Friday, May 15, 2009
CPSC Won’t Delay Effective Date for Tracking Labels on Children’s Products
The effective date for compliance with the statutory requirement for tracking labels on all children’s products remains Aug. 14, 2009, after an indecisive vote by the Consumer Product Safety Commission on a request for a delay. As a result, effective Aug. 14 manufacturers of children’s products must place permanent distinguishing marks on those products and their packaging that enable the identification of the manufacturer or private labeler, the location and date of production, and certain other information. “Children’s products” are defined in the Consumer Product Safety Improvement Act as consumer goods designed or intended primarily for children 12 years of age or younger. Read more here.
Thursday, May 14, 2009
U. S. Climate Bill Would Be “Disaster”
Jim Prentice, the Minister of the Environment, yesterday warned U. S. lawmakers to drop proposed trade sanctions on imports from countries with higher levels of greenhouse gas emissions, saying the measure would be a “prescription for disaster” for the global economy.
In the Harper government’s toughest critique yet of draft U. S. climate legislation, Mr. Prentice told a Washington audience a proposal to slap a “carbon-border adjustment” fee on foreign manufacturers violates the core principles of international trade.
In addition, any U. S. decision to impose such a trade tariff threatens the chances of reaching an international climate change deal later this year in Copenhagen, Mr. Prentice said.
“Trade protectionism in the name of environmental protection would be a prescription for disaster for both the global economy and the global environment,” the Minister said in remarks at the State Department to the Conference of the Americas. Read more here.
Wednesday, May 13, 2009
Canada Told to De-emphasize NAFTA
Canada must avoid discussing the North American Free Trade Agreement in advancing its U.S. trade interests, a U.S. professor wrote for a business group Monday.
“Ottawa needs a new approach to discussing Canada-U.S. trade – one that avoids direct mention of NAFTA,” Georgetown University international business diplomacy professor Marc Busch wrote for the Conference Board of Canada. “NAFTA is associated with the job losses to Mexico, with its lower wage rates,” Busch said in “The Perfect (Anti-Trade) Storm? Recession, the November U.S. Elections, and What It All Means for Canada.”
“In contrast, Americans see trade with Canada as similar to trading with North Dakota,” Busch’s report said. “By emphasizing the bilateral trade relationship instead of NAFTA itself, Canada can benefit from the fact that Americans do not perceive Canadian trade as a threat.” Read more here.
Fighting Back: Small Town Says Turn-Around Fair Trade in ‘Buy America’ Battle
Tiny Halton Hills, Ont. – population 58,000 – is vying to be the mouse that roared in the battle against big bad U.S. protectionism.
Upset that one of the southern Ontario community’s biggest manufacturers is being shut out of municipal infrastructure projects south of the border under Buy American legislation, Halton Hills is taking matters into its own hands. The town council has unanimously passed a resolution that would have the Toronto-area municipality discriminate against any country that discriminates against Canada.
And the idea is proving so attractive that it will likely be put to a vote during next month’s annual general meeting of the Federation of Canadian Municipalities.
Mayor Rick Bonnette says his town’s action is not a “Buy Canadian” response, but he does want Canadian municipalities – which will be spending the lion’s share of the federal government’s $12-billion infrastructure program – to shut the door to contract bidders from the U.S. until that country opens its doors to Canadian firms. “We want to push back,” he explained. “There comes a point where you can’t stand by and do nothing when you have people losing their jobs.”
Buy American clauses in President Barack Obama’s US$800-billion stimulus package – meant to ensure U.S. taxpayer money creates jobs in the recession-ravaged United States – have raised the ire of international governments, which are accusing the U.S. administration of preaching free trade, particularly during the current recession, but practising stealth protectionism.
Prime Minister Stephen Harper believed he had exacted the necessary concession from the U.S. administration in February when the president pledged to honour international trade obligations, including those under NAFTA, in the application of Buy American provisions. Read more here.
Canada’s Environment Minister to Speak Against U.S. Green Tariff Proposal
(CBC News)
Canada’s environment minister was to tell an American business organization that tariffs shouldn’t be imposed on imports from countries that allow greater greenhouse-gas emissions than the United States.
“Trade protectionism in the name of environmental protection would be a prescription for disaster for both the global economy and the global environment,” says an advance copy of Jim Prentice’s speech to the Council of the Americas. “And the threat of such unilateral action is a threat to global progress at this critical time in multilateral negotiations.” Prentice was speaking to the business group Wednesday in Washington.
The U.S. House of Representatives introduced a bill in March proposing hard caps on emissions as well as tariffs on imports from countries with more lax greenhouse-gas rules that the United States. Read more here.
Tuesday, May 12, 2009
Border Posts Ready With Crossing Scanners
The scanners and the new computer systems are in place at Vermont’s largest border crossing with Quebec and people in both the United States and Canada are starting to get identification cards that makes it easier for them to cross the border.
There are still a few loose ends, but officials with U.S. Customs and Border Protection say they will be ready on June 1, the day the United States fully implements the Western Hemisphere Travel Initiative.
And people in both countries know the pre-9/11 days are gone when they could simply tell a border agent who they were and go from one country to another. Most people crossing the border now already have all the required documents, officials said.
The travel initiative requires everyone entering the U.S. to have specialized documents, like passports or special driver’s licenses, that prove who they are and where they’re from. Read more here.
Related: U.S. beefs up security along Canadian border (LAT)
European Freight: ‘The Worst Is Over’
Increasing levels of business and confidence, according to Danske Bank survey
Latest figures from some major research departments have suggested that the worst of the recession for the European freight industry may now be over. In its latest European Freight Forwarding Index, Danish national bank Danske Bank recorded increased levels of both volumes and business confidence among forwarders, compared with two months ago.
Author of the report, Danske Bank transport equity analyst Johannes Møller, told IFW: “The good news is that the index on the current situation is now above 50, indicating that the participants are today handling more volumes than they did two months ago. We see this as a clear indication that the recovery in the freight markets has begun.”
Respondents to the Danske Bank survey were asked two questions: what volumes their company handles today compared with two months previously; and how they expect volumes to develop over the following two months. Respondents were given three options to reply: lower volumes, unchanged volumes, and higher volumes.
The answers were then translated into an index ranging from 0 to 100, in which a value above 50 represents an improvement in business levels. The survey questioned 123 forwarders in Scandinavia, the UK, Germany and east Europe, and the index for current business in May was at 59, compared with 46 in April, 27 in March and 28 in February. It also found improved confidence going forward, with an index of 60 for the next two months. Read more here.
Monday, May 11, 2009
Buy American Predictions Coming True
Despite Obama’s anti-protectionism rhetoric, Canadian manufacturers are finding themselves suddenly cut off from U.S. markets as his $800-billion (U.S.) stimulus plan takes effect
More than a half-dozen times since taking office, President Barack Obama has implored recession-weary nations not to build walls around their economies.
From Ottawa and London to Prague, Ankara and back home again, the U.S. President’s message has been consistent: protectionism “hurts us all in the end.”
Apparently, the warning didn’t reach the Camp Pendleton Marine base in Oceanside, Calif., where last week a contractor installing a sewage line ripped a section of Canadian-made pipe out of the ground, complaining it didn’t meet new “Buy American” rules.
“They exhumed the product and replaced it with an identical product,” complained a disheartened Veso Sobot, whose company Ipex Inc. of Don Mills, Ont., made the pipe. “The only problem was that it said ‘Made in Canada.’ “
The offending plastic pipe was made at an Ipex plant in London, Ont., one of the Belgian-owned manufacturer’s 15 Canadian factories. And according to Mr. Sobot, the sewage project isn’t even covered by any foreign content restrictions.
“This is protectionism run amok,” Mr. Sobot said in an interview. Read more here.
Sunday, May 10, 2009
Obama’s Trade Stance Keeps Partners Guessing
During last year’s US presidential campaign Austan Goolsbee, then Barack Obama’s economic adviser, got into hot water when he told a Canadian diplomat not to pay too much attention to his candidate’s tough rhetoric on the North America Free Trade Agreement.
Mr. Obama’s spin doctors quickly locked Mr. Goolsbee away in a dark room.
A year later Mr. Goolsbee, who is now at the Council of Economic Advisers, a group that answers to the president, is being vindicated. On Wednesday Mr. Obama issued a statement on trade that contained little of the language he deployed on the campaign trail.
The president’s statement also flagged up a new “plan of action” on three unconsummated trade agreements – with South Korea, Colombia and Panama – all of which are deeply unpopular with trade unions and all of which Mr. Obama opposed on the campaign trail. Wednesday’s statement followed a clear hint last month from Ron Kirk, Mr. Obama’s trade representative, that NAFTA would not formally be reopened for negotiation. […]
Trade watchers in Washington are divided between those who believe Mr. Obama is moving rapidly towards a Clintonite position in favour of new trade deals and those who believe the president is simply moving away from the protectionist wing of the Democratic party without developing a proactive new agenda on trade. Read more here.
The Smoot-Hawley Act Is More Than a Laugh Line
(Ben Stein — New York Times)
For the last 23 years or so, complete strangers have come up to me all over this country to ask if there really was such a thing as the Smoot-Hawley Tariff Act or if I made it up.
Yes, there really was such a thing. And while it’s been the subject of some controversy for economists and historians, it also played a special role in my little life. The Smoot-Hawley Tariff Act, sometimes called Hawley-Smoot, was the subject of a monologue I gave ad lib, just off the top of my head, in the movie “Ferris Bueller’s Day Off” on Stage 15 at Paramount Studios on or about Nov. 15, 1985. It stayed in the movie, and when that movie was released in 1986, that scene, my first of any size in any movie, made me a star — although a star of only cult proportions, unlike, say, a Ronald Reagan. For me, that is the primary significance of that piece of legislation.
Otherwise, the Smoot-Hawley Tariff Act of 1930 was a wildly misguided attempt by two Republican senators, Reed O. Smoot of Utah and Willis C. Hawley of a very different Oregon, and the Republican-controlled Congress to stimulate domestic production by raising (“raising or lowering ... anyone, anyone?”) tariffs on many goods from abroad. Signed reluctantly by President Herbert Hoover, who most certainly did know better, the law did not do much to ameliorate the onrushing Depression, but it did anger foreign trading partners. They slapped retaliatory tariffs on American-made goods.
World trade slumped. Read more here.
Saturday, May 9, 2009
“Buy America” Starts To Be Felt
Canadian manufacturers this week related some startling examples of how the “Buy America” laws in the United States are cutting into their business.
As reported by the Star’s Les Whittington, the recently installed piping for a new health centre at a military base in California was actually ripped out of the ground when it was discovered that it was made in Canada. Meanwhile, a manufacturer of pumps who has been selling into the American market for more than three decades finds that, for the first time, he is being required to certify that his products are “made in the U.S.A.” As a result, he may have to shift some of his production south of the border.
Our manufacturers are beginning to feel the impact of the American Recovery and Reinvestment Act authorizing the spending of $90 billion (U.S.) on roads, bridges and other infrastructure. It was passed by Congress earlier this year on the condition that only American steel and manufactured goods be used in the projects.
And U.S. protectionism likely won’t end there. For instance, a bill before the U.S. Senate would provide $13.4 billion in spending over the next five years for clean water projects. A clause in the bill repeats the “Buy America” provisions of the Recovery Act. Read more here.
Tear Down That (Trade) Wall
(Globe & Mail)
Former trade minister David Emerson on what Stephen Harper was negotiating in Europe this week, why it might only be the start and whether the seal hunt is more trouble than it's worth
Adam Radwanski, globeandmail.com: Mr. Emerson, thanks for taking the time to help shed a little light on what the Prime Minister has been doing this week in Europe. It strikes me, given the potentially massive changes to our trade policy that could ultimately result from Mr. Harper's talks with the EU, that there's been surprisingly little focus on what's being discussed (other than the seal hunt). Should Canadians be paying more attention to what's going on there?
David Emerson: There is no doubt that Canadians should be paying close attention to the government's attempts to move trade policy forward more aggressively. Canada has always been, and always will be, a trading economy. Today 80 per cent of our exports go to the U.S., and with protectionism on the rise we absolutely must build deeper relationships across both the Atlantic and Pacific.
The EU is a market of roughly three quarters of a billion people, with 27 countries' markets at various stages of development and with enormous potential for trade and investment linkages to Canada. With Europe, we are also dealing with relatively stable and advanced democracies. If we can strike a comprehensive trade deal expeditiously, it strengthens Canada's position relative to the U.S. and builds on a market where we have begun to see significant growth and success.
Adam Radwanski: There have been rumblings about knocking down trade barriers between Canada and the EU for years, but rarely have they amounted to much. What's changed?
David Emerson: Probably the biggest change has been the willingness of provinces to consider being bound by the obligations such a deal may involve.
Procurement practices of sub-national governments have been major barriers to the success of past negotiations. Policies limiting mobility of skilled and educated people are another example.
Quebec, for example, has moved from a historically reluctant jurisdiction to a strong advocate of a deeper economic relationship with Europe.
We still are likely to have problems dealing with agriculture to any substantial degree; both the EU and Canada are strongly protectionist and timid with respect to certain agricultural interests. Canada will also have to show increased flexibility when it comes to protectionist limits on foreign ownership and investment in certain sectors.
I do think, perhaps wishfully so, that Canadians are more informed than ever about the economic perils of protectionism. Let us hope our leaders continue to lead and take advantage of the opportunity.
Read the complete interview here.
Friday, May 8, 2009
The Future of the Multilateral Trading System
Jeff Schott, Senior Fellow at the Peterson Institute for International Economics discusses the roots and future of the multilateral trading system in a lecture at Princeton University, Woodrow Wilson School of Public and International Affairs from March 31, 2009. Note: This presentation is 1 hour 22 minutes in length.
Schott joined the Peterson Institute for International Economics in 1983 and is a senior fellow working on international trade policy and economic sanctions. During his tenure at the Institute, Schott was also a visiting lecturer at Princeton University (1994) and an adjunct professor at Georgetown University (198688). He was a senior associate at the Carnegie Endowment for International Peace (198283) and an official of the US Treasury Department (197482) in international trade and energy policy.
During the Tokyo Round of multilateral trade negotiations, he was a member of the U.S. delegation that negotiated the GATT Subsidies Code. Since January 2003, he has been a member of the Trade and Environment Policy Advisory Committee of the U.S. government. He is also a member of the Advisory Committee on International Economic Policy of the U.S. Department of State.
Schott is the author, coauthor, or editor of several books on trade, including Economic Sanctions Reconsidered; Trade Relations Between Colombia and the United States; NAFTA Revisited: Achievements and Challenges; Free Trade Agreements: US Strategies and Priorities; and Prospects for Free Trade in the Americas to name a few.
Minister Day Wraps Up European Trade Promotion Visit
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today concluded a five-day visit to Lithuania, Latvia, the Czech Republic and Romania, where he was opening doors to new opportunities for Canadian companies.
During his visit, Minister Day signed foreign investment promotion and protection agreements (FIPAs) with Latvia and the Czech Republic. Tomorrow, he will sign a FIPA with Romania. These agreements will protect and promote Canadian investments so that businesses can invest with confidence.
“Renewing these FIPAs represents a concrete step in moving Canada’s trade agenda forward,” said Minister Day. “These agreements also help deliver on the government’s commitment to create the right conditions for Canadian businesses to compete internationally.”
Minister Day met with key ministers and senior officials in each country to discuss areas of mutual interest, such as energy security in the region. He also promoted the benefits of a closer Canada-EU economic relationship.
The launch of negotiations with the EU toward a comprehensive economic partnership agreement was officially announced by Prime Minister Stephen Harper, Czech Prime Minister Mirek Topolánek and European Commission President José Manuel Barroso at the Canada-EU Summit on May 6. The agreement could provide a $12-billion boost to the Canadian economy and a 20-percent increase in bilateral trade between Canada and the EU.
While in Lithuania, Latvia and Romania, Minister Day promoted Canada’s expertise in the energy sector and raised the profile of Canadian companies, particularly those in the nuclear industry, as world-class suppliers of quality goods and services. Atomic Energy of Canada Ltd. and the Canadian nuclear industry have the technological expertise to participate in the construction of a Lithuanian-led nuclear power project for the region, and for phases three and four of Romania’s Cernavoda nuclear power plant. These multibillion-dollar projects could create new jobs in Canada and Europe.
In Romania, the minister promoted Canada’s new measures to help Canadian mining and oil and gas companies meet and exceed their social and environmental responsibilities when operating abroad.
More details about Minister Day’s trip to Europe can be found here.
A 60-Year-Old Dream
Trade talks between Canada and the EU send a worrying signal about Doha
When NATO was under negotiation in 1949 Canada wanted to create not just a military alliance, but a transatlantic economic and political union too. The heft of the larger European countries, it reasoned, would restrain the growing clout of the United States. Rebuffed, Canada was drawn firmly into America’s orbit. Sixty years on it has come back with a scaled-down plan, starting talks on May 6th with the EU aimed at a bilateral trade agreement.
You can see why Canada would want to lessen its dependence on America, which bought 75.5% of its exported goods last year and provided 63.4% of its imported ones. Yanked into recession by America, Canada worries that trade will suffer from protectionism (in the form of new Buy American provisions and country-of-origin labelling requirements on farm products) and Washington’s moves to toughen up border security.
It is less clear what motivates the EU, which traded a mere €70 billion ($103 billion) with Canada last year. The EU did more than five times as much trade with China in 2007 and more than ten times as much with America. The estimated increase in bilateral trade of €25 billion annually once the deal has been in place seven years appears modest.
According to Catherine Ashton, the EU trade commissioner, by talking about trade liberalisation amid rising global protectionism, the two parties are sending a “powerful signal”. Yet they are also sending a worrying message about confidence in the Doha round of global trade talks. In 2006 Canada and the EU had put talks on a trade and investment treaty on hold pending the outcome of Doha. Read more here.
C-TPAT Members to Get “10+2” Report Cards
U.S. Customs and Border Protection will issue the first “10+2” progress reports on May 10 to let importers and their agents know how well they are complying with the rule for submitting advance electronic data about their cargo shipments, Assistant Commissioner Thomas Winkowski announced Wednesday.
The report cards will be sent by e-mail to all parties that have submitted Importer Security Filings (ISF) for their ocean shipments since the rule went into effect on Jan. 26.
CBP originally intended to send the progress reports only to filers, which will then be responsible for separating the individual spreadsheets and sending them on to their various customers. Most importers are using third-party vendors, such as customs brokers, forwarders and compliance software providers, to file on their behalf.
In a new twist, the border agency will also begin issuing report cards directly to all importers that participate in the Customs-Trade Partnership Against Terrorism, Winkowski told the 20 industry representatives on the Commercial Operations Advisory Committee meeting in Washington. Read more here (subscription required).
Homeland Security Would Get Boost Under Obama Budget
President Obama’s fiscal 2010 budget request for the Homeland Security Department will boost funding for technology and border agents along the southwest border, as well as to find and deport criminal illegal immigrants inside the country.
It represents a shift away from some of the most controversial efforts under the Bush administration, such as building fencing and barriers along the border and going after undocumented workers who pose no criminal or national security threat.
Nearly $200 million would be allocated for Immigration and Customs Enforcement to conduct enforcement actions against criminal illegal immigrants -- a 30 percent increase over current levels.
About $70 million would be provided to hire about 350 new special agents and criminal investigators to establish a new border violence intelligence group and improve coordination efforts with the Mexican government.
“There are a couple of things we are going to have a prayer meeting about, but I think basically it’s a good budget,” said House Homeland Security Appropriations Subcommittee Chairman David Price, D-N.C. “We are going to examine it in detail and talk about it with all of our colleagues.” Read more here.
Thursday, May 7, 2009
WTO Secretariat Reports Increase in New Anti-Dumping Investigations
The WTO Secretariat reported that during the period 1 July — 31 December 2008, the number of initiations of new anti-dumping investigations showed a 17 per cent increase compared with the corresponding period of 2007. On a yearly basis, there were 208 initiations of new anti-dumping investigations in 2008, as compared to 163 in 2007 and 202 in 2006.
AIRS Verification Service - Request for Participation
Canadian importers and brokers have been asking to simplify and speed up the process of requesting multiple AIRS commodities in a single request through ACROSS and EDI. In response to this request from industry, the CFIA has developed the AIRS Verification Service (AVS). AVS is a web service designed to verify and validate multiple AIRS commodities in a single request. Information is sent to the service in an XML format where it is validated and a response message is generated identifying which commodity requires review before submission.
Currently, AVS is only available in a Pilot Project Phase for testing by importers and brokers. To date, we have had limited participation however, the response from participants has been very positive and they have all noted that the web service is a valuable time saver for their respective organizations.
At this time, CFIA requires further participation in the pilot project in order to thoroughly test the service before it becomes available nationally. Additional participation is crucial to the success of this service and without it the project and its launch may need to be cancelled.
It would be greatly appreciated if you will take the time to communicate this to your members and invite them to contact me directly should they wish to participate.
Your partnership and support in this matter are very much appreciated. Please feel free to contact me anytime should you or your members have any questions.
Heather Donohoe
AVS Pilot Coordinator, Import Control Division
Canadian Food Inspection Agency, National Headquarters,
Ottawa, ON
Phone: 613.773.5326
heather.donohoe@inspection.gc.ca
Customs Notice: 09-007, Canada-European Free Trade Association Free Trade Agreement (CEFTA)
This customs notice is to inform you of the July 1, 2009 implementation of the Canada-European Free Trade Association Free Trade Agreement (CEFTA).
Buy-American Rules Shutting Out Canadians
Growing Protectionism in U.S. Spells Disaster, Manufacturers Fear
A Toronto company that has been exporting pipe to the United States market for 60 years recently landed a contract to supply plastic piping for a new health-care centre at the Camp Pendleton Marine base in California.
But the piping is now being ripped out of the ground. Why? Because the pipes are branded with the words Made in Canada.
It’s just an early example of what some Canadians fear will be a plague of protectionist measures in the U.S. that could result in the loss of billions of dollars in sales and thousands of manufacturing jobs in Ontario and other provinces.
Despite reassurances by President Barack Obama, Buy America provisions that require the use of U.S.-made products are spreading and threatening to keep Canada’s suppliers from participating in the massive rebuilding project now under way south of the border, according to business experts.
“Camp Pendleton is a perfect example of how an excellent product, a brand new product, is going to be pulled out of the ground and be replaced by an American-made product,” said Veso Sobot, spokesperson for IPEX Inc., the Don Mills-based company that sold the pipe to the California Marine installation.
“We’ve never seen such a wave of protectionism as at this moment,” he said, adding that he’s also being pressed by project organizers in other states to certify that his pipes are all made in the U.S. – which they aren’t.
“Many Canadians believe the issue” of U.S. protectionism “was settled when (Obama) came into Canada back in February and made assurances that all is well. But it’s not,” Sobot said at a news conference organized by Canadian Manufacturers & Exporters (CME). “This will lead to lost Canadian jobs if it’s not dealt with quickly.” Read more here.
Canada Requests Further Round of WTO Consultations on U.S. Country-of-Origin Labelling
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, and the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food, today announced that the Government of Canada is taking action on behalf of Canadian farmers in the dispute over U.S. country-of-origin labelling (COOL) measures. Canada has taken the next step in the World Trade Organization dispute settlement process by formally seeking further consultations with the United States.
“We are concerned with the approach the United States is taking to implement COOL and the negative impact it is having on our exporters,” said Minister Day. “Recent instructions from the U.S. Secretary of Agriculture encouraging the U.S. industry to use very strict labelling practices have removed the flexibility previously envisioned in the legislation and this affects the ability of our cattle and hog exporters to compete fairly in the U.S. market.”
“We are standing up for Canadian producers as we always have, and always will,” said Minister Ritz. “COOL is having a significant negative impact on the Canadian livestock industry and we are taking the necessary steps to ensure that our producers are treated fairly.”
Canada initially requested WTO consultations with the U.S. on COOL in December 2008, as it believed the measures were creating undue trade restrictions, to the detriment of Canadian exporters. At that time, U.S. provisions were being implemented on an interim basis.
A Final Rule to implement COOL was published in the U.S. Federal Register on January 15, 2009. However, on February 20, 2009, the U.S. Secretary of Agriculture issued an open letter to the U.S. industry, encouraging the use of stricter and broader labelling practices. According to Canadian industry representatives, those proposals will only add to the challenges they are already experiencing. They have observed that, since COOL came into effect, some U.S. processors are choosing not to buy Canadian animals, or are trying to buy them at a reduced price.
Mexico is in the process of filing a similar request at the WTO. This underscores both countries’ concerns over the impact of COOL on the integrated North American industry.
WTO consultations provide parties with an opportunity to resolve a dispute through discussions. If consultations fail to resolve the matter, the complaining party may request that the matter be referred to a WTO dispute settlement panel.
Statement by Trade Ministers of the United States, Canada and Mexico
(Foreign Affairs and International Trade Canada)
Canadian Minister of International Trade and Minister for the Asia-Pacific Gateway, Stockwell Day, United States Trade Representative Ron Kirk, and Mexican Secretary of the Economy Gerardo Ruiz Mateos today issued the following statement calling for an end to unscientific bans on pork imports from their respective countries due to the fears of the H1N1 flu virus, noting the large and negative economic impact of such bans. More than a dozen countries worldwide have sought to ban pork imports from H1N1-affected nations:
“We would like to express our concern for the victims of the current outbreak of H1N1 human influenza. Our governments remain committed to doing everything possible to bring the outbreak under control.”
“We are also concerned that some trading partners are imposing restrictions on trade in swine, pork and other meat products from North America that are without scientific justification and inconsistent with their international obligations. These unjustified restrictions will likely result in serious trade disruptions without cause and result in significant economic damage.”
“On May 2, the World Health Organization [WHO], the World Organization for Animal Health [OIE], the Food and Agriculture Organization [FAO] and the World Trade Organization issued a statement saying that ‘there is no evidence that the virus is transmitted by food. There is currently therefore no justification in the OIE Terrestrial Animal Health Standards Code for the imposition of trade measures on the importation of pigs or their products.’ They stressed that ‘pork and pork products, handled in accordance with good hygienic practices recommended by the WHO, FAO, Codex Alimentarius Commission and the OIE, will not be a source of infection.’”
“In view of the above, we urge our trading partners to remove these restrictions on our products immediately. We will continue to follow this situation closely, and will take any steps to prevent the enforcement of unjustified measures against our exports, as appropriate.”
The Effect on International Trade in an Economic Downturn
The Editor interviews David A. Hartquist , Chairman of the International Trade and Customs practice group of Kelley Drye & Warren LLP.
Editor: As Chairman of the International Trade and Customs practice group of Kelley Drye & Warren, how are the current economic conditions affecting your practice area and your clients involved in international trade?
Hartquist: We are very busy, and I expect that during the course of 2009 we'll become even busier. One of the things that happens during an economic downturn is that as competition for diminished sales increases, concern about fair play in the marketplace also intensifies. So many of our clients are asking us to look into dumping and subsidization situations to determine whether actions should be taken to deal with these kinds of unfair trade practices.
Editor: Are you finding concrete evidence that this is the case?
Hartquist: Yes, it's very widespread in affecting both our traditional and new clients.
Editor: What effect will the economic stimulus legislation have on your clients?
Hartquist: We think a significant effect, in part because many of our clients are in basic industries, such as steel and the copper and brass industry. We worked very hard on the so-called "Buy America" provisions in the recent legislation passed by Congress. Potentially, we think there's going to be a considerable amount of business to be generated for American manufacturers under this legislation, given the wide array of projects, and numerous federal and state agencies involved along with local governments. Infrastructure work will involve a large portion of our manufacturing capacity.
Read the complete interview here.
Buy America Policy Now a Big ‘Concern’
The federal Conservatives, who once downplayed the impact of Buy America clauses in the United States, are changing their tune and now concede it’s a major concern for Canada’s economy.
Industry Minister Tony Clement yesterday expressed worry about growing U.S. protectionism, saying he is hearing that Canadian companies are being disadvantaged by the application of Buy America provisions on contracts being let in the U.S.
“I’m concerned about it,” Clement told reporters. “It’s incumbent upon us to make sure that the Americans live up to their trade obligations, their treaty obligations under WTO (World Trade Organization) and under NAFTA.”
His remarks came a day after Canadian Manufacturers & Exporters warned Canadian companies are being shut out of crucial U.S. markets by rules barring foreign-made products from being used in public works projects funded from President Barack Obama’s $787 billion (U.S.) economic stimulus package.
Harper Talks Free Trade With European Union
Quebec takes seat at table saying provinces want to influence deal, but Nfld. opposes EU discussions due to seal-product ban
Canada embarked on free-trade negotiations with the European Union yesterday with a visit by Prime Minister Stephen Harper to Prague, while Quebec showed its determination to play its own major role in the talks, naming former Parti Québécois premier Pierre-Marc Johnson as the province’s “chief negotiator.”
Quebec Premier Jean Charest has established close ties with the former PQ leader, who has been one of the Liberal government’s most respected voices on everything from trade issues involving the United States and China to heading a public inquiry into the 2006 collapse of an overpass in Laval that killed five people.
Mr. Johnson, who in the 1980s placed sovereignty on the backburner to promote Quebec’s “national affirmation” within Canada, has now been asked to advance Mr. Charest’s vision of Canadian federalism, in which provinces act as partners with Ottawa in major decisions, rather than spectators.
“The European Union was reticent to engage in such talks unless the provinces were committed to the process,” Mr. Johnson said yesterday. Read more here.
Emerson Goes Against the Tide in Push for Border Reforms
Influential former federal minister and leading business executive David Emerson is calling on Canada to lead a new charge on continental integration.
He calls his idea Project North America.
Says Emerson: “I think the process of integration has to begin with the two leaders, perhaps three,” outlining a joint vision for closer collaboration.
“Probably from there to a high level emissaries model to put meat on the bones.”
Canada’s former international trade and foreign affairs minister in the Harper government, is among a rising tide of voices in recent months expressing concern about a thickening border and growing protectionism in the U.S., despite the smiling face of Barack Obama.
But even as Emerson is urging greater coordination between Canada and the U.S., and secondarily Mexico, the trend line is going in the opposite direction. Read more here.
Canada’s Placement on U.S. Piracy List Just Bluster: Lawyers
But business group warns it could scare off investors
Canada’s addition to a “priority watch list” of countries deemed soft on copyright piracy by the United States shouldn’t and probably won’t perturb the Canadian government, say Canadian researchers who study copyright and Canada-U.S. trade relations.
“We’ve been placed in a spotlight, but the United States has not indicated that it’s prepared to take any action,” said Chi Carmody, a law professor at the University of Western Ontario and the Canadian director of the Canada-United States Law Institute.
“My sense is that Canada’s inclusion on the list this year is not really something that the United States is concerned about in our bilateral relationship, but more as an example to the rest of the world.”
He added that Canada is a sovereign country with the right to make its own decisions, and that he believes the government is committed to a “made in Canada” approach to copyright and intellectual property, “as we should be.”
Canada was among 12 countries that made the “priority watch list” in an annual report released by the Office of the U.S. Trade Representative last week on intellectual property rights protection by 77 U.S. trading partners. Canada had long been on the office’s “watch list,” but this is the first time Canada, Algeria and Indonesia made the higher-priority tier long occupied by countries such as China and Russia. Read more here.
Wednesday, May 6, 2009
Blanket Declaration Pilot Program for Automated Line Release or Border Release Advance Screening and Selectivity Programs [Lacey Act]
The government will begin a pilot program on May 1, 2009, initially open to those entities currently participating in one of CBP’s expedited border release programs, Automated Line Release (ALR) or Border Release Advance Screening and Selectivity (BRASS), and whose products require a Lacey Act declaration during the current phase of enforcement. This pilot program will test the feasibility of collecting the information required through the use of a periodic “blanket” declaration, with subsequent reconciliation reports. Entities currently participating in ALR or BRASS will be able to choose whether to remain active in the expedited program and participate in this pilot program or be removed from the expedited program.
If the participant’s choice is to be removed from the expedited program, no further action is necessary. Effective June 1, 2009, that participant’s C4 code will be inactivated. If the participant’s choice is to remain on the expedited release program and participate in the blanket declaration pilot program, the participant must notify APHIS and CBP that they wish to remain in ALR or BRASS and agree to provide information as required by the pilot program. We currently plan to implement the pilot program using the following two step process.
Step 1
The participant must file with APHIS an advance estimated PPQ 505. Initially, and for purposes of this pilot, the estimated PPQ 505 must be filed on a monthly basis. It must include all data elements required on the PPQ 505. Genus, species, value, and quantity fields should be an estimation of the participant’s planned imports during the next calendar month. The estimated PPQ 505 must be filed on or before the 15th day of the month prior to the reporting period. The deadline for the first estimated PPQ 505 is May 15, 2009, covering expedited release shipments planned for the month of June 2009.
Step 2
The participant must file with APHIS reconciliation within 15 days after the end of the month. This reconciliation will be submitted in a format to be established and made available on the APHIS website. The reconciliation will provide information on the actual shipments made during the previous month. The deadline for the first reconciliation is July 15, 2009.
Please see related guidance at the CBP website.
Cracks Appear in Advance of Canada-EU Trade Talks Launch
European officials say Canada promised everything was on the table, but a senior official says that’s not the case
While negotiations for a Canada-European Union economic partnership will finally get the go-ahead today in Prague, officials from both sides appear to be strides apart about what exactly is on the table.
That gap has led to concerns the negotiations – already expected by many to be extremely difficult given the parties involved and the range of issues to be addressed – are falling off the rails even before they have started.
The talks for a Canada-EU economic partnership agreement, named as such because it is expected to scope far beyond a traditional free trade agreement, are expected to be the most challenging Canada has ever attempted.
The agreement is expected to tap into federal and provincial sectors and regulations across Canada, and aims to bring them in line with those of the 27-country EU. It will also include things like labour mobility, government procurement and intellectual property rules.
An EU official last week told Embassy that Canada had, after resisting for years, agreed to put all federal and provincial sectors up for possible negotiation – and that this is why the EU finally approved trade talks.
“Both sides have said everything is on the table for discussion, and we’ve been very clear about that,” said Anya Oram, head of the economic and commercial section at the delegation of the European Commission to Canada. “Nothing is taboo as far as bringing it into these negotiations is concerned...We’re prepared to discuss everything, we have no hidden issues.”
But during a technical briefing on Friday in advance of today’s Canada-EU summit in the Czech Republic, a spokesman for Prime Minister Stephen Harper said that was not the case – especially when it comes to politically sensitive agricultural sectors protected in Canada by supply management. Read more here.
Tuesday, May 5, 2009
Cargill to Present – Audit Case Study, at Winnipeg Chapter Seminar
(IE Canada)
June 2, 2009
Delta Winnipeg, 350 St. Mary Avenue, Winnipeg, Manitoba
IE Canada is hosting a one day seminar in Winnipeg where you will have the opportunity to hear an Audit Case Study from Cargill Limited’s Canadian Customs Co-ordinator, Heather Gledhill.
In this session, learn from Cargill’s experience with a customs audit. Hear about their process overview, what obstacles and issues they encountered during their audit, what the general outcome was, the lessons learned, and how they applied them to their customs department.
For a copy of the brochure, please click here. To register online, please click here.
For further information on the seminar, please contact Jesse Arsenault, Conference Co-ordinator, at 416-595-5333, x37 or 1-866-616-2243, x37 or jesse@iecanada.com.
Regulation – Order Amending the Export Control List
On April 30, 2009, the Government of Canada finalized the regulatory process to amend the Export Control List. This amendment serves to control, clarify controls over and to remove from control specific items and to ensure currency of Canada’s export controls of strategic items pursuant to its multilateral obligations.
A brief overview of the key changes to the items affected by this amendment and an electronic version of A Guide to Canada’s Export Controls – 2007 (142 pages PDF 1.2 MB) are provided on the Export Controls Division website.
A copy of the regulation and the Regulatory Impact Analysis Statement will be published on the Canada Gazette website after May 13, 2009. Please contact the export controls division for more details:
Blair Hynes
Policy Advisor, Export Controls Division (TIE)
Department of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario K1A 0G2
Tel: (613) 944-0558 Fax: (613) 996-9933
E-mail: Blair.Hynes@international.gc.ca
Supreme Court of Canada Broadens GST Rebate Entitlement
On Thursday, April 23, 2009, the Supreme Court of Canada released a precedent-setting decision in United Parcel Service Canada Ltd. v. Her Majesty the Queen. The decision is the first appeal of a Goods and Services Tax (GST) assessment heard by Canada’s highest court. The decision serves to broaden the number of eligible claimants beyond the person with the “legal liability” to pay GST in the case of claims for rebate in respect of GST paid in error.
The dispute arose in the context of UPS’s customs brokerage activities in which UPS, between February 1, 1996 and December 31, 1997, overpaid some C$2.9 million in GST in error to the Minister of National Revenue on shipments imported into and delivered within Canada on behalf of various customers. These overpayments of GST were due to an array of circumstances including incorrect value for duty declarations, returned shipments, Canadian goods returning to the U.S., and the fact that some goods were duty-free.
In such circumstances, UPS credited its customers’ accounts for any overpayment (so that its customers only paid the correct amount of GST), and then deducted the overpayment from its own GST liability. This led to an assessment by the Minister of National Revenue in which UPS was disallowed the deduction of C$2,937,123 from its own liability. After a minor adjustment by the Minister, UPS still found itself out of pocket C$2,900,858 in respect of the GST payments made in error. Read the full article here (PDF).
EU-Canada Summit to Launch Negotiations for a New Economic and Free Trade Agreement
This year's EU-Canada summit will take place in Prague on 6 May. The EU will be represented by European Commission President José Manuel Barroso and the Czech Prime Minister Mirek Topolánek in his role as EU President in Office. Canada will be represented by Prime Minister Stephen Harper. The Summit agenda will cover a range of issues starting from a follow-up to the recent G-20 meeting in London to an array of bilateral topics, such as the marking of the EU-Canada Air Transport Agreement and the EU-Canada Air Safety Agreement.
The centrepiece of this year's summit is the EU-Canada economic partnership as it will see the launch of negotiations towards a new economic and free trade agreement. This agreement will go beyond current WTO commitments and will reinforce the already strong bilateral trade and investment relationship. Furthermore, leaders will express their commitment to building a low-carbon global economy while strengthening capacity to adapt to the impacts of climate change. Other issues to be touched upon will include Afghanistan, where the EU and Canada are co-operating closely together to promote good governance and the rule of law.
Prior to the Summit President José Manuel Barroso commented: “This Summit will launch key initiatives which will boost our partnership and will bring clear benefits to our citizens. The negotiations towards a new economic and free trade agreement will lift EU-Canada relations to an altogether new level. And the air services- and air safety agreements are the most ambitious we have ever concluded. This is the kind of signals we need to send out at this crucial time, signals that we want to keep open markets to generate prosperity."
Read more here; background information is available here.
Minister Day Signs Agreement to Help Canadian Businesses Take Advantage of Opportunities in Latvia
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced that Canada and Latvia have signed an updated foreign investment promotion and protection agreement (FIPA).
“Our government is opening doors for Canadian business. Latvia is a promising market for Canadian investment, especially in the energy, construction, transportation, and science and technology sectors. This agreement will help Canadian companies take advantage of new opportunities in Latvia,” said Minister Day.
FIPAs are agreements that clearly lay out rules for signatory countries to follow. They offer a level of protection and predictability that helps companies invest with confidence. The updated agreement will encourage two-way investment by providing the clarity and certainty needed by investors in foreign markets.
As part of its Global Commerce Strategy, the Government of Canada is promoting Canada as an investment destination, especially to its European Union partners. “This agreement builds upon Canada’s commitment to strengthen ties with our European partners,” said Minister Day. “The updated Canada-Latvia investment agreement complements the action our government is taking to build a closer partnership with the EU.”
The Canada-Latvia FIPA, which entered into force in 1995, has now been updated to comply with EU law and to include a number of improvements requested by Canada. These include a new clause for environmental, health and other safety standards, and greater transparency during investor-state arbitration.
Canada currently has 23 FIPAs in force, of which six are with EU countries. Two-way merchandise trade between Canada and Latvia totalled $81.4 million in 2008. Sectors identified for business development in Latvia include capital projects, agriculture and agri-food, and environmental industries.
For further information about Minister Day’s visit to Europe go here.
Break Up CFIA, Food Safety Expert Urges
Professor says agency failing Canadians
The federal government should establish an independent food safety agency reporting directly to Parliament because the Canadian Food Inspection Agency is failing consumers, a leading food-safety expert on Monday told parliamentarians probing the listeriosis outbreak.
Sylvain Charlebois, co-author of the 2008 Food Safety Performance World Ranking and business professor at the University of Regina, blasted the CFIA's “dual mandate” of protecting the public and assessing risk within the agri-food industry.
“The CFIA is inherently hardwired to assess risks and contain threats,” Charlebois told the special hearings, saying a reconfigured CFIA should stick to working with industry to promote international trade. Read more here.
Monday, May 4, 2009
Vancouver Truck Dispute Ends
Drivers reach agreement with three companies
Container truck drivers at Port Metro Vancouver reached an agreement that will avoid a threatened strike.
Approximately 140 drivers had voted for a strike against three associated trucking companies. Instead, they resolved the dispute, which was about fees to be paid for moving containers between the port and off-dock storage sites, Bob Simpson, owner of the three companies, told the Vancouver Sun.
U.S. Working on Border Plan, Despite Swine Flu Concerns
The Obama administration is continuing to work on a plan to restart cross-border trucking between the United States and Mexico, even as the two countries battle the spread of “swine flu.”
Some U.S. trucking operations doing significant business in Mexico said last week that their businesses had not yet been affected by the influenza outbreak, and that Transportation Secretary Ray LaHood said the administration was dealing separately with the flu and the cross-border trucking issue.
“At this point, there is no relationship, there’s no connection,” Transportation Secretary Ray LaHood told reporters April 29. “The truck program is different than the swine flu problem.”
Since Mexico announced nearly $2.4 billion in tariffs on U.S. products after the U.S. shut down deliveries by Mexican trucks, the administration has been working to resolve the trade dispute by putting together a revamped cross-border trucking program. Read more here.
Lacey Act Import Declaration Now Required for Certain Wood Products
The first phase of enforcement of the new Lacey Act import declaration requirement for plants and plant products went into effect May 1. Subsequent phases are scheduled to be rolled out every six months. U.S. Customs and Border Protection recently posted to its Web site guidance on complying with this requirement.
Covered Products
As of May 1, imports of the following products must accompanied by an import declaration (form PPQ 505) containing the scientific name of the plant from which they were obtained, the value of the importation, the quantity of the plant and the name of the country from which the plant was harvested.
• fuel wood (HTSUS 4401)
• wood in the rough (HTSUS 4403)
• hoopwood; poles, piles, stakes (HTSUS 4404)
• railway or tramway sleepers (HTSUS 4406)
• wood sawn or chipped lengthwise (HTSUS 4407)
• sheets for veneering (HTSUS 4408)
• wood continuously shaped (HTSUS 4409)
• tools, tool handles, broom handles (HTSUS 4417)
• builders’ joinery and carpentry of wood (HTSUS 4418)
Expedited Release
The government began May 1 a pilot program for those entities currently participating in Automated Line Release or Border Release Advance Screening and Selectivity whose products require a Lacey Act declaration during the current phase of enforcement. Under this pilot, participants must choose whether or not to remain active in the expedited program. If a participant opts to be removed, no further action is necessary and the C4 code will be inactivated effective June 1. Those who opt to remain in the expedited release program must complete the following two-step process.
• The participant must file with the Department of Agriculture an advance estimated PPQ 505 that includes all required data elements. The genus, species, value and quantity fields should be an estimation of the participant’s planned imports during the next calendar month. The estimated PPQ 505 must be filed on or before the 15th day of the month prior to the reporting period; e.g., the first estimated PPQ 505 will cover expedited release shipments planned for June and will be due by May 15.
• The participant must file with the USDA, within 15 days after the end of the month, a reconciliation that provides information on the actual shipments made during the previous month. The deadline for the first reconciliation is July 15. The USDA will make the format of the reconciliation available at a later date.
This process must be completed monthly during the pilot. The U.S. government will rely on the collected data in its reports to Congress and in determining possible refinements and extensions to enlarge the process and make it less burdensome for all involved.
Note: CBP has posted Guidance on the Lacey Act Declaration on its website here.
CN09-006: Form E29B, Temporary Admission Permit – Form Requirements
1. This Customs Notice is to announce that, beginning January 1, 2010, the Canada Border Services Agency (CBSA) will no longer accept the Temporary Admission Permit, Form E29B when printed on forms which consist of coloured sheets separated by carbon paper.
2. The Form E29B (PDF, 507KB) must still be submitted to the CBSA in hard copy. If the form is completed by hand, it must be submitted on legal size paper. If the form is completed electronically, it may be submitted on letter sized paper.
3. Additional information on how to complete this form is available in Memorandum D8-1-4, Form E29B, Temporary Importations Permit.
4. For further information, please contact:
Trade Incentives and Refunds UnitTariff Policy Division
Trade Programs Directorate, Admissibility Branch
Canada Border Services Agency
150 Isabella Street, 8th floor
Ottawa, Ontario K1A 0L8
Telephone: 613-957-0025 Facsimile: 613-952-3971
EU Says Europe Faces Deep Recession
The European Commission on Monday revised lower its forecast for growth in the European Union this year as consumers react to the weakening labor market and amid a slump in world trade and an ongoing housing market correction.
The commission, the executive arm of the E.U., forecast in its spring quarterly economic forecasts that gross domestic product in both the European Union and the euro area would contract by 4% this year and then by 0.1% next year. In its last report, the executive forecast an EU contraction this year of 1.8% and positive growth next year of 0.5%.
“The downswing is affecting not only all member states but also almost all demand components,” the report said, adding private investment in particular is suffering, reflecting depressed expectations of future demand as consumers react to the deterioration in the employment market.
Exports have contracted sharply as world trade flows dwindle.
The E.U. has not yet released its initial estimates of first quarter growth, but the report said survey and other data suggest a “further deterioration” for the period.
The more upbeat outlook for 2010 was based on the effect of tax and interest rate cuts and as financial markets starts to stabilize.
“The European economy is in the midst of its deepest and most widespread recession in the post-war era,” said Joaquín Almunia, the commissioner for economic affairs “But the ambitious measures taken by governments and central banks in these exceptional circumstances are expected to put a floor under the fall in economic activity this year and enable a recovery next year.” Read more here.
Korea, Canada to Hold Beef Talks This Week
Negotiators from Korea and Canada will meet this week in Geneva for consultations on the resumption of Canadian beef imports that the government had banned. Yonhap [news agency] reported Saturday that the two parties will sit down on May 7 in Geneva for consultations on the ban. The consultation is the first step in the World Trade Organization's (WTO) settlement procedure when a dispute occurs.
On April 9, the Canadian government called on the WTO to address South Korea's “unjustified” ban on the import of its beef, six year after Korea first halted shipments.
In a press release distributed through the Canadian Embassy in Seoul, Canadian International Trade Minister Stockwell Day said, “We are disappointed to have to launch this action, as we had hoped to resolve or differences through negotiations.” Day continued, “Canada has a robust trade relationship with South Korea, so it is unfortunate that we have not been able to settle this issue and reopen South Korean markets to Canadian beef.”
If the consultations fail to resolve the dispute within 60 days after the WTO received the request, Canada may request for the establishment of a panel to hear the case. The panel, consisting of three members, will undertake a confidential review of the dispute. Statistically speaking, the dispute has a chance to be resolved in the consultation stage, as the WTO said, “in July 2005 only about 130 cases of nearly 332 cases reached the panel stage.” Read more here.
Canadians Support Canada-EU Trade Talks: Poll
Prime Minister Stephen Harper has the backing of a majority of Canadians as he launches the next phase of trade talks with the European Union, a new poll suggests.
And federal officials say the vast majority of provinces are on board, too, despite the objections of at least one premier, Newfoundland and Labrador's Danny Williams.
Harper will travel to the Czech Republic on Tuesday to participate in meetings with European leaders.
At the top of the agenda is the formal launch of negotiations toward what officials are calling an “economic partnership” akin to the North American Free Trade Agreement involving Canada, the United States and Mexico. Read more here.
Ham-Fisted Bans No Way to Respond to Flu: Day
International Trade Minister Stockwell Day is urging countries around the world to act on “sound science,” not fear, as a growing list of worried nations seal their borders to Canadian hogs and pork products.
China joined at least nine other countries yesterday that have barred or restricted imports of Canadian pigs and meat, a day after federal officials confirmed that swine flu had passed from an Alberta farmhand to a herd of hogs.
Pork producers are worried negative perceptions and trade bans could cripple an already struggling industry.
Day said he is pleased U.S. Secretary of Agriculture Tom Vilsack confirmed the Alberta incident will not change American trade policies on Canadian pork, and stressed there is “no justification” for bans since the virus is not food-borne.
“Some countries have imposed a ban on North American pork and swine products without scientifically justifiable evidence to support their actions,” he said. “We urge these countries to base their decisions on sound science.”
Canadian missions abroad are working with trade partners and importers to highlight the safety of Canadian pork and swine products. In countries where an import ban has been imposed or is under consideration, officials are speaking to key agencies and officials to help them make an “informed decision.”
Jurgen Preugschas, chair of the Canadian Pork Council, said import restrictions vary by country, with some limiting just meat and others barring both live swine and pork. China's ban applies to Alberta specifically. Read more here.
Related: Pork industry in panic as pigs catch the flu (Globe & Mail).
DHS Secretary Napolitano, HHS Secretary Sebelius on CBS’s ‘Face the Nation’
Bob Schieffer spoke the CDC's Richard Besser, Health & Human Services Sec. Kathleen Sebelius and Homeland Security Sec. Janet Napolitano with about the likelihood of a swine flu pandemic.
Sunday, May 3, 2009
Obama is Proving a Dangerous Man For Canada
We’ve been blacklisted as copyright pirates, blasted as a northern terrorist haven, been forced to squander billions on a matching Chrysler car company bailout and endure rising protectionism through sneaky “Buy American” policies and environmental safeguards.
The conclusion is hard to miss as irritants pile up across our southern border: U.S. President Barack Obama is becoming Canada’s worst political nightmare.
That’s a hard swallow because the man is so darn charismatic, and he proclaimed with great sincerity his love for Canada.
But behind the folksy, 1,000-watt smile lurks a president who is guiding a hostile Congress against us and appointing unfriendlies to implement policies that could soon turn those welcome-to-Canada smiles from just ten weeks ago into worried frowns.
Read the complete editorial here.
Update: Video (CBC News) from last Thursday’s broadcast of The National.
Myth buster, my eye! More like a one-woman storehouse of misconceptions, pseudo-facts, stale rumours and flat-out ignorance, says Rex Murphy.
e-Manifest: Trucks
Newly updated step-by step instructions (PDF) on how to create and submit an electronic manifest are provided. Additional information on registering Crew, Conveyance and Equipment is also included.
Speeding US Import Clearances
Successful steps have been taken to allow importers and US Customs and Border Protection (CBP) to more completely file and process most common entry summaries.
CBP explains that entry summaries represent 96% of all entries filed each year. Now, through the Automated Commercial Environment (ACE) program Secure Data Portal importer account holders can opt to receive and respond to CBP forms electronically.
Commenting on the initial implementation of the expanded capabilities, Louis Samenfink, ACE program executive director, said, “This is quite an exciting year for those who work on and with ACE as we have successfully begun the deployment of new automated entry summary processing features, and will deploy the replacement of current rail and sea automated manifest systems by mid-summer. More than 20,000 CBP and participating government agency end users will be affected by these innovative electronic processes.” Read more here.
Public’s Opinion of FDA Shows Room for Improvement
A new Harris Interactive®/HealthDay poll finds the reputation of the Food and Drug Administration (FDA) has improved since a similar survey conducted a year ago in April 2008. For example, positive ratings for managing prescription drug recalls or withdrawals increased from 39% to 53%. However, most people still give the FDA negative ratings on ensuring the safety of imported food (56%) and drugs (52%), and on getting new drugs to the market more quickly (54%).
According to U.S. adults, the two top priorities for the FDA are ensuring the safety of food eaten in the U.S. (59%) and ensuring the safety and efficacy of new prescription drugs (37%). On both of these, people’s opinions of the FDA are divided – 48% positive to 49% negative on food, and 47% to 47% on the safety and efficacy of new drugs.
These are some of the results of a Harris Interactive®/HealthDay Poll conducted online within the United States between April 13 and 15, 2009 among a national cross section of 2,495 adults age 18 and over. Read more here.
Friday, May 1, 2009
CBP to Adjust “10+2” Filing Logs, Deadline Intact
U.S. Customs and Border Protection is changing the benchmark for measuring the timeliness of filing advance electronic data under the new “10+2” rule for imports, but the compliance deadline remain the same, the agency’s program manager emphasized Thursday.
About 45% of Importer Security Filings (ISF) 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 up to three days prior to vessel lading, which makes it difficult for importers to compile and file the necessary cargo details without demerit. Under the current system, the filing could be on time but appear late to CBP using the manifest as a back check. Read more here.
Latest Updates to the Trade Negotiations and Agreements Website
(FAITC)
Final Environment Assessment of the Canada-Colombia and Canada-Peru Free Trade Agreement (FTA) Negotiations
This report outlines the results of the Final Environmental Assessment (EA) of the Canada-Colombia and Canada-Peru Free Trade Agreement (FTA) negotiations. Report available here.
Canada-European Free Trade Association (EFTA)
On April 29, 2009, the Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, announced that legislation to implement the free trade agreement (FTA) signed by Canada and the European Free Trade Association (EFTA) countries. Report available here.
Revised D-Memos
(CBSA)
D15-2-45
Revised: Certain Steel Plate Originating in or Exported from Bulgaria, the Czech Republic and Romania
Application of anti-dumping duty
This memorandum refers to the application, pursuant to section 3 of the Special Import Measures Act, of anti-dumping duty to importations of certain steel plate originating in or exported from Bulgaria, the Czech Republic and Romania.
2. The memorandum is divided into 5 sections, all under "Guidelines and General Information".
3. A detailed description of the goods is provided.
4. The milestone dates of the proceedings along with the applicable Harmonized System classification numbers are provided.
5. Information regarding normal values of subject goods is provided.
D-Memo available here.
EU to Launch Free-Trade Talks With Canada at Prague Summit
Member states want ‘enhanced’ trade deal. Canadian ambassador says his country is ‘enthusiastic’
Canada and the European Union are to launch free-trade talks at a summit in Prague on Wednesday (6 May) after the member states of the EU agreed on Monday (27 April) a negotiating mandate for an “enhanced” trade agreement with Canada.
Ross Hornby, Canada's ambassador to the EU, told European Voice that the negotiations would be “complex and comprehensive” and go beyond the market-opening foreseen by the World Trade Organization (WTO). “We are quite enthusiastic,” he said. […]
Bilateral trade in goods and services last year exceeded €70 billion, according to Commission figures. Read more here.
Transatlantic Free Trade
Baby seals, beef hormones and other contentious topics may yet stand in the way of a trade treaty between the European Union and Canada, but the decision on Monday of the EU’s foreign ministers to authorize the formal beginning of negotiations for such an agreement, next week in Prague, is an encouraging step at a time of recession-influenced protectionist pressures around the world.
It is always good for Canada to diversify its trade relationships, though long-standing friendship and close proximity give permanent primacy to trade between Canada and the United States. When the U.S. is the epicentre of a global recession, however, Canadian businesses and governments must work hard to compensate for the current decline in American demand for our exports.
There is also a wider context. The Doha Round of international trade negotiations is languishing, at best. For the time being, progress in freer trade will have to come from bilateral treaties - though Canada's relationship with an often unwieldy 27-member economic community verges on being multilateral. Read more here.
Thursday, April 30, 2009
U.S. Stimulus Stifling Canada
”Buy America” rule boils down to protectionism
When Barack Obama came to Ottawa in February, Canadians lowered their defences and surrendered, seduced by the new President’s promises that the United States would stand by its international trade obligations and resist protectionism.
It was an object lesson in why politicians should be judged on results, not their intentions.
The reality is that Canada and the United States are engaging in skirmishes that threaten to erupt into an all-out trade war.
John Hayward runs an industrial equipment company, Hayward Gordon, in Halton Hills, Ont., but is in the process of transferring some of his company’s manufacturing capacity to the United States from Canada, with the loss of Canadian jobs, because he is being shut out of the American market by President Obama’s stimulus bill.
“It boils down to the fact a very large number of Canadian companies, who have been competing in the U. S. for decades, have been told overnight that they can’t sell to the U. S.,” he said. Read more here.
Trade: Will U.S. Notice If We Look the Other Way?
Half a year ago, Prime Minister Stephen Harper saw a “historic” start in relations between Canada and the European Union. His Quebec City setting was perfect and the occasion was not overstated one bit. Mr. Harper was flanked by President Nicolas Sarkozy of France and Jose Manuel Barosso, president of the European Union, as he announced that Canada and the 27 member countries of the EU had a “comprehensive” economic partnership in the works.
Mr. Harper’s statement got little attention in Canada and none in the United States. Three days earlier, Canadians gave the Tories a fresh mandate and Canada’s commentariat was preoccupied with the “what does it mean?” question. Here in Washington, the silence was pretty overwhelming.
Canada fared better, by a whisker, on Tuesday. The Washington Times had a brief story in its “Briefly” roundup of news from the Americas. The Canada item carried the headline “Trade talks begin with EU” and Reuters mentions it in a story about International Trade Minister Stockwell Day’s visit in Washington.
Am I surprised? Heck, no. Canada gets little mention in the American media at the best of times, and right now American papers and TV are full of President Barack Obama’s “First Hundred Days” – in special sections yet. Read more here.
Unnecessary Security on the US-Canada Border?
The US Homeland Security Secretary causes a ruckus up north.
Desidero Fortunato is a Canadian citizen who regularly visits his second home in Blaine, Wash., crossing the border by car two or three times a week.
Last month, a U.S. border guard — who apparently had no cause for suspicion — ordered him to shut off his engine and get out of the car.
The Canadian penchant for politeness can, admittedly, be irritating. But the 54-year-old competitive dancer got more than he bargained for when he asked the guard to say, “please.” First came a blast of pepper spray in the face. Then a handful of guards threw him to the ground, pinned him with their knees and slapped on handcuffs.
Fortunato says the tense interrogation that followed eased only when the guards learned he was born in Portugal. [...]
In the end, Canada has little choice but to acquiesce to the thickening border. Its economic future, thanks to the North American Free Trade Agreement, relies on access to the American market. A loss of political sovereignty is the price of admission. Today it’s border security, tomorrow it will likely be changes to our immigration policies, which Napolitano has made clear are too lax. Read more here.
Union Predicts Delays as Canada Border Services Imposes Cutbacks
The Canada Border Services Agency is cutting back on overtime staffing across the country just as the United States is increasing its border security measures, sparking concerns among Canadian employees.
The move will mean certain delays for people entering Canada, the union representing border workers said Wednesday.
“The public can certainly expect a longer waiting time to get through,” said Jean-Pierre Fortin, vice-president of the Customs and Immigration Union.
The agency has cut back on its staffing budget, meaning workers at land and airport border control points will no longer be allowed to work overtime during peak periods. […]
In an email to CBC News, the border agency said overtime hours are being reduced in order to manage resources more efficiently. [...]
But Fortin said the union fears border security will be jeopardized. Under one money management measure, for example, guards will stop using gamma ray imaging to scan the contents of trucks, containers and other cargo, which he said will impact “the security of this country.” Read more here.
Restoring Balance
History-making. That’s likely how the current economy will be sized up when the books are written. There are few episodes in the post-war period where market drama has been as intense. And with forecasts in freefall, getting a proper fix on the economic fallout is a huge challenge.
The shock isn’t just media hyperbole. What is unfolding is notable both for its severity and timing. Already in recession, industrialized economies took an unthinkable and sustained hit to GDP in the past six months. Globalization ensured that declines were remarkably synchronized the world over. Trade activity seized up over that period, and remains shaky. Weary of negative news, analysts the world over are scanning monthly data for the faintest signs that we have hit bottom.
Why is the impact so severe? The world economy is struggling to right super-sized imbalances, created at the end of an unusually long period of expansion. For five years, activity was well in excess of fundamental demand, a process spurred on by loose lending. Excesses may have begun in single economies, but they spread everywhere in the form of outsized trade, production and consumption. Such excesses, when realized, are rarely dealt with gently; the current sharp contraction, simply put, is proportional to the vast excesses that preceded it, but much swifter. Read more or watch the video here
New Free Trade Agreement Opens Doors for Canadian Business in Iceland, Liechtenstein, Norway and Switzerland
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, announced today that the free trade agreement (FTA) with the states of the European Free Trade Association (EFTA) – Iceland, Liechtenstein, Norway and Switzerland – has received Royal Assent. The agreement is on track to come into effect on July 1, 2009.
“Trade is extremely important to Canada’s continued prosperity,” said Minister Day.
“Implementing this agreement – the first free trade agreement Canada has ever completed with European countries – will open more doors for Canadian producers and exporters by increasing their access to the wealthy and sophisticated EFTA markets.”
Canada’s producers and exporters will benefit immediately from the elimination of duties on all Canadian non-agricultural merchandise exports upon entry into force of the FTA. Tariffs will also be eliminated or reduced on selected Canadian agricultural exports such as durum wheat, frozen french fries, beer and crude canola oil. As well, Canadian companies will be able to access innovative technologies and other inputs from EFTA markets at lower costs, including through the importation of machinery and scientific and precision instruments.
“This agreement will provide not only a strategic opportunity for Canadian companies to tap directly into EFTA value chains, but also indirect access to the European Union,” said Minister Day. “The Government of Canada is committed to opening up new markets for Canadian business and expanding existing ones. During this period of extraordinary global economic challenges and uncertainty, it is more important than ever that we pursue international trade opportunities.”
Together, the EFTA countries were Canada’s seventh-largest merchandise export destination in 2008. Canada exported $4.2 billion in merchandise to the EFTA countries in 2008, with two-way merchandise trade valued at $13.2 billion.
Legislative Update: Groundwork Being Laid for Actions Later This Year
Congress has returned from its Easter recess and is preparing to take up a number of trade-related measures in the coming months. A customs reauthorization bill is expected sooner rather than later, while work on the miscellaneous trade bill and preference program reform is continuing to proceed. There are also indications that legislation to implement the U.S.-Panama Free Trade Agreement could be sent up to Capitol Hill in the near future. Read more here.
U.S. Resists Border Measures for Swine Flu, Wants Import Bans Lifted
More countries have imposed import restrictions this week due to concerns about the spread of the H1N1 strain of influenza. U.S. officials, however, have decried such moves and said they have no intention of imposing border measures of their own at this point.
According to press reports, a growing number of countries have taken steps to restrict pork imports to date. Russia has banned imports of various pork products from a handful of U.S. states as well as Mexico, Guatemala, Honduras, the Dominican Republic, Colombia, Costa Rica, Cuba, Nicaragua, Panama and El Salvador. China is prohibiting pork imports from Mexico and at least three U.S. states. The United Arab Emirates and Suriname have banned all pork imports, while Thailand, Indonesia, Ukraine and Honduras have blocked some or all pork from the U.S. specifically. Restrictions have also been imposed by Kazakhstan and Azerbaijan.
U.S. officials, however, have said such measures are unnecessary and may violated global trade rules. U.S. Trade Representative Ron Kirk and Agriculture Secretary Tom Vilsack pointed out that what has been called “swine flu” is in fact a virus that affects humans and has not been detected in pigs. Read more here.
Webinar May 7: Changes in the FDA Prior Notice Final Rule – from the FDA Perspective
Thursday, May 7, 2009, Noon - 1:30 p.m. ET
Cost: $50.00 per member or non-member participant
1.5 CCS points for attendance
Presented by: FDA
Moderator: Cynthia Allen, Director, NCBFAA Educational Institute
The FDA Prior Notice Final Rule, published November 7, 2008, in the Federal Register, takes effect May 6, 2009. The Final Rule contains significant changes from the Interim Final Rule under which the trade and FDA have been operating.
During the webinar, FDA representatives will address the changes from an operational and regulatory perspective. Compliance with the Final Rule from an automated perspective will be a challenge, as it is anticipated that the changes required in the Customs and Border Protection’s Automated Commercial System (ACS) system will not be complete. The FDA will outline methods to comply with the Final Rule until such changes can be made in ACS.
This is your opportunity to ask the FDA representatives questions about these rule changes and any other FDA import issues.
To participate, go to http://www.ncbfaa.org and select “Changes in the FDA Prior Notice Final Rule” under “Upcoming Events.”
Security at Canadian Border Catches More Confusion than Terror Suspects
When the Customs and Border Protection (CBP) agency was created in 2003, its purpose was to provide immigration and counter-terrorism enforcement to prevent future attacks on the U.S. Six years later, the efficacy of the CBP along the U.S. border with Canada is being questioned, as officers arrest migrant families and marijuana users instead of the intended terrorist targets.
Before the September 11 attacks, 340 border patrol agents were assigned to oversee the Canadian border, a number that has since increased to 1,530. Along with this increase have come more frequent roadside checkpoints and patrols, and a doubling of the agency’s budget over the past five years to a total of $11 billion for 2009. There were roughly 75,000 apprehensions along the northern border between 2004 and 2006 that were sent to immigration courts, but only two were terrorism-related.
While the agency certainly does have a strong presence, some feel that it has strayed too far from its original purpose and is more of a burden than anything else. Read more here.
Related: Heightened security at U.S.-Canada border catching few terror suspects (Seattle Post-Intelligencer).
Wednesday, April 29, 2009
U.S. Protectionism a Threat to North America: Stockwell Day
International Trade Minister Stockwell Day on Tuesday warned that rising protectionism in the United States threatens to trigger retaliatory measures in Canada, with “cascading effects” on both economies as North America tries to emerge from recession.
Following two days of meetings with senior members of the Obama administration in the U.S., Mr. Day said there are growing fears that ‘Buy American’ provisions in U.S. economic stimulus legislation will prevent Canadian businesses from having the chance to bid on U.S. infrastructure projects.
“There are provisions being put in place which are effectively closing the door to procurement from Canadian companies, suppliers and producers,” Mr. Day said in a speech to the U.S. Chamber of Commerce. “It is a textbook case of how when doors begin to close, and when trade barriers go up, economies go down.” Read more here.
Vancouver Port to Stay Open Despite Strike
Driver dispute involves trucking companies, not port
Port Metro Vancouver said it will remain open for business whether or not some local container truck drivers go on strike next week. And if any picket port property, they will lose their permits to serve the port, the Port Authority said.
A statement on the Port Authority’s Web site Tuesday refers to a Journal of Commerce Newswire report Monday that 140 owner-operators working for two trucking companies had voted in favor of a possible strike as soon as Monday, May 4, since contract talks with the companies had broken off. The story quoted Stu Shields, national representative in Vancouver of Canadian Auto Workers union Local 2006. Read more here.
Swine Flu: Lessons from SARS
The SARS outbreak showed how quickly industry can get slammed. But fears of widespread trade devastation are probably overblown
Narayanan Viswanathan knows firsthand not to underestimate the economic impact of a potential pandemic such as the swine flu outbreak that has been spreading from Mexico. Viswanathan was in Taiwan as manager of a software development project for carmaker China Motor in spring 2003 when word first spread that an outbreak of a deadly, unknown virus dubbed severe acute respiratory syndrome (SARS) was striking victims in East Asia.
It took just three weeks for much of Asia’s economy to simply shut down. Airlines canceled 40% of their flights in and out of cities like Taipei, Hong Kong, Bangkok, Singapore, and Shanghai. Major conferences were called off. Luxury hotels and shopping malls were empty. And the legendary Canton Trade Fair in Guangzhou that April was a complete bust. Viswanathan, who was engaged to be married, flew back to India on China Airlines along with other Indian technicians working on the job, which they finished from Bangalore. Read more here.
Swine Flu: Lessons from SARS
The SARS outbreak showed how quickly industry can get slammed. But fears of widespread trade devastation are probably overblown
Narayanan Viswanathan knows firsthand not to underestimate the economic impact of a potential pandemic such as the swine flu outbreak that has been spreading from Mexico. Viswanathan was in Taiwan as manager of a software development project for carmaker China Motor in spring 2003 when word first spread that an outbreak of a deadly, unknown virus dubbed severe acute respiratory syndrome (SARS) was striking victims in East Asia.
It took just three weeks for much of Asia’s economy to simply shut down. Airlines canceled 40% of their flights in and out of cities like Taipei, Hong Kong, Bangkok, Singapore, and Shanghai. Major conferences were called off. Luxury hotels and shopping malls were empty. And the legendary Canton Trade Fair in Guangzhou that April was a complete bust. Viswanathan, who was engaged to be married, flew back to India on China Airlines along with other Indian technicians working on the job, which they finished from Bangalore. Read more here.