Wednesday, April 29, 2009

Support for Free Trade Recovers Despite Recession

(Pew Group)

Despite the economic recession, public support for free trade agreements has recovered after declining a year ago. Currently, 44% say that free trade agreements like NAFTA and the policies of the World Trade Organization are good for the country, up from 35% a year ago. Slightly more than a third (35%) say that such agreements and policies are bad for the country, down from 48% in April 2008.

The current balance of opinion is more in line with long-term trends when compared with the April 2008 measure. Last year marked the first time in a measure dating to 1997 that a plurality viewed free trade agreements and policies negatively. The current measure is identical to December 2006 and comparable with opinions in 2005 and 2004. Support for NAFTA and other free trade agreements in policies peaked at 49% in early September 2001; at that time, 29% said they were bad for the country.

Other recent national surveys also have found increases in support for foreign trade over the past year. In a survey conducted April 3-5 by CNN/Opinion Research Corp., 56% said they viewed foreign trade “more as an opportunity for economic growth through increased U.S. exports,” while 40% said they viewed foreign trade as “a threat to the economy from foreign imports.” In June 2008, a narrow majority (51%) said that foreign trade represented more of a threat rather than an opportunity for the U.S. economy.

Read the complete overview, with statistical tables here.

Tuesday, April 28, 2009

Napolitano Piling Up the Mistakes

(Jack Kelly — Real Clear Politics)

“Can somebody please tell us how U.S. Secretary of Homeland Security Janet Napolitano got her job?” asked Canada’s National Post in an editorial April 22. “She appears to be about as knowledgeable about border issues as a late night radio call-in yahoo.”

The National Post’s question was triggered by an interview Ms. Napolitano gave to the Canadian Broadcasting Corp. (CBC) April 20, in which she claimed some of the 9/11 hijackers entered the U.S. through Canada. (All 19 came directly to the United States.) A few weeks earlier, in a speech to the Brookings Institution in Washington, D.C., Ms. Napolitano said: “One of the things that we need to be sensitive to is the very real feelings among southern border states and in Mexico that if things are being done on the Mexican border, they should also be done on the Canadian border.” […]

Ms. Napolitano was governor of Arizona when President Obama chose her to head DHS. She had no discernable qualifications for the job, and has demonstrated repeatedly she lacks the judgment for such an important and sensitive post. Read more here.

Canada Calls “Unfair” a U.S. Tax Break to Paper Makers

(Reuters – Roberta Rampton)

A U.S. tax break being used by paper manufacturers who use a “black liquor” byproduct to fuel their plants is unfair and should be stopped, Canadian Trade Minister Stockwell Day said Tuesday.

Paper makers have claimed $7 billion in tax credits by using a loophole in a U.S. law designed to boost biofuel use, Day said in an interview with Reuters financial television.

Paper manufacturers create a byproduct called black liquor when they process wood into pulp for making paper. They have long used the byproduct for fuel in their mills. By blending the byproduct with diesel, the companies have tapped into a tax credit which one lawmaker called a “lifeline” to mills hit hard by the recession. Read more here.

Canada Revives WTO Complaint on U.S. Meat Label Law

(Reuters – Roberta Rampton & Doug Palmer)

Canada has revived a complaint at the World Trade Organization about a U.S. meat labeling law that Canadian producers have complained has hurt their hog and cattle sales, Canada’s Trade Minister Stockwell Day said on Monday.

Canada has complained a new mandatory rule that meat packers include the country of origin of their products on labels has curbed sales of Canadian livestock because of added costs for U.S. packers, hurting prices for Canadian producers.

“I’ve informed Ambassador (Ron) Kirk that we will move forward with the (WTO) consultation,” Day said, noting the complaint will move into a 60-day consultation period. “By giving formal notification of a consultation period, it says, ‘We think this is off-side and we want the consultation period to begin,’” he told reporters after meeting Kirk.

Canada normally exports about C$4 billion ($3.28 billion) a year of hogs and cattle to the United States. Read more here.

New Senate Bill Would Require Origin Disclosure for “Conflict Minerals”

(World Trade Interactive)

Legislation introduced April 24 in the Senate would require U.S.-registered companies selling products using columbite-tantalite, cassiterite or wolframite (or derivatives thereof) to annually disclose to the Securities and Exchange Commission the country of origin of those minerals. Metals derived from these minerals are used in common technological products such as mobile phones, laptops and digital cameras.

According to a joint press release from sponsors Sam Brownback, R-Kansas, Richard Durbin, D-Ill., and Russell Feingold, D-Wis., the Democratic Republic of Congo is rich in lucrative natural resources such as cassiterite (tin), columbite-tantalite or coltan (tantalum), wolframite (tungsten) and gold. These metals can be “inhumanely mined,” the press release states, and profits from selling them are often used to finance armed groups in the region, which has been “devastated by civil war, widespread human rights abuses and a humanitarian crisis that has resulted in the deaths of an estimated 5.4 million people.” Read more here.

Sunday, April 26, 2009

Ridiculing US Official Just Made Your Border Wait Longer

(Edward Alden — The Tyee)

We overreacted to Napolitano’s gaffe. Why we’ll pay for it.

After years of frustration dealing with the George W. Bush administration over the tightening of the border, Canadian officials were hoping for better under President Barack Obama. It does not appear to be working out quite as planned.

Obama’s homeland security secretary, former Arizona governor Janet Napolitano, caused a furor last week when she suggested in a CBC interview that some of the 9-11 terrorists had entered the United States from Canada, and therefore stricter border measures were necessary. The statement threw the Canadian government and media into apoplexy. It seemed to confirm the always compelling storyline that Canada is once again being “harassed” by an ignorant American officialdom eager to blame its northern neighbour for its own mistakes. The National Post dismissed her as “irrational” and the commissioner of the RCMP declared himself “surprised and somewhat disappointed that the secretary isn’t better informed.”

Little matter that Napolitano’s slip should rightly be considered a gaffe. “I knew the minute it came out of my mouth it was wrong,” she said later. Neil Macdonald, the veteran CBC reporter who caught her out, set her up perfectly. The secretary, defending American plans to impose new document requirements at the border this June, noted quite accurately that “to the extent that terrorists have come into our country or suspected or known terrorists have entered our country across a border, it’s been across the Canadian border. There are real issues there.”

“Are you talking about the 9-11 perpetrators?” MacDonald asked, dangling the noose. “Not just those, but others as well,” said Napolitano. Drop the words “just” and “as well” and she would have been home free.

Instead, the furor that has erupted is certain to poison efforts by the two governments to cooperate over border issues at a time when it is critically important to deal with festering problems. Washington is set in June to require passports or other secure documents from everyone — Canadians and Americans — crossing into the United States, Napolitano made it clear she will not reconsider that deadline. Read more here.

Related: McCain links 9/11, Canada

Friday, April 24, 2009

Flood 2009

(GHY International)

Click HERE for all flood-related posts including the latest information.

Canada Needs Bigger Profile Abroad: Provinces

(The Canadian Press)

The Harper government needs to beef up Canada’s profile overseas if it wants to stimulate more trade and create jobs, say provincial trade ministers. The ministers were meeting with their federal counterpart, Stockwell Day, on Thursday to discuss strategies to help exporters and investors during the economic downturn.

One of Prime Minister Stephen Harper’s priorities when he took office was bolstering Canada’s presence on the world stage. But some provinces – as well as retired diplomats and former Conservative Trade Minister David Emerson – have been critical of his cuts to the Foreign Affairs Department. In particular, budget reductions in diplomacy and closures of Canadian missions abroad have been condemned as short-sighted. The latest closures, revealed this week, are slated for Cambodia and Bosnia.

Meanwhile, the United States has been pouring more resources into its international profile, as has the United Kingdom and Australia.

Ontario Trade Minister Sandra Pupatello complimented Day for his “activist agenda,” saying he took the trade portfolio in the right direction with an aggressive travel schedule that has taken him to China and India for long sojourns.

Harper has not visited India, China or Brazil – the world’s biggest emerging markets – since taking office three years ago.

“In our experiences abroad, we are given a clear message by leadership in other countries that they do want to see Canada,” Pupatello told reporters. “And while they really do appreciate provincial intervention, they really anticipate seeing ministers and the prime minister.” Read more here.

EU Envoys Back Launch of Canada Trade Talks

(Reuters – Darren Ennis)

European Union foreign ministers should agree to launch talks next week on a bilateral trade pact with Canada worth around $27 billion per year after EU envoys endorsed the plan on Thursday, diplomats said.

“The foreign ministers should give the green light at their meeting on Monday with the formal launch at the EU-Canada summit in Prague on May 6,” a diplomat told Reuters following a meeting of 27 EU ambassadors in Brussels.

France expressed some reservations to starting the negotiations under current economic conditions, but Paris’ lifted its veto on Friday after its concerns were met, diplomats said. Read more here.

Report Examines Possible Protectionist Responses to Economic Crisis

(World Trade Interactive)

A recent report from the Congressional Research Service examines three possible scenarios that could result from the protectionist pressures that have increased amid the ongoing global economic downturn. The report also identifies a number of related policy challenges for Congress.

Read the complete article at here and the CRS report via Sandler, Travis & Rosenberg PA here (PDF).

“10+2” Deadline to Coincide with Vessel Departure

(American Shipper)

U.S. Customs plans to change the filing deadline for advance import data required under the “10+2” rule to make compliance easier for shippers, according to a program official.

About 45% of Importer Security Filings are being submitted on time, but CBP believes that figure is low because it has been measuring timeliness against the time the first bill of lading is filed by the carrier under the 24-hour advance manifest rule. Many bills of lading are filed more than two days prior to vessel lading, which makes it difficult for importers to compile and file the necessary cargo details on time. Read more here (subscription required).

FDA Offers Small Entity Compliance Guide on Prior Notice of Imported Food

(World Trade Interactive)

The Food and Drug Administration has announced the availability of a guide to help small entities understand and comply with a November 7, 2008, final rule requiring prior notice of food (including animal feed) that is imported or offered for import into the U.S. This guide restates the current requirements for prior notice in simplified format and language but is not binding on either FDA or the public. FDA strongly recommends that affected parties consult the appropriate regulations in addition to reading this guide.

The guide can be downloaded here (PDF).

Business Groups, NGOs Seek Reforms in U.S. Trade Preference Programs

(World Trade Interactive)

More than two dozen trade and business associations and non-governmental organizations wrote to Congress and the White House April 22 to propose a major overhaul of U.S. trade preference programs. The groups said their proposal represents a consensus that reflects several years of hard work, and they asked to meet with U.S. Trade Representative Ron Kirk and the leaders of the House Ways and Means and Senate Finance committees as soon as possible to discuss it.

The coalition praised existing preference programs for contributing to economic development in developing countries, lowering costs for U.S. businesses that rely on imported manufacturing inputs, reducing prices for U.S. consumers, and helping to improve local business climates abroad and thus build potential new markets for U.S. exports and regional trade. Nevertheless, there are several drawbacks associated with these programs, including short durations, rigid product restrictions, and complex and often contradictory rules that lead to immense uncertainty and confusion and therefore limit potential benefits. Read more here.

U.S. Trade Chief Says Obama Will Push Ahead on Pacts

(New York Times – Brian Knowlton)

In his first policy speech, the top United States trade official said Thursday that President Obama would work to revive global trade talks and complete three bilateral accords as part of an aggressive trade agenda.

The administration plans “a new paradigm” on trade, the trade representative, Ron Kirk, told an audience at Georgetown University. “We’re looking at everything,” he said. Rejecting fears of a turn to protectionism or a softening of support for free trade, Mr. Kirk said: “Now is not the time to turn inward. Now is not the time to be timid. Now is the time to revive global trade.”

Mr. Kirk vowed to press ahead on three bilateral trade agreements negotiated by the Bush administration. He said there was strong bipartisan support in Congress for an agreement with Panama – suggesting that its completion might come first – but that the administration was also working to advance the somewhat more controversial pacts with Colombia and South Korea.

Mr. Obama had criticized Colombia during his presidential campaign because of violence there against labor activists. But his administration has pointed to progress there since then.
On the accord with Seoul, United States auto manufacturers question whether it would adequately open South Korea’s auto market. Read more here.

Photo Adventures: Winnipeg Flooding

(Morris Photography)

Photographer Dave Morris tours some of the flooded areas around Winnipeg and southern Manitoba during the middle of April.

Are They Listening to Our Message About Border Security?

(CBC News)

When Prime Minister Stephen Harper stood alongside U.S. President Barack Obama in Ottawa in February 2009 and made his strong statement about how important Canada considers border security, many thought the Americans got the message.

Well, apparently they didn’t, as the new U.S. Homeland Security Secretary, appointed by Obama, suggested in April 2009 that terrorists have routinely entered her country through Canada, including the perpetrators of the Sept. 11, 2001, attacks.

Here’s some of what Janet Napolitano said during an interview with Neil Macdonald of CBC News, who asked her to clarify earlier statements she made about the borders of Mexico and Canada:

“Yes, Canada is not Mexico. It doesn’t have a drug war going on; it didn’t have 6,000 homicides that were drug-related last year,” Napolitano said.

“Nonetheless, to the extent that terrorists have come into our country or suspected or known terrorists have entered our country across a border, it’s been across the Canadian border. There are real issues there.” Read more here.

Harper Must Deal With Border Blather

(Calgary Herald)

W here do they get these people? Had former president George W. Bush appointed to guard America’s borders a person such as Janet Napolitano who thinks 9/ 11 terrorists entered the U. S. from Canada, those who still respect him would be yet contending with the sneers of those who thought he was a rube surrounded by more rubes. But, President Barack Obama has appointed Napolitano as his Homeland Security Secretary, and that is exactly what she told the CBC’s Washington correspondent, Neil Macdonald, on Monday.

Later, she recanted, saying she had misunderstood the question.

Really? It seemed simple enough. She having declared, “To the extent that terrorists have come into our country, or suspected or known terrorists have entered our country across a border, it’s been across the Canadian border,” Macdonald asked if she was referring to the 9/11 attackers. She replied, “Not just those, but others as well.”

If she wasn’t mentally nimble enough to follow the thread of such an uncomplicated conversation, what else does she not understand? Is it too much to hope a person tapped by the president for high office would exceed the average savvy by a margin proportionate to their promotion? Read the complete editorial here.

Related: Security Failings (Ottawa Citizen); Thickening border an ever-greater obstacle to U.S.-Canada trade (Vancouver Sun); Homeland Rigidity (Chronicle Herald)

US Tightens Customs Procedures

(Mike Young — IFW Net)

Trade with the US will be subject to more stringent Customs procedures for e-manifests from 25 April.

US Customs and Border Protection said individuals transporting goods across land and sea borders under an e-manifest must comply with the Western Hemisphere Travel Initiative’s rules on identification documents from 26 April.

The agency will issue a warning message to shippers which fail to comply with the new regulations.

From 1 June the warning message will be replaced by a rejection of the e-manifest if it is submitted without the correct documentation, such as a US passport or passport card.

Previously US borders could be cleared using a range of documents including birth certificates and driving licenses. Read more here (subscription)

Sweep Discovers More Than $1.3 Million in Counterfeit Items

(Bowdeya Tweh— The Times)

U.S. Customs and Border Protection officers seized counterfeit designer merchandise at Chicago O'Hare International Airport Tuesday valued at more than $1.3 million.

The merchandise was being shipped from Hong Kong to Toronto and was found in a warehouse sweep of arriving international freight shipments, according to a news release.

The shipment contained more than 2,000 items, including wallets, handbags, purses and tote bags bearing protected trademarks. The merchandise had a suggested retail price of more than $1.3 million and a domestic value of more than $300,000. Included in the shipment were counterfeit Prada and Coach handbags, Gucci and Louis Vuitton wallets, Chanel belts and Tiffany & Co. jewelry. Read more here.

What to Expect From a NAFTA Verification

(CBSA)

This publication has been provided in order to give the reader a better understanding of the verification process under the North American Free Trade Agreement (NAFTA).

The NAFTA allows each Party’s customs administration various methods for determining if a good certified as originating qualifies by meeting the NAFTA rules of origin requirements. Such methods may include written questionnaires to be completed by the exporter or producer, verification letters requesting information from the exporter or producer and visits to the exporter’s or producer’s premises. A verification could be conducted by any or all of these methods…

This information replaces RC4006.

Thursday, April 23, 2009

When the Canada Border Services Agency Gives You a Warning

(CSCB)

CBSA has provided an FAQ on getting a “warning” issued by a border services officer.

What does a “warning” mean?
Since this is your first violation, and it does not involve dangerous or prohibited goods, the border services officer has only given you a warning about importing goods illegally. The officer told you what you did to break the law and asked you to either pay the duty and taxes you owe or to forfeit your goods.

Does the CBSA keep records of warnings?

Yes. The CBSA enters your information into its computer system. When people cross the border, the CBSA conducts a search of this system and if it finds that you have received a warning in the past, there's a greater chance that:

• your goods will be inspected; and
• more serious action such as seizure of your goods and criminal prosecution will be taken if you have improperly declared goods again.

How long does the CBSA keep my record?

The CBSA keeps records of warnings for up to two years. These records help us enforce customs laws and regulations.

After two years, your record will automatically be deleted if you haven't had any more violations.

Read more in the publication available on the CBSA website here.

Stimulus Funds to Beef Up Border Protection

(Journal of Commerce Online – Bill Mongelluzzo)

Enhanced security could cost as much as $5 billion

U.S. Customs and Border Protection is stepping up its efforts to secure the nation’s land borders, and the agency is receiving hundreds of millions of dollars to support its efforts. Jayson Ahern, acting commissioner, said CBP will receive $420 million in federal stimulus funds for border security, and the General Services Administration will receive $300 million for border facility enhancements.

Ahern said Wednesday at the annual conference of the National Customs Brokers & Forwarders Association of America this funding will be a “good first step” toward the estimated $5 billion needed to build infrastructure and upgrade border facilities. […]

…CBP is pressing the trade community to provide more information about imported products from as far back in the supply chain as possible. CBP in January published its interim final rule on the advanced finally requirement known as 10-plus-two. The final rule will be published in the Federal Register in June, Ahern said. Read more here.

Memorandum D15-2-52: Certain Carbon Steel Welded Pipe Originating in or Exported from The People’s Republic of China (New)

(CBSA)

Application of anti-dumping and countervailing duties

1. This memorandum refers to the application of anti-dumping and countervailing duties to importations of certain carbon steel welded pipe originating in or exported from the People’s Republic of China.

2. This memorandum is divided into six sections.

3. A description of the subject goods is provided.

4. The milestone dates of the investigation are provided along with the applicable classification numbers.

5. Information regarding the normal value of the subject goods and anti-dumping and countervailing duties is provided.

Memorandum D15-2-52.

Memorandum D15-2-44: Certain Carbon Steel Pipe Fittings (Revised)

(CBSA)

Application of anti-dumping duty

1. This memorandum refers to the application of anti-dumping duties to importations of certain carbon steel pipe fittings originating in or exported from the People’s Republic of China.

2. This memorandum is being revised to reflect the Canadian International Trade Tribunal’s order, dated July 15, 2008, continuing the order regarding certain carbon steel pipe fittings originating in or exported from the People’s Republic of China.

Memorandum D15-2-44.

Wednesday, April 22, 2009

Managing Financial Risk in International Trade, Montreal, May 13, 2009

Expert advice in trying times. Come learn from and challenge our financial panel at this interactive half-day meeting.

Christian Martin, Experts LCG-ADM Inc
Bank lines of credit and safeguards offered in relation to international business operations.

Pierre Donato, Laurentian Bank
Importing and the “marginalization” of letters of credit.

Harold Riley, Export Development Canada
Exporter guarantee programs.

Normand Faubert, OptionDevises
The real challenge of foreign exchange – How to optimize through the sound management of foreign cash flows, the profitability of import/export operations.

Carl Gravel, Business Development Bank of Canada
Partner your growth – Overview of services offered.

More information and registration form available here (PDF)

Harper ‘Delighted’ at Not Having to Reopen NAFTA

(AFP)

Prime Minister Stephen Harper said Tuesday he was “delighted” by a U.S. decision not to reopen the North American Free Trade Agreement to press for tougher labor and environmental protections.

“We’re delighted with this decision from the Americans,” Harper told a press conference during a visit to Jamaica, televised in Canada. “We can always improve on things, but it is essential to discuss the future and not review decisions taken in the past,” he said.

The 1994 trade pact created the largest trading bloc in the world by eliminating import tariffs on goods circulating among partners Canada, the United States and Mexico. During last year’s election campaign, then U.S. presidential candidate Barack Obama often criticized the free trade pact and hinted that he might renegotiate it to include labor and environmental safeguards that would be enforced.

But Canada and Mexico were wary of reopening trade negotiations. “Once we re-open it, it would be very hard to get that cat back in the bag,” Harper explained.

On Monday, U.S. Trade Representative Ronald Kirk said after returning from a weekend Summit of the Americas in Trinidad that U.S. concerns “can be addressed without having to reopen the agreement.” Read more here.

Napolitano Takes Hard Line on Border Security

(HS Today – Mickey McCarter)

Different threats to United States require different approaches on U.S. northern and southern borders but border integrity will be enforced, secretary vows Homeland Security Secretary Janet Napolitano promised to work with Canada to develop shared and smart solutions to border security in advance of her first trip to the country but she also vowed first and foremost she would enforce U.S. border laws in exchanges with Canadian representatives in Washington, DC, Tuesday.

“I think if my job is to be a myth-buster, I’m a myth-buster,” Napolitano declared at a forum sponsored by the Border Trade Alliance. “And the myth I’m trying to bust is that there’s no real border between Canada and the United States.

“There’s the closets of friendships, there’s the closest of alliances. There’s the closest of trade relationships. I know that, I respect that,” she said in response to concerns from a Canadian businessman. “But the law says there’s a border and certain things have to be done at the border. And the fact of the matter is that Canada allows people into its country that we do not allow into ours. And that’s why you have to have a border. And you have to have a border policy that makes sense.”

Napolitano told Canadian lawmakers and business representatives alike that she would work with the Canadian government to address shared concerns over the thickening of the border--or putting in place security measures that slow the flow of legitimate cargo and travelers. Read more here.

The transcript of Ms Napolitano’s April 20 interview with CBC’s Neil Macdonald is on the CBC website at the CBC website.

Air Canada Requires Cargo Security Declaration Form from Freight Forwarders

(CIFFA eBulletin)

As a reminder, the Transportation Security Administration (TSA), through the Foreign Carrier Model Security Program regulations has specific security requirements for all cargo destined to passenger aircraft departing from Canada to the United States for Freight Forwarders.

Effective immediately, all Freight Forwarders shall be required to submit their Cargo Security Declaration Form in addition to each Airway Bill attesting that it has taken all security measures to ensure the integrity of the freight. Please note this is solely applicable for freight destined to the United States from Canada. Please find below an example of Cargo Security Declaration Form:

(Business Letterhead of Freight Forwarder)

General Cargo Security Declaration
AWB #_____________________
Destination: _________________________

The Cargo dispatched by (Name of Agent or Freight Forwarder) comes from customers whose reliability we do not doubt. The cargo has been protected from the time the cargo was tendered to and accepted by us at our acceptance location.

For more information, contact you local Air Canada Cargo Representative or visit the website.

Tuesday, April 21, 2009

CBP to Deactivate Older NEXUS Frequent Traveler Cards

(CBP)

U.S. Customs and Border Protection today announced it will cancel old NEXUS cards for current NEXUS members on May 1.

CBP has been mailing new NEXUS cards to all members since November. The new cards have enhanced security features and allow U.S. and Canadian citizen cardholders to comply with the documentary requirements of the Western Hemisphere Travel Initiative.

All members must activate their new cards within 30 days, verify and update their U.S. mailing address by going to the GOES page on the CBP website.

NEXUS members should destroy their old cards after activating their new ones. If members have not received their new cards, they should go to their local enrollment center to either pick up their new card or to apply to have a new card issued. Old cards will be deactivated May 1.

NEXUS is a joint CBP-Canada Border Services Agency program that both governments implemented to enhance border security while simplifying the entry process for pre-approved, low-risk travelers. It was established in 2002 and approximately 280,000 members participate in the program.

A similar program called Secure Electronic Network for Travelers Rapid Inspection (SENTRI) serves citizens of the U.S. on the southern border.

White House Won’t Reopen NAFTA

(Barrie McKenna — Globe & Mail)

Official says Obama won’t follow up on election pledge

A whispered assurance from a Barack Obama aide to Canadian diplomats that the future U.S. president would not rip up the North American free-trade agreement has proven prophetic.

Mr. Obama’s top trade official confirmed yesterday that Mr. Obama has no plans to reopen NAFTA to insert tough environmental and labour protections, which he publicly pledged to do during last year’s presidential race.

“The President has said we will look at all of our options, but I think they can be addressed without having to reopen the agreement,” U.S. Trade Representative Ronald Kirk told reporters.

Mr. Kirk made the comments after returning from the weekend Summit of the Americas in Trinidad, where Mr. Obama met privately with Prime Minister Stephen Harper and Mexican President Felipe Calderon.

The three leaders “are all of the mind we should look for opportunities to strengthen NAFTA,” Mr. Kirk said. Read more here.

Monday, April 20, 2009

CBSA to Retain In-Bond Option for Cross-Border Carriers

(Truck News)

The Canadian Trucking Alliance (CTA) is declaring victory after successfully lobbying for the allowance of in-bond Customs clearance when the Advanced Commercial Information System (ACI)/e-Manifest program is rolled out.

Until recently, Canada Border Services Agency (CBSA) had suggested it would not allow goods to be moved in-bond for later clearance if all paperwork was not filed in advance by the owners of the cargo. Instead, trucks would have been turned back at the border, which would have proven costly for carriers – especially LTL carriers hauling freight for multiple shippers on a single trailer.

CTA argued that removing the in-bond option would negatively impact the entire supply chain. And eventually, CBSA agreed. The border agency said it would retain the in-bond option for carriers that participate in low-risk programs such as FAST, PIP, CSA or C-TPAT.

“By continuing to allow low-risk carriers the ability to move goods in-bond to clear customs at a secure inland facility the CBSA is demonstrating a clear commitment to conduct enhanced risk assessment without unduly impeding trade,” said CTA chief David Bradley.

PM Pleased with Progress Made at the 2009 Summit of the Americas

(The Prime Minister’s Office)

Summit produces greater cooperation and dialogue in the hemisphere

Canada is pleased with the progress made by participants in the 2009 Summit of the Americas to fight the impact of the global recession on the Western Hemisphere, Prime Minister Stephen Harper said today [Sunday].

“We sought to keep the focus on the global economic crisis and I am pleased with the substantive discussions I had with my counterparts on ways we could work together as part of the global response,” said the Prime Minister. “I am also pleased that, for the most part, leaders were in agreement that maintaining open markets is critical to a regional and a global recovery.”

“We saw a tremendous reciprocation of that spirit as the conference went on by other members, who at times have had divergent views.”

To further strengthen ties between Canada and other states in the Americas, the Prime Minister announced several new trade and development initiatives at the summit. Canada will be doubling its commitment to the Inter-American Development Bank. In addition, the Prime Minister announced a five-year technical assistance program to help countries that have signed or are about to sign trade agreements with Canada. Canada will strengthen its support for democracy in the Americas through a substantial new contribution to the Organization of American States Electoral Assistance Initiative.

“We also wanted to continue building Canada’s engagement in the Americas, and I had several good meetings with leaders in pursuit of that goal,” said the Prime Minister. “Overall, this Summit has been successful from Canada’s point of view.”

Canada Offers New Support to the Inter-American Development Bank

(The Prime Minister’s Office)

This year’s Summit of the Americas takes place in the context of the worst global economic crisis in generations. While the crisis began in developed countries, its effects are hitting emerging and developing economies with increasing severity. Canada’s focus for the Summit is encouraging free trade and discouraging other countries from moving back to protectionist measures.

With the attention of the region on the economic situation, the Summit is an opportunity to connect Canada’s strengths and effective response to the crisis to the circumstances and needs of regional partners while building on the outcomes of the London G20 Summit. Canada is working towards recovery in its own economy and providing leadership internationally:

• Canada’s strong stance against protectionism and in favour of further liberalization is opening new markets for our partners in the hemisphere

• Fixing the financial system is essential to restoring credit and investment flows to emerging economies

• Canada’s banks are solid thanks to our sound approach to financial sector planning

• Accelerated, effective fiscal stimulus contributes to global demand and recovery

• Canada is making a substantial contribution to strengthening the resources of the international financial institutions, especially the IMF and the IFC global trade facility.

It is with this in mind that Prime Minister Stephen Harper announced today [Saturday] that Canada will work to temporarily increase the Inter-American Development Bank’s (IDB) lending capacity in response to the financial crisis. Today’s announcement responds to the urgent capital needs identified by the IDB as essential to an effective response to the effects of the economic crisis in the Americas.

“Canada is the only country taking a leadership role in responding to a critical need in such an innovative way,” said the Prime Minister. “This has not been done before and is a very significant contribution.”

This timely increase in support to the IDB will provide countries in the region with greater access to credit to promote economic growth, an essential element of economic recovery. It will double temporarily Canada’s lending capital at the IDB.

The IDB is a valued regional institution in which Canada plays an active role. The Bank is the main source of multilateral funding for economic, social and institutional development in Latin America and the Caribbean, and Canada is a non-borrowing regional member. Canada joined the Bank in 1972. The IDB is the oldest and largest regional development bank in Latin America and the Caribbean. Canada will host the annual meeting of IDB Governors in 2011.

For more information on Canada’s partnership with the IDB can be found here.

Sunday, April 19, 2009

Canada, the Last Free Trader

(Thomas Walkom — The Toronto Star)

For 20 years, Canada has focused on free trade with the United States. It is our special relationship, the fulcrum of our economy, our one and only big idea.

But there are indications that this particular big idea is fast becoming passé.

In part, the sheer fact of the global slump is to blame. As the perennial softwood lumber dispute shows, the U.S. has never entirely embraced its obligations under the North American Free Trade Agreement. Any recession merely heightens America’s protectionist instincts.

But this is not just any recession. It is shifting the balance in the world economy. The America that emerges from this slump promises to be a significantly different country.

Pre-recession America was the world’s glutton – a country whose consumers were willing to buy anything and everything even if they had to go into debt.

For Canada, with unique access to this massive and undiscriminating market, prosperity was assured. Did Americans want gas-guzzling pickups? Canadians would build them – and then provide the petroleum to make them run.

Did Americans want lumber to build houses that ultimately they couldn’t afford? No problem. We’d sell them that as well.

Friday, April 17, 2009

Transpacific Shipping Lines Adopt Minimum Rates for 2009-10 Contracts

(Transport Intelligence)

Container shipping lines belonging to the Transpacific Stabilization Agreement (TSA) are recommending what they describe as “an unprecedented schedule” of minimum base freight rates from Asia to the U.S. for their upcoming service contracts, in an effort to stabilise revenues and services.

Confirming that development in a recently-published statement, the TSA claimed that establishing a floor on rates, in the light of a recent flurry of reductions, would “likely decide whether some lines continue to operate in the trade”.

The TSA stated that despite initiatives previously announced by that body, efforts to curtail rate volatility during the traditional off-peak period had been largely unsuccessful, as carriers struggled to respond to substantially lower cargo demand and the resulting overcapacity.

“Senior executives with TSA carriers now must come to terms with a stark set of choices: set their pricing at minimally sustainable levels, or see massive losses in 2009-10 that will not only threaten their viability but also damage the service integrity in the trade.” Read more here.

Thursday, April 16, 2009

2009 Red River Flood

(www.winnipegdogs.com)

This video depicts the effects of the 2009 Red River Flooding on King's Park (located in South Winnipeg). The latter portion of the video depicts the RM of Richot, just south of the city.

New Import Requirements for Food Products Containing Small Amounts of Meat/Poultry

(World Trade Interactive)

U.S. Customs and Border Protection issued a notice April 14 advising importers of new requirements for imports of food products containing small amounts of meat or poultry. CBP notes that a Department of Agriculture import permit will now be required for all Food Safety Inspection Service-exempted food products containing small amounts (i.e., less than two percent) of meat and/or poultry ingredients.

Therefore, products such as bouillon cubes, extracts and soup mixes, which were previously allowed entry solely under a health certificate indicating that the product was concentrated by boiling, will now also require a USDA import permit. CBP will begin enforcing this new requirement on June 22.

Canadian Border Crossings: From Bad to Worse?

(Land Line – David Tanner)

Truckers can face two worst-case scenarios when crossing the U.S.-Canadian border. Not only are long wait times a foregone conclusion, especially from Michigan or New York into Ontario, but there’s also a chance that insufficient paperwork on a load will lead to an even longer wait or a flat-out rejection.

Transport Canada is working to implement a streamlined system for cross-border freight similar to the ACE program in the U.S. ACE stands for Automated Commercial Environment, and it requires truckers or shippers to send a load manifest electronically to border officials ahead of a crossing.

The Canadian system is called ACI, or Advance Commercial Information.

An easy way to decipher the alphabet soup is to think of ACE and ACI as the manifest paperwork for the freight, while FAST, C-TPAT and other programs are the credentials used for the drivers.

The Owner-Operator Independent Drivers Association is certainly in favor of streamlining the clearance system at border crossings, but not when the system favors large businesses and shuts out small carriers from the U.S.

The ACI program, according to OOIDA, favors larger carriers that are already paying to belong to programs such as FAST, C-TPAT and others. OOIDA believes many small-business operators could get shut out if they don’t jump through extra hoops at extra costs.

The Canadian Trucking Alliance, on the other hand, is lobbying the government for protections for the biggest carriers, shippers and customs brokers who use FAST, C-TPAT and the credentialing programs that small businesses may not use. Read more here.

Wednesday, April 15, 2009

Ex-Prosecutor Picked for New US ‘Border Czar’

(Associated Press)

The job title — “border czar” — is familiar to Alan Bersin, who more than a decade ago led an effort to fight drug and human smuggling that had mixed results at best.

Bersin was tapped Wednesday to oversee America’s efforts to keep drugs and illegal immigrants from flowing in from Mexico. As a federal prosecutor in the Clinton administration, he headed up a border crackdown that discouraged illegal crossings in the San Diego area but drove migrants to attempt more dangerous treks through the desert. […]

Bersin, now the assistant Homeland Security secretary for international affairs, held a similar title from 1995 to 1998 — Justice Department special representative for the Southwest border. As he will in his new job, he worked with agencies on both sides of the border to help coordinate the U.S. government’s efforts to curb the flow of drugs and illegal immigrants from Mexico.

Bersin brings a deep understanding of the border, like his boss, Homeland Security Secretary Janet Napolitano, a former Arizona governor. He rides horses on his ranch along the San Diego border, near the shanties of Tijuana, Mexico, in an area that was overrun with illegal immigrants until the mid-1990s. Read more here.

Day Launches New Trade Offices in China to Help Canadian Business

(Minister of International Trade)

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

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

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

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

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

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

Stockwell Day Toughens Canadian Stance on Meat Dispute

(Financial Post)

International Trade Minister Stockwell Day suggested Thursday Canada’s patience with Washington is running thin over a U.S. meat-labelling law that is “dissuading” the purchase of Canadian-bred livestock, and he plans to be “aggressive” in defending the country’s interests.

Mr. Day’s remarks, at the conclusion of a week-long visit to Asia, mark a sharp U-turn on how Canada will deal with the Obama admistration on this trade dispute that Canadian swine and cattle producers claim is “killing” their sector. Only a week ago, he said he would “reserve judgment” on pursuing retaliation against the United States through the World Trade Organization.“We have time limitations on how long we will let this draw out,” Mr. Day told reporters in a conference call from Hong Kong.

The law sparking this latest Canada-U.S. brouhaha deals with country-of-origin labelling, and was years in the making and introduced in stages — in the fall and then last month. It requires that labels on meat and other foods sold at U. S. supermarkets have labels that indicate from which countries the food originates.

Canada had won concessions from the former Bush administration that it was, at least temporarily, willing to live with. But in February, U.S. Agriculture Secretary Tom Vilsack issued a letter to the American meat-packing sector in which he asked that it undertake additional “voluntary” measures that are not in the bill, including that labels be included on processed meats. Read more here.

Tuesday, April 14, 2009

Border U.S. Regulatory Barriers Mean Increased Costs for Canadian Industry and Its Customers

(NB Business Journal – Rebecca Penty)

Peter Nelson is taking his case for a more open border with Canada’s southern neighbour right to the woman at the top – U.S. Secretary of Homeland Security Janet Napolitano. Nelson, the executive director of the Atlantic Provinces Trucking Association, will be in Washington, D.C., from Sunday to next Tuesday for the Border Trade Alliance annual conference, where Napolitano will deliver the keynote address.

He wants an audience with Napolitano – one of U.S. President Barack Obama’s recently-named top officials – who has mused about introducing new border security measures to bring the United States’ border with Canada in line with its Mexican boundary.Nelson worries new measures will slow down travel for truckers getting across, adding to fees for bureaucracy that is already burdensome for industry. “We only expect to see even more security, not less,” Nelson said, adding that border decisions should balance trade and security needs. “For us, it’s about trade. For her, it’s about security and there doesn’t seem to be any middle ground anywhere.” Read more here.

How 10+2 Can Be Put to Real Use

(Journal of Commerce – Peter Tirschwell)

Implementing 10+2 may be a costly hassle for many importers, but for many it will reveal data about their supply chains that until now had been beyond their reach. For example, the requirement that the factory be included on the 10+2/ISF filing means that the importer will always know, assuming it obtains accurate data, which factories are making its merchandise at any given time and which service providers it is using for transportation.

John Motley, the CEO of Log-Net, sees a lot of opportunity here. For example, knowing where a factory is located, an importer might decide as part of a green initiative to use the closest port rather than one further away that is chosen by a carrier or intermediary. Read more here.

Monday, April 13, 2009

Canada and Japan Expand Bilateral Air Transport Agreement

(Canada-Asia News Service – Transport Canada)

The Government of Canada has reached an agreement with Japan to expand the existing bilateral air transport agreement between the two countries. The expanded agreement allows airlines to offer unlimited services between Canada and any city in Japan outside of the Tokyo area. It also allows, for the first time, under certain conditions, access to Haneda Airport,

Tokyo’s metropolitan airport. The agreement further includes modernized aviation safety and security provisions and provides mechanisms for airline prices to adapt faster to market fluctuations.

Saturday, April 11, 2009

Ottawa Gets Tough on Security

(Mike De Souza — Canwest News Service)

Targets organized crime in airports, marine ports

The Conservative government is launching a security crackdown on more than 100,000 workers at Canada’s airports and marine ports, Canwest News Service has learned.

The initiative comes through a new deal signed Wednesday by the federal Transport Department and the RCMP to weed out organized-crime operatives from restricted areas. The agreement would improve information-sharing between the two parties and allow the RCMP to conduct detailed background checks on employees at airports or marine ports who are applying for new security passes or renewals.

A senior government official told Canwest News Service the deal would improve the security of passengers and cargo at airports and marine ports.

“Our government is serious about getting people who shouldn’t be working in classified areas out, and we’re committed to fighting organized crime, wherever it exists,” the source said. Read more here.

Ottawa Holding Off on Trade Action Versus U.S.

(Paul Vieira — Financial Post)

Stockwell Day, the International Trade Minister, said on Thursday Canada is “reserving judgment” on potential trade action against Washington over a meat-labelling law that domestic livestock producers argue is a “significant” non-tariff barrier costing them hundreds of millions of dollars.

As he played down potential trade action with Washington, Mr. Day announced he asked the World Trade Organization to begin consultations to address South Korea’s nearly six-year ban on imported Canadian beef.

Canadian livestock producers say their sector is in crisis as the result of a U.S. law that requires labels on meat and other foods sold at U. S. supermarkets to indicate from which countries the food originates. Sales of live hogs to Americans are down over 40% from a year ago, and the cattle producers claim the law has cost its sector $400-million, as U.S. meat packers decline to take Canadian livestock due to the added red tape the labelling law entails. Read more here.

Friday, April 10, 2009

U.S. Protectionism Remains Alive — To Canada’s Detriment

(Barbara Yaffe — Vancouver Sun)

An ever-thickening border between the two countries imposes annual costs of $15 billion to $20 billion on Canadian exporters, official says.

Despite a warm, fuzzy glow that followed Barack Obama’s February visit to Ottawa, Canadians are witnessing serious signs of greater U.S. protectionism and a thickening border.

That’s the conclusion of several former senior government officials who put forward their view this month in a series of articles on the Canada-U.S. relationship.

John Manley, Derek Burney and Colin Robertson, writing in the latest issue of Policy Options, a political journal published in Montreal, assert that Canada needs to get a lot more aggressive in protecting its trade, energy and security interests. […]

[T]he Buy American provisions are poised to hurt Canadian industry.

In fact, the damage already has begun, asserts Manley. He cites Hayward Gordon Ltd. in Ontario, shut out of bidding for a Maryland water treatment project, and a Calgary company, DIRTT Environmental Solutions, that has opened a plant in Georgia to get around the Buy America provision.

Writes Manley: “The siren call of protectionism has grown louder as the economy has deteriorated and Canada’s vital interests are at risk.” Auto manufacturers in this country, he says, “are under intense pressure to relocate manufacturing to the U.S.” because of the ever-thickening border. Read the complete article here.

Dow Sues Federal Government Over Pesticide Ban

(Juliet O’Neill — Ottawa Citizen)

U.S. chemical giant claims restricting 2,4-D in Quebec breaches NAFTA obligations

U.S. Dow AgroSciences has gone ahead with a threatened suit against the federal government under the North American Free Trade Agreement, seeking a repeal of Quebec’s ban on lawn pesticides containing 2,4-D and at least $2 million in damages.

William Amos, a lawyer for environmental organizations intervening in the case, urged the parties Thursday to move forward quickly in choosing the three-member NAFTA arbitration panel that will decide the case. It is urgent, he said, to remove a cloud over other provinces considering pesticide bans.

Dow’s claim asserts the ban is tantamount to “expropriation” of Dow investments, and accuses Canada of breaching “basic due process, transparency, good faith and natural justice.” Read more here.

Thursday, April 9, 2009

Canadian Trade Balance Unexpectedly Rises into Surplus

(CEP News)

Led by gains in all parts of the Canadian export sector, the international merchandise trade balance rose unexpectedly into positive territory in February, according to data from Statistics Canada on Thursday.

Against most expectations, Canada recorded a small surplus of C$0.1 billion. Economists had forecast the deficit to hold steady at -C$1.2 billion following a -C$1.2 billion deficit in January. The previous months' deficit was initially reported as -C$1.0 billion.

Exports rebounded to C$33.077 billion up 5.2% from January's level. The StatsCan report noted, "The gain was mainly due to volume increases and followed two consecutive monthly declines. The growth in this sector was driven by a 27.3% advance in aircraft and other transportation equipment exports."

Exports to the United States rose 5.0% to $24.274 billion, reflecting gains in automotive products which rose 19.8%.

Imports rose 1.1% from January to $32.951 billion, largely attributable to the increased importation of machinery, equipment and automotive products.

Summary statistics and a link to the data files are on the Statistics Canada website. Export and import price indexes are here.

Good News Beyond the First Quarter?

(Export Development Canada – Peter G. Hall)

Decoupling was a popular term a year ago, used to describe how the rest of the world had unhitched from the U.S. economic problem. It is now rich fodder for late-show humour. The acutely synchronized recoil that output saw in late 2008 has erased decoupling from the vernacular, and sent global forecasts tumbling. To make matters worse, this is no one-quarter wonder.

Even more dramatic was the size of the hit to output. The mighty U.S. economy fell by an annualized 6.3%. Pan-European output fell by 6.6%. The loss in Japan was a staggering 12.7%. For single-quarter performance, these numbers have few precedents in recent history.

First quarter, 2009 expectations are almost as gloomy. A further 5.7% contraction is forecast for the US. Japanese forecasters think their economy took an additional 11.7% pasting. Europe gets off a bit more easily, with a ‘mere’ 3.2% drop. Few if any of the remaining industrialized economies will escape unscathed, and Canada is in an unfortunate subset of economies where the decline will actually deepen. Moreover, emerging markets are showing signs of continued duress. Back-to-back declines of this magnitude are extremely rare in the past 50 years, occurring just once in Canada, the UK and the U.S., but unheard of in France, Japan and others.

From this point, the path of GDP growth is less certain. Recent monthly indicators are very modestly upbeat, leading to talk of bottoming-out. Equity markets have rallied, further boosting sentiment. Some analysts maintain that the sharpness of fourth- and first-quarter contractions will itself provoke a positive, albeit tepid, response. Others look at the downward recent momentum and believe it will be sustained in the coming months. Which argument is most compelling? Read more here.

Canada Takes WTO Action on South Korean Beef Ban

(Reuters – Randall Palmer)

Canada will request World Trade Organization consultations on South Korea's ban on Canadian beef imports, a formal step which could lead to stronger action, Trade Minister Stockwell Day said Thursday.

South Korea banned Canadian beef in May 2003 after bovine spongiform encephalopathy (BSE) was found in a Canadian cow, but Day said it was unjustified to continue this since Canada was categorized in 2007 as a "controlled BSE risk." […] In 2002, South Korea was Canada's fourth-largest beef export market at C$50 million ($41 million). Read more here.

Western Hemisphere Travel Initiative (WHTI) Reminder

(U.S. CBP — Pembina)

Western Hemisphere Travel Initiative (WHTI) documentary requirements for land and sea travel will go into effect on June 1, 2009. U.S., Canadian, and Bermudan citizens that
were previously exempt document requirements will be required to present a WHTI-compliant document for entry into the United States at land and sea ports of entry beginning June 1.

WHTI codes will be applied to ACE E-Manifests starting April 2009, with a transition period, until compliance is enforced on June 1, 2009. Effective June 1, 2009, all E-Manifests filed that are non-WHTI compliant will be rejected by ACE until WHTI compliance is obtained. As a reminder, WHTI-compliant documents include the following:

• U.S., Canadian or Bermudan passports;
• U.S. Passport Card;
• Enhanced Driver’s Licenses (when and where available);
• Trusted Traveler Cards (NEXUS, SENTRI, or FAST);
• Form I-872 American Indian Card, or (when available) Enhanced Tribal Cards;
• Military identification cards (for members of the U.S. armed forces on official orders);
• U.S. Merchant Mariner Document (for U.S. citizens on official maritime business);

As specified in the WHTI land and sea final rule, U.S. and Canadian citizen children under age 16, and those under age 19 traveling in a designated group, may present an original or copy of his or her birth certificate, a Consular Report of Birth Abroad, a Naturalization Certificate, or a Canadian Citizenship Card.

Wednesday, April 8, 2009

GHY V.P. to Speak at I.E.Canada Conference

(GHY International)

Reynold Martens, Executive Vice President, Geo. H. Young & Co. Ltd. will be one of the featured speakers at the 18th Annual I.E. Canada Conference being held from April 20-22, 2009 in Toronto, Ontario. The theme of the three-day conference is “Emerging Issues in Customs and Trade Compliance.”

Martens’ presentation will discuss the preparation and review process necessary to ensure a successful outcome to a CBSA audit. Some of the areas that will be covered include:

• Self-adjustments and voluntary disclosures
• What constitutes “reason to believe”?
• Multiple versus single program verifications
• A step by step review of how the audit will be performed
• Priorities and trends in customs audits
• Common operations challenges importers face
• Common problems in areas such as H.S. Classification, origin
• Declaration, valuation of goods, SIMA/embargoed goods, duties relief
• Administrative monetary penalties (AMPS)
• Disputing a decision

“Going through a customs audit can be a disruptive and stressful experience. So don’t be caught unprepared!” warns Martens, adding that, “Knowing what to expect and doing your homework can save your company a substantial amount of money.”

Registration details and additional information about the conference can be found here.

Shippers Ask For More Clarity on 10+2 Rule

(Logistics Management – Patrick Burnson)

While the U.S. Customs and Border Protection (CBP) is not enforcing the 10+2 Rule during the first year of implementation, shippers are saying that the agency has left key some questions unanswered.

“We still do not know how many filings must be made within a ‘scope-of-field,’” said Beth Peterson, a president of BPE, a global trade consultancy in San Francisco. “Furthermore, the CBP is now telling us that it is raising the bar on best practices.”

When it was first published two years ago, the Customs-Trade Partnership Against Terrorism (C-TPAT) Best Practices Catalog represented an effort to provide members with current information regarding highly effective cargo security practices identified while conducting validations.

Since then C-TPAT has conducted more than 8000 validations and revalidations throughout the world.

But according to Peterson, the rules have changed.

“There still is no information on how the Importer Security Filing (ISF) is to be transmitted,” she said. “As a result, a lot of shippers are still out of compliance.” Read more here.

World Economy to Recover in 2010 Says Credit Ratings Agency

(Industry Week – AFP)

Fitch predicts global GDP growth of 1.4% in 2010

The global economy will decline sharply this year and recover in 2010, credit ratings agency Fitch forecast on April 7, in a further sign of international economic malaise. Fitch said in its Global Economic Outlook that worldwide gross domestic product (GDP), which grew by 1.7% last year, would decline by 2.7% in 2009 and then recover to show growth of 1.4% in 2010.

Advanced economies, including the U.S., Japan and the euro area, would see the sharpest declines in GDP, by 3.8% in 2009, whereas emerging markets will continue to grow, albeit markedly slower, at a rate of 0.7%, according to Fitch. Read more here.

Government of Canada Supports the Agriculture Industry in International Markets

(Agriculture & Agri-Food Canada)

The Government of Canada today launched a new program to help Canadian farmers and exporters sell more products to more international customers. This new Trade and Market Development Program is part of the new Growing Forward agricultural framework.

“You have to create opportunities in international markets to have a competitive farm gate here in Canada,” said Federal Agriculture Minister Gerry Ritz. “By supporting Canadian exporters, we are increasing opportunities for everyone all along the value chain, from farm gate to fork.”

“This program is another way to help agriculture exporters expand opportunities across international borders,” said the Honorable Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture).

The Trade and Market Development program will make sure exporters have the information and support they need to sell more products in more markets. It includes a range of initiatives to bring industry success in global and domestic markets. The program will help equip the sector to seize market opportunities and address emerging challenges.

A key component of the program is the AgriMarketing program which will sell more of Canada's safe, high-quality world-class products around the world. For example, the program will help exporters by ensuring the Canada Brand maple leaf is on promotional materials, raising the profile of the good, healthy food our farmers produce.

Growing Forward is a new commitment to Canada's farmers and associated industries that is focused on achieving results, reflects input from across the sector, and will deliver programs that are simpler, more effective and tailored to local needs.

For additional information about the Trade and Market Development Program, please visit here.

U.S. Government Finds Unfair Dumping and Subsidization of Citric Acid and Certain Citrate Salts from China and Canada

(FlexNews)

On April 7, the Department of Commerce (Commerce) announced its affirmative final determinations in the antidumping and countervailing duty investigations on imports of citric acid and certain citrate salts from the People's Republic of China (China) and Canada. Citric acid and citrate salts are used in various food and beverage products including carbonated and noncarbonated drinks, and frozen foods, as well as laundry detergents and household cleaning products.

Dumping occurs when a foreign company sells a product in the United States at less than normal value. Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

Commerce determined that Chinese and Canadian producers/exporters have sold citric acid and citrate salts in the United States at 94.61% to 156.87%, and 23.21% below normal value, respectively.

In the China investigation, mandatory respondents TTCA Co., Ltd. (a.k.a. Shandong TTCA Biochemistry Co., Ltd.) and Yixing Union Biochemical Co., Ltd., received final dumping rates of 129.08% and 94.61%, respectively. Eleven Chinese exporters qualified for a separate rate of 111.85%. All other exporters will receive the China-wide rate of 156.87%.

In the Canada investigation, mandatory respondent, Jungbunzlauer Canada, Inc., received a final dumping rate of 23.21%. All other Canadian exporters will receive a rate of 23.21%. Read more here.

Canada Recession May Recover in Late 2009: Poll

(Reuters – Ka Yan Ng)

The Canadian economy is expected to worsen in the first half of 2009 but may start seeing tentative signs of recovery as early as the third quarter, a Reuters poll showed on Wednesday.

Economists were more pessimistic in their outlook for the economy through 2009 and into 2010, compared with the previous quarterly survey in January, slashing forecasts for gross domestic product, the unemployment rate, housing starts, and the Bank of Canada's lending rate.

The survey of over 20 economists, conducted in the days after the end of the first quarter, forecast the economy will shrink by an annualized 2.5% this year – more than twice the 1.1% contraction predicted in the January poll. Read the complete article here.

Flood 2009: New Travel Restrictions & Detour

(GHY International)

The following travel restrictions have been placed on PTH #75:

• PTH #75 from Winnipeg city limits to PR #205 is closed, local traffic only.
• PTH #75 from PR #205 to Morris is closed.
• PTH #75 from Morris to PTH #14 is closed, local traffic only.

An alternate route detour for PTH #75 will be in effect. The detour will be as follows:

1) Travel southwest on PTH #3 for 62km from the Perimeter Highway (PTH #100) to Carman.

2) Travel south on PTH #3 for 35km from Carman to the Jct. of PTH #14.

3) Travel east on PTH #14 for 50km to PTH #75.

4) Travel south on PTH #75 for 22km to U.S. border (Emerson/Pembina port of entry).

The detour is 169 km in total.

For additional information, maps and links, please click here.

Tuesday, April 7, 2009

Flood 2009: Traffic From Canada Being Detoured by Flooding

(GHY International)

The U.S. Customs and Border Protection agency says traffic from Canada on Highway 75 will be rerouted around the city of Morris, Manitoba, due to flooded roads.

A statement from the agency says the Pembina port of entry will remain open and will continue to process traffic, as will the crossing at Emerson, Manitoba.

Click here for current flood information (Province of Manitoba).

Update: Highway 75 will be closed from Winnipeg to Highway 14 south of Morris, starting at noon Tuesday. Commercial vehicles, such as semis, will have to take Highway 3 from Winnipeg and then head back toward Highway 14 to Highway 75. Highway 75 will remain open from Highway 14 to the Canada-U.S. border.

Map of alternate traffic routes to Pembina with directions (PDF)
Map of alternate traffic routes from Winnipeg to Pembina (PDF)

Alternate routes are subject to change.

Update2: Story from CBC News.

Update3: As reported here, Bob Dolyniuk, general manager of the Manitoba Trucking Association, estimates that the highway closure will cost the industry about $250,000 every day due to the roughly 100 kilometre detour.

“It's going to have to be passed on to the shippers and the public, there’s no question about it,” he said. “Costs are about $2 per kilometre, so that's $400 (extra) round trip from Winnipeg to the border, and that's way too much for any trucking company.”

More about the potential costs to Manitoba truckers here.

$1 Billion Lawsuit Filed on Behalf of Domestic Producers Against Insurers and U.S. Government for Damages Caused by Dumped Chinese Food Products

(Business Wire)

Today, domestic producers of fresh garlic, crawfish tail meat, canned mushrooms and honey, represented by the law firm of Kelley Drye & Warren LLP, filed a class action lawsuit against major insurance companies to recover close to $1 billion in damages. The Washington, D.C. law firm of Adduci, Mastriani & Schaumberg, LLP is co-counsel with Kelly Drye for many domestic producers of crawfish tail meat.

The complaint states that the insurers’ negligent issuance of customs surety bonds, and subsequent refusal to pay under those bonds, allowed the sale of huge amounts of competing food imports from China at below-cost, or “dumped” prices. This caused severe financial damages to the domestic producers. The lawsuit, filed in the federal Court of International Trade, also claims that the U.S. Customs and Border Protection and the Commerce Department failed to enforce the four antidumping orders issued years ago to protect the domestic producers from dumped Chinese imports. Read more here.

U.S. Levies 10% Softwood Customs Duty

(Bertrand Merotte — Globe & Mail)

The United States is slapping 10 per cent customs duties on four Canadian provinces on imports of softwood lumber products, saying Canada has failed to correct a breach of the softwood trade deal between the two countries.

U.S. Trade Representative Ron Kirk said in a news release that the duties will remain in place until such time as the U.S. has collected $54.8-million (U.S.).

“We regret that Canada has chosen not to meet its commitments and has made this action necessary,” Mr. Kirk said in a statement.

An offer from Canada of $36.66-million last month was not considered to have fixed the breach identified by a trade tribunal in February, according to the U.S. trade office. Read more here.

Seeing Straight at the Border

(Lou Smyrlis — CTL)

Although the border is not making headlines the way it used to a few years ago when long lineups were the norm, the reality is there are some funny things going on. It would be fair to say things are not as they seem. For example, as Robert Murray of MSM Transportation pointed out, the transborder business has been on the decline since about the fourth quarter of 2006. Yet the statistics don’t bear that out. The rising value of energy exports from Western Canada for much of 2007 and 2008 served to mask the consistently declining volumes of exports from the manufacturing sector in Central Canada. While to many politicians an export is an export, the reality for motor carriers, and those based in Central Canada in particular, is that the demise of manufacturing exports is a serious issue that requires addressing.

The other mirage at the border is that more than 7 years after 9/11 and the myriad of security programs that were spawned, it is actually getting easier to cross it. Certainly the extended border delays that frazzled the nerves of transborder truckers for years have eased. But, as the Canadian Trucking Alliance (CTA) pointed out when it recently appeared before the House of Commons Standing Committee on International Trade, this should not be taken as any indication that all is now running smoothly…

Read more here.

Note: Lou Smyrlis is the Editorial Director of Canadian Transportation & Logistics and the Transportation Group of Magazines.

Canadian Offer to Remedy Lumber Pact Violation Rejected

(World Trade Interactive)

U.S. Trade Representative Ron Kirk announced April 3 that the U.S. will not accept an offer by Canada that seeks to remedy a violation of the 2006 Softwood Lumber Agreement. According to a USTR press release, an international tribunal determined that Canada must collect an additional 10% export charge on softwood lumber shipments from its eastern provinces until about $54.8 million has been collected.

Because Canada did not take this action by the March 28 deadline, the USTR states, the U.S. is now within its rights to impose customs duties on softwood lumber imports from Canada in an amount not to exceed the additional export charges. However, the USTR is still reviewing its options and plans to decide soon on an appropriate course of action.

Canada and U.S. to Renew Joint Clearance Talks

(Journal of Commerce Online – R.G.Edmonson)

Meetings planned to revive effort that failed five years ago

The U.S. and Canada will take another look at stationing customs officers in each other’s country to clear goods before they arrive at the border. The Obama administration made a commitment to re-examine the clearance issue after a meeting last month between Homeland Security Secretary Janet Napolitano and Public Safety Minister Peter Van Loan, according to a spokesman for the minister.

The two countries considered the idea five years ago. Canadian officials proposed zones where customs officers could work side-by-side at a site away from the border, to expedite the movement of goods while maintaining border security.

The idea stalled after Canadians raised questions of national sovereignty. Read more here.

Anti-Counterfeiting Trade Agreement – Summary of Key Elements Under Discussion

(FAITC)

This paper is intended to clarify the objectives of the proposed Anti-Counterfeiting Trade Agreement (ACTA) and to summarize the issues under discussion. It gives an overview of the elements suggested under the different headings and highlights the main issues. The paper is available here.

New ACE Features to Facilitate Information-Sharing Nationwide

(US CBP)

Enhancing efficiency

ACE portal importer account holders will have the option to receive and respond to CBP Forms 28, 29 and 4647 electronically through the ACE Secure Data Portal. Being able to communicate CBP requests and actions via the portal will provide for quicker resolution of entry summary verifications and transactional issues compared to the current paper-based process. Electronic responses will be stored with associated entry summaries, enabling them to be shared within CBP nationwide and reducing the possibility that an importer would be asked to provide the same information at more than one port.

“With ACE, CBP import and entry teams won’t have to wait for additional entry summary information to be sent by mail. They will be able to receive information electronically – potentially much faster,” said Lou Samenfink, executive director of the CBP Cargo Systems Program Office. “This electronic process will benefit both CBP and the trade community through increased efficiency.”

Achieving national visibility and supporting consistency

Establishing a national repository of information will allow every port to trace the history of a CBP review to its conclusion. Electronic access to this information is expected to facilitate consistent decision-making by ports nationwide and supports efforts by CBP to employ a holistic, nationwide approach to managing compliance with trade laws and regulations.

Product Safety Law Imposes Major Burdens on Auto Suppliers

(Search Autoparts.com)

A legislative reaction to recent toy recalls has unexpectedly impacted the automotive industry – one far removed from children’s products.

Congress responded to the highly publicized lead paint toy recalls in 2007-08 by passing the Consumer Product Safety Improvement Act of 2008 (CPSIA), which requires specific safety-compliance certifications by suppliers.

But despite no connection between children’s products and general automotive maintenance and care products, one CPSIA provision and its interpretation – unless amended – threaten to sweep all such products into a broad safety certification net that will impose significant costs, among other burdens, on these product suppliers, with no demonstrated safety need or benefit to the distribution chain or the consumer. Read more here.

Monday, April 6, 2009

Stuck at the Border

(National Post – David H. Bradley, Canadian Trucking Alliance)

The obstacles that Canadian trucks face at the U.S.-Canada border is a major threat to our economy

Two-thirds (by value) of Canada’s trade with the United States moves by truck. So, I often get asked the question: How are things at the border these days?

Before answering that, it is important to understand that North America – especially its manufacturing regions – has been in a freight recession for at least two years. Initially, the reduction in freight volumes – particularly a drop-off in southbound shipments – reflected the impact from the appreciation in the value of the Canadian dollar, and ongoing problems in the auto and forestry sectors.

What had been the Canadian truckers’ traditional prime routes, and the major source of the industry’s growth over the previous 20 years, has been drying up. The onset of the financial meltdown and a world-wide recession has only served to exacerbate what had been underway for some time. Read more here.

Sunday, April 5, 2009

Exports at Risk from U.S. Climate Change Bill

(Globe and Mail – Shawn McCarthy)

Proposed U.S. legislation could slap import levies on a range of Canadian products – from steel and cement to paper and ceramics – if Washington deems Canada is lax in fighting global warming. The climate change legislation also includes low-carbon standards that could drive up the cost of imports from the Alberta oil sands.

Leading Democrats in the U.S. Congress this week introduced a bill to cap greenhouse gas emissions that would require the administration to impose tariff-like fees on importers whose own governments don’t have regulations, reporting rules or enforcement mechanisms that are as tough as those laid out in the legislation.

The proposals in the bill have wide Democratic support and stand a good chance of becoming law.

U.S. President Barack Obama and congressional leaders are promising to move quickly on measures to combat climate change – from emission caps on industry, to low-carbon standards for transportation fuel, to renewable energy portfolios for utilities. Read more here.

Friday, April 3, 2009

Obama Urged to Fill Product-Safety Post as Complaints Mount

(Wall Street Journal – Melanie Trottman)

The head of the Consumer Product Safety Commission urged President Barack Obama Wednesday to appoint a new CPSC chairman to deal with mounting complaints about a consumer-product safety law that has left retailers stuck with more than $1 billion of goods they can’t sell.

The letter, sent to Mr. Obama by CPSC Acting Chairman Nancy Nord, a George W. Bush appointee, was blunt, underscoring concerns about the pace at which the Obama administration is filling key posts at federal agencies. At the CPSC, one of three commission chairs has been vacant for nearly three years. Ms. Nord, a commissioner since 2005, became acting chairman later.

A White House spokesman said: “We are moving ahead in an aggressive fashion on a whole array of issues. When it comes to staffing, we are remarkably ahead of where previous administrations were at this point.” He declined to comment on the specifics of Ms. Nord’s letter.

The most immediate challenge facing the CPSC is the daunting task of clarifying a sweeping consumer-product safety act passed in 2008. The law’s limits on lead in products aimed at children aged 12 and under have made it illegal to sell or distribute numerous items that manufacturers and retailers had in stock as of the effective date for the law’s lead limit, February 10, 2009. Read more here.

Senator Seeks Import Duties on Canadian Softwood Lumber

(World Trade Interactive)

Sen. Olympia Snowe, R-Maine, is asking the Office of the U.S. Trade Representative to immediately increase import duties on Canadian softwood lumber products due to an alleged violation of the 2006 Softwood Lumber Agreement. Canadian officials say there is no violation, however, and a February statement from USTR itself suggests that may in fact be the case.

In February an international tribunal ordered Canada to provide a compensatory remedy for a violation of the SLA that resulted in more shipments to the U.S. than were allowed. USTR said at that time that Canada had some flexibility in determining what precise remedy to impose but had only 30 days to take action. If that deadline were not met, USTR said, Canada would have to collect an additional 10% export charge on softwood lumber shipments from its eastern provinces until $54.8 million was collected. If neither of these measures was taken the U.S. would be entitled to impose the additional charges itself. Read more here.

Thursday, April 2, 2009

Harper Urged to Appoint Cabinet-Level Border Czar

(The Gazette)

Canada’s truckers and manufacturers pressed Prime Minister Stephen Harper on Tuesday to appoint a cabinet-level border czar to preserve and enhance cross-border trade and traffic and to help avoid what one MP says could be a “tourism calamity” when new passport rules kick in later this year.

The Canadian Trucking Alliance, which represents the country’s 400,000 truckers, and the Canadian Council of Chief Executives told a committee of MPs on Tuesday that border delays are likely to worsen, not improve, under the new U.S. administration.

They said the federal government needs to make someone politically responsible for co-ordinating a Canadian response to this threat to Canadian trade. Read more here.

The Poison of Protectionism

(Peter Hall, Vice-President and Chief Economist, Export Development Canada)

“Never waste a good crisis”. This has recently become the mantra of key policymakers, who are seizing the moment to enact good legislation. Sadly, the crisis has also dredged up discussion of policies that, if applied, would cause great harm. Protectionism is close to the top of that list.

The world has spent the last 30 years – arguably more – freeing up trade. The evidence is manifold. From the GATT round of discussions to the WTO rounds, the Canada-US FTA, NAFTA, EU integration and ongoing accession, implementation and negotiation of other regional trade agreements, to the host of bilateral agreements in place or on the table, the world has bought into freer trade as a means to greater global prosperity – a prosperity that each adherent participates in. To top it off, considerable effort has been devoted to freeing up international investment flows, a critical element of global trade, through a profusion of bilateral double-taxation agreements and investment protection agreements. It doesn’t stop there – many more deals are in the works. Read more here.

Wednesday, April 1, 2009

Enhanced Recall Regulations Proposed Under The Consumer Product Safety Improvement Act Of 2008

(Mondaq – Robert L. Falk et al, Morrison & Foerster LLP)

The Consumer Product Safety Improvement Act of 2008 (the “Act”), which became law on August 14, 2008, imposes a number of new requirements on product manufacturers, distributors, and retailers. The focus of this client alert is the draft regulations proposed by the Consumer Product Safety Commission (“CPSC”) on March 20, 2009 that include guidelines and requirements for product recall notices.

The proposed regulations would apply to manufacturers (including importers), retailers, and distributors of all consumer products and not just “children’s products” otherwise regulated under the Act. They represent a substantial enhancement of past recall-related procedures and likely will impose significantly greater burdens on those who are required to carry out mandatory consumer product recalls in the future. The new requirements will also serve as guidelines the CPSC will use for negotiating the terms of future voluntary product recalls.

The CPSC will be accepting public comments on these regulations until April 20, 2009, after which they are likely to be quickly finalized, published in the Federal Register, and put into effect. Read more here.

Toward a Better Border: The United States and Canada

(CSCB)

On March 25, 2009 the Canadian International Council (CIC) and The Brookings Institution hosted a conference in Washington entitled “Toward a Better Border: The United States and Canada” to help shed light on the evolving security and economic challenges associated with the Canada-US border and to examine recommendations for improving border policy. U.S. Homeland Security Secretary Janet Napolitano delivered the keynote address.

Video excerpts and transcripts of the conference can be obtained on the CIC website.

CBP Automated Forms Streamline Review Process

(US Customs and Border Protection Agency)

U.S. Customs and Border Protection will automate versions of CBP Forms 28, 29 and 4647, “Request for Information,” “Notice of Action” and “Demand for Redelivery,” respectively, beginning in spring 2009. The new paperless process will allow importers with an Automated Commercial Environment Secure Data Portal account to interact faster and more efficiently with an import specialist to ensure goods are properly classified on the entry summary.

Automating forms saves time

Automating CBP Forms 28, 29 and 4647, the most commonly used CBP forms, will reduce the time and effort of import specialists to provide notification to a filer or request more documentation for roughly 260,000 entry summaries each year – five percent of entry summaries filed. The new automated forms capability is part of entry summary, accounts and revenue initial entry summary types capabilities, to be deployed beginning in spring 2009. These capabilities will enable consumption and informal entry processing, entry types 01 and 11, respectively, to be processed in ACE, the agency’s new commercial trade processing system.

Streamlining procedures ensures efficiency>

… Automating CBP Forms 28, 29 and 4647 facilitates CBP’s goal of streamlining the team review process. During team review, an import specialist uses these forms to interact with filers to ensure imported goods are recorded correctly, modify incorrect classification values or determine if the import complies with U.S. trademark regulations.


Providing additional documentation is easier electronically

Currently, import specialists examine the entry summary for potential inaccuracies, and if more documentation or action is required, paper forms are delivered to importers. Importers or their brokers return the requested information through a mail carrier service, prolonging the time it takes CBP to receive this information and making it difficult for filers to confirm that the information was received by CBP.

With the new automated forms capability, import specialists will be able to send an electronic request for information to importers that have established ACE Secure Data Portal accounts. Importers will have the option of attaching an electronic file containing supplemental materials and using the ACE portal to track the status of their submissions, ensuring CBP has received the requested documentation. Read more here.

Tuesday, March 31, 2009

CTA Voices Concerns About Proposed Customs Changes

(Truck News)

The Canadian Trucking Alliance (CTA) has voiced concern over certain aspects of proposed legislation in Canada that could impact the in-bond inland clearance of goods.

The CTA made its opinion known to a Senate Committee on National Security and Defence this week, which was exploring the possible impacts of Bill S-2, An Act to Amend the Customs Act.

For the most part, CTA supports the bill, which it says would “more fairly distribute the responsibility for gathering and presenting required data on goods entering Canada to all supply chain participants.”

Currently the onus is on the carrier to provide advanced information to Canada Border Services Agency (CBSA) about the truck, driver and goods entering Canada, even though the carrier does not own or package the cargo, and in some cases hasn’t loaded the freight.

This puts the carrier at risk of being held up at the border if there are inaccuracies in the paperwork, even if the incorrect data concerns the cargo. Under Bill S-2, it’s possible the Governor-in-Council could take some of the burden off the carrier, and make other supply chain partners more accountable.

“CTA supports this amendment,” said CTA CEO David Bradley during his testimony. “CTA believes that over time there has been far too much regulatory obligation placed on the carrier community relative to other supply chain partners and the proposed amendment could provide better balance. CTA has advocated that increased responsibility should be placed on all parties in the supply chain that own the information supplied to CBSA.” Read more here.