(Traffic World Online – Thomas L. Gallagher)
The National Association of Manufacturers welcomed changes in the U.S. Customs and Border Protection’s proposed 10+2 rule for cargo filing security.
Ten months after original publication of the proposal, the updated rule was approved November 6 by the White House Office of Management and Budget and now awaits Congressional acceptance likely before the end of the month.
The filing rule, popularly known as ‘10+2,’ will require importers and ocean carriers to provide 12 additional data elements that do not appear on the manifest. During the agency’s annual trade symposium in October, Deputy Commissioner Jayson Ahern said that the 10+2 data was fundamental to Customs’ supply-chain security strategy.
While it is much improved, according to NAM, “work still has to be done to create a final rule that works for both national security and U.S. manufacturers.”
“The 10+2 rule, as originally drafted, would have cost U.S. manufacturers as much as $20 billion annually, created huge delays and missed shipments in the global supply chain, risked shutting down U.S. production lines and actually worsened security by increasing the amount of time containers sat around available for tampering at foreign ports,” said NAM President John Engler. Read the rest here
Tuesday, November 25, 2008
Canada Needs to Counter Perception Country Is Weak on Security, Report Says
(The Canadian Press)
Canadian officials need to launch an aggressive public relations strategy to help deal with the perception the country is weak on security, a new report to be released Tuesday by Canadian International Council says. The report also urges the United States to work with Canada to speed the flow of legitimate trade and people across the border.
“Canada and the U.S. appear to be moving in the opposite direction with serious consequences at these challenging economic times,” said Michael Kergin, a former Canadian ambassador to the United States and author of the report. “The auto industry, currently facing unprecedented financial challenges, is an example of a sector which has been adversely affected by the layering of border measures.”
The report called for the establishment of a permanent joint border commission to address the economic consequences by the increased regulatory fees and security measures implemented after September 11, 2001.
The Canadian International Council was founded last year by Jim Balsillie, co-chief executive of BlackBerry inventor Research in Motion. The program’s areas of focus for 2008-2009 include China, border issues, Arctic sovereignty and security and energy.
Download “A New Bridge for Old Allies“ (20 pages PDF)
Read the Executive Summary
Canadian officials need to launch an aggressive public relations strategy to help deal with the perception the country is weak on security, a new report to be released Tuesday by Canadian International Council says. The report also urges the United States to work with Canada to speed the flow of legitimate trade and people across the border.
“Canada and the U.S. appear to be moving in the opposite direction with serious consequences at these challenging economic times,” said Michael Kergin, a former Canadian ambassador to the United States and author of the report. “The auto industry, currently facing unprecedented financial challenges, is an example of a sector which has been adversely affected by the layering of border measures.”
The report called for the establishment of a permanent joint border commission to address the economic consequences by the increased regulatory fees and security measures implemented after September 11, 2001.
The Canadian International Council was founded last year by Jim Balsillie, co-chief executive of BlackBerry inventor Research in Motion. The program’s areas of focus for 2008-2009 include China, border issues, Arctic sovereignty and security and energy.
Download “A New Bridge for Old Allies“ (20 pages PDF)
Read the Executive Summary
Homeland Security Criticized for Lax Oversight of Programs Worth
(GovExec.com – Katherine McIntire Peters)
Auditors with the Government Accountability Office have found that 45 of 48 major investment programs managed by the Homeland Security Department were not evaluated according to department policies, and 18 of those were not reviewed at all.
“Consequently, DHS has not identified and addressed cost, schedule and performance problems in many major investments,” GAO stated in a report (GAO-09-29) released on Thursday. Auditors found that at least 14 of the programs had experienced such issues.
Among the investments that did not receive mandatory oversight board evaluations was the Federal Emergency Management Agency’s Consolidated Alert and Warning System, a $1.6 billion program to update the Emergency Alerting System. Another was Customs and Border Protection’s Secure Freight Initiative, a $1.7 billion program designed to test the feasibility of scanning all U.S.-bound cargo containers at foreign seaports. Full story: here.
Auditors with the Government Accountability Office have found that 45 of 48 major investment programs managed by the Homeland Security Department were not evaluated according to department policies, and 18 of those were not reviewed at all.
“Consequently, DHS has not identified and addressed cost, schedule and performance problems in many major investments,” GAO stated in a report (GAO-09-29) released on Thursday. Auditors found that at least 14 of the programs had experienced such issues.
Among the investments that did not receive mandatory oversight board evaluations was the Federal Emergency Management Agency’s Consolidated Alert and Warning System, a $1.6 billion program to update the Emergency Alerting System. Another was Customs and Border Protection’s Secure Freight Initiative, a $1.7 billion program designed to test the feasibility of scanning all U.S.-bound cargo containers at foreign seaports. Full story: here.
Canada Bides Time
(Video: Global TV • Story: Globe & Mail)
After saying a recession is imminent, Stephen Harper’s team appears content to put off any financial stimulus until budget time
Canadians will have to wait until the next federal budget before Ottawa delivers what Prime Minister Stephen Harper said could be an “unprecedented” fiscal stimulus package - a delay economists say the country can ill afford.
A spokesman for the Prime Minister’s Office said yesterday the government is still trying to determine what would be appropriate and is looking at 2009 budget measures rather than action outside of that.
“There is a desire to get it right, and a fair bit of analysis and due diligence work needs to go on before one acts,” spokesman Kory Teneycke said. Budgets are usually delivered around February.
He said the stimulus under consideration is something beyond Conservative efforts to accelerate a $33-billion, seven-year infrastructure fund the Tories rolled out in the 2006 and 2007 budgets. “It’s fair to say we are looking at additional measures.” Read more here.
Federal Employees Agree to ‘Tough Times’ Wage Deal
(Bill Curry — Globe and Mail)
Federal public servants moved to sidestep a politically charged showdown with the Conservative government yesterday, agreeing in principle to Ottawa’s take-it-or-leave-it final wage offer.
The deal offers more than 100,000 employees represented by the Public Service Alliance of Canada a 6.8-per-cent raise over four years. The union had been asking for more, but said Monday that times have changed.
The government threatened in last week’s Throne Speech to legislate a deal if necessary, and called on all departments to find savings. Also last week, Treasury Board President Vic Toews upset PSAC by publicizing an offer to federal employees, describing it as final.
Union leaders and Treasury Board officials worked through the weekend and came to an agreement late Sunday night, PSAC president John Gordon said.
“Given these tough economic times, we feel this is the responsible thing to do,” he said yesterday. Read the rest here.
Federal public servants moved to sidestep a politically charged showdown with the Conservative government yesterday, agreeing in principle to Ottawa’s take-it-or-leave-it final wage offer.
The deal offers more than 100,000 employees represented by the Public Service Alliance of Canada a 6.8-per-cent raise over four years. The union had been asking for more, but said Monday that times have changed.
The government threatened in last week’s Throne Speech to legislate a deal if necessary, and called on all departments to find savings. Also last week, Treasury Board President Vic Toews upset PSAC by publicizing an offer to federal employees, describing it as final.
Union leaders and Treasury Board officials worked through the weekend and came to an agreement late Sunday night, PSAC president John Gordon said.
“Given these tough economic times, we feel this is the responsible thing to do,” he said yesterday. Read the rest here.
Monday, November 24, 2008
Ontario Exports to Rise Moderately in 2009 after Double Digit Decline in 2008, Says EDC
(Export Development Canada)
Ontario’s export growth is expected to rise by a moderate 3% in 2009 after a forecasted 14% decline in 2008, according to a provincial export outlook by Export Development Canada (EDC).
‘Ontario will have a tough go through this year and 2009 given the importance of the auto and industrial goods sectors on its export picture, both of which are faltering under the province’s heavy connection to the U.S. economy,’ said Peter Hall, Vice-President of Economics and Chief Economist. ‘In 2009, while volumes are not expected to fully rebound, export revenues will get a slight boost from the weaker dollar.’
The motor vehicle sector accounts for approximately 37% of Ontario’s international exports. American light vehicle sales are forecast to remain below 13.5 million units over the next 18 months, and the resulting production cutbacks cause passenger car exports to drop 26% in 2008. Accordingly, exports of auto parts are forecast to decline 23% in 2008. In 2009, volume shipments of both cars and auto parts are forecast to increase by only 5%, but the value of these exports could increase moderately because of an expected weaker Canadian dollar. However, increased competition from international low-cost producers will curtail increases in auto parts producer prices.
The export outlook for industrial goods sector, which accounts for 30% of Ontario’s international export picture, is forecast to decrease by 7% and 4% in 2008 and 2009, respectively. The highly cyclical nature of the chemicals and plastics segment of this sector and weakness in metals manufacturing will be the main reasons for the decline. Global demand for metal ores remains solid thanks to non-U.S. export destinations such as the U.K., Norway and China.
Although the second half of 2008 and 2009 will clearly be a very tough period, the evolving global supply chain presents opportunities for Ontario exporters, particularly manufacturers of high value-added intermediary and final goods. Mexican light vehicle production has been rising steadily over the years and presents an opportunity to tap into for auto parts suppliers. Larger parts suppliers such as Magna and Linamar continue to seek out joint ventures in fast-growing emerging markets.
Canadian exports are forecast to grow by 2% in 2008 before declining 1% in 2009. Nationally, economic growth is expected to grow by 0.9% in 2008 with a slight upturn to 1.4% in 2009. Internationally, EDC is forecasting a 3.8% growth rate in 2008 and 3.3% 2009. EDC’s Global Export Forecast is available here.
Ontario’s export growth is expected to rise by a moderate 3% in 2009 after a forecasted 14% decline in 2008, according to a provincial export outlook by Export Development Canada (EDC).
‘Ontario will have a tough go through this year and 2009 given the importance of the auto and industrial goods sectors on its export picture, both of which are faltering under the province’s heavy connection to the U.S. economy,’ said Peter Hall, Vice-President of Economics and Chief Economist. ‘In 2009, while volumes are not expected to fully rebound, export revenues will get a slight boost from the weaker dollar.’
The motor vehicle sector accounts for approximately 37% of Ontario’s international exports. American light vehicle sales are forecast to remain below 13.5 million units over the next 18 months, and the resulting production cutbacks cause passenger car exports to drop 26% in 2008. Accordingly, exports of auto parts are forecast to decline 23% in 2008. In 2009, volume shipments of both cars and auto parts are forecast to increase by only 5%, but the value of these exports could increase moderately because of an expected weaker Canadian dollar. However, increased competition from international low-cost producers will curtail increases in auto parts producer prices.
The export outlook for industrial goods sector, which accounts for 30% of Ontario’s international export picture, is forecast to decrease by 7% and 4% in 2008 and 2009, respectively. The highly cyclical nature of the chemicals and plastics segment of this sector and weakness in metals manufacturing will be the main reasons for the decline. Global demand for metal ores remains solid thanks to non-U.S. export destinations such as the U.K., Norway and China.
Although the second half of 2008 and 2009 will clearly be a very tough period, the evolving global supply chain presents opportunities for Ontario exporters, particularly manufacturers of high value-added intermediary and final goods. Mexican light vehicle production has been rising steadily over the years and presents an opportunity to tap into for auto parts suppliers. Larger parts suppliers such as Magna and Linamar continue to seek out joint ventures in fast-growing emerging markets.
Canadian exports are forecast to grow by 2% in 2008 before declining 1% in 2009. Nationally, economic growth is expected to grow by 0.9% in 2008 with a slight upturn to 1.4% in 2009. Internationally, EDC is forecasting a 3.8% growth rate in 2008 and 3.3% 2009. EDC’s Global Export Forecast is available here.
Canada Signs Free-Trade Agreement With Colombia
(Video: PMO • Story: CTV News)
Canadian Prime Minister Stephen Harper and Colombian President Alvaro Uribe signed a free trade agreement between the two countries while at the Asia-Pacific Economic Cooperation meeting in Lima Friday.
The move was first announced in June, after less than a year of negotiations. The accord will make access to markets easier for the $1.14 billion in annual bilateral trade between the two countries.
“In a time of global economic instability free trade is more important than ever,” Harper said in a statement.
“By expanding our trading relationship with Colombia, we are not only opening up new opportunities for Canadian businesses in a foreign market, we are also helping one of South America’s most historic democracies improve the human rights and security situation in their country.” Read more here.
Friday, November 21, 2008
Inflation Rate Eases to 2.6%
(CBC News)
Canada’s annual inflation rate eased to 2.6% in October, down from the 12-month increase of 3.4% seen in September. October’s slowdown was primarily a result of slower price increases for gasoline, but prices for food exerted stronger upward pressure on consumer prices, Statistics Canada said Friday.
For the month of October alone, on a seasonally unadjusted basis, consumer prices fell one per cent from September to October, the largest drop since June 1959. The seasonally adjusted figure is a drop of 0.5%.
Gasoline prices were a big factor in both the 12-month inflation rate and the one-month rate. From October 2007 to October 2008, gasoline prices increased 13.3% – compared with a 12-month change of 26.5% in September. However, in October alone, gasoline prices fell 13.4%, as worries over a global economic downturn sent energy prices sharply lower.
The Bank of Canada’s core rate of inflation – which factors out several volatile components – advanced 1.7% over the 12 months to October, identical to the rate posted in the previous two periods.
The seasonally adjusted monthly core index posted no growth from September to October, after increasing 0.2% from August to September.The 12-month inflation rate seen for October was less than the 3.1% annual increase that economists had been expecting to see. The softer-than-expected inflation report is expected to mean the Bank of Canada will be clear to keep reducing interest rates without fear of inflationary pressures.
“Today’s report reinforces the point that Canadian inflation is melting in real time,” said BMO Capital Markets economist Douglas Porter. “With notable weakness in a variety of core components adding to the deep dive in gasoline, the Bank of Canada has the all-clear signal to continue cutting rates,” he said in a commentary.
Summary statistics and links to the data files are on the Statistics Canada website.
Canada’s annual inflation rate eased to 2.6% in October, down from the 12-month increase of 3.4% seen in September. October’s slowdown was primarily a result of slower price increases for gasoline, but prices for food exerted stronger upward pressure on consumer prices, Statistics Canada said Friday.
For the month of October alone, on a seasonally unadjusted basis, consumer prices fell one per cent from September to October, the largest drop since June 1959. The seasonally adjusted figure is a drop of 0.5%.
Gasoline prices were a big factor in both the 12-month inflation rate and the one-month rate. From October 2007 to October 2008, gasoline prices increased 13.3% – compared with a 12-month change of 26.5% in September. However, in October alone, gasoline prices fell 13.4%, as worries over a global economic downturn sent energy prices sharply lower.
The Bank of Canada’s core rate of inflation – which factors out several volatile components – advanced 1.7% over the 12 months to October, identical to the rate posted in the previous two periods.
The seasonally adjusted monthly core index posted no growth from September to October, after increasing 0.2% from August to September.The 12-month inflation rate seen for October was less than the 3.1% annual increase that economists had been expecting to see. The softer-than-expected inflation report is expected to mean the Bank of Canada will be clear to keep reducing interest rates without fear of inflationary pressures.
“Today’s report reinforces the point that Canadian inflation is melting in real time,” said BMO Capital Markets economist Douglas Porter. “With notable weakness in a variety of core components adding to the deep dive in gasoline, the Bank of Canada has the all-clear signal to continue cutting rates,” he said in a commentary.
Summary statistics and links to the data files are on the Statistics Canada website.
Minister Day Highlights Successful Visit to Latin America
(FAITC)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today highlighted a successful foreign visit, his first in his new portfolio.
“We have had a full schedule, and have accomplished a great deal in a short time,” said Minister Day, following the conclusion of the 20th annual Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting.
Minister Day travelled to São Paulo, Brazil, on November 17 and 18 before travelling to Lima, Peru, on November 19 to attend the APEC meeting.
While in Brazil, Minister Day and Sergio Machado Rezende, Brazil’s Minister of Science and Technology, signed the Canada-Brazil Agreement on Science, Technology and Innovation Cooperation. Minister Day also witnessed the signing of an agreement between Canadian Light Source Inc. and the Brazilian Association of Synchrotron Light Technology, operator of the Brazilian Synchrotron Light Laboratory. The agreement will benefit both countries by developing one of the most valuable scientific tools for the investigation of new materials, biomedical samples, and biological and chemical processes.
At the APEC Ministerial Meeting, Minister Day underlined the importance of liberalizing and encouraging trade and investment, as set out in the Meeting’s agenda. Along with this program, Canada is also fully supportive of further reducing “behind-the-border” barriers.
Minister Day also addressed Canadian business leaders during his trip and underscored the importance of international cooperation during difficult economic times.
While in Peru, Minister Day is meeting with several of his counterparts, including those from the United States, Mexico, Australia, South Korea and New Zealand, to reiterate the importance of bilateral cooperation, as well as open trade and investment. He is also meeting with Peruvian Trade Minister Mercedes Aráoz Fernández to discuss next steps for the Canada-Peru Free Trade Agreement, as well as other issues, such as corporate social responsibility.
“Canada is a major player in the international extractive sector, and our companies have significant investments and operations in many regions around the world, including Peru,” said Minister Day. “Canadian companies realize that a commitment to corporate social responsibility is a commitment to their own success.”
APEC, which has 21 members, is the most important forum for economic cooperation in the Asia-Pacific region. Its members account for 54% of world GDP, 41% of world population and 42% of global merchandise trade. It brings together four of Canada’s top five trading partners, from both sides of the Pacific, and works to facilitate trade and investment in the region.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today highlighted a successful foreign visit, his first in his new portfolio.
“We have had a full schedule, and have accomplished a great deal in a short time,” said Minister Day, following the conclusion of the 20th annual Asia-Pacific Economic Cooperation (APEC) Ministerial Meeting.
Minister Day travelled to São Paulo, Brazil, on November 17 and 18 before travelling to Lima, Peru, on November 19 to attend the APEC meeting.
While in Brazil, Minister Day and Sergio Machado Rezende, Brazil’s Minister of Science and Technology, signed the Canada-Brazil Agreement on Science, Technology and Innovation Cooperation. Minister Day also witnessed the signing of an agreement between Canadian Light Source Inc. and the Brazilian Association of Synchrotron Light Technology, operator of the Brazilian Synchrotron Light Laboratory. The agreement will benefit both countries by developing one of the most valuable scientific tools for the investigation of new materials, biomedical samples, and biological and chemical processes.
At the APEC Ministerial Meeting, Minister Day underlined the importance of liberalizing and encouraging trade and investment, as set out in the Meeting’s agenda. Along with this program, Canada is also fully supportive of further reducing “behind-the-border” barriers.
Minister Day also addressed Canadian business leaders during his trip and underscored the importance of international cooperation during difficult economic times.
While in Peru, Minister Day is meeting with several of his counterparts, including those from the United States, Mexico, Australia, South Korea and New Zealand, to reiterate the importance of bilateral cooperation, as well as open trade and investment. He is also meeting with Peruvian Trade Minister Mercedes Aráoz Fernández to discuss next steps for the Canada-Peru Free Trade Agreement, as well as other issues, such as corporate social responsibility.
“Canada is a major player in the international extractive sector, and our companies have significant investments and operations in many regions around the world, including Peru,” said Minister Day. “Canadian companies realize that a commitment to corporate social responsibility is a commitment to their own success.”
APEC, which has 21 members, is the most important forum for economic cooperation in the Asia-Pacific region. Its members account for 54% of world GDP, 41% of world population and 42% of global merchandise trade. It brings together four of Canada’s top five trading partners, from both sides of the Pacific, and works to facilitate trade and investment in the region.
Canadian Corporations’ Pre-Crisis Profits Eclipse $77b in Q3
(The Canadian Press)
The economy may be in crisis but you’d never know it by third-quarter profits posted by Canadian corporations. Statistics Canada says Canadian corporations earned $77.3 billion in operating profits in the third quarter of 2008, 7.6% more than in from the second quarter.
The credit crunch and world financial crisis set in after quarterly profits in the non-financial sector grew 9.1% to $58.1 billion, while those in the financial sector increased 3.3% to $19.2 billion.
The agency attributes the results to the strong performance by oil-and-gas extractors and petroleum and coal manufacturers, and improved margins for other industry groups despite modest revenue growth.
Revenue growth slowed in the third quarter, but coupled with lower increases in expenses, the agency reports profits came in higher for 13 of 22 industry groups. Oil-and-gas extractors and petroleum and coal manufacturers led the way, earning $11.2 billion in operating profits, up 15.1%, as prices soared.
Summary statistics and a link to the data file are on the Statistics Canada website.
The economy may be in crisis but you’d never know it by third-quarter profits posted by Canadian corporations. Statistics Canada says Canadian corporations earned $77.3 billion in operating profits in the third quarter of 2008, 7.6% more than in from the second quarter.
The credit crunch and world financial crisis set in after quarterly profits in the non-financial sector grew 9.1% to $58.1 billion, while those in the financial sector increased 3.3% to $19.2 billion.
The agency attributes the results to the strong performance by oil-and-gas extractors and petroleum and coal manufacturers, and improved margins for other industry groups despite modest revenue growth.
Revenue growth slowed in the third quarter, but coupled with lower increases in expenses, the agency reports profits came in higher for 13 of 22 industry groups. Oil-and-gas extractors and petroleum and coal manufacturers led the way, earning $11.2 billion in operating profits, up 15.1%, as prices soared.
Summary statistics and a link to the data file are on the Statistics Canada website.
(International Herald Tribune – James Kanter)
European Union governments agreed Thursday to overhaul the way the trade bloc distributes tens of billions of euros in subsidies to farmers. But some said the measures did not go far enough and risked skewing markets.
The measures, which cover the period from now to 2013, are aimed at revamping a decades-old system in which farmers automatically earned money for farm products whether there was market demand or not. That system has been attacked at the World Trade Organization for making Europe less likely to import more competitive farm products from outside the bloc.
The measures represent the biggest reform of European farming policy in five years.
Even so, critics said the measures, which were hashed out Thursday morning after all-night talks in Brussels, were only a partial shift in policy rather than a wholesale reform of the €43 billion subsidy system.
“I regret what has been conceded in order to secure a deal which will lead to some new distortions in the short term,” said the British environment secretary, Hilary Benn. “We want to see further changes for the benefit of farmers, consumers and the environment and will continue to press for this.”
The Common Agricultural Policy absorbs more than 40% of the annual EU budget of more than €100 billion, or $125 billion, although the bloc’s 13 million farmers represent only about 3% of its population. Read the rest here.
European Union governments agreed Thursday to overhaul the way the trade bloc distributes tens of billions of euros in subsidies to farmers. But some said the measures did not go far enough and risked skewing markets.
The measures, which cover the period from now to 2013, are aimed at revamping a decades-old system in which farmers automatically earned money for farm products whether there was market demand or not. That system has been attacked at the World Trade Organization for making Europe less likely to import more competitive farm products from outside the bloc.
The measures represent the biggest reform of European farming policy in five years.
Even so, critics said the measures, which were hashed out Thursday morning after all-night talks in Brussels, were only a partial shift in policy rather than a wholesale reform of the €43 billion subsidy system.
“I regret what has been conceded in order to secure a deal which will lead to some new distortions in the short term,” said the British environment secretary, Hilary Benn. “We want to see further changes for the benefit of farmers, consumers and the environment and will continue to press for this.”
The Common Agricultural Policy absorbs more than 40% of the annual EU budget of more than €100 billion, or $125 billion, although the bloc’s 13 million farmers represent only about 3% of its population. Read the rest here.
Thursday, November 20, 2008
Japan’s Exports Fell the Most in Almost Seven Years
(Video: Associated Press • Story: Bloomberg)
Japan’s exports declined at the fastest pace in almost seven years in October as the intensifying global financial crisis stifled sales of cars and electronics.
Exports, the main engine of Japan’s economic growth in the past six years, fell 7.7% from a year earlier, the biggest drop since December 2001, the Finance Ministry said today in Tokyo. Economists surveyed by Bloomberg News predicted an 8% drop.
The Nikkei 225 Stock Average dropped 4.1% on concern exporters’ profits will deteriorate as the global slowdown spreads to Asia, where Japan’s shipments dropped last month for the first time in six years. Automakers Isuzu Motors Ltd. and Hino Motors Ltd. said today they plan to cut output in response to weaker overseas sales.
“We’re in store for even more depressing export news,” said Kyohei Morita, chief Japan economist at Barclays Capital in Tokyo. “Exports will heavily weigh on Japan’s economy as the impact of the global financial crisis deepens.”
The yen traded at 95.72 per dollar at 12:16 p.m. in Tokyo from 95.88 before the report was published. Japan’s currency has advanced 9.2% since September, eroding exporters’ earnings. Read the rest here.
Speech from the Throne: Expanding Investment & Trade
(Government of Canada)
Canada’s prosperity depends not just on meeting the challenges of today, but on building the dynamic economy that will create opportunities and better jobs for Canadians in the future. As one of our greatest hockey legends has observed, we need “to skate to where the puck is going to be, not to where it has been.”
Building a more dynamic economy will require new ideas and new investment. Our Government understands that advances in science and technology are essential to strengthen the competitiveness of Canada’s economy. Our Government will start at home, working with industry to apply the best Canadian scientific and technological know-how to create innovative business solutions. It will invest in new world-class research facilities.
Our Government will also expand the opportunities for Canadian firms to benefit from foreign investment and knowledge, while taking steps to safeguard consumers and our national security. Our Government will proceed with legislation to modernize our competition and investment laws, implementing many of the recommendations of the Competition Policy Review Panel.
Cultural creativity and innovation are vital not only to a lively Canadian cultural life, but also to Canada’s economic future. Our Government will proceed with legislation to modernize Canada’s copyright laws and ensure stronger protection for intellectual property.
Both investment and trade matter to Canada’s prosperity. Our Government is committed to seeking out new opportunities for Canadians and to promoting global prosperity through free trade. It will work with the new administration in the United States in addressing shared challenges, especially during the current economic downturn, and seek opportunities to enhance North American competitiveness. New trade agreements will be pursued in Asia and the Americas, as well as with the European Union, to open markets for Canadian firms. Our Government will proceed with legislation to ratify the results of trade negotiations that have been concluded with the European Free Trade Association, Peru, Colombia and Jordan.
Our Government will continue to invest in expanding gateways on our Atlantic and Pacific coasts, and in vital border corridors such as the Detroit River International Crossing, to ensure that Canadian goods and services can reach markets in Europe, Asia and the United States.
Better positioning Canada to compete for investment and market opportunities will require action at home. A fragmented regulatory environment for internal trade and commerce has for too long restricted the flow of labour and investment across the country. Our Government will work with the provinces to remove barriers to internal trade, investment and labour mobility by 2010.
Links to additional themes, and the full speech, are here. The Official Opposition response can be found here.
Canada’s prosperity depends not just on meeting the challenges of today, but on building the dynamic economy that will create opportunities and better jobs for Canadians in the future. As one of our greatest hockey legends has observed, we need “to skate to where the puck is going to be, not to where it has been.”
Building a more dynamic economy will require new ideas and new investment. Our Government understands that advances in science and technology are essential to strengthen the competitiveness of Canada’s economy. Our Government will start at home, working with industry to apply the best Canadian scientific and technological know-how to create innovative business solutions. It will invest in new world-class research facilities.
Our Government will also expand the opportunities for Canadian firms to benefit from foreign investment and knowledge, while taking steps to safeguard consumers and our national security. Our Government will proceed with legislation to modernize our competition and investment laws, implementing many of the recommendations of the Competition Policy Review Panel.
Cultural creativity and innovation are vital not only to a lively Canadian cultural life, but also to Canada’s economic future. Our Government will proceed with legislation to modernize Canada’s copyright laws and ensure stronger protection for intellectual property.
Both investment and trade matter to Canada’s prosperity. Our Government is committed to seeking out new opportunities for Canadians and to promoting global prosperity through free trade. It will work with the new administration in the United States in addressing shared challenges, especially during the current economic downturn, and seek opportunities to enhance North American competitiveness. New trade agreements will be pursued in Asia and the Americas, as well as with the European Union, to open markets for Canadian firms. Our Government will proceed with legislation to ratify the results of trade negotiations that have been concluded with the European Free Trade Association, Peru, Colombia and Jordan.
Our Government will continue to invest in expanding gateways on our Atlantic and Pacific coasts, and in vital border corridors such as the Detroit River International Crossing, to ensure that Canadian goods and services can reach markets in Europe, Asia and the United States.
Better positioning Canada to compete for investment and market opportunities will require action at home. A fragmented regulatory environment for internal trade and commerce has for too long restricted the flow of labour and investment across the country. Our Government will work with the provinces to remove barriers to internal trade, investment and labour mobility by 2010.
Links to additional themes, and the full speech, are here. The Official Opposition response can be found here.
‘Modest’ Deficits Predicted for Next 3 Years: Budget Officer
(CBC News)
Canada is unlikely to avoid the effects of an expected global recession and faces the possibility of a deficit for the next three budgets, says a report by Canada’s independent parliamentary budget officer.
Kevin Page gave the sobering outlook on Thursday morning in his first fiscal and economic assessment of the country. “While the year-to-date fiscal results, as well as all of our projection scenarios, suggest a modest surplus in 2008-09, it will be some time before the implications for revenues of the recent financial market turmoil are known,” the report says. “As a result, a deficit for this fiscal year is a distinct possibility.”
The report also projects “modest deficits” of $3.9 billion in 2009-10 and $1.4 billion in 2010-11, with a return to modest surpluses of $1.6 billion in 2011-12 and $3 billion in 2012-13.
The parliamentary budget office’s analysis is based on current government plans, assuming there are no major fiscal policy changes.
Page briefed members of Parliament behind closed doors about his report on recent economic developments, employment trends, federal expenditure and taxing decisions before releasing it to the public.
Page and his staff spent the last couple of months crunching numbers and consulting with 18 different private sector financial institutions and watchers, looking for what they are calling the “consensus” view of the economy. They then conducted their own analysis. The goal was to provide parliamentarians with an assessment of the economy from non-politicians.
The report comes a week before Finance Minister Jim Flaherty delivers the government’s economic update. It also comes a day after the government delivered a throne speech suggesting the country may have to run a deficit.
The parliamentary budget officer is a new post, first promised by the Tories in their 2006 election platform to provide an “independent” source of information to MPs on economic policy.
Canada is unlikely to avoid the effects of an expected global recession and faces the possibility of a deficit for the next three budgets, says a report by Canada’s independent parliamentary budget officer.
Kevin Page gave the sobering outlook on Thursday morning in his first fiscal and economic assessment of the country. “While the year-to-date fiscal results, as well as all of our projection scenarios, suggest a modest surplus in 2008-09, it will be some time before the implications for revenues of the recent financial market turmoil are known,” the report says. “As a result, a deficit for this fiscal year is a distinct possibility.”
The report also projects “modest deficits” of $3.9 billion in 2009-10 and $1.4 billion in 2010-11, with a return to modest surpluses of $1.6 billion in 2011-12 and $3 billion in 2012-13.
The parliamentary budget office’s analysis is based on current government plans, assuming there are no major fiscal policy changes.
Page briefed members of Parliament behind closed doors about his report on recent economic developments, employment trends, federal expenditure and taxing decisions before releasing it to the public.
Page and his staff spent the last couple of months crunching numbers and consulting with 18 different private sector financial institutions and watchers, looking for what they are calling the “consensus” view of the economy. They then conducted their own analysis. The goal was to provide parliamentarians with an assessment of the economy from non-politicians.
The report comes a week before Finance Minister Jim Flaherty delivers the government’s economic update. It also comes a day after the government delivered a throne speech suggesting the country may have to run a deficit.
The parliamentary budget officer is a new post, first promised by the Tories in their 2006 election platform to provide an “independent” source of information to MPs on economic policy.
Obama Picks Napolitano as Homeland Security Secretary
(HS Today – Mickey McCarter)
Arizona governor brings border security, immigration experience Arizona Gov. Janet Napolitano may become the next secretary of homeland security, according to various news reports.
The transition team of president-elect Barack Obama is vetting the governor for the position, Democratic sources say, after which she would undergo confirmation by the U.S. Senate if she accepts the job.
Napolitano leads a border state that has received its share of national attention in the past several years. A stretch of the border near Tucscon has served as the initial site for the Secure Border Initiative-Network (SBInet), which has drawn considerable attention to border security efforts in her state.
The governor has sometimes supported initiatives by the U.S. Department of Homeland Security and sometimes opposed them. In July 2007, she signed a state law requiring employers in Arizona to use the E-Verify employment eligibility verification system to ensure none of their employees were illegal immigrants. But in June 2008, she agreed to solidify Arizona’s stance against the REAL ID Act, which requires all states to upgrade their driver’s licenses to include biometric measures that make them more secure. Read more here.
Arizona governor brings border security, immigration experience Arizona Gov. Janet Napolitano may become the next secretary of homeland security, according to various news reports.
The transition team of president-elect Barack Obama is vetting the governor for the position, Democratic sources say, after which she would undergo confirmation by the U.S. Senate if she accepts the job.
Napolitano leads a border state that has received its share of national attention in the past several years. A stretch of the border near Tucscon has served as the initial site for the Secure Border Initiative-Network (SBInet), which has drawn considerable attention to border security efforts in her state.
The governor has sometimes supported initiatives by the U.S. Department of Homeland Security and sometimes opposed them. In July 2007, she signed a state law requiring employers in Arizona to use the E-Verify employment eligibility verification system to ensure none of their employees were illegal immigrants. But in June 2008, she agreed to solidify Arizona’s stance against the REAL ID Act, which requires all states to upgrade their driver’s licenses to include biometric measures that make them more secure. Read more here.
NAFTA Trade Rose 4.5% in 2007
(Transport Topics)
Trade among the United States, Canada and Mexico set a record in gaining 4.5% in 2007 from a year earlier, the Department of Transportation said Wednesday. Trade among the North American Free Trade Agreement partners topped $909 billion for the year, as freight weighing nearly 606 million tons was transported through U.S. land borders, airports, and seaports to and from Canada and Mexico.
Truck trade – by far the largest modal component – rose to $555 billion, from $534 billion in 2006, DOT said. Rail trade rose to $138 billion from $129 billion year-over-year, while air, pipeline, and water transport rose incrementally at lower levels.
The value of freight shipments among the three grew at an average annual rate of 8.5% per year between 2002 and 2007. U.S. freight shipments with Mexico rose 8.4% annually, while trade with Canada grew 8.6% per year.
About 90% of U.S. trade among NAFTA partners moves by land.
Trade among the United States, Canada and Mexico set a record in gaining 4.5% in 2007 from a year earlier, the Department of Transportation said Wednesday. Trade among the North American Free Trade Agreement partners topped $909 billion for the year, as freight weighing nearly 606 million tons was transported through U.S. land borders, airports, and seaports to and from Canada and Mexico.
Truck trade – by far the largest modal component – rose to $555 billion, from $534 billion in 2006, DOT said. Rail trade rose to $138 billion from $129 billion year-over-year, while air, pipeline, and water transport rose incrementally at lower levels.
The value of freight shipments among the three grew at an average annual rate of 8.5% per year between 2002 and 2007. U.S. freight shipments with Mexico rose 8.4% annually, while trade with Canada grew 8.6% per year.
About 90% of U.S. trade among NAFTA partners moves by land.
2009 Customs Tariff in MS Access: CBSA
(CBSA)
A downloadable Microsoft Access version of the 2009 Customs Tariff is available on the CBSA website here (zip file).
A downloadable Microsoft Access version of the 2009 Customs Tariff is available on the CBSA website here (zip file).
New HTS Online Reference Tool: CBP
(CBP)
At the September TSN, the ITC demonstrated their new HTS Online Reference Tool. The USITC is happy to announce that the new HTS Online Reference Tool now available online for preview viewing at here.
This new reference tool allows users to jump from an item to the related chapter 99 item showing temporary and seasonal rates when needed. It links to Customs Classification Rulings at the 10-digit level so users can see that directly, as well as trade data on the item. It allows searches, including by CAS numbers. It has a thesaurus feature which allows searches by modern terms for products.
You are invited to try out the HTS Online Reference Tool. The ITC is interested in your impressions. Please send comments or suggestions to David.lundy@usitc.gov.
At the September TSN, the ITC demonstrated their new HTS Online Reference Tool. The USITC is happy to announce that the new HTS Online Reference Tool now available online for preview viewing at here.
This new reference tool allows users to jump from an item to the related chapter 99 item showing temporary and seasonal rates when needed. It links to Customs Classification Rulings at the 10-digit level so users can see that directly, as well as trade data on the item. It allows searches, including by CAS numbers. It has a thesaurus feature which allows searches by modern terms for products.
You are invited to try out the HTS Online Reference Tool. The ITC is interested in your impressions. Please send comments or suggestions to David.lundy@usitc.gov.
Wednesday, November 19, 2008
Foreign Affairs Issues to Watch this Session
(Embassy – Jeff Davis & Lee Berthiaume)
Since becoming the government in 2006, the Conservatives have pushed an aggressive free trade agenda, which is expected to increase with the death of Doha a few months ago. However, there have been questions about the government’s choice of partners for talks.
Over the past two-and-a-half years, negotiations with Jordan, Peru, Colombia, Panama, the Caribbean Community and the Dominican Republic were launched or are waiting to be started. The majority of these, including Jordan and Colombia, were widely regarded as more politically motivated then being of great economic benefit to Canada. Colombia in particular prompted sharp criticism from opposition parties and civil society groups.
The government did manage to conclude talks with Jordan, Peru, the European Free Trade Association – composed of Iceland, Norway, Switzerland, and Liechtenstein – and Colombia before Parliament broke for the summer and election.
However, only the EFTA deal has made its way through Parliament, and even then, implementing legislation will have to be introduced and passed before the agreement comes into effect.
While the majority of these deals will pass uncontested, parliamentarians will likely try to throw some stumbling blocks at the government to stop the Colombia deal. And if the government doesn’t act to start making the EFTA agreement law soon, there could be grumbling coming from the Europeans.
Also on the trade front is the new Canada-European Union Trade and Investment Enhancement Agreement, launched just weeks ago at the Canada-EU Summit in Quebec city. This new deal, certainly still in its infancy and years from completion, has not yet been debated in the House and could come up for a great deal of discussion this session.
Also on the books are several negotiations that have stretched on for years. Canada and South Korea are still far apart because of auto and beef industry concerns, while the Canada-Singapore and Canada-Central America Four deals are stalled.
In terms of new deals, the government has not yet signalled its next target, though it has pledged to move forcefully. It will also be a strong advocate for increased trade liberalization at a time when the world is looking to hunker down. Still, Canada seems to have an easier time talking trade deals than finishing talks, especially when it comes to difficult negotiations.
One question mark is Canada’s new trade minister. While David Emerson had a solid background in business and was said to be the main influence behind shaping Canada’s trade and investment policies, Stockwell Day is a relatively unknown quantity on the file. With a new administration south of the border, Mr. Day has perhaps been put in this position for the solid American connections he made during his time as minister of public safety.
But under Mr. Emerson, Canada identified India, China and other emerging economies as major priorities and moved its resources away from Europe and Africa in favour of Latin America and Asia. Will this trend continue? Read the complete article.
Since becoming the government in 2006, the Conservatives have pushed an aggressive free trade agenda, which is expected to increase with the death of Doha a few months ago. However, there have been questions about the government’s choice of partners for talks.
Over the past two-and-a-half years, negotiations with Jordan, Peru, Colombia, Panama, the Caribbean Community and the Dominican Republic were launched or are waiting to be started. The majority of these, including Jordan and Colombia, were widely regarded as more politically motivated then being of great economic benefit to Canada. Colombia in particular prompted sharp criticism from opposition parties and civil society groups.
The government did manage to conclude talks with Jordan, Peru, the European Free Trade Association – composed of Iceland, Norway, Switzerland, and Liechtenstein – and Colombia before Parliament broke for the summer and election.
However, only the EFTA deal has made its way through Parliament, and even then, implementing legislation will have to be introduced and passed before the agreement comes into effect.
While the majority of these deals will pass uncontested, parliamentarians will likely try to throw some stumbling blocks at the government to stop the Colombia deal. And if the government doesn’t act to start making the EFTA agreement law soon, there could be grumbling coming from the Europeans.
Also on the trade front is the new Canada-European Union Trade and Investment Enhancement Agreement, launched just weeks ago at the Canada-EU Summit in Quebec city. This new deal, certainly still in its infancy and years from completion, has not yet been debated in the House and could come up for a great deal of discussion this session.
Also on the books are several negotiations that have stretched on for years. Canada and South Korea are still far apart because of auto and beef industry concerns, while the Canada-Singapore and Canada-Central America Four deals are stalled.
In terms of new deals, the government has not yet signalled its next target, though it has pledged to move forcefully. It will also be a strong advocate for increased trade liberalization at a time when the world is looking to hunker down. Still, Canada seems to have an easier time talking trade deals than finishing talks, especially when it comes to difficult negotiations.
One question mark is Canada’s new trade minister. While David Emerson had a solid background in business and was said to be the main influence behind shaping Canada’s trade and investment policies, Stockwell Day is a relatively unknown quantity on the file. With a new administration south of the border, Mr. Day has perhaps been put in this position for the solid American connections he made during his time as minister of public safety.
But under Mr. Emerson, Canada identified India, China and other emerging economies as major priorities and moved its resources away from Europe and Africa in favour of Latin America and Asia. Will this trend continue? Read the complete article.
First RFID Technology Upgrades Complete: CBP
(CBP)
U.S. Customs and Border Protection announced that technology upgrades are complete at the Pacific Highway and Peace Arch border crossings with Canada, and at the Mariposa and DeConcini ports of entry in Nogales, Ariz. These locations mark the start for new Radio Frequency Identification technology deployments at 354 vehicle primary lanes in northern and southern border ports that account for 95% of all cross-border travel into the U.S.
“We are very pleased to announce our first vicinity RFID-enabled land ports of entry, and we thank the border communities for their patience during construction,” said Assistant Commissioner Field Operations Thomas Winkowski. “The option of using an RFID-enabled travel document offers more efficient processing for travelers while meeting CBP’s goal of securing the borders.”
The upgrades, which include new software, hardware, and the deployment of vicinity RFID technology, are being implemented as part of the Western Hemisphere Travel Initiative. WHTI, a plan to implement the statutory mandates of the Intelligence Reform and Terrorism Prevention Act of 2004 and a 9/11 Commission recommendation, requires U.S. and Canadian citizens to present secure documentation that confirms identity and citizenship when entering or re-entering the United States from within the Western Hemisphere. WHTI will be implemented on June 1, 2009 at land and seaports.
The technology works in tandem with new vicinity RFID-enabled documents, designed for use at our nation’s land and sea ports of entry. These documents include State Department-issued passport cards, CBP’s trusted traveler program (NEXUS, SENTRI and FAST) cards, and enhanced driver’s licenses that are currently available in Washington and New York State. When read by CBP, an RFID chip embedded in these documents transmits a unique number to a secure database as the traveler’s vehicle approaches the border, enabling CBP officers to verify the traveler’s identity and citizenship more quickly than ever. No personally identifiable information is stored on the chip or transmitted when the RFID chip is read. Facilitative technologies, such as RFID, provide CBP officers the ability to remain more attentive and vigilant during the inspection process, focusing more time and attention on travelers, with less time spent performing manual data entry queries.
CBP encourages individuals to apply for the new high-tech documents now to ensure that they have appropriate travel documents when WHTI goes into effect on June 1, 2009. Travelers can go to the Western Hemisphere Travel Initiative Web site (http://www.GetYouHome.gov) for more information.
U.S. Customs and Border Protection announced that technology upgrades are complete at the Pacific Highway and Peace Arch border crossings with Canada, and at the Mariposa and DeConcini ports of entry in Nogales, Ariz. These locations mark the start for new Radio Frequency Identification technology deployments at 354 vehicle primary lanes in northern and southern border ports that account for 95% of all cross-border travel into the U.S.
“We are very pleased to announce our first vicinity RFID-enabled land ports of entry, and we thank the border communities for their patience during construction,” said Assistant Commissioner Field Operations Thomas Winkowski. “The option of using an RFID-enabled travel document offers more efficient processing for travelers while meeting CBP’s goal of securing the borders.”
The upgrades, which include new software, hardware, and the deployment of vicinity RFID technology, are being implemented as part of the Western Hemisphere Travel Initiative. WHTI, a plan to implement the statutory mandates of the Intelligence Reform and Terrorism Prevention Act of 2004 and a 9/11 Commission recommendation, requires U.S. and Canadian citizens to present secure documentation that confirms identity and citizenship when entering or re-entering the United States from within the Western Hemisphere. WHTI will be implemented on June 1, 2009 at land and seaports.
The technology works in tandem with new vicinity RFID-enabled documents, designed for use at our nation’s land and sea ports of entry. These documents include State Department-issued passport cards, CBP’s trusted traveler program (NEXUS, SENTRI and FAST) cards, and enhanced driver’s licenses that are currently available in Washington and New York State. When read by CBP, an RFID chip embedded in these documents transmits a unique number to a secure database as the traveler’s vehicle approaches the border, enabling CBP officers to verify the traveler’s identity and citizenship more quickly than ever. No personally identifiable information is stored on the chip or transmitted when the RFID chip is read. Facilitative technologies, such as RFID, provide CBP officers the ability to remain more attentive and vigilant during the inspection process, focusing more time and attention on travelers, with less time spent performing manual data entry queries.
CBP encourages individuals to apply for the new high-tech documents now to ensure that they have appropriate travel documents when WHTI goes into effect on June 1, 2009. Travelers can go to the Western Hemisphere Travel Initiative Web site (http://www.GetYouHome.gov) for more information.
Tuesday, November 18, 2008
CBP Conducts Second Round of C-TPAT Validations in China
(CBP)
China, United States cooperation continues to validate 15 C-TPAT companies
U.S. Customs and Border Protection and China Customs concluded a second round of joint supply chain security validation visits this week.
Supply chain specialists assigned to the Customs Trade Partnership Against Terrorism Program supported this effort which involved validating 15 C-TPAT companies and their manufacturing facilities located in China. China Customs officials conducted the validations with the support of C-TPAT specialists. This effort follows on several joint validations conducted with China Customs in March of this year.
Prior to commencing the joint validations, CBP met with China Customs counterparts to provide technical assistance regarding supply chain security procedures and to share experiences and best practices regarding conducting supply chain security evaluations.
According to C-TPAT Director Bradd Skinner, “This second round of joint validation visits is an important accomplishment and an indication of our increased working relationship with China Customs to secure international commerce.” Mr. Skinner also added that “This effort will increase the level of security of importations into the United States as well as lead to fewer exams which will benefit C-TPAT importers and their business partners in China. We look forward to continuing this important bi-lateral cooperation next year.”
China, United States cooperation continues to validate 15 C-TPAT companies
U.S. Customs and Border Protection and China Customs concluded a second round of joint supply chain security validation visits this week.
Supply chain specialists assigned to the Customs Trade Partnership Against Terrorism Program supported this effort which involved validating 15 C-TPAT companies and their manufacturing facilities located in China. China Customs officials conducted the validations with the support of C-TPAT specialists. This effort follows on several joint validations conducted with China Customs in March of this year.
Prior to commencing the joint validations, CBP met with China Customs counterparts to provide technical assistance regarding supply chain security procedures and to share experiences and best practices regarding conducting supply chain security evaluations.
According to C-TPAT Director Bradd Skinner, “This second round of joint validation visits is an important accomplishment and an indication of our increased working relationship with China Customs to secure international commerce.” Mr. Skinner also added that “This effort will increase the level of security of importations into the United States as well as lead to fewer exams which will benefit C-TPAT importers and their business partners in China. We look forward to continuing this important bi-lateral cooperation next year.”
(CBP)
CBP has developed a new brochure (4 pages PDF) to generally explain the benefits of C-TPAT for members and non-members.
CBP has developed a new brochure (4 pages PDF) to generally explain the benefits of C-TPAT for members and non-members.
Europe and U.S. Move Toward Cooperation with China on Product Safety
(International Herald Tribune – Stephen Castle)
The European Union and the United States on Monday sought to bind China into international controls on product safety when the three trading partners discussed consumer scares ranging from contaminated Chinese milk to dangerous toys.
At a meeting in Brussels, Beijing officials signed a new agreement with the EU promising to strengthen the exchange of information over faulty products, improve the ability to trace dangerous goods, and increase cooperation in taking them out of circulation.
Meglena Kuneva, the EU consumer protection commissioner, said the accord “provides for more transparency, better monitoring and new possibilities for joint surveillance.” …Read the complete article here.
The European Union and the United States on Monday sought to bind China into international controls on product safety when the three trading partners discussed consumer scares ranging from contaminated Chinese milk to dangerous toys.
At a meeting in Brussels, Beijing officials signed a new agreement with the EU promising to strengthen the exchange of information over faulty products, improve the ability to trace dangerous goods, and increase cooperation in taking them out of circulation.
Meglena Kuneva, the EU consumer protection commissioner, said the accord “provides for more transparency, better monitoring and new possibilities for joint surveillance.” …Read the complete article here.
Commodity Boom, Plummeting Import Prices Drive Canadian Income Gains
(CEP News – Sean McKibbon)
As commodity prices rose and import prices fell between 2003 and 2007, Canada saw unprecedented, countrywide gains in purchasing power, a new report from Statistics Canada says.
“During this five-year period, real gross domestic income (GDI) per capita in Canada, increased at an annual average rate of 2.9%. At the same time, real gross domestic product (GDP) per capita rose at an annual average rate of 1.7%,” the statistical agency reported Tuesday. Every province except Prince Edward Island and Ontario saw GDI gains outstrip GDP growth.
“The combination of falling import prices and rising commodity export prices led to a widespread sharing of benefits from terms of trade improvements across Canada, something that had not occurred in the last 25 years,” the report said.
For most provinces, the decline in import prices was more of a contributor to terms of trade improvements than the increase in export prices, Statistics Canada said. Canadian import prices dropped on average 2.6% per year in the period, while export prices rose about 1% per year.
In Ontario, export prices fell more slowly than import prices. Prince Edward Island’s terms of trade worsened as export prices fell and import prices grew.
Quebec, Manitoba, Alberta and British Columbia saw export prices rise, while import prices fell. In Newfoundland and Labrador, Nova Scotia, New Brunswick and Saskatchewan, export prices grew faster than import prices, leading to terms of trade improvements, Statistics Canada said.
“While individual provinces experienced differing import and export price changes, the impact has generally been the same, improved terms of trade. In the case of Newfoundland and Labrador, the terms of trade driven trading gain accounted for 5.6 percentage points of the 9.5% average annual growth in real GDI per capita from 2003 to 2007,” Statistics Canada reported.
The report sounds a warning note, saying that although swift declines in oil prices hurt oil-producing provinces, that deterioration was offset by terms of trade improvements in oil importing provinces. But in this most recent commodities boom, trading gains were an important source of real income growth for most provinces, Statistics Canada said.
Commodities dominated the exports of a number of provinces. On average, from 2003 to 2007, energy products in Newfoundland and Labrador accounted for 69.4% of exports by value. Prince Edward Island’s agriculture and fishing products accounted for 68% of its exports. In Alberta, energy commodities accounted for 69% of exports, while, in British Columbia, 40.5% of exports were forestry products.
[The research paper The resource boom: Impacts on provincial purchasing power is available in the Insights on the Canadian Economy Research Paper Series (11-624-MIE2008021, free) on the Statistics Canada website.]
As commodity prices rose and import prices fell between 2003 and 2007, Canada saw unprecedented, countrywide gains in purchasing power, a new report from Statistics Canada says.
“During this five-year period, real gross domestic income (GDI) per capita in Canada, increased at an annual average rate of 2.9%. At the same time, real gross domestic product (GDP) per capita rose at an annual average rate of 1.7%,” the statistical agency reported Tuesday. Every province except Prince Edward Island and Ontario saw GDI gains outstrip GDP growth.
“The combination of falling import prices and rising commodity export prices led to a widespread sharing of benefits from terms of trade improvements across Canada, something that had not occurred in the last 25 years,” the report said.
For most provinces, the decline in import prices was more of a contributor to terms of trade improvements than the increase in export prices, Statistics Canada said. Canadian import prices dropped on average 2.6% per year in the period, while export prices rose about 1% per year.
In Ontario, export prices fell more slowly than import prices. Prince Edward Island’s terms of trade worsened as export prices fell and import prices grew.
Quebec, Manitoba, Alberta and British Columbia saw export prices rise, while import prices fell. In Newfoundland and Labrador, Nova Scotia, New Brunswick and Saskatchewan, export prices grew faster than import prices, leading to terms of trade improvements, Statistics Canada said.
“While individual provinces experienced differing import and export price changes, the impact has generally been the same, improved terms of trade. In the case of Newfoundland and Labrador, the terms of trade driven trading gain accounted for 5.6 percentage points of the 9.5% average annual growth in real GDI per capita from 2003 to 2007,” Statistics Canada reported.
The report sounds a warning note, saying that although swift declines in oil prices hurt oil-producing provinces, that deterioration was offset by terms of trade improvements in oil importing provinces. But in this most recent commodities boom, trading gains were an important source of real income growth for most provinces, Statistics Canada said.
Commodities dominated the exports of a number of provinces. On average, from 2003 to 2007, energy products in Newfoundland and Labrador accounted for 69.4% of exports by value. Prince Edward Island’s agriculture and fishing products accounted for 68% of its exports. In Alberta, energy commodities accounted for 69% of exports, while, in British Columbia, 40.5% of exports were forestry products.
[The research paper The resource boom: Impacts on provincial purchasing power is available in the Insights on the Canadian Economy Research Paper Series (11-624-MIE2008021, free) on the Statistics Canada website.]
Monday, November 17, 2008
Government of Canada Holds Employment Insurance Premium Rate at Lowest Level in 15 Years
(Finance Canada)
The Honourable Jim Flaherty, Minister of Finance, and the Honourable Diane Finley, Minister of Human Resources and Skills Development, today welcomed the Canada Employment Insurance Commission’s decision to hold the Employment Insurance (EI) premium rate for 2009 unchanged at $1.73, its lowest level in 15 years.
In considering the rate decision, Minister Finley said: “Our Government will ensure that the program continues to be there for Canadian workers when they need it. We will also act on our commitment to improve the governance and management of the EI Account.”
The Chief Actuary has calculated the maximum insurable earnings (MIE) for 2009 as being $42,300, up from $41,100 in 2008. The MIE is the income level up to which earnings are insured and on which premiums are paid by employees and employers. This in turn determines the maximum weekly EI benefits. The MIE is calculated according to a formula set out in the Employment Insurance Act that indexes the MIE to growth in the average industrial wage.
Employers pay 1.4 times the employee rate. The 2009 EI premium rate for Quebec will be $1.38. This is lower than in the rest of Canada because Quebec finances its own parental benefits.
To learn more about the EI program, please visit the Human Resources and Skills Development Canada websote.
The Honourable Jim Flaherty, Minister of Finance, and the Honourable Diane Finley, Minister of Human Resources and Skills Development, today welcomed the Canada Employment Insurance Commission’s decision to hold the Employment Insurance (EI) premium rate for 2009 unchanged at $1.73, its lowest level in 15 years.
In considering the rate decision, Minister Finley said: “Our Government will ensure that the program continues to be there for Canadian workers when they need it. We will also act on our commitment to improve the governance and management of the EI Account.”
The Chief Actuary has calculated the maximum insurable earnings (MIE) for 2009 as being $42,300, up from $41,100 in 2008. The MIE is the income level up to which earnings are insured and on which premiums are paid by employees and employers. This in turn determines the maximum weekly EI benefits. The MIE is calculated according to a formula set out in the Employment Insurance Act that indexes the MIE to growth in the average industrial wage.
Employers pay 1.4 times the employee rate. The 2009 EI premium rate for Quebec will be $1.38. This is lower than in the rest of Canada because Quebec finances its own parental benefits.
To learn more about the EI program, please visit the Human Resources and Skills Development Canada websote.
Border Guards Find Gun Training Tough
(Richard Brennan — Toronto Star)
Canada’s border guards have been struggling to meet firearms training requirements, with 12 per cent failing the three-week certification course on the first try, according to internal government documents.
Their union complains the course is compressed into too short a time period, and that the RCMP-based standards are more stringent than those of other police forces across the country, say documents obtained by the Toronto Star through the federal Access to Information law.
“You have to appreciate the fact when (RCMP) recruits go to Depot in Regina, they are there for 16 weeks and that the training they receive for firearms is spread out,” Ron Moran, president of the Customs Excise Union, told the Star yesterday.
Moran said that compares with three weeks of training for border guards, many of whom have never held a gun in their lives.
The training course requires proficiency with a firearm at 25 metres, whereas the distance is 15 metres for other police forces across the country, Moran said.
A Canada Border Services Agency spokesperson said the training standards are set high to ensure the safety of the agency’s staff and the public.
“Candidates are allowed two attempts to pass the course,” Tracie LeBlanc noted by email. “Participants who do not successfully complete the duty firearm course on their first attempt receive feedback and guidance to help them prepare for their next qualification attempt.”
In a controversial move, the Conservative government announced $101 million to be spent over two years in its 2006 budget to begin arming Canada’s 4,800 border guards. The process is expected to take 10 years to complete at an estimated cost of $1 billion.
While the failure rate for the training program was about one in four when the program first started, it is now down to about 12 per cent, compared with a 2 per cent failure rate at the Ontario Police College, the Canada Border Services Agency documents show. Read the complete article.
Canada’s border guards have been struggling to meet firearms training requirements, with 12 per cent failing the three-week certification course on the first try, according to internal government documents.
Their union complains the course is compressed into too short a time period, and that the RCMP-based standards are more stringent than those of other police forces across the country, say documents obtained by the Toronto Star through the federal Access to Information law.
“You have to appreciate the fact when (RCMP) recruits go to Depot in Regina, they are there for 16 weeks and that the training they receive for firearms is spread out,” Ron Moran, president of the Customs Excise Union, told the Star yesterday.
Moran said that compares with three weeks of training for border guards, many of whom have never held a gun in their lives.
The training course requires proficiency with a firearm at 25 metres, whereas the distance is 15 metres for other police forces across the country, Moran said.
A Canada Border Services Agency spokesperson said the training standards are set high to ensure the safety of the agency’s staff and the public.
“Candidates are allowed two attempts to pass the course,” Tracie LeBlanc noted by email. “Participants who do not successfully complete the duty firearm course on their first attempt receive feedback and guidance to help them prepare for their next qualification attempt.”
In a controversial move, the Conservative government announced $101 million to be spent over two years in its 2006 budget to begin arming Canada’s 4,800 border guards. The process is expected to take 10 years to complete at an estimated cost of $1 billion.
While the failure rate for the training program was about one in four when the program first started, it is now down to about 12 per cent, compared with a 2 per cent failure rate at the Ontario Police College, the Canada Border Services Agency documents show. Read the complete article.
“Boring” Canada’s Financial Tips for the World
(Department of Finance)
The following guest column by the Honourable Jim Flaherty, Minister of Finance, appeared in today’s Financial Times. In it, Minister Flaherty outlines Canada’s five-point plan to restore stability to the international financial system.
“The financial crisis that began 14 months ago in the US has intensified and spread around the world, threatening to roll back economic progress that has been made over the past two decades. Governments have been responding in a co-ordinated fashion and will continue this work in the lead-up to the summit of the Group of 20 leading economies.
“Few countries are as dependent on trade or as integrated into the global financial system as Canada. Yet our financial sector continues to weather the turbulence better than many other countries. This did not happen by chance. Canadians by nature are prudent and our financial system has been characterised as unexciting. Canada’s regulatory regime ensures that stability and efficiency are balanced. As a result, Canadian taxpayers have not had their money put at risk in response to this crisis. If Canada’s financial system is boring, perhaps the world needs to be more like Canada.
“Before we examine grand designs for global regulatory regimes, we need to recognise that good regulation begins at home. Effective national regulatory regimes could have prevented this crisis and must be our first line of defence against any future one. We all need to draw lessons from those systems that worked well and apply them to our national regulatory regimes.
“First, we need to regulate all pools of capital that rely on leverage. The crisis has demonstrated the devastating impact that unregulated entities can have. Transparency requirements must be the price of admission to global markets. Different financial services may have different regulatory requirements, but we need to bring them all under a regulatory umbrella.
“Second, capital and liquidity buffers need to be large enough to handle big shocks. Moreover, regulators must restrain overall use of leverage. Some have criticised high Canadian capital requirements for banks as being too conservative. But the strong balance sheets of Canada’s banks through this period speak for themselves.
“Third, it is not enough for regulation to look at individual institutions. It needs to look at the system as a whole. Risks that may appear sensible in isolation can be unsustainable from a systemic perspective. This systemic vantage point must be used to mitigate any tendency to underestimate risk when times are good. This requires co-ordination across the government, central bank and regulatory agencies.
“Fourth, we need to make market infrastructure more transparent and resilient. Non-transparent over-the-counter trades and naked short-selling reduced the stability of the system.
“This crisis has demonstrated that even countries with strong financial systems can feel the effects of inadequate regulatory regimes elsewhere. Countries may hesitate to impose new requirements on their own institutions if these measures will create a competitive disadvantage. This points to the importance of the fifth step: strengthening international co-ordination, review and surveillance to create a better second line of defence. Canada was a pioneer of the joint International Monetary Fund-World Bank financial sector assessment program. This independent review of domestic financial systems should be mandatory and public. We need to strengthen the role of international colleges of supervisors to ensure better understanding of systemic risks and to co-ordinate national actions. We need IMF surveillance with teeth. Countries must live up to their responsibilities to support global financial stability and growth. Nowhere is this more important than in correcting global imbalances through appropriate exchange rate and macroeconomic policies to support growth.
“The process of how we make decisions is equally important. In two decades of unprecedented growth, we have seen the emergence of dynamic new economic players that must be full participants at the global table. Canada took one of the largest share cuts of any country in the recent IMF reform exercise to ensure that emerging economies are better represented. This broader range of voices must be heard in other venues such as the Financial Stability Forum.
“Together, these reforms must ensure that incentives are aligned to support stability and that resilience is built into the financial system.
“The open market system did not fail in this crisis. However, some forgot Adam Smith’s maxim that the invisible hand needs to be supported by an appropriate legal and regulatory framework. We need to work together to strengthen those frameworks, and that work must begin at home.”
The following guest column by the Honourable Jim Flaherty, Minister of Finance, appeared in today’s Financial Times. In it, Minister Flaherty outlines Canada’s five-point plan to restore stability to the international financial system.
“The financial crisis that began 14 months ago in the US has intensified and spread around the world, threatening to roll back economic progress that has been made over the past two decades. Governments have been responding in a co-ordinated fashion and will continue this work in the lead-up to the summit of the Group of 20 leading economies.
“Few countries are as dependent on trade or as integrated into the global financial system as Canada. Yet our financial sector continues to weather the turbulence better than many other countries. This did not happen by chance. Canadians by nature are prudent and our financial system has been characterised as unexciting. Canada’s regulatory regime ensures that stability and efficiency are balanced. As a result, Canadian taxpayers have not had their money put at risk in response to this crisis. If Canada’s financial system is boring, perhaps the world needs to be more like Canada.
“Before we examine grand designs for global regulatory regimes, we need to recognise that good regulation begins at home. Effective national regulatory regimes could have prevented this crisis and must be our first line of defence against any future one. We all need to draw lessons from those systems that worked well and apply them to our national regulatory regimes.
“First, we need to regulate all pools of capital that rely on leverage. The crisis has demonstrated the devastating impact that unregulated entities can have. Transparency requirements must be the price of admission to global markets. Different financial services may have different regulatory requirements, but we need to bring them all under a regulatory umbrella.
“Second, capital and liquidity buffers need to be large enough to handle big shocks. Moreover, regulators must restrain overall use of leverage. Some have criticised high Canadian capital requirements for banks as being too conservative. But the strong balance sheets of Canada’s banks through this period speak for themselves.
“Third, it is not enough for regulation to look at individual institutions. It needs to look at the system as a whole. Risks that may appear sensible in isolation can be unsustainable from a systemic perspective. This systemic vantage point must be used to mitigate any tendency to underestimate risk when times are good. This requires co-ordination across the government, central bank and regulatory agencies.
“Fourth, we need to make market infrastructure more transparent and resilient. Non-transparent over-the-counter trades and naked short-selling reduced the stability of the system.
“This crisis has demonstrated that even countries with strong financial systems can feel the effects of inadequate regulatory regimes elsewhere. Countries may hesitate to impose new requirements on their own institutions if these measures will create a competitive disadvantage. This points to the importance of the fifth step: strengthening international co-ordination, review and surveillance to create a better second line of defence. Canada was a pioneer of the joint International Monetary Fund-World Bank financial sector assessment program. This independent review of domestic financial systems should be mandatory and public. We need to strengthen the role of international colleges of supervisors to ensure better understanding of systemic risks and to co-ordinate national actions. We need IMF surveillance with teeth. Countries must live up to their responsibilities to support global financial stability and growth. Nowhere is this more important than in correcting global imbalances through appropriate exchange rate and macroeconomic policies to support growth.
“The process of how we make decisions is equally important. In two decades of unprecedented growth, we have seen the emergence of dynamic new economic players that must be full participants at the global table. Canada took one of the largest share cuts of any country in the recent IMF reform exercise to ensure that emerging economies are better represented. This broader range of voices must be heard in other venues such as the Financial Stability Forum.
“Together, these reforms must ensure that incentives are aligned to support stability and that resilience is built into the financial system.
“The open market system did not fail in this crisis. However, some forgot Adam Smith’s maxim that the invisible hand needs to be supported by an appropriate legal and regulatory framework. We need to work together to strengthen those frameworks, and that work must begin at home.”
Enhanced Driver’s Licence or National Identity Card?
(Andrew Clement & Colin Bennett — Toronto Star)
In the name of thrift and convenience, Canadian governments are opening the door to a privacy-threatening ID scheme imposed by the United States in the misguided pursuit of “secure” borders. Currently, the Ontario government is pushing through legislation – Bill 85, the Photo Card Act – that would “enhance” the provincial driver’s licence to meet U.S. demands.
As part of the Bush administration’s war on terror, Canadians entering the U.S. will soon need to show a passport or equivalent document in compliance with the Western Hemisphere Travel Initiative. The U.S. has already put this requirement into effect for air travel and in June 2009 it will cover all land and water crossings.
In anticipation of this and to facilitate “the efficient and secure flow of cross-border travel and commerce,” several Canadian provinces are instituting enhanced driver’s licences (EDL). Enhancing a licence in accordance with standards set by the U.S. Department of Homeland Security involves including a citizenship indicator, an optical character recognition zone and a radio-frequency identification (RFID) chip.
With these features, an EDL can serve as an alternative to a Canadian passport at an American border. Promoted as cheaper and more convenient than a passport, such a licence initially appear to be a good deal. A closer examination reveals several flaws with this approach.
One of the most serious problems with EDLs is the requirement to adopt a particularly insecure form of chip – the EPC Gen 2. Over stiff opposition from the “smart card” industry as well as civil liberties organizations, Homeland Security has insisted on a type of chip that is notoriously privacy-invasive in its potential. The chip on the card will hold a unique personal identification number that anyone in the vicinity (at least 10 metres) can read with commercially available equipment and link to any other information the person may have about the card holder.
It is ironic that while some jurisdictions require the disabling of similar RFIDs in consumer items at point of purchase, there appears to be no effective way for individuals to do likewise with a card many will carry all the time. There has been no visible progress in developing less invasive features, such as a switch that would allow cardholders to turn the chip off until they want it read, or the option to request an EDL without a chip and only the optical character zone for machine reading. Read the rest here.
In the name of thrift and convenience, Canadian governments are opening the door to a privacy-threatening ID scheme imposed by the United States in the misguided pursuit of “secure” borders. Currently, the Ontario government is pushing through legislation – Bill 85, the Photo Card Act – that would “enhance” the provincial driver’s licence to meet U.S. demands.
As part of the Bush administration’s war on terror, Canadians entering the U.S. will soon need to show a passport or equivalent document in compliance with the Western Hemisphere Travel Initiative. The U.S. has already put this requirement into effect for air travel and in June 2009 it will cover all land and water crossings.
In anticipation of this and to facilitate “the efficient and secure flow of cross-border travel and commerce,” several Canadian provinces are instituting enhanced driver’s licences (EDL). Enhancing a licence in accordance with standards set by the U.S. Department of Homeland Security involves including a citizenship indicator, an optical character recognition zone and a radio-frequency identification (RFID) chip.
With these features, an EDL can serve as an alternative to a Canadian passport at an American border. Promoted as cheaper and more convenient than a passport, such a licence initially appear to be a good deal. A closer examination reveals several flaws with this approach.
One of the most serious problems with EDLs is the requirement to adopt a particularly insecure form of chip – the EPC Gen 2. Over stiff opposition from the “smart card” industry as well as civil liberties organizations, Homeland Security has insisted on a type of chip that is notoriously privacy-invasive in its potential. The chip on the card will hold a unique personal identification number that anyone in the vicinity (at least 10 metres) can read with commercially available equipment and link to any other information the person may have about the card holder.
It is ironic that while some jurisdictions require the disabling of similar RFIDs in consumer items at point of purchase, there appears to be no effective way for individuals to do likewise with a card many will carry all the time. There has been no visible progress in developing less invasive features, such as a switch that would allow cardholders to turn the chip off until they want it read, or the option to request an EDL without a chip and only the optical character zone for machine reading. Read the rest here.
Sunday, November 16, 2008
Auto Industry Divided Over Specifics of Aid, But Agrees Canada Needs to Help
(The Canadian Press)
As North American auto manufacturers plead with governments for even a fraction of the help they’ve given the foundering financial sector, industry players and analysts are divided over what form any potential aid should take.
But there is widespread agreement that Canada can’t ignore the issue or it runs the risk of being shut out of talks between the Big Three automakers and the U.S. government, leading to further job losses in this country.
“I think the Canadian government needs to be at the table now so it doesn’t get excluded, so it can have some impact on the outcome,” said Bill Pochiluk, president of West Chester, Pa.-based AutomotiveCompass.
“The costs of not helping are enormous.”
North American automakers - including Ford, General Motors and Chrysler - are reeling from the combined effects of slumping U.S. demand for their products and frozen credit markets.
The Detroit Three have said they need loan guarantees to help tide over the sector until demand in the U.S. recovers for North American-produced vehicles.
On Friday, Federal Industry Minister Tony Clement said he was investigating the possibility of a joint Canada-U.S. bailout of North America’s ailing auto industry.
The Ontario MP, newly named to an economic portfolio, said he’ll be on what he called a fact-finding mission this week to Detroit and Washington and a common cross-border aid package is on the table.
No decisions have been made about a joint effort with the U.S. to help automakers, Clement said Sunday on CTV’s “Question Period.”
“Car sales in Canada are still going up and up, but of course when 90 per cent of what you assemble gets exported to the United States, we are prey to trends that are very obvious in the U.S.A. right now,” he said.
“I think it’s prudent of me just to, in the first instance, get a sense of what is going on in the United States, what are they proposing for the American Congress, and then obviously that will be part, not the whole part, but part of what we can consider as the situation here in Canada.”
In Canada, the federal Conservatives have long rejected direct intervention in the auto sector, but Finance Minister Jim Flaherty said recently he may be willing to invest what he calls “transformational money” in auto plants with viable prospects. Read the complete article here.
As North American auto manufacturers plead with governments for even a fraction of the help they’ve given the foundering financial sector, industry players and analysts are divided over what form any potential aid should take.
But there is widespread agreement that Canada can’t ignore the issue or it runs the risk of being shut out of talks between the Big Three automakers and the U.S. government, leading to further job losses in this country.
“I think the Canadian government needs to be at the table now so it doesn’t get excluded, so it can have some impact on the outcome,” said Bill Pochiluk, president of West Chester, Pa.-based AutomotiveCompass.
“The costs of not helping are enormous.”
North American automakers - including Ford, General Motors and Chrysler - are reeling from the combined effects of slumping U.S. demand for their products and frozen credit markets.
The Detroit Three have said they need loan guarantees to help tide over the sector until demand in the U.S. recovers for North American-produced vehicles.
On Friday, Federal Industry Minister Tony Clement said he was investigating the possibility of a joint Canada-U.S. bailout of North America’s ailing auto industry.
The Ontario MP, newly named to an economic portfolio, said he’ll be on what he called a fact-finding mission this week to Detroit and Washington and a common cross-border aid package is on the table.
No decisions have been made about a joint effort with the U.S. to help automakers, Clement said Sunday on CTV’s “Question Period.”
“Car sales in Canada are still going up and up, but of course when 90 per cent of what you assemble gets exported to the United States, we are prey to trends that are very obvious in the U.S.A. right now,” he said.
“I think it’s prudent of me just to, in the first instance, get a sense of what is going on in the United States, what are they proposing for the American Congress, and then obviously that will be part, not the whole part, but part of what we can consider as the situation here in Canada.”
In Canada, the federal Conservatives have long rejected direct intervention in the auto sector, but Finance Minister Jim Flaherty said recently he may be willing to invest what he calls “transformational money” in auto plants with viable prospects. Read the complete article here.
Saturday, November 15, 2008
Harper Says G20 Declaration Should Give ‘Hope’
(Video: Associated Press • Story: CTV News)
Prime Minister Stephen Harper is optimistic that members of the G20 have made a plan of attack for the struggling global economy that will give ‘hope’ to people worldwide.
“The declaration should give us all hope, and I would hope it would give the markets some reassurance,” the prime minister said at a news conference in Washington on Saturday.
The leaders of the world’s largest 20 economies met in Washington this weekend to discuss the world financial crisis. On Saturday, they issued a declaration outlining the steps they intend to take to get the global economy back on track.
Some of their agreed-upon resolutions included:
• developing government spending plans to stimulate the economy;
• having more open and better-monitored financial markets;
• developing an early warning system to detect and prevent future economic crises;
• establishing a college of supervisors, to be made up of financial regulators from around the world; and,
• increased liquidity to developing countries who need credit to ensure financial growth.
Harper said there was “a nearly unanimous accord” on the major subjects among the G20 leaders, and that Canada would do its part in upholding its responsibilities in the agreed-upon resolutions. Read the complete article.
Prime Minister Stephen Harper is optimistic that members of the G20 have made a plan of attack for the struggling global economy that will give ‘hope’ to people worldwide.
“The declaration should give us all hope, and I would hope it would give the markets some reassurance,” the prime minister said at a news conference in Washington on Saturday.
The leaders of the world’s largest 20 economies met in Washington this weekend to discuss the world financial crisis. On Saturday, they issued a declaration outlining the steps they intend to take to get the global economy back on track.
Some of their agreed-upon resolutions included:
• developing government spending plans to stimulate the economy;
• having more open and better-monitored financial markets;
• developing an early warning system to detect and prevent future economic crises;
• establishing a college of supervisors, to be made up of financial regulators from around the world; and,
• increased liquidity to developing countries who need credit to ensure financial growth.
Harper said there was “a nearly unanimous accord” on the major subjects among the G20 leaders, and that Canada would do its part in upholding its responsibilities in the agreed-upon resolutions. Read the complete article.
Oil – A Vacation From U.S. $100/barrel… For Now
(Carter Group — ScotiaMcLeod)
With Europe, Asia and Japan assumed to be in a synchronized recession for the first time in 60 years, the forecasts for demand of crude oil are literally changing by the minute. These revisions though are entirely focussed on the next year and not the next decade. The myopic view of traders and speculators being what it is, the entire global energy market is being deeply discounted. Wholesale gasoline prices in New York have collapsed by 60% from early September’s record setting prices. Crude oil is less than half of what it was in July and energy stocks as a group have roughly taken the same kind of dramatic haircut.
Given the precipitous drop in prices and the ongoing challenges facing corporate borrowers, we can’t help but wonder how many of the expansion and exploration projects currently in the works will soon be shelved as oil companies adopt a more cautious approach to planned expenditures. These days the markets are swiftly punishing large corporations that follow-thru with takeovers or expensive projects on the books (witness the flogging of Teck Cominco’s shares recently). The expected return on any big oil company’s infrastructure investment looks remarkably different with $60/barrel oil rather than $100/barrel oil. Using Steven Forbes $35/barrel estimate, most infrastructure investments would seem guaranteed money-losers.
Although you wouldn’t know it by looking at this week’s market prices for crude oil, the global energy supply crunch has not gone away. This is an important factor for any investor willing to look beyond the next 12 months. The International Energy Agency was doing its best to deliver a wake-up call during this week’s World Energy Outlook from London, but it doesn’t seem to be finding much luck with getting policy makers to listen (or care).
With Europe, Asia and Japan assumed to be in a synchronized recession for the first time in 60 years, the forecasts for demand of crude oil are literally changing by the minute. These revisions though are entirely focussed on the next year and not the next decade. The myopic view of traders and speculators being what it is, the entire global energy market is being deeply discounted. Wholesale gasoline prices in New York have collapsed by 60% from early September’s record setting prices. Crude oil is less than half of what it was in July and energy stocks as a group have roughly taken the same kind of dramatic haircut.
Given the precipitous drop in prices and the ongoing challenges facing corporate borrowers, we can’t help but wonder how many of the expansion and exploration projects currently in the works will soon be shelved as oil companies adopt a more cautious approach to planned expenditures. These days the markets are swiftly punishing large corporations that follow-thru with takeovers or expensive projects on the books (witness the flogging of Teck Cominco’s shares recently). The expected return on any big oil company’s infrastructure investment looks remarkably different with $60/barrel oil rather than $100/barrel oil. Using Steven Forbes $35/barrel estimate, most infrastructure investments would seem guaranteed money-losers.
Although you wouldn’t know it by looking at this week’s market prices for crude oil, the global energy supply crunch has not gone away. This is an important factor for any investor willing to look beyond the next 12 months. The International Energy Agency was doing its best to deliver a wake-up call during this week’s World Energy Outlook from London, but it doesn’t seem to be finding much luck with getting policy makers to listen (or care).
Canadian Border Sales Show Slight Decrease
(Andrew Pentol — DFNI Online)
Year-on-year sales at Canadian border stores registered a small decrease in the month of August, with sales falling in the Ontario and Prairies regions
Canada’s border store retailers recorded a slight decrease in trading results during August 2008, according to the Canadian Border Services Agency. Year-on-year sales decreased by 1.4% to C$19.1m ($15.6m) and regional sales decreases were also registered at Ontario and Prairies provinces.
The Frontier Duty Free Association (FDFA), which represents Canadian border store operators, attributed the decrease in sales to congestion at land border crossings with the US as a result of tighter security checks, confusion over identification requirements, high petrol prices, the effects of the global economic downturn in the US and the decline of traveller numbers from the US to Canada. Read more here.
Year-on-year sales at Canadian border stores registered a small decrease in the month of August, with sales falling in the Ontario and Prairies regions
Canada’s border store retailers recorded a slight decrease in trading results during August 2008, according to the Canadian Border Services Agency. Year-on-year sales decreased by 1.4% to C$19.1m ($15.6m) and regional sales decreases were also registered at Ontario and Prairies provinces.
The Frontier Duty Free Association (FDFA), which represents Canadian border store operators, attributed the decrease in sales to congestion at land border crossings with the US as a result of tighter security checks, confusion over identification requirements, high petrol prices, the effects of the global economic downturn in the US and the decline of traveller numbers from the US to Canada. Read more here.
Canada’s Trade Surplus Shrinks by $1.1 Billion in September
(StatsCan via Exchange Market Post)
Canada’s trade surplus with the world decreased to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose. This marks the lowest trade surplus since January 2008.
Canadian exports declined for the second consecutive month, dropping 1.0% to $42.5 billion. The movement was isolated to a drop in prices as volumes remained flat. The retreat was led by industrial goods and materials, automotive products, and energy products.
Canada’s imports increased 1.9% in September to $38.0 billion, as both prices and volumes increased. September’s gain marked the fifth increase in six months following a 5.7% decline in August.
Exports to the United States declined for the second consecutive month as imports remained relatively unchanged at $23.7 billion. Exports fell 1.3% to $32.1 billion, largely due to energy products and automotive products. As a result, the trade surplus with the United States contracted to $8.3 billion in September from $8.7 billion in August.
Exports to countries other than the United States remained flat at $10.4 billion, while imports from these countries collectively increased 5.5%. Consequently, Canada’s trade deficit with countries other than the United States expanded to $3.8 billion in September from $3.1 billion in August.
Widespread price declines push export values down
Exports of industrial goods and materials fell for the second consecutive month, decreasing 1.9% to $9.9 billion, as a result of declining prices as volumes edged up. This was the first export price drop in 2008 for a sector that has experienced high commodity prices. Reduced exports to Japan and the United States pushed copper down.
Exports of automotive products fell 3.4% to $5.1 billion, the eighth decline in 12 months. The fall in exports was driven by volume as prices have been on the rise since March 2008. A production plant shutdown and low vehicle sales in the United States were two of the main factors leading to lower exports of trucks and passenger autos in September. Read more here.
Canada’s trade surplus with the world decreased to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose. This marks the lowest trade surplus since January 2008.
Canadian exports declined for the second consecutive month, dropping 1.0% to $42.5 billion. The movement was isolated to a drop in prices as volumes remained flat. The retreat was led by industrial goods and materials, automotive products, and energy products.
Canada’s imports increased 1.9% in September to $38.0 billion, as both prices and volumes increased. September’s gain marked the fifth increase in six months following a 5.7% decline in August.
Exports to the United States declined for the second consecutive month as imports remained relatively unchanged at $23.7 billion. Exports fell 1.3% to $32.1 billion, largely due to energy products and automotive products. As a result, the trade surplus with the United States contracted to $8.3 billion in September from $8.7 billion in August.
Exports to countries other than the United States remained flat at $10.4 billion, while imports from these countries collectively increased 5.5%. Consequently, Canada’s trade deficit with countries other than the United States expanded to $3.8 billion in September from $3.1 billion in August.
Widespread price declines push export values down
Exports of industrial goods and materials fell for the second consecutive month, decreasing 1.9% to $9.9 billion, as a result of declining prices as volumes edged up. This was the first export price drop in 2008 for a sector that has experienced high commodity prices. Reduced exports to Japan and the United States pushed copper down.
Exports of automotive products fell 3.4% to $5.1 billion, the eighth decline in 12 months. The fall in exports was driven by volume as prices have been on the rise since March 2008. A production plant shutdown and low vehicle sales in the United States were two of the main factors leading to lower exports of trucks and passenger autos in September. Read more here.
Friday, November 14, 2008
DHS Announces Security Standards for Rail Systems
(Department of Homeland Security)
The U.S. Department of Homeland Security (DHS) announced today [Thursday] regulations aimed at strengthening the security of the nation’s freight and passenger rail systems and reducing the risk associated with the transportation of security-sensitive materials.
“By striking a sensible balance of security guidelines with certain regulatory requirements, we’re enabling the rail and chemical industries to be stronger partners,” said Homeland Security Secretary Michael Chertoff. “The results are sound security measures without excessively burdening owners and operators.”
The Rail Security final rule will require freight and passenger rail carriers to designate rail security coordinators and report significant security concerns to the Transportation Security Administration (TSA). The rule also will codify TSA’s broad inspection authority. For freight rail, the rule will ensure the positive handoff of security-sensitive materials as well as establish security protocols for custody transfers of security-sensitive material rail cars between receivers of these materials that are located in high threat urban areas, shippers of these materials, and rail carriers.
To raise the level of security in the freight rail transportation sector ahead of the final rule, both TSA and the U.S. Department of Transportation (DOT) developed security action items, along with the freight rail industry, to reduce the risk associated with the transportation of Poisonous by Inhalation (PIH) materials. These measures have resulted in an overall risk reduction of more than 60 percent, well above the target reduction of 50 percent. PIH materials are potentially harmful and include essential chemicals like chlorine and anhydrous ammonia. PIH materials represent less than one percent of all hazardous materials rail shipments.The freight rail provisions of the rule will address the transport of security-sensitive materials by rail, from start to finish, including shipment handoffs, secure areas for transfers, and reporting of shipment locations to TSA.
The Rail Security final rule has been sent to the Federal Register for publication and is currently available at the TSA website.
The U.S. Department of Homeland Security (DHS) announced today [Thursday] regulations aimed at strengthening the security of the nation’s freight and passenger rail systems and reducing the risk associated with the transportation of security-sensitive materials.
“By striking a sensible balance of security guidelines with certain regulatory requirements, we’re enabling the rail and chemical industries to be stronger partners,” said Homeland Security Secretary Michael Chertoff. “The results are sound security measures without excessively burdening owners and operators.”
The Rail Security final rule will require freight and passenger rail carriers to designate rail security coordinators and report significant security concerns to the Transportation Security Administration (TSA). The rule also will codify TSA’s broad inspection authority. For freight rail, the rule will ensure the positive handoff of security-sensitive materials as well as establish security protocols for custody transfers of security-sensitive material rail cars between receivers of these materials that are located in high threat urban areas, shippers of these materials, and rail carriers.
To raise the level of security in the freight rail transportation sector ahead of the final rule, both TSA and the U.S. Department of Transportation (DOT) developed security action items, along with the freight rail industry, to reduce the risk associated with the transportation of Poisonous by Inhalation (PIH) materials. These measures have resulted in an overall risk reduction of more than 60 percent, well above the target reduction of 50 percent. PIH materials are potentially harmful and include essential chemicals like chlorine and anhydrous ammonia. PIH materials represent less than one percent of all hazardous materials rail shipments.The freight rail provisions of the rule will address the transport of security-sensitive materials by rail, from start to finish, including shipment handoffs, secure areas for transfers, and reporting of shipment locations to TSA.
The Rail Security final rule has been sent to the Federal Register for publication and is currently available at the TSA website.
All Chinese Food Imports Containing Dairy Held Up at U.S. Border
(Washington Post)
The Food and Drug Administration has begun stopping imports of Chinese dairy and dairy-based products from entering the country in an effort to keep out food contaminated with the industrial chemical melamine.
Melamine is the chemical at the heart of the Chinese infant formula scandal that has killed at least two infants and sickened more than 50,000. Scraps of melamine, which is used to make plastic and fertilizer, were added to milk as a way of boosting the milk's protein content in order to pass quality tests. The same thing was done with wheat gluten, which was then used to make pet food and sparked a wave of recalls last year after thousands of pets died.
FDA officials, who had been spot checking markets for melamine-tainted foods and recalling select products, said they expanded their import advisory in part because of intelligence from overseas counterparts.
No need to panic and throw out all the food in your house that is made with milk powder, at least not yet.
Under the hold and test policy initiated Thursday, FDA stops products at the border, then requires the importer to test it and prove it doesn't have melamine before allowing it to be distributed
You can read the full import alert here.
The Food and Drug Administration has begun stopping imports of Chinese dairy and dairy-based products from entering the country in an effort to keep out food contaminated with the industrial chemical melamine.
Melamine is the chemical at the heart of the Chinese infant formula scandal that has killed at least two infants and sickened more than 50,000. Scraps of melamine, which is used to make plastic and fertilizer, were added to milk as a way of boosting the milk's protein content in order to pass quality tests. The same thing was done with wheat gluten, which was then used to make pet food and sparked a wave of recalls last year after thousands of pets died.
FDA officials, who had been spot checking markets for melamine-tainted foods and recalling select products, said they expanded their import advisory in part because of intelligence from overseas counterparts.
No need to panic and throw out all the food in your house that is made with milk powder, at least not yet.
Under the hold and test policy initiated Thursday, FDA stops products at the border, then requires the importer to test it and prove it doesn't have melamine before allowing it to be distributed
You can read the full import alert here.
U.S. Department of Commerce Preliminarily Finds Dumping of Citric Acid and Citrate Salts from China and Canada
(Flex-News)
The U.S. Department of Commerce today [Thursday] announced its affirmative preliminary determinations in the antidumping investigations of citric acid and certain citrate salts from China and Canada.
Commerce preliminarily determined that Chinese and Canadian exporters have sold citric acid and citrate salts in the United States at 119.41%, 156.87%, and 20.88% below normal value, respectively. Citric acid and citrate salts are used in various food and beverage products including carbonated and non-carbonated drinks, and frozen foods, as well as laundry detergents and household cleaning products.
“Ensuring the economic competitiveness of the United States is especially critical for our manufacturers,” said Assistant Secretary for Import Administration David Spooner. “The Administration will continue to aggressively enforce our antidumping laws and implement appropriate remedies based on the facts presented in each case.”
Read the complete article.
The U.S. Department of Commerce today [Thursday] announced its affirmative preliminary determinations in the antidumping investigations of citric acid and certain citrate salts from China and Canada.
Commerce preliminarily determined that Chinese and Canadian exporters have sold citric acid and citrate salts in the United States at 119.41%, 156.87%, and 20.88% below normal value, respectively. Citric acid and citrate salts are used in various food and beverage products including carbonated and non-carbonated drinks, and frozen foods, as well as laundry detergents and household cleaning products.
“Ensuring the economic competitiveness of the United States is especially critical for our manufacturers,” said Assistant Secretary for Import Administration David Spooner. “The Administration will continue to aggressively enforce our antidumping laws and implement appropriate remedies based on the facts presented in each case.”
Read the complete article.
Air Freight in Canada
(MarketWatch)
Research and Markets has announced the addition of the "Air Freight in Canada" report to their offering.
The Air Freight in Canada industry profile is an essential resource for top-level data and analysis covering the air freight industry. It includes detailed data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information.
Scope
• Contains an executive summary and data on value, volume and/or segmentation
• Provides textual analysis of the industry's recent performance and future prospects
• Incorporates in-depth five forces competitive environment analysis and scorecards
• Includes a five-year forecast of the industry
• The leading companies are profiled with supporting key financial metrics
• Supported by the key macroeconomic and demographic data affecting the market
Highlights
• Detailed information is included on market size, measured by value and/or volume
• Five forces scorecards provide an accessible yet in depth view of the market's competitive landscape
Research and Markets has announced the addition of the "Air Freight in Canada" report to their offering.
The Air Freight in Canada industry profile is an essential resource for top-level data and analysis covering the air freight industry. It includes detailed data on market size and segmentation, plus textual and graphical analysis of the key trends and competitive landscape, leading companies and demographic information.
Scope
• Contains an executive summary and data on value, volume and/or segmentation
• Provides textual analysis of the industry's recent performance and future prospects
• Incorporates in-depth five forces competitive environment analysis and scorecards
• Includes a five-year forecast of the industry
• The leading companies are profiled with supporting key financial metrics
• Supported by the key macroeconomic and demographic data affecting the market
Highlights
• Detailed information is included on market size, measured by value and/or volume
• Five forces scorecards provide an accessible yet in depth view of the market's competitive landscape
Trucking Chief Says ‘Bring on 2009’
(Canadian Trucking Alliance)
Shippers should consider locking in capacity now in anticipation of recovery
It may take the better part of 2009, at least, for the North American economy to stabilize and begin to recover. But according to the CEO of the Canadian Trucking Alliance, David Bradley, when it does, the demand for trucking services will likely outweigh the supply. At that point, truck rates, which have been hammered during the past 18 months, will be under upward pressure again.
“It’s been a tough year for everyone, motor carriers and shippers, and this has resulted in downward pressure on freight rates in 2008. But shippers would be advised to partner with carriers now to lock-in capacity for when things do inevitably start to come back, which we hope will be sometime in 2009,” he said. “Some shippers get it and are now entering into multiyear agreements with carriers.”
The major problem facing truckers over the past year, or more, has been one of over-capacity – too many trucks for the level of freight being generated by the economy. “Most carriers experienced softer freight demand in 2008, though some sectors of the industry and some regions of the country have, like the economy, been harder hit,” he said. “It doesn’t matter where you operate, all carriers faced a major challenge this year with sky-rocketing diesel fuel prices and a slowing economy. Obviously, the appreciation in the value of the Canadian dollar and slump in the U.S. economy continued to have a profound negative impact on the Central Canadian economies and therefore on the volume of freight, especially in southbound freight to the U.S. which had been the underpinning of industry growth for the past 20 years.” In many traffic lanes, both international and domestic, there were simply too many trucks chasing the freight.
However, according to Bradley, the trucking industry across North America has been shedding capacity. “Carriers have been reducing their fleet sizes, getting rid of trucks and not buying new ones. Many trucking companies have left the market; either because they decided they’d had enough, or they couldn’t get sufficient credit and/or they went bankrupt. Tighter credit has also made it more difficult for people to enter the marketplace. While there will continue to be tough sledding in 2009 – reflecting current global economic concerns and, as always, punctuated by a chronic long-term labour shortage – capacity of trucking services will be that much lower when things do turn the corner,” he said.
Read the complete press release.
Shippers should consider locking in capacity now in anticipation of recovery
It may take the better part of 2009, at least, for the North American economy to stabilize and begin to recover. But according to the CEO of the Canadian Trucking Alliance, David Bradley, when it does, the demand for trucking services will likely outweigh the supply. At that point, truck rates, which have been hammered during the past 18 months, will be under upward pressure again.
“It’s been a tough year for everyone, motor carriers and shippers, and this has resulted in downward pressure on freight rates in 2008. But shippers would be advised to partner with carriers now to lock-in capacity for when things do inevitably start to come back, which we hope will be sometime in 2009,” he said. “Some shippers get it and are now entering into multiyear agreements with carriers.”
The major problem facing truckers over the past year, or more, has been one of over-capacity – too many trucks for the level of freight being generated by the economy. “Most carriers experienced softer freight demand in 2008, though some sectors of the industry and some regions of the country have, like the economy, been harder hit,” he said. “It doesn’t matter where you operate, all carriers faced a major challenge this year with sky-rocketing diesel fuel prices and a slowing economy. Obviously, the appreciation in the value of the Canadian dollar and slump in the U.S. economy continued to have a profound negative impact on the Central Canadian economies and therefore on the volume of freight, especially in southbound freight to the U.S. which had been the underpinning of industry growth for the past 20 years.” In many traffic lanes, both international and domestic, there were simply too many trucks chasing the freight.
However, according to Bradley, the trucking industry across North America has been shedding capacity. “Carriers have been reducing their fleet sizes, getting rid of trucks and not buying new ones. Many trucking companies have left the market; either because they decided they’d had enough, or they couldn’t get sufficient credit and/or they went bankrupt. Tighter credit has also made it more difficult for people to enter the marketplace. While there will continue to be tough sledding in 2009 – reflecting current global economic concerns and, as always, punctuated by a chronic long-term labour shortage – capacity of trucking services will be that much lower when things do turn the corner,” he said.
Read the complete press release.
Live Teleconference: Lacey Act Changes
(Journal of Commerce)
The Journal of Commerce will be holding four important Teleconferences for November and December 2008, including Lacey Act Changes
Wednesday, Nov 19, 2008, 1:30PM EDT
• Moderator: Harry G. Butler, Editor, Official Export Guide and U.S. Custom House Guide
• Robert DeCamp, Director of Regulatory Affairs and Consulting, Deringer Logistics Consulting Group
• Susan Kohn Ross, International Trade Counsel, Mitchell Silberberg & Knupp LLP
To crack down on illegally harvested plants and plant-derived products, the Federal Government is imposing an extensive new reporting requirement for nearly all such items. The range of goods affected is broad, including paper goods, musical instruments, items with wooden handles, textiles, and more, and the information demanded is significant, including the scientific name of the plant(s) used in manufacturing as well as the country or countries where originally harvested. Even paper and paperboard products made of recycled plant content are subject to the new reporting requirement. In early October, the Animal and Plant Health Inspection Service issued a proposed schedule for implementation of the new reporting requirements. Comments are due by December 8 on the feasibility and details of the proposed implementation schedule, which requests voluntary filing via a paper form beginning Dec. 15 and staged mandatory filing commencing in April 2009.
Who Should Listen: • Importers • Customs Brokers • Foreign Suppliers • Manufacturers
Live participation is $99 and allows access to one phone line for an unlimited number of listeners. A live question and answer session will follow the presentations.
More events, and additional details, at the Journal of Commerce website.
The Journal of Commerce will be holding four important Teleconferences for November and December 2008, including Lacey Act Changes
Wednesday, Nov 19, 2008, 1:30PM EDT
• Moderator: Harry G. Butler, Editor, Official Export Guide and U.S. Custom House Guide
• Robert DeCamp, Director of Regulatory Affairs and Consulting, Deringer Logistics Consulting Group
• Susan Kohn Ross, International Trade Counsel, Mitchell Silberberg & Knupp LLP
To crack down on illegally harvested plants and plant-derived products, the Federal Government is imposing an extensive new reporting requirement for nearly all such items. The range of goods affected is broad, including paper goods, musical instruments, items with wooden handles, textiles, and more, and the information demanded is significant, including the scientific name of the plant(s) used in manufacturing as well as the country or countries where originally harvested. Even paper and paperboard products made of recycled plant content are subject to the new reporting requirement. In early October, the Animal and Plant Health Inspection Service issued a proposed schedule for implementation of the new reporting requirements. Comments are due by December 8 on the feasibility and details of the proposed implementation schedule, which requests voluntary filing via a paper form beginning Dec. 15 and staged mandatory filing commencing in April 2009.
Who Should Listen: • Importers • Customs Brokers • Foreign Suppliers • Manufacturers
Live participation is $99 and allows access to one phone line for an unlimited number of listeners. A live question and answer session will follow the presentations.
More events, and additional details, at the Journal of Commerce website.
eManifest Newsletter: First Edition (Fall 2008)
(CSCB)
The CBSA has published its first eManifest Newsletter. This is a biannual publication to help keep the trade community informed about the eManifest initiative and is available on the CBSA website here.
The CBSA has published its first eManifest Newsletter. This is a biannual publication to help keep the trade community informed about the eManifest initiative and is available on the CBSA website here.
C-TPAT: 2009 Supply Chain Security Seminar
(CBP)
U.S. Customs and Border Protection is pleased to announce the 2009 C-TPAT Supply Chain Security Seminar April 1-3, 2009. The seminar is open to all C-TPAT certified partners.
The seminar will be presented in two sessions to accommodate additional registrants. Session I will be held on Wednesday-Thursday, April 1-2 and Session II will be held on Thursday-Friday, April 2-3 in New Orleans, Louisiana.
Registration will begin on Monday, January 5, 2009 through the C-TPAT Members page here.
U.S. Customs and Border Protection is pleased to announce the 2009 C-TPAT Supply Chain Security Seminar April 1-3, 2009. The seminar is open to all C-TPAT certified partners.
The seminar will be presented in two sessions to accommodate additional registrants. Session I will be held on Wednesday-Thursday, April 1-2 and Session II will be held on Thursday-Friday, April 2-3 in New Orleans, Louisiana.
Registration will begin on Monday, January 5, 2009 through the C-TPAT Members page here.
Former Envoy Says NAFTA Renegotiations Unlikely
(Peter O’Neil — Citizen News Services)
Too much at stake should Obama reopen accord
President-elect Barack Obama will likely find a way to back off his election campaign promise to renegotiate the North American Free Trade Agreement, a former Canadian ambassador to the United States and France said yesterday.
“Clearly, he has made the threat during the campaign,” Raymond Chrétien said after a speech to the France-Canada Chamber of Commerce.
“But, once in power in January, once apprised of what is at stake here, I doubt very much that he will want to reopen that.”
Mr. Chrétien, nephew of former prime minister Jean Chrétien, seconded the view of a Belgium-based analyst who said earlier this week that a NAFTA renegotiation is unlikely.
Mr. Chrétien and Fredrick Erixon, director of the European Centre for International Political Economy, said opening up NAFTA will be seen as too risky in Washington because of fears that the U.S. could lose its access to Canadian energy, which is guaranteed under the continental accord.
“I think that when apprised of their dependency on Canada’s imports, not only of oil, but of gas, any president would think twice about reopening NAFTA,” said Mr. Chrétien, who started serving as Canadian ambassador to Washington when the trade deal took effect in 1994.
He noted that Bill Clinton opposed North American free trade before his election in 1992.
He said the Obama administration could perhaps be accommodated through a side letter signed by Canada, the U.S. and Mexico relating to labour and environmental standards. Read more here.
Too much at stake should Obama reopen accord
President-elect Barack Obama will likely find a way to back off his election campaign promise to renegotiate the North American Free Trade Agreement, a former Canadian ambassador to the United States and France said yesterday.
“Clearly, he has made the threat during the campaign,” Raymond Chrétien said after a speech to the France-Canada Chamber of Commerce.
“But, once in power in January, once apprised of what is at stake here, I doubt very much that he will want to reopen that.”
Mr. Chrétien, nephew of former prime minister Jean Chrétien, seconded the view of a Belgium-based analyst who said earlier this week that a NAFTA renegotiation is unlikely.
Mr. Chrétien and Fredrick Erixon, director of the European Centre for International Political Economy, said opening up NAFTA will be seen as too risky in Washington because of fears that the U.S. could lose its access to Canadian energy, which is guaranteed under the continental accord.
“I think that when apprised of their dependency on Canada’s imports, not only of oil, but of gas, any president would think twice about reopening NAFTA,” said Mr. Chrétien, who started serving as Canadian ambassador to Washington when the trade deal took effect in 1994.
He noted that Bill Clinton opposed North American free trade before his election in 1992.
He said the Obama administration could perhaps be accommodated through a side letter signed by Canada, the U.S. and Mexico relating to labour and environmental standards. Read more here.
Thursday, November 13, 2008
Trade Surplus Shrinks in September
(The Canadian Press)
Canada’s trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose. Statistics Canada reports exports fell for the second straight month, dropping one per cent to $42.5 billion. The agency says blamed the movement on a drop in prices, as volumes remained flat. The retreat was led by industrial goods and materials, automotive products and energy products.
Imports increased 1.9% in September to $38 billion, the fifth rise in six months as both prices and volumes increased.
Exports to the United States fell 1.3% to $32.1 billion, while imports remained relatively unchanged at $23.7 billion.
As a result, the trade surplus with the United States contracted to $8.3 billion in September from $8.7 billion in August.
Exports to countries other than the United States remained flat at $10.4 billion, while imports from these countries collectively increased 5.5%. Consequently, Canada’s trade deficit with countries other than the United States expanded to $3.8 billion in September from $3.1 billion in August.
Exports of industrial goods and materials fell for the second straight month, decreasing 1.9% to $9.9 billion as prices declined and volumes edged up.
Summary statistics and links to the data files are on the Statistics Canada website here.
Canada’s trade surplus declined to $4.5 billion in September from $5.6 billion in August, as exports declined and imports rose. Statistics Canada reports exports fell for the second straight month, dropping one per cent to $42.5 billion. The agency says blamed the movement on a drop in prices, as volumes remained flat. The retreat was led by industrial goods and materials, automotive products and energy products.
Imports increased 1.9% in September to $38 billion, the fifth rise in six months as both prices and volumes increased.
Exports to the United States fell 1.3% to $32.1 billion, while imports remained relatively unchanged at $23.7 billion.
As a result, the trade surplus with the United States contracted to $8.3 billion in September from $8.7 billion in August.
Exports to countries other than the United States remained flat at $10.4 billion, while imports from these countries collectively increased 5.5%. Consequently, Canada’s trade deficit with countries other than the United States expanded to $3.8 billion in September from $3.1 billion in August.
Exports of industrial goods and materials fell for the second straight month, decreasing 1.9% to $9.9 billion as prices declined and volumes edged up.
Summary statistics and links to the data files are on the Statistics Canada website here.
Wednesday, November 12, 2008
FDA Revises Regulations on Prior Notice for Food Imports
(World Trade Interactive)
The Food and Drug Administration has issued a final rule that makes a number of changes to its regulations on the submission of prior notice for food that is imported or offered for import into the U.S. Prior notice has been required under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act) since Dec. 12, 2003. This final rule will be effective approximately May 7, 2009 (180 days after Nov. 7, the date on which the rule will be published in the Federal Register). FDA Prior Notice (259 pages PDF)
According to the FDA, the final rule requires prior notice to be submitted electronically via either the Automated Broker Interface or the FDA’s Prior Notice System Interface. As is already the case, the information must be electronically submitted and confirmed as facially complete by the FDA for review no less than 8 hours (for food arriving by vessel), 4 hours (for food arriving by air or rail) or 2 hours (for food arriving by truck) before the food arrives at the port of arrival. Food that is imported or offered for import without adequate prior notice is subject to refusal and, if refused, must be held.
The Food and Drug Administration has issued a final rule that makes a number of changes to its regulations on the submission of prior notice for food that is imported or offered for import into the U.S. Prior notice has been required under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (the Bioterrorism Act) since Dec. 12, 2003. This final rule will be effective approximately May 7, 2009 (180 days after Nov. 7, the date on which the rule will be published in the Federal Register). FDA Prior Notice (259 pages PDF)
According to the FDA, the final rule requires prior notice to be submitted electronically via either the Automated Broker Interface or the FDA’s Prior Notice System Interface. As is already the case, the information must be electronically submitted and confirmed as facially complete by the FDA for review no less than 8 hours (for food arriving by vessel), 4 hours (for food arriving by air or rail) or 2 hours (for food arriving by truck) before the food arrives at the port of arrival. Food that is imported or offered for import without adequate prior notice is subject to refusal and, if refused, must be held.
Product Safety Gets Overhaul as Imports Keep Coming In
(Wall Street Journal – Melanie Trottman)
The president-elect will have to decide the resources to allocate to the underfunded Consumer Product Safety Commission, which is in a major overhaul after two years of high-profile recalls of toys and other goods.
The Obama administration must also face a growing flood of imports into the U.S. from less-regulated markets such as China and Vietnam. Over the past year, numerous Chinese-made goods have been found to be contaminated with dangerous substances, sparking recalls of such items as lead-tainted toys and unsafe cribs.
Consumer groups have called for stronger leadership and more action from the CPSC. Mr. Obama’s choice for CPSC chairman will need to repair the agency’s image as a reliable watchdog for consumers, and oversee implementation of dozens of complex safety regulations mandated by Congress this summer.The agency’s 420-person staff is half the size it was decades ago when its mission was much smaller. Now it oversees more than 15,000 products. The agency says its annual budget of $80 million isn’t sufficient to carry out its new mission. The House and Senate have proposed boosting its budget by $15 million and $20 million, respectively, but that money hasn’t been appropriated yet and isn’t guaranteed. Read the complete article here.
The president-elect will have to decide the resources to allocate to the underfunded Consumer Product Safety Commission, which is in a major overhaul after two years of high-profile recalls of toys and other goods.
The Obama administration must also face a growing flood of imports into the U.S. from less-regulated markets such as China and Vietnam. Over the past year, numerous Chinese-made goods have been found to be contaminated with dangerous substances, sparking recalls of such items as lead-tainted toys and unsafe cribs.
Consumer groups have called for stronger leadership and more action from the CPSC. Mr. Obama’s choice for CPSC chairman will need to repair the agency’s image as a reliable watchdog for consumers, and oversee implementation of dozens of complex safety regulations mandated by Congress this summer.The agency’s 420-person staff is half the size it was decades ago when its mission was much smaller. Now it oversees more than 15,000 products. The agency says its annual budget of $80 million isn’t sufficient to carry out its new mission. The House and Senate have proposed boosting its budget by $15 million and $20 million, respectively, but that money hasn’t been appropriated yet and isn’t guaranteed. Read the complete article here.
“10+2” Could Be Served Day Before Thanksgiving
(American Shipper – Eric Kulisch)
U.S. Customs and Border Protection plans to publish the intensely debated “10+2” rule in the Federal Register on November 24 pending a positive review by key oversight committees in Congress, according to spokeswoman Jenny Burke.
The White House on Thursday completed its review of the rule requiring electronic advance information about ocean shipments from importers and carriers, according to an order posted on the federal government’s Web site for regulatory developments.
Customs and Border Protection now has authorization from the Office of Management and Budget to issue the final rulemaking for the Importer Security Filing, which will be used to analyze the potential security risk of container shipments that might contain weapons or other material smuggled by terrorists.
The agency subsequently notified the Ways and Means, Transportation and Infrastructure, and Energy and Commerce committees in the House and the Finance and Commerce, Science and Transportation committees in the Senate of its intent to move forward with the rulemaking, Burke said. Read more here.
U.S. Customs and Border Protection plans to publish the intensely debated “10+2” rule in the Federal Register on November 24 pending a positive review by key oversight committees in Congress, according to spokeswoman Jenny Burke.
The White House on Thursday completed its review of the rule requiring electronic advance information about ocean shipments from importers and carriers, according to an order posted on the federal government’s Web site for regulatory developments.
Customs and Border Protection now has authorization from the Office of Management and Budget to issue the final rulemaking for the Importer Security Filing, which will be used to analyze the potential security risk of container shipments that might contain weapons or other material smuggled by terrorists.
The agency subsequently notified the Ways and Means, Transportation and Infrastructure, and Energy and Commerce committees in the House and the Finance and Commerce, Science and Transportation committees in the Senate of its intent to move forward with the rulemaking, Burke said. Read more here.
Tuesday, November 11, 2008
U.S. Export Study Calls for More Flexibility on Border Policies
(Buffalo News – Matt Glynn)
A new study of export activity along the U.S.-Canadian border suggests using more regional flexibility in continent-wide policies designed to protect the border and keep traffic flowing.
The findings are part of a “Border Brief” prepared by the University at Buffalo’s Regional Institute and the Border Policy Research Institute of Western Washington University.
Discussions about the border have typically focused on a choice between security and commerce, said Kathryn Bryk Friedman, deputy director of the UB Regional Institute. “In my view, this research demonstrates this is a false dichotomy.”
The study focused on export activity in October 2007 at two border points: Buffalo Niagara and Blaine, Wash., which is between Seattle and Vancouver, B. C. October is commonly the peak month for trade due to pre-holiday stockpiling, the report said. During that month, nearly 20% of all U. S.-to-Canada surface exports crossed via bridges in Buffalo and Niagara Falls, compared to more than 5% at Blaine.
Ensuring a smooth flow of traffic is vital because Canada is by far the United States’ largest trading partner, the brief said. U.S. exports to Canada in October 2007 were valued at $23.5 billion, compared to $12.4 billion for Mexico and $5.5 billion to China.
Federal agencies on both sides of the border have implemented prescreening programs that enable participating shippers and drivers to cross the border more quickly, while taking into account heightened security concerns stemming from the 2001 terrorist attacks.
The report suggests that programs such as FAST – short for Free and Secure Trade – work better at some crossings than others along the 5,000-mile-long border, based on the type of shipments and the companies hauling the goods. For instance, about 44% of trucks crossing the Detroit-Windsor border used FAST lanes, compared to 23% in Buffalo Niagara and only 5% at Blaine.
The study said that participation in FAST at Detroit-Windsor is high because so much of the freight is related to automotive manufacturing, an industry with large, sophisticated companies and a small number of shippers.
In Blaine, Wash., FAST participation was low because much of its truck traffic is related to agricultural products, which can be more difficult to screen due to their complex supply chain, the brief said.
“Rather than look to policy solutions at the continental level, policies that allow for some flexibility in regional implementation could improve border efficiencies without compromising border security,” said Peter Lombardi, a UB institute policy analyst and co-author of the brief, in a statement.
The UB Regional Institute and the Border Policy Research Institute of Western Washington University are developing a “border barometer” that will measure a number of factors at the border crossings in the Buffalo area and the Pacific Northwest. It is possible other border points will be included in the barometer, Friedman said.
The barometer will include the movement of goods and people over the border from 1995 to 2007, and also look at factors such as infrastructure, security agreements between officials on opposite sides of the border, and security performance.
“The whole idea is to get these objective measures in place so that we’re all speaking the same language,” Friedman said.
The two institutes have received $11,500 from the Northern Border Research Consortium to develop the barometer. UB, Western Washington University and four other universities belong to the consortium. The barometer results are expected to be released at a conference scheduled for February 2009 in Washington, D.C.
A new study of export activity along the U.S.-Canadian border suggests using more regional flexibility in continent-wide policies designed to protect the border and keep traffic flowing.
The findings are part of a “Border Brief” prepared by the University at Buffalo’s Regional Institute and the Border Policy Research Institute of Western Washington University.
Discussions about the border have typically focused on a choice between security and commerce, said Kathryn Bryk Friedman, deputy director of the UB Regional Institute. “In my view, this research demonstrates this is a false dichotomy.”
The study focused on export activity in October 2007 at two border points: Buffalo Niagara and Blaine, Wash., which is between Seattle and Vancouver, B. C. October is commonly the peak month for trade due to pre-holiday stockpiling, the report said. During that month, nearly 20% of all U. S.-to-Canada surface exports crossed via bridges in Buffalo and Niagara Falls, compared to more than 5% at Blaine.
Ensuring a smooth flow of traffic is vital because Canada is by far the United States’ largest trading partner, the brief said. U.S. exports to Canada in October 2007 were valued at $23.5 billion, compared to $12.4 billion for Mexico and $5.5 billion to China.
Federal agencies on both sides of the border have implemented prescreening programs that enable participating shippers and drivers to cross the border more quickly, while taking into account heightened security concerns stemming from the 2001 terrorist attacks.
The report suggests that programs such as FAST – short for Free and Secure Trade – work better at some crossings than others along the 5,000-mile-long border, based on the type of shipments and the companies hauling the goods. For instance, about 44% of trucks crossing the Detroit-Windsor border used FAST lanes, compared to 23% in Buffalo Niagara and only 5% at Blaine.
The study said that participation in FAST at Detroit-Windsor is high because so much of the freight is related to automotive manufacturing, an industry with large, sophisticated companies and a small number of shippers.
In Blaine, Wash., FAST participation was low because much of its truck traffic is related to agricultural products, which can be more difficult to screen due to their complex supply chain, the brief said.
“Rather than look to policy solutions at the continental level, policies that allow for some flexibility in regional implementation could improve border efficiencies without compromising border security,” said Peter Lombardi, a UB institute policy analyst and co-author of the brief, in a statement.
The UB Regional Institute and the Border Policy Research Institute of Western Washington University are developing a “border barometer” that will measure a number of factors at the border crossings in the Buffalo area and the Pacific Northwest. It is possible other border points will be included in the barometer, Friedman said.
The barometer will include the movement of goods and people over the border from 1995 to 2007, and also look at factors such as infrastructure, security agreements between officials on opposite sides of the border, and security performance.
“The whole idea is to get these objective measures in place so that we’re all speaking the same language,” Friedman said.
The two institutes have received $11,500 from the Northern Border Research Consortium to develop the barometer. UB, Western Washington University and four other universities belong to the consortium. The barometer results are expected to be released at a conference scheduled for February 2009 in Washington, D.C.
Monday, November 10, 2008
CBP Outlines Achievements, Best Practices Under C-TPAT
(World Trade Interactive)
At its recent Trade Symposium in Washington, D.C., U.S. Customs and Border Protection officials gave a presentation on what has been achieved to date under the Customs-Trade Partnership Against Terrorism and the best practices that CBP has identified among C-TPAT participants.
Achievements
CBP provided the following statistics on its efforts under C-TPAT.
• There are 8,647 certified C-TPAT partners, including 4,082 importers, 2,311 carriers, 755 brokers, 758 foreign manufacturers, 688 consolidators and 53 marine port authorities and terminal operators.
• 9,521 validations have been completed, including 7,710 initial validations and 1,811 re-validations.
• Initial validations declined from 2,561 in 2007 to 1,401 in 2008, while re-validations increased from 575 to 1,220.
• 411 participants (including 213 highway carriers) have been suspended from C-TPAT and 271 (including 114 highway carriers)have been removed.
• There are 267 Tier 3 importers.
• There are seven C-TPAT field offices with a total of 195 staff.
• CBP has mutual recognition arrangements with New Zealand, Canada and Jordan; mutual recognition projects with Australia, the European Union, Japan and Singapore; technical assistance projects with Malaysia, Mexico, the Philippines and Guatemala; and capacity building training programs with Ghana, Brazil and Kenya.
Best Practices
CBP listed the following as confirmed best practices for C-TPAT participants.
• maintaining a consistent C-TPAT point of contact
• regular monitoring of both C-TPAT Web site and portal account
• security profile maintenance beyond required annual self-assessment
• follow-up questionnaires and inquiries to business partners and providers (outside of initial effort)
• notification to CBP and assigned supply chain security specialist in the event of any security breach or anomaly
• inspection of providers’ facilities by participant personnel
• not allowing double brokering within the supply chain
• using only known providers within the supply chain (specifically other C-TPAT providers)
• establishing C-TPAT committees, working groups or regular meetings and having providers participate in supply chain security meetings or councils
• making C-TPAT participation part of the overall supply chain operation and not a singular program
• random audits by management of processes outside of normal established procedures
• keeping documentation of all supply chain incidents, anomalies or issues for future reference
At its recent Trade Symposium in Washington, D.C., U.S. Customs and Border Protection officials gave a presentation on what has been achieved to date under the Customs-Trade Partnership Against Terrorism and the best practices that CBP has identified among C-TPAT participants.
Achievements
CBP provided the following statistics on its efforts under C-TPAT.
• There are 8,647 certified C-TPAT partners, including 4,082 importers, 2,311 carriers, 755 brokers, 758 foreign manufacturers, 688 consolidators and 53 marine port authorities and terminal operators.
• 9,521 validations have been completed, including 7,710 initial validations and 1,811 re-validations.
• Initial validations declined from 2,561 in 2007 to 1,401 in 2008, while re-validations increased from 575 to 1,220.
• 411 participants (including 213 highway carriers) have been suspended from C-TPAT and 271 (including 114 highway carriers)have been removed.
• There are 267 Tier 3 importers.
• There are seven C-TPAT field offices with a total of 195 staff.
• CBP has mutual recognition arrangements with New Zealand, Canada and Jordan; mutual recognition projects with Australia, the European Union, Japan and Singapore; technical assistance projects with Malaysia, Mexico, the Philippines and Guatemala; and capacity building training programs with Ghana, Brazil and Kenya.
Best Practices
CBP listed the following as confirmed best practices for C-TPAT participants.
• maintaining a consistent C-TPAT point of contact
• regular monitoring of both C-TPAT Web site and portal account
• security profile maintenance beyond required annual self-assessment
• follow-up questionnaires and inquiries to business partners and providers (outside of initial effort)
• notification to CBP and assigned supply chain security specialist in the event of any security breach or anomaly
• inspection of providers’ facilities by participant personnel
• not allowing double brokering within the supply chain
• using only known providers within the supply chain (specifically other C-TPAT providers)
• establishing C-TPAT committees, working groups or regular meetings and having providers participate in supply chain security meetings or councils
• making C-TPAT participation part of the overall supply chain operation and not a singular program
• random audits by management of processes outside of normal established procedures
• keeping documentation of all supply chain incidents, anomalies or issues for future reference
OMB Approves 10+2 Rule
(Journal of Commerce Online)
The White House Office of Management and Budget has signed off on Customs and Border Protection’s new import security filing rule.
The long-awaited approval of the regulation, known as 10+2, will require importers and carriers to electronically file security data with Customs that does not appear on a carrier’s bill of lading. Customs has said the new information is essential to its security effort.
The amendment is specifically intended to implement the provisions of section 203 of the Security and Accountability for Every Port Act of 2006.
The approval by OMB, which received the rule in August, was announced Thursday. Customs is likely to move forward quickly to issue the final rule, which could appear in the Federal Register early next week.
The White House Office of Management and Budget has signed off on Customs and Border Protection’s new import security filing rule.
The long-awaited approval of the regulation, known as 10+2, will require importers and carriers to electronically file security data with Customs that does not appear on a carrier’s bill of lading. Customs has said the new information is essential to its security effort.
The amendment is specifically intended to implement the provisions of section 203 of the Security and Accountability for Every Port Act of 2006.
The approval by OMB, which received the rule in August, was announced Thursday. Customs is likely to move forward quickly to issue the final rule, which could appear in the Federal Register early next week.
Friday, November 7, 2008
The Stalwart Greenback
(Export Development Canada – Peter G. Hall)
‘Up’ isn’t a word that describes much in the American economy at the moment. Housing is down, the stock market is down, liquidity is down, and more recently, national output itself is down. And in a rapid reversal, even inflation is down. So why is the U.S. dollar currently on a big tear?
Times were great for the U.S. dollar in the 1990s. Large productivity gains powered the U.S. economy, and helped the currency rise 38% against all other currencies from 1995 to 2001. But things hit a snag in 2002. Slower U.S. growth and concerns about a trade balance headed further into the red checked the greenback’s ascent. It gave back about 18% of the appreciation over three years, and then held its ground. The depreciation restarted in mid-2006, and over 2 years shed an additional 13%. October’s rebound alone has regained the ground lost in that timeframe.
Will it last? The predominant view 6 months ago was that the U.S. economy’s woes would weigh against the greenback for the foreseeable future, and the hunt for a replacement reserve currency was on. Yet U.S. woes surprised many by going global. Add to that plunging commodity prices, financial markets turmoil and a global confidence meltdown, and suddenly greenbacks are all the rage. Uncertainty has yet again favoured the U.S. dollar. But is there more to today’s rally?
Current events have created special immediate needs for U.S. dollars. European banks’ USD asset base wilted in the wake of the sub-prime crisis, creating a wide gap between assets and the considerable USD deposits accumulated in recent years. Plugging this gap has required heavy purchases of dollars. In addition, firms the world over that bet against the USD in recent months are now having to purchase large amounts of dollars to close out those positions.
These transactions are significant, but will run their course in short order. Can we expect the dollar to slide in the aftermath? Perhaps, but any slide is likely to be small, and short-lived. Why? The global slowdown will persist well into 2009, and there is still a lot of negative news to digest before this one’s over. The recent flight to quality that has favoured the USD still has legs.
There are key fundamental reasons that make the USD a good long term play. Much is said about the sorry state of U.S. public finances, but U.S. government gross liabilities were only 63% of GDP in 2007, well below the 75% OECD average. Factor in the huge recent commitments to the financial sector, and US public liabilities will likely still remain below the OECD average.
Dollar critics have also pointed to the gaping U.S. trade deficit as a negative influence. True, the deficit swelled to over 6% of GDP by late 2005. But recent dollar depreciation reduced the deficit to 5% of GDP, and high oil prices masked even more significant progress. The non-oil deficit sunk to just over 2% of GDP in the second quarter, a level last seen in early 1999. With oil prices down 55% since July, the trade deficit could well approach a sustainable 3% of GDP by year-end.
The bottom line? Global economic malaise is boosting the greenback, and current confidence in the dollar is anchored in strong or improving fundamental supports. And given that the U.S. is likely lead the world economy back to growth, mild near-term dollar appreciation is a good bet.
‘Up’ isn’t a word that describes much in the American economy at the moment. Housing is down, the stock market is down, liquidity is down, and more recently, national output itself is down. And in a rapid reversal, even inflation is down. So why is the U.S. dollar currently on a big tear?
Times were great for the U.S. dollar in the 1990s. Large productivity gains powered the U.S. economy, and helped the currency rise 38% against all other currencies from 1995 to 2001. But things hit a snag in 2002. Slower U.S. growth and concerns about a trade balance headed further into the red checked the greenback’s ascent. It gave back about 18% of the appreciation over three years, and then held its ground. The depreciation restarted in mid-2006, and over 2 years shed an additional 13%. October’s rebound alone has regained the ground lost in that timeframe.
Will it last? The predominant view 6 months ago was that the U.S. economy’s woes would weigh against the greenback for the foreseeable future, and the hunt for a replacement reserve currency was on. Yet U.S. woes surprised many by going global. Add to that plunging commodity prices, financial markets turmoil and a global confidence meltdown, and suddenly greenbacks are all the rage. Uncertainty has yet again favoured the U.S. dollar. But is there more to today’s rally?
Current events have created special immediate needs for U.S. dollars. European banks’ USD asset base wilted in the wake of the sub-prime crisis, creating a wide gap between assets and the considerable USD deposits accumulated in recent years. Plugging this gap has required heavy purchases of dollars. In addition, firms the world over that bet against the USD in recent months are now having to purchase large amounts of dollars to close out those positions.
These transactions are significant, but will run their course in short order. Can we expect the dollar to slide in the aftermath? Perhaps, but any slide is likely to be small, and short-lived. Why? The global slowdown will persist well into 2009, and there is still a lot of negative news to digest before this one’s over. The recent flight to quality that has favoured the USD still has legs.
There are key fundamental reasons that make the USD a good long term play. Much is said about the sorry state of U.S. public finances, but U.S. government gross liabilities were only 63% of GDP in 2007, well below the 75% OECD average. Factor in the huge recent commitments to the financial sector, and US public liabilities will likely still remain below the OECD average.
Dollar critics have also pointed to the gaping U.S. trade deficit as a negative influence. True, the deficit swelled to over 6% of GDP by late 2005. But recent dollar depreciation reduced the deficit to 5% of GDP, and high oil prices masked even more significant progress. The non-oil deficit sunk to just over 2% of GDP in the second quarter, a level last seen in early 1999. With oil prices down 55% since July, the trade deficit could well approach a sustainable 3% of GDP by year-end.
The bottom line? Global economic malaise is boosting the greenback, and current confidence in the dollar is anchored in strong or improving fundamental supports. And given that the U.S. is likely lead the world economy back to growth, mild near-term dollar appreciation is a good bet.
Thursday, November 6, 2008
NAFTA Likely Safe from Oil Focused Obama Administration: Experts
(The Canadian Press – Julian Beltrame)
U.S. President Barack Obama may turn out to be far better for Canadian free trade and economic interests than candidate Barack Obama ever pretended to be, experts on both sides of the border agree.
Obama – triumphant Tuesday in his bid to become America’s first-ever black president-elect – was far from neighbourly in his pronouncements impacting Canada during the campaign. At times, he sounded stridently protectionist and even hinted he might tear up the NAFTA trade agreement to protect industrial jobs in hard-hit parts of the U.S. industrial heartland.
But even if he meant it at the time – and an Obama adviser confided to Canadian officials he didn’t – most analysts say opening up or scrapping the most successful trade deal in history is not in the cards. Read more here.
U.S. President Barack Obama may turn out to be far better for Canadian free trade and economic interests than candidate Barack Obama ever pretended to be, experts on both sides of the border agree.
Obama – triumphant Tuesday in his bid to become America’s first-ever black president-elect – was far from neighbourly in his pronouncements impacting Canada during the campaign. At times, he sounded stridently protectionist and even hinted he might tear up the NAFTA trade agreement to protect industrial jobs in hard-hit parts of the U.S. industrial heartland.
But even if he meant it at the time – and an Obama adviser confided to Canadian officials he didn’t – most analysts say opening up or scrapping the most successful trade deal in history is not in the cards. Read more here.
Tuesday, November 4, 2008
US Consumer Product Safety Commission (CPSC) Requirements: Apparel Shipments
(GHY International)
We have received numerous requests from our clients with respect to the CPSC requirements for shipments of apparel into the United States effective November 12, 2008. We have been communicating with the Canadian Apparel Federation and other trade associates to get some clear guidelines. Quite simply, we have asked the question: “What documentation am I going to need on November 12 to ensure my product clears Customs?” Here is what we have been able to find out as of today:
• For a list of all that are controlled under CPSC please go to the list of regulated products on the CPSC website.
• Exemptions can be found under 1610 and 1610.38. Garments may be exempt based on the weight. You still need a Certificate but would just indicate the exemption (16CFR1610.37(d)).
A sample Certificate of Conformity (that includes completion instructions and FAQ) is available here (PDF file).
We have put the following two links on our website under Trade News Bulletins:
• A slide show outlining the program is available here.
• An informative summary by the trade law firm Sandler, Travis & Rosenberg is available here.
GHY will continue to update our website www.ghy.com and to send out emails to those clients we know will or could be directly impacted by this legislation. If you would like to be added to our mailing list, please contact Vicki Deluca at GHY International.
We have received numerous requests from our clients with respect to the CPSC requirements for shipments of apparel into the United States effective November 12, 2008. We have been communicating with the Canadian Apparel Federation and other trade associates to get some clear guidelines. Quite simply, we have asked the question: “What documentation am I going to need on November 12 to ensure my product clears Customs?” Here is what we have been able to find out as of today:
• For a list of all that are controlled under CPSC please go to the list of regulated products on the CPSC website.
• Exemptions can be found under 1610 and 1610.38. Garments may be exempt based on the weight. You still need a Certificate but would just indicate the exemption (16CFR1610.37(d)).
A sample Certificate of Conformity (that includes completion instructions and FAQ) is available here (PDF file).
We have put the following two links on our website under Trade News Bulletins:
• A slide show outlining the program is available here.
• An informative summary by the trade law firm Sandler, Travis & Rosenberg is available here.
GHY will continue to update our website www.ghy.com and to send out emails to those clients we know will or could be directly impacted by this legislation. If you would like to be added to our mailing list, please contact Vicki Deluca at GHY International.
Privatizing Food Inspection Puts Public at Risk: Union
(The Canadian Press)
The union representing government scientists is calling for an immediate freeze on the privatization of food inspection. The Professional Institute of the Public Service of Canada, which represents 55,000 public servants, said Monday that allowing industry to police itself puts people at risk.
“By discarding rules and handing responsibility for safety to the food industry . . . the federal government is playing fast and loose with the health and safety of our families,” union president Michele Demers said. “The ideological blinders that have protected industry self-policing and deregulation from criticism have to be torn off.”
Reports in July, linked to a leaked cabinet memo, suggested the Conservative government was planning to put more responsibility for food inspection in the hands of the companies themselves.
Then, citing a secret Treasury Board of Canada report from May, a public sector union warned in September that the Tories were planning to pull out of meat inspection programs in Manitoba, Saskatchewan and British Columbia to save about $3 million.
Demers said this summer’s deadly listeriosis outbreak traced to a Maple Leaf Foods processing plant in Toronto is “the tip of the iceberg of the dangers that deregulation has exposed us to.”
The plant was shut down in August after being linked to the outbreak that has killed 20 people across the country and prompted calls for the food inspection system to be revamped. Read more here.
The union representing government scientists is calling for an immediate freeze on the privatization of food inspection. The Professional Institute of the Public Service of Canada, which represents 55,000 public servants, said Monday that allowing industry to police itself puts people at risk.
“By discarding rules and handing responsibility for safety to the food industry . . . the federal government is playing fast and loose with the health and safety of our families,” union president Michele Demers said. “The ideological blinders that have protected industry self-policing and deregulation from criticism have to be torn off.”
Reports in July, linked to a leaked cabinet memo, suggested the Conservative government was planning to put more responsibility for food inspection in the hands of the companies themselves.
Then, citing a secret Treasury Board of Canada report from May, a public sector union warned in September that the Tories were planning to pull out of meat inspection programs in Manitoba, Saskatchewan and British Columbia to save about $3 million.
Demers said this summer’s deadly listeriosis outbreak traced to a Maple Leaf Foods processing plant in Toronto is “the tip of the iceberg of the dangers that deregulation has exposed us to.”
The plant was shut down in August after being linked to the outbreak that has killed 20 people across the country and prompted calls for the food inspection system to be revamped. Read more here.
House Panel Urges 10+2 Test
(Journal of Commerce Online – R.G.Edmonson)
Leaders of the House Ways and Means Committee have urged Customs and Border Protection to take an intermediary step that would allow real-time testing of the importer security filing rule known as 10+2 before it becomes final.
The letter, signed by Chairman Charles Rangel, D-N.Y., and other senior committee members of both parties, called for Customs to issue an interim final 10+2 rule, and carry out a pilot program.
Lawmakers said Customs could use the pilot to test compliance with 10+2 with a small number of importers, and correct any technical problems. All other companies would be encouraged to comply on a voluntary basis.
Interim rules allow another round of public comment before an agency publishes a final rule. Comments on Customs’ proposed importer security filing rule ended on March 18.
See also: CBP Makes Late Push for “10+2,” Rejects Pilot Concept (from American Shipper) here.
Leaders of the House Ways and Means Committee have urged Customs and Border Protection to take an intermediary step that would allow real-time testing of the importer security filing rule known as 10+2 before it becomes final.
The letter, signed by Chairman Charles Rangel, D-N.Y., and other senior committee members of both parties, called for Customs to issue an interim final 10+2 rule, and carry out a pilot program.
Lawmakers said Customs could use the pilot to test compliance with 10+2 with a small number of importers, and correct any technical problems. All other companies would be encouraged to comply on a voluntary basis.
Interim rules allow another round of public comment before an agency publishes a final rule. Comments on Customs’ proposed importer security filing rule ended on March 18.
See also: CBP Makes Late Push for “10+2,” Rejects Pilot Concept (from American Shipper) here.
Europe to Introduce its Own Advanced Cargo Information Ruling in 2009
(CIFFA eBulletin – Shipping News)
Europe will introduce its own 24 hour rule equivalent on both imports and exports for all 27 member states of the European Community, which will come into force in July of next year.
The move follows similar actions in the United States and other countries, following the World Customs Organizations Safe framework, which was established in 2005. However, Europe’s version will differ slightly from its counterparts in that it will incorporate a requirement for advanced cargo information for import as well as export cargo, which like the 24-hour rule in the U.S., will see the freight forwarder or a customs agent filing the data on behalf of the importer to customs who will receive the data in real time. The difference between the U.S. 24-hour rule and Europe’s is that the ruling is for both import and export cargo. Security filings must be submitted to customs both pre-arrival and pre-departure.
The challenge for the European Commission, however, has been in streamlining a process which is suitable across its 27 member states that have until now had 27 separate customs administrations. An EC representative explained that a risk analysis assessment would be made at the first port of call in the EC. The risk assessment will then be available to other EC member states customs administrations. If, for example, after cargo arrives in Rotterdam, it then needs to be transshipped to the Czech Republic, then any information compiled on that cargo will be accessible by customs officers at the final port of discharge.
Europe will introduce its own 24 hour rule equivalent on both imports and exports for all 27 member states of the European Community, which will come into force in July of next year.
The move follows similar actions in the United States and other countries, following the World Customs Organizations Safe framework, which was established in 2005. However, Europe’s version will differ slightly from its counterparts in that it will incorporate a requirement for advanced cargo information for import as well as export cargo, which like the 24-hour rule in the U.S., will see the freight forwarder or a customs agent filing the data on behalf of the importer to customs who will receive the data in real time. The difference between the U.S. 24-hour rule and Europe’s is that the ruling is for both import and export cargo. Security filings must be submitted to customs both pre-arrival and pre-departure.
The challenge for the European Commission, however, has been in streamlining a process which is suitable across its 27 member states that have until now had 27 separate customs administrations. An EC representative explained that a risk analysis assessment would be made at the first port of call in the EC. The risk assessment will then be available to other EC member states customs administrations. If, for example, after cargo arrives in Rotterdam, it then needs to be transshipped to the Czech Republic, then any information compiled on that cargo will be accessible by customs officers at the final port of discharge.
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