceted campaign is designed to reach frequent as well as infrequent border crossers. A well-informed traveller plays an active role in contributing to the security as well as the efficiency of our shared borders.”
WHTI was implemented for air travellers in January 2007. On June 1, travellers will need to present a valid, acceptable document that denotes both identity and citizenship when entering the US by land or sea. Most travellers will be able to select from one of several different document options, based upon their individual travel needs. Read more.
The US Department of Homeland Security’s Customs and Border Protection is launching a television and print advertising campaign in Canada today to remind the Canadian public about travel document requirements for entry into the US that go into effect on June 1.
The Western Hemisphere Travel Initiative establishes document requirements for travellers entering the US who were previously exempt, including citizens of the US, Canada, and Bermuda. This phase of CBP’s WHTI outreach efforts will include French and English-language advertising on Canadian television and in newspapers and magazines; advertising on the Web; public service announcements; the launch of new Web sites (www.KnowYourBorder.gov and www.VersLesUsa.gov) and interactive widget; as well as distribution of related information through the media and various travel stakeholders.
“We take seriously the obligation to inform travellers on both sides of the border of the change in procedures,” stated CBP Commissioner W. Ralph Basham. “This multi-faceted campaign is designed to reach frequent as well as infrequent border crossers. A well-informed traveller plays an active role in contributing to the security as well as the efficiency of our shared borders.”
WHTI was implemented for air travellers in January 2007. On June 1, travellers will need to present a valid, acceptable document that denotes both identity and citizenship when entering the US by land or sea. Most travellers will be able to select from one of several different document options, based upon their individual travel needs. Read more.
Monday, September 15, 2008
Border Wait Times
(The Canadian Press)
Internal documents confirm what union officials have been saying for years – the wait times for travellers that Canada’s border agency posts on the Internet may not be reliable.
The agency claims it meets its target of “10 minutes or less” Monday through Thursday and “20 minutes” Friday through Sunday, at least 90% of the time. But an agency briefing note from April of this year acknowledges there is no standard measurement of wait times, which it says are based on personal judgment.
The document was obtained by The Canadian Press under the Access to Information Act, and says methods of estimating wait times are specific to each of the 22 border stations, and involve only a visual inspection. The note adds the data cannot be used as a predictor of exactly what the real-time wait will be.
A 2004 check of wait times by front-line officers found widespread under-reporting – in some cases by as much as two hours.
A spokeswoman for Canada Border Services Agency says it has launched a project to find a way to produce more reliable numbers.
Internal documents confirm what union officials have been saying for years – the wait times for travellers that Canada’s border agency posts on the Internet may not be reliable.
The agency claims it meets its target of “10 minutes or less” Monday through Thursday and “20 minutes” Friday through Sunday, at least 90% of the time. But an agency briefing note from April of this year acknowledges there is no standard measurement of wait times, which it says are based on personal judgment.
The document was obtained by The Canadian Press under the Access to Information Act, and says methods of estimating wait times are specific to each of the 22 border stations, and involve only a visual inspection. The note adds the data cannot be used as a predictor of exactly what the real-time wait will be.
A 2004 check of wait times by front-line officers found widespread under-reporting – in some cases by as much as two hours.
A spokeswoman for Canada Border Services Agency says it has launched a project to find a way to produce more reliable numbers.
Border Problems Hurt Trade
(Diane Francis — Financial Post)
The United States-Canada “frontier” is not the world’s longest undefended border any more. Right after 9/11, it was obvious the United States’ borders were shutting tight and that Canada and Mexico should have become part of a three-country perimeter. Under the North American Free Trade Agreement, this is the case involving economic goods. Product origins are checked because they cannot be back-doored through one of the three countries into another.
But the movement of people, tourism and immigration, should also be a jointly-managed affair. It isn’t. And in the absence of that, the Americans have erected fences along portions of the Mexican border and red tape and hassles along the northern border.
Mexico has a huge illegal migration and drug smuggling problem, but Americans are also not convinced Canada is doing a good job patrolling its side of the border. They are partly correct, says John Johnston, a retired Canadian customs official, now a consultant. U. S. security concerns and Canadian border problems should be cause for concern in the business community — a problem he dubs the “thickening border” issue.
Johnston is former regional director of Canada Customs for Southern Ontario and retired from the civil service in 2003. He now helps countries fix their border problems around the world. He says Canadians see the border from a trade and tourism viewpoint while Americans are focused on security. (Americans see Mexico as a criminal issue.)
Most egregious, he said, is the failure of Canada Border Services Agency to develop protocols to deal with terrorist incidents, the failure to investigate immigrants on “expedited import programs” and failure to catch smugglers.
Among the problems:
• There is a high-risk rate of 1.5% of traffic — that is, of the 100 million seeking entry into Canada each year 1.5 million are high-risk individuals;
• About $600-million in drugs are seized at the border annually;
• Poor border enforcement is not stopping the import of handguns;
• Each year there are up to 100 major child-porn seizures at the border.
“The major impediment to achieving an improved flow of people and goods at the border is the casual attitude of senior government officials towards security and protection,” he said. “Few of the agency’s senior executives have relevant experience in the areas for which they are responsible. The head of the Canada Border Services Agency is a meteorologist, not from customs, immigration or law enforcement.
Gun smuggling by criminal gangs in Canada is a huge issue for police but not the CBSA. (The gangs are often immigrants whom Canada has unfortunately allowed into the country or they are smuggling drugs southward.) “It appears that no one is in charge of the store,” he said.
The United States-Canada “frontier” is not the world’s longest undefended border any more. Right after 9/11, it was obvious the United States’ borders were shutting tight and that Canada and Mexico should have become part of a three-country perimeter. Under the North American Free Trade Agreement, this is the case involving economic goods. Product origins are checked because they cannot be back-doored through one of the three countries into another.
But the movement of people, tourism and immigration, should also be a jointly-managed affair. It isn’t. And in the absence of that, the Americans have erected fences along portions of the Mexican border and red tape and hassles along the northern border.
Mexico has a huge illegal migration and drug smuggling problem, but Americans are also not convinced Canada is doing a good job patrolling its side of the border. They are partly correct, says John Johnston, a retired Canadian customs official, now a consultant. U. S. security concerns and Canadian border problems should be cause for concern in the business community — a problem he dubs the “thickening border” issue.
Johnston is former regional director of Canada Customs for Southern Ontario and retired from the civil service in 2003. He now helps countries fix their border problems around the world. He says Canadians see the border from a trade and tourism viewpoint while Americans are focused on security. (Americans see Mexico as a criminal issue.)
Most egregious, he said, is the failure of Canada Border Services Agency to develop protocols to deal with terrorist incidents, the failure to investigate immigrants on “expedited import programs” and failure to catch smugglers.
Among the problems:
• There is a high-risk rate of 1.5% of traffic — that is, of the 100 million seeking entry into Canada each year 1.5 million are high-risk individuals;
• About $600-million in drugs are seized at the border annually;
• Poor border enforcement is not stopping the import of handguns;
• Each year there are up to 100 major child-porn seizures at the border.
“The major impediment to achieving an improved flow of people and goods at the border is the casual attitude of senior government officials towards security and protection,” he said. “Few of the agency’s senior executives have relevant experience in the areas for which they are responsible. The head of the Canada Border Services Agency is a meteorologist, not from customs, immigration or law enforcement.
Gun smuggling by criminal gangs in Canada is a huge issue for police but not the CBSA. (The gangs are often immigrants whom Canada has unfortunately allowed into the country or they are smuggling drugs southward.) “It appears that no one is in charge of the store,” he said.
Sunday, September 14, 2008
Modernized PIP Program
(CBSA)
As you know, the modernized PIP program was successfully launched on June 30th, 2008, following the signing of a mutual recognition arrangement between the PIP and C-TPAT programs.
All legacy members must submit a completed Security Profile before midnight on December 31, 2008 to retain their PIP membership status and benefits until the CBSA has approved or denied their application.
Failure to re-apply before the deadline will result in the cancellation of a company’s PIP membership on January 01, 2009. As PIP membership is mandatory to participate in FAST into Canada, this will affect FAST privileges.
We encourage legacy members to begin completing the Security Profile as soon as possible, allowing enough time to answer all questions thoroughly. Applications with insufficient information may be rejected.
If you have not already received a Security Profile, you can request one by sending an email to PIP-PEP@cbsa-asfc.gc.ca.
More information is available at the CBSA’s PIP website.
As you know, the modernized PIP program was successfully launched on June 30th, 2008, following the signing of a mutual recognition arrangement between the PIP and C-TPAT programs.
All legacy members must submit a completed Security Profile before midnight on December 31, 2008 to retain their PIP membership status and benefits until the CBSA has approved or denied their application.
Failure to re-apply before the deadline will result in the cancellation of a company’s PIP membership on January 01, 2009. As PIP membership is mandatory to participate in FAST into Canada, this will affect FAST privileges.
We encourage legacy members to begin completing the Security Profile as soon as possible, allowing enough time to answer all questions thoroughly. Applications with insufficient information may be rejected.
If you have not already received a Security Profile, you can request one by sending an email to PIP-PEP@cbsa-asfc.gc.ca.
More information is available at the CBSA’s PIP website.
Friday, September 12, 2008
Regulators Near Compromise on Lacey Act Enforcement
(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.
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.
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.
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