(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today launched an international advertising campaign promoting Canada’s Asia-Pacific Gateway as the fastest, most reliable way to transport goods between Asia and North America.
“Our economic prosperity depends on moving goods quickly and efficiently around the world,” said Minister Day. “We are working hard with our partners throughout Asia and North America to promote the benefits of using Canada’s transportation system to move products from the factory floor to store shelves.
“The Government of Canada has taken a number of important steps to enhance the country’s transportation network. This international ad campaign will help make businesses more aware of the advantages of moving their goods through our seaports and airports, and on our highways and railways.”
Beginning June 15, advertisements will appear featuring the slogan “With Canada’s Pacific Gateway, everything gets there sooner than you think.” The ads will be placed in marine and air shipping trade publications in the United States, Japan, Korea and China, including Journal of Commerce, Logistics Management, Air Cargo World, Payload Asia, China’s Foreign Trade and Maritime Press. The ads will appear in publications and as online web banners at intervals over the next 10 months.
Read the complete government press release here.
Monday, June 15, 2009
U.S., Others Agree to Move Ahead on Anti-Counterfeiting Trade Agreements Talks
(World Trade Interactive)
The Obama administration has decided to continue negotiating a new multilateral Anti-Counterfeiting Trade Agreement, according to a June 12 announcement from the Office of the U.S. Trade Representative, having determined that the ACTA “remains an important part of the U.S. trade agenda.” Talks are set to resume in Morocco in July, with a goal of concluding an agreement in 2010.
The ACTA negotiations were launched in October 2007 and participants currently include the U.S., Australia, Canada, the European Union, Japan, Mexico, Morocco, New Zealand, Singapore, South Korea and Switzerland. USTR states that the ACTA is intended to help governments combat more effectively the proliferation of counterfeit and pirated goods that undermines legitimate trade and the sustainable development of the world economy and in some cases contributes to organized crime and exposes consumers to dangerous fake products. Specifically, this agreement aims to increase international cooperation, strengthen the framework of practices that contribute to effective enforcement and strengthen relevant intellectual property rights enforcement measures themselves. Read more here.
The Obama administration has decided to continue negotiating a new multilateral Anti-Counterfeiting Trade Agreement, according to a June 12 announcement from the Office of the U.S. Trade Representative, having determined that the ACTA “remains an important part of the U.S. trade agenda.” Talks are set to resume in Morocco in July, with a goal of concluding an agreement in 2010.
The ACTA negotiations were launched in October 2007 and participants currently include the U.S., Australia, Canada, the European Union, Japan, Mexico, Morocco, New Zealand, Singapore, South Korea and Switzerland. USTR states that the ACTA is intended to help governments combat more effectively the proliferation of counterfeit and pirated goods that undermines legitimate trade and the sustainable development of the world economy and in some cases contributes to organized crime and exposes consumers to dangerous fake products. Specifically, this agreement aims to increase international cooperation, strengthen the framework of practices that contribute to effective enforcement and strengthen relevant intellectual property rights enforcement measures themselves. Read more here.
What To Do About Buy America?
(Globe & Mail)
U.S. states and municipalities buying goods for infrastructure projects are discriminating against Canadian manufacturers, despite Ottawa's lobbying efforts. Six panelists offer their solutions: William Robson (president of the C.D. Howe Institute), Ken Lewenza (president of the Canadian Auto Workers union), Chuck Gastle (a trade lawyer at Bennett Gastle P.C.), John Hayward (president of pump maker Hayward Gordon Ltd.), Gordon Giffin (former U.S. ambassador to Canada) and David Miller (mayor of Toronto).
Click here to read the article.
U.S. states and municipalities buying goods for infrastructure projects are discriminating against Canadian manufacturers, despite Ottawa's lobbying efforts. Six panelists offer their solutions: William Robson (president of the C.D. Howe Institute), Ken Lewenza (president of the Canadian Auto Workers union), Chuck Gastle (a trade lawyer at Bennett Gastle P.C.), John Hayward (president of pump maker Hayward Gordon Ltd.), Gordon Giffin (former U.S. ambassador to Canada) and David Miller (mayor of Toronto).
Click here to read the article.
Harper Should Appeal to Obama, Exporters Say
(Kevin Carmichael — Globe & Mail)
Prime Minister Stephen Harper is coming under pressure to appeal directly to President Barack Obama to exclude Canada from his economic stimulus program’s Buy American provisions.
Canadian Manufacturers & Exporters, the Ottawa-based trade association that represents some 10,000 companies, wants Mr. Harper to seize a growing recognition of the issue in Washington to bring about a quick resolution before any more stimulus money is spent at the exclusion of Canadian bids.
“At the end of the day, it’s an issue that will be resolved faster and more efficiently if the request comes from the Prime Minister to the President,” said Jayson Myers, president of the CME, which accounts for 90 per cent of Canada’s exports.
Mr. Myers has been leading a lobby in the U.S. capital to match the fine print of Mr. Obama’s $787-billion (U.S.) stimulus plan with the spirit of his pledge that the spending will be done in a way that is consistent with the U.S.’s obligations under the North American Free Trade Agreement. Read more here.
Prime Minister Stephen Harper is coming under pressure to appeal directly to President Barack Obama to exclude Canada from his economic stimulus program’s Buy American provisions.
Canadian Manufacturers & Exporters, the Ottawa-based trade association that represents some 10,000 companies, wants Mr. Harper to seize a growing recognition of the issue in Washington to bring about a quick resolution before any more stimulus money is spent at the exclusion of Canadian bids.
“At the end of the day, it’s an issue that will be resolved faster and more efficiently if the request comes from the Prime Minister to the President,” said Jayson Myers, president of the CME, which accounts for 90 per cent of Canada’s exports.
Mr. Myers has been leading a lobby in the U.S. capital to match the fine print of Mr. Obama’s $787-billion (U.S.) stimulus plan with the spirit of his pledge that the spending will be done in a way that is consistent with the U.S.’s obligations under the North American Free Trade Agreement. Read more here.
Friday, June 12, 2009
U.S. to Boost Canada Border Presence by 45%
(National Post – Ian MacLeod, Canwest News Service)
Just days after a passport requirement for Canadians crossing U.S. land borders took effect, the United States is preparing to dispatch 700 more agents to patrol its northern border, the Ottawa Citizen has learned.
The move, confirmed Thursday by U.S. Customs and Border Protection, represents a 45% “plus-up” over current staffing of 1,550 agents. It will bring the total number of northern U.S. border agents to about 2,200 by September, 2010, more than a sixfold increase since 9/11.
Much of the additional manpower is needed to operate new border monitoring equipment and to run down investigative leads and other information generated by the new technologies, said a CBP spokesman in Washington. “We want to be sure and allocate resources to do the best job possible ... to make the technology and all that stuff that we're using up there work,” said Lloyd Easterling.
The technologies include radiation detectors, hidden ground sensors, security cameras and air and marine units, including Predator unmanned patrol planes monitoring remote border regions for potential terrorists and other criminals heading south across the almost 9,000-kilometre boundary. Read more here.
Just days after a passport requirement for Canadians crossing U.S. land borders took effect, the United States is preparing to dispatch 700 more agents to patrol its northern border, the Ottawa Citizen has learned.
The move, confirmed Thursday by U.S. Customs and Border Protection, represents a 45% “plus-up” over current staffing of 1,550 agents. It will bring the total number of northern U.S. border agents to about 2,200 by September, 2010, more than a sixfold increase since 9/11.
Much of the additional manpower is needed to operate new border monitoring equipment and to run down investigative leads and other information generated by the new technologies, said a CBP spokesman in Washington. “We want to be sure and allocate resources to do the best job possible ... to make the technology and all that stuff that we're using up there work,” said Lloyd Easterling.
The technologies include radiation detectors, hidden ground sensors, security cameras and air and marine units, including Predator unmanned patrol planes monitoring remote border regions for potential terrorists and other criminals heading south across the almost 9,000-kilometre boundary. Read more here.
Thursday, June 11, 2009
Tory Tobacco Bill Holds Match to Brittle Trade Bond with U.S.
(Sheldon Alberts — Canwest News Service)
American cigarettes won’t be allowed in Canada: congressmen
Add American cigarettes to the growing list of products getting caught up in the increasingly testy trade relationship between Canada and the United States.
Tobacco growers in Kentucky have launched a protest against the Harper government over a new anti-smoking bill they argue will lead to a ban on the vast majority of U.S. cigarette exports to Canada.
Two U.S. congressmen have taken up the cause of 8,100 Kentucky farmers who grow “burley tobacco” — used in popular American-style cigarettes such as Camel and Winston — and have warned International Trade Minister Stockwell Day that Canada’s legislation violates NAFTA and other trade agreements.
The U.S. grievance was sparked by the introduction last month of Bill C-32, an amendment to the Tobacco Act that would ban the addition of certain flavours and additives to cigarettes and cigarillos that the federal government says are marketed at children and teenagers. Read more here.
American cigarettes won’t be allowed in Canada: congressmen
Add American cigarettes to the growing list of products getting caught up in the increasingly testy trade relationship between Canada and the United States.
Tobacco growers in Kentucky have launched a protest against the Harper government over a new anti-smoking bill they argue will lead to a ban on the vast majority of U.S. cigarette exports to Canada.
Two U.S. congressmen have taken up the cause of 8,100 Kentucky farmers who grow “burley tobacco” — used in popular American-style cigarettes such as Camel and Winston — and have warned International Trade Minister Stockwell Day that Canada’s legislation violates NAFTA and other trade agreements.
The U.S. grievance was sparked by the introduction last month of Bill C-32, an amendment to the Tobacco Act that would ban the addition of certain flavours and additives to cigarettes and cigarillos that the federal government says are marketed at children and teenagers. Read more here.
Wednesday, June 10, 2009
Scuppered Projects Resurfacing
(Export Development Canada – Peter G. Hall)
Booming commodity prices led to announcements of sizable mineral investment projects in recent years. The commodity bust saw many immediate project cancellations. Rapid evaporation of billions of dollars of anticipated spending likely contributed to the economic downturn, and to the alarming drop in business confidence. But are all of the scuppered projects on indefinite hold.
Large-scale projects that were cancelled around the world are too many to number. Suffice it to say that there were enough of them that mineral commodity-watchers quickly projected an impending second rapid run-up in prices due to supply shortages, economic downturn notwithstanding. With its heavy mineral sector interests, Canada was not exempt. Cancellations hit the oil and gas industry, with the highest-profile cuts being multi-billion-dollar oilsands projects. Key investments in a number of base metal mines were also pulled in the past year.
At first glance, plunging selling prices seem reason enough to pull the plug. But that argument only works if the projects in question needed sky-high prices to justify them. For some projects, this appeared to be the case. But for most, projects were designed to make money at much lower prices than last year’s peaks. If so, then why the headline-grabbing cancellations?
Actually, plunging prices are in fact the answer – with a twist. Input costs for these huge projects also went into freefall. Everything from steel to copper and other base metals, fuel, building materials, to machinery and equipment has seen price compression in the past year. Declines have been well into the double digits, and as such, have a marked impact on the bottom line. Read more here.
Booming commodity prices led to announcements of sizable mineral investment projects in recent years. The commodity bust saw many immediate project cancellations. Rapid evaporation of billions of dollars of anticipated spending likely contributed to the economic downturn, and to the alarming drop in business confidence. But are all of the scuppered projects on indefinite hold.
Large-scale projects that were cancelled around the world are too many to number. Suffice it to say that there were enough of them that mineral commodity-watchers quickly projected an impending second rapid run-up in prices due to supply shortages, economic downturn notwithstanding. With its heavy mineral sector interests, Canada was not exempt. Cancellations hit the oil and gas industry, with the highest-profile cuts being multi-billion-dollar oilsands projects. Key investments in a number of base metal mines were also pulled in the past year.
At first glance, plunging selling prices seem reason enough to pull the plug. But that argument only works if the projects in question needed sky-high prices to justify them. For some projects, this appeared to be the case. But for most, projects were designed to make money at much lower prices than last year’s peaks. If so, then why the headline-grabbing cancellations?
Actually, plunging prices are in fact the answer – with a twist. Input costs for these huge projects also went into freefall. Everything from steel to copper and other base metals, fuel, building materials, to machinery and equipment has seen price compression in the past year. Declines have been well into the double digits, and as such, have a marked impact on the bottom line. Read more here.
Canadian Ports Call U.S. Allegations They’re Receiving Subsidies ‘Hogwash’
(The Canadian Press – Brenda Bouw)
Canada’s port operators are scratching their heads at allegations coming from south of the border that they are receiving government subsidies that may contravene international trade rules, calling the complaints yet another U.S. protectionism measure.
Gary Leroux, executive director of the Association of Canadian Port Authorities, accused in turn the U.S. ports of being awash in government money. “It just boggles the mind that that kind of assertion can be made, under the WTO especially... I think the reverse might be in order,” Leroux said in an interview Tuesday. “It’s hogwash. Canadian ports are cash cows and the U.S. ports are recipients.”
Leroux was commenting on allegations that surfaced this week from the U.S. ports that Pacific ports in Vancouver, and Prince Rupert, B.C., in particular, are taking business away from their American competitors thanks to allegedly illegal government subsidies which are against World Trade Organization rules.
Leroux said while money has been spent on upgrading road and rail links to the B.C. ports, the U.S. ports receive several types of government funding from infrastructure dollars to low-interest bonds and through the collection of municipal taxes. Read more here.
Canada’s port operators are scratching their heads at allegations coming from south of the border that they are receiving government subsidies that may contravene international trade rules, calling the complaints yet another U.S. protectionism measure.
Gary Leroux, executive director of the Association of Canadian Port Authorities, accused in turn the U.S. ports of being awash in government money. “It just boggles the mind that that kind of assertion can be made, under the WTO especially... I think the reverse might be in order,” Leroux said in an interview Tuesday. “It’s hogwash. Canadian ports are cash cows and the U.S. ports are recipients.”
Leroux was commenting on allegations that surfaced this week from the U.S. ports that Pacific ports in Vancouver, and Prince Rupert, B.C., in particular, are taking business away from their American competitors thanks to allegedly illegal government subsidies which are against World Trade Organization rules.
Leroux said while money has been spent on upgrading road and rail links to the B.C. ports, the U.S. ports receive several types of government funding from infrastructure dollars to low-interest bonds and through the collection of municipal taxes. Read more here.
Business, Foreign Governments Raising Concern on “Buy American” Requirements
(World Trade Interactive)
Domestic business groups and foreign governments are cautioning the U.S. against the proliferation of “Buy American” provisions. The primary concern is that other countries will pursue similar measures, sparking a trade war that could significantly hamper prospects for economic recovery.
In comments on the Buy American requirements included in the economic stimulus bill passed earlier this year, the U.S. Chamber of Commerce said events are beginning to validate its prediction that these requirements “would have numerous unintended consequences on the United States and harm American workers and companies.”
For example, there is “a high degree of confusion” among government agencies and private-sector contractors as to what exactly is covered under the statutory language, a situation that is “even further exacerbated at the state and local levels,” where these issues are “completely unfamiliar concepts.”
This confusion has caused both the government and businesses to “be overly cautious and not take into account certain exemptions due to an incorrect belief that certain products are covered that are in actuality not covered,” which in turn has caused “many of our trading partners tremendous concern.” The Chamber cautioned that more U.S. manufacturers could feel the adverse impacts of the Buy American mandate as time goes on if the government does not provide guidance on which products are covered and allow additional exemptions. Read more here.
Say ‘No’ to Buy Canadian
(National Post – Terence Corcoran)
Canada has more to lose by playing the protectionist game
The great steam boats of Canadian trade retaliation are leaving port, heading off in all directions. There’s the SS Michael Ignatieff, who appeared set to engage the United States in a retaliatory skirmish over Buy American policies. “We need to remind the Americans that we’ve got a multi-billion dollar municipal and provincial procurement market in this country,” Mr. Ignatieff told the Federation of Canadian Municipalities (FCM) on the weekend. “Americans have unfettered access to it right now, but if they shut down their markets, there will be consequences.”
Thus fired up, Canada’s municipalities voted to adopt something called a “fair trade” resolution that establishes a “common front” to try to stop protectionism built into U. S. economic stimulus legislation. Under the stimulus laws, state and local municipal infrastructure projects can only buy international goods from countries that have local procurement agreements with the United States.
Many countries have such agreements, and as a result the Buy American provisions do not hurt their industries. But Canada does not have local procurement pacts with the United States, which means Canadian businesses cannot participate in the $780-billion U. S. economic stimulus bonanza.
The FCM mayors said they “stand united” – sort of, the vote being 189-175 – in threatening “countervailing procurement measures” against the United States. So as not to appear to be fomenting an immediate trade war, the resolution said the mayors are “holding back” their endorsement of countervailing trade action for 120 days.
This is all mostly sabre-rattling, but it can be dangerous. Among the dissenters was Toronto Mayor David Miller. The left-wing mayor of Canada’s biggest city suddenly emerged as a free-trader. “It is appropriate to ask for free trade; it is not appropriate to make threats.” Read the complete editorial here.
Canada has more to lose by playing the protectionist game
The great steam boats of Canadian trade retaliation are leaving port, heading off in all directions. There’s the SS Michael Ignatieff, who appeared set to engage the United States in a retaliatory skirmish over Buy American policies. “We need to remind the Americans that we’ve got a multi-billion dollar municipal and provincial procurement market in this country,” Mr. Ignatieff told the Federation of Canadian Municipalities (FCM) on the weekend. “Americans have unfettered access to it right now, but if they shut down their markets, there will be consequences.”
Thus fired up, Canada’s municipalities voted to adopt something called a “fair trade” resolution that establishes a “common front” to try to stop protectionism built into U. S. economic stimulus legislation. Under the stimulus laws, state and local municipal infrastructure projects can only buy international goods from countries that have local procurement agreements with the United States.
Many countries have such agreements, and as a result the Buy American provisions do not hurt their industries. But Canada does not have local procurement pacts with the United States, which means Canadian businesses cannot participate in the $780-billion U. S. economic stimulus bonanza.
The FCM mayors said they “stand united” – sort of, the vote being 189-175 – in threatening “countervailing procurement measures” against the United States. So as not to appear to be fomenting an immediate trade war, the resolution said the mayors are “holding back” their endorsement of countervailing trade action for 120 days.
This is all mostly sabre-rattling, but it can be dangerous. Among the dissenters was Toronto Mayor David Miller. The left-wing mayor of Canada’s biggest city suddenly emerged as a free-trader. “It is appropriate to ask for free trade; it is not appropriate to make threats.” Read the complete editorial here.
Tuesday, June 9, 2009
Canada to Launch Intense Lobbying Effort in Congress over Buy America
(The Canadian Press – Julian Beltrame and Ross Marowits)
Canada is launching a major arm-twisting effort in Washington on Tuesday that targets American congressmen and senators vulnerable to tit-for-tat retaliation against U.S. protectionism. Trade Minister Stockwell Day said Canadian trade officials from across the United States are descending on Congress and will be meeting with lawmakers armed with numbers about how many jobs in their districts could be lost if Canada retaliates against Buy America provisions.
“This is the ongoing full-court press to get the attention of Congress that the Buy America provisions as currently constituted are going to wind up hurting jobs, hurting business on both sides of the border,” he said in an interview. “We’ve produced a map that goes state by state, shows the vulnerabilities in each state where there are businesses that expressly do business with Canada that are at risk to being hurt if municipalities on our side of the border retaliate.”
Canada’s most senior diplomats in Washington and 13 consuls general are expected to meet with over 75 members of Congress and staff on the issue.
The action follows a narrow vote among Canadian municipalities over the weekend advocating retaliation in kind against Buy America, which forces U.S. municipalities and states to use American steel and manufacturing exclusively for projects paid by taxpayers. The Canadian municipalities say it would be fair trade to discriminate against any country that discriminates against Canadian suppliers in local procurement contracts. Read more here.
Canada is launching a major arm-twisting effort in Washington on Tuesday that targets American congressmen and senators vulnerable to tit-for-tat retaliation against U.S. protectionism. Trade Minister Stockwell Day said Canadian trade officials from across the United States are descending on Congress and will be meeting with lawmakers armed with numbers about how many jobs in their districts could be lost if Canada retaliates against Buy America provisions.
“This is the ongoing full-court press to get the attention of Congress that the Buy America provisions as currently constituted are going to wind up hurting jobs, hurting business on both sides of the border,” he said in an interview. “We’ve produced a map that goes state by state, shows the vulnerabilities in each state where there are businesses that expressly do business with Canada that are at risk to being hurt if municipalities on our side of the border retaliate.”
Canada’s most senior diplomats in Washington and 13 consuls general are expected to meet with over 75 members of Congress and staff on the issue.
The action follows a narrow vote among Canadian municipalities over the weekend advocating retaliation in kind against Buy America, which forces U.S. municipalities and states to use American steel and manufacturing exclusively for projects paid by taxpayers. The Canadian municipalities say it would be fair trade to discriminate against any country that discriminates against Canadian suppliers in local procurement contracts. Read more here.
U.S. Ports Take Aim at B.C. Rivals
(The Globe and Mail – Steven Chase and Patrick Brethour)
Both sides make subsidy accusations; American port authorities want Washington to take issue to WTO
Canadian ports are being targeted by U.S. rivals as trade rule scofflaws benefiting from illegal government subsidies – part of a mounting wave of American protectionism as the global recession hammers shipping traffic.
U.S. port officials yesterday brought their complaints against Canada to the Office of the United States Trade Representative, making the case that government help for ports such as Vancouver is partly to blame for a decline in business at American terminals.
“We’re playing Paul Revere on this, but it’s the Canadians, not the British, who are coming,” Port of Long Beach commission president Jim Hankla told Bloomberg News in Washington yesterday.
California’s Long Beach, the second-busiest port in the U.S., has seen container traffic drop by more than 40 per cent from an August, 2006, peak – a decline Mr. Hankla said is largely due to the downturn but can be partly blamed on Canadian investments that diverted cargo from American facilities.
In a draft memo prepared for the Washington visit, a Long Beach port official argued that Canadian governments’ spending on rail and port infrastructure constitute illegal subsidies under the World Trade Organization, a global trade referee. Read more here.
Both sides make subsidy accusations; American port authorities want Washington to take issue to WTO
Canadian ports are being targeted by U.S. rivals as trade rule scofflaws benefiting from illegal government subsidies – part of a mounting wave of American protectionism as the global recession hammers shipping traffic.
U.S. port officials yesterday brought their complaints against Canada to the Office of the United States Trade Representative, making the case that government help for ports such as Vancouver is partly to blame for a decline in business at American terminals.
“We’re playing Paul Revere on this, but it’s the Canadians, not the British, who are coming,” Port of Long Beach commission president Jim Hankla told Bloomberg News in Washington yesterday.
California’s Long Beach, the second-busiest port in the U.S., has seen container traffic drop by more than 40 per cent from an August, 2006, peak – a decline Mr. Hankla said is largely due to the downturn but can be partly blamed on Canadian investments that diverted cargo from American facilities.
In a draft memo prepared for the Washington visit, a Long Beach port official argued that Canadian governments’ spending on rail and port infrastructure constitute illegal subsidies under the World Trade Organization, a global trade referee. Read more here.
Bilateral Canadian Beef Talks Fail
(JoongAng Daily – Cho Jae-eun)
Though U.S. beef is allowed back in Korean stores, its Canadian cousin is not
The feud over resuming Canadian beef imports in Korea is expected to continue to the final round as negotiations between the two countries in Geneva this week prove fruitless.
The consultation talks are one of the first steps in the World Trade Organization’s settlement procedure for disputes. This April, Canada asked the WTO to review Korea’s ban on imports of Canadian beef, calling it “unjustified” and against international trade rules.
Under WTO rules, when a complaint is filed, bilateral consultations must begin within 30 days. If, after 60 days, no agreement has been reached, the complainant may ask a dispute settlement panel to review the case and make a final ruling. Read more here.
Though U.S. beef is allowed back in Korean stores, its Canadian cousin is not
The feud over resuming Canadian beef imports in Korea is expected to continue to the final round as negotiations between the two countries in Geneva this week prove fruitless.
The consultation talks are one of the first steps in the World Trade Organization’s settlement procedure for disputes. This April, Canada asked the WTO to review Korea’s ban on imports of Canadian beef, calling it “unjustified” and against international trade rules.
Under WTO rules, when a complaint is filed, bilateral consultations must begin within 30 days. If, after 60 days, no agreement has been reached, the complainant may ask a dispute settlement panel to review the case and make a final ruling. Read more here.
U.S. Exporters Say Customs and Carriers Not on Same Page
(Logistics Management – Patrick Burnson)
Shippers are still complaining about the confusion caused by Customs & Border Protection enforcement policies. While the economy took center stage at last week’s annual meeting of the Agriculture Transportation Coalition (Agtc) in San Francisco, shippers were also expressing considerable concern about the New Automated Export System Regulations (AES).
“We are doing everything in our power to comply,” said Don Lake, an executive with Dunavant Cotton, “But without industry standards, it’s still difficult to avoid getting in trouble with Customs.”
Currently, The Customs and Border [Protection] (CBP) guidance is broken into various categories of non-compliance including non-filing and late-filing. U.S. cotton shippers are fine with this, said Dunavant, but other aspects of the law have been problematic. “Many of us don’t know the correct value of the shipment in time to meet the carrier deadline for proof of AES filing,” he said. “And as containers are often rolled, and it can be difficult to track containers and update AES accordingly.” Read more here.
Shippers are still complaining about the confusion caused by Customs & Border Protection enforcement policies. While the economy took center stage at last week’s annual meeting of the Agriculture Transportation Coalition (Agtc) in San Francisco, shippers were also expressing considerable concern about the New Automated Export System Regulations (AES).
“We are doing everything in our power to comply,” said Don Lake, an executive with Dunavant Cotton, “But without industry standards, it’s still difficult to avoid getting in trouble with Customs.”
Currently, The Customs and Border [Protection] (CBP) guidance is broken into various categories of non-compliance including non-filing and late-filing. U.S. cotton shippers are fine with this, said Dunavant, but other aspects of the law have been problematic. “Many of us don’t know the correct value of the shipment in time to meet the carrier deadline for proof of AES filing,” he said. “And as containers are often rolled, and it can be difficult to track containers and update AES accordingly.” Read more here.
Monday, June 8, 2009
Canada: Land of Opportunity
(The Toronto Star – Madhavi Acharya-Tom Yew)
The recession has cast our business potential in a whole new light – now we’re attracting more American suitors than ever
When you ask Darrell Gacom what he liked about his trip to Toronto last week, he’ll sound like any other tourist. He’ll tell you about clean streets, friendly people and going to the CN Tower for dinner. But here’s what really impressed the Tampa, Fla., businessman: the city’s educated workforce, the dozens of languages it speaks, the safe communities and the low corporate tax rates.
Gacom’s stop in Toronto was part of a trade mission. His company, Ott Lite, currently sells about $1 million worth of specialty light bulbs and fixtures in Canada. He figures that’s just the beginning. During his visit, he met with local firms that want to sell his products here. “There’s no real barriers to entry and no real barriers for growth, as far as I can see,” he said.
When it comes to trade, Canada has long been the quiet, sweet girl next door to the world’s economic powerhouse. No longer – these days, Canada is more like the prettiest country in the room. Long-time trading partners that were content to just gaze lovingly across the border are sending trade delegations, often with local politicians and business leaders in tow, eager to affirm existing business ties and make new connections.
“Over the course of the year, we might have half-a-dozen events. In 30 days, we’ve had three,” said Carol Wilding, president and chief executive of the Toronto Board of Trade. “Clearly there’s a trend of increasing interest for U.S. delegations to come to Toronto.” Read the complete article here.
The recession has cast our business potential in a whole new light – now we’re attracting more American suitors than ever
When you ask Darrell Gacom what he liked about his trip to Toronto last week, he’ll sound like any other tourist. He’ll tell you about clean streets, friendly people and going to the CN Tower for dinner. But here’s what really impressed the Tampa, Fla., businessman: the city’s educated workforce, the dozens of languages it speaks, the safe communities and the low corporate tax rates.
Gacom’s stop in Toronto was part of a trade mission. His company, Ott Lite, currently sells about $1 million worth of specialty light bulbs and fixtures in Canada. He figures that’s just the beginning. During his visit, he met with local firms that want to sell his products here. “There’s no real barriers to entry and no real barriers for growth, as far as I can see,” he said.
When it comes to trade, Canada has long been the quiet, sweet girl next door to the world’s economic powerhouse. No longer – these days, Canada is more like the prettiest country in the room. Long-time trading partners that were content to just gaze lovingly across the border are sending trade delegations, often with local politicians and business leaders in tow, eager to affirm existing business ties and make new connections.
“Over the course of the year, we might have half-a-dozen events. In 30 days, we’ve had three,” said Carol Wilding, president and chief executive of the Toronto Board of Trade. “Clearly there’s a trend of increasing interest for U.S. delegations to come to Toronto.” Read the complete article here.
EU Delays Mandatory Advance Cargo Information until 2011
(World Trade Interactive)
The European Union is delaying until January 1, 2011, the requirement for the advance submission of certain information on inbound and outbound cargo.
Under the Safety and Security Amendment to the EU Customs Code, which was enacted in April 2005, traders must provide customs authorities with certain information on goods prior to import or export from the EU. In principle, economic operators are required to electronically submit the relevant security data beginning July 1. However, the EU has recently announced that between July 1, 2009, and December 31, 2010, this advance declaration will be an option and not an obligation. During this transitional period goods not declared in advance will be submitted to risk analysis after arrival or before departure.
Click here for more information.
The European Union is delaying until January 1, 2011, the requirement for the advance submission of certain information on inbound and outbound cargo.
Under the Safety and Security Amendment to the EU Customs Code, which was enacted in April 2005, traders must provide customs authorities with certain information on goods prior to import or export from the EU. In principle, economic operators are required to electronically submit the relevant security data beginning July 1. However, the EU has recently announced that between July 1, 2009, and December 31, 2010, this advance declaration will be an option and not an obligation. During this transitional period goods not declared in advance will be submitted to risk analysis after arrival or before departure.
Click here for more information.
Border Crossing at Aldergrove Faces Commercial Traffic Closure
(Abbotsford News – Al Irwin)
A commercial traffic closure at the Aldergrove/Lynden border crossing would be “devastating” to the local economy, says Langley Township Mayor Rick Green. Green recently outlined what Lower Mainland mayors, chambers of commerce and MPs and MLAs have been doing concerning a proposal by the Canadian Border Service Agency to eliminate truck crossings at Aldergrove.
Meanwhile, chambers of commerce across the province have called for the federal government to take immediate action to balance the need for border security with the need to facilitate trade, commerce, and tourism opportunities in British Columbia. […]
The CBSA says that the Aldergrove border crossing was built originally for passenger vehicle processing only. The facility does not allow adequate space for officers to thoroughly conduct commercial truck exams. Dedicated ports of entry for commercial vehicles are located a short distance away at Pacific Highway and Huntingdon/Sumas.
CBSA also pointed out, “The recent Canadian budget includes $80 million nationally for border crossings. Pacific Highway and Huntingdon are specifically called out in the budget for improvements to commercial vehicle operations ...” Read more here.
Brokers Broadsided by Proposed FDA Registration
(American Shipper)
U.S. customs brokers say they were broadsided by proposed legislative provisions in the 2009 Food Safety Enhancement Act that would require them to be registered along with importers in an effort to strengthen the Food and Drug Administration’s oversight of the nation’s food supply.
“These provisions surfaced only last week, were preceded by no consultation with our industry and, we are told, may go to subcommittee mark-up next week,” said Mary Jo Muoio, president of the National Customs Brokers and Forwarders Association of America, in a letter to House Energy and Commerce Committee Chairman Henry Waxman on Thursday.
Muoio noted to the chairman that “the committee’s draft treats customs brokers as if they are importers.”
She further added that the committee ignored existing regulatory and licensing requirements already long in place for the customs broker industry. The draft legislation “attempts to erect a duplicate regulatory framework that distorts the role of the broker,” she said. Read more here.
U.S. customs brokers say they were broadsided by proposed legislative provisions in the 2009 Food Safety Enhancement Act that would require them to be registered along with importers in an effort to strengthen the Food and Drug Administration’s oversight of the nation’s food supply.
“These provisions surfaced only last week, were preceded by no consultation with our industry and, we are told, may go to subcommittee mark-up next week,” said Mary Jo Muoio, president of the National Customs Brokers and Forwarders Association of America, in a letter to House Energy and Commerce Committee Chairman Henry Waxman on Thursday.
Muoio noted to the chairman that “the committee’s draft treats customs brokers as if they are importers.”
She further added that the committee ignored existing regulatory and licensing requirements already long in place for the customs broker industry. The draft legislation “attempts to erect a duplicate regulatory framework that distorts the role of the broker,” she said. Read more here.
Canada a Rogue State; Yeah, That’s the Ticket
(Tom Ford — Winnipeg Free Press)
Trade experts say a border is “thick” when bureaucracy impedes the movement of goods, services and people. The Canada-U.S. border is now so thick it has love handles.
If our fatso border doesn’t slim down, it could ruin Canada’s and America’s long-term relationship of being good neighbours and each other’s best trading partner.
The border is getting fatter because Canadians and Americans view it differently. Canadians think it’s a line on a map that we should be able to cross quickly. Americans are focused on protectionism and the horrors of terrorism and want a border like China’s Great Wall.
The border’s problems are compounded by the fact that America has a Democratic president and a Congress controlled by Democrats. They are susceptible to the pleadings of unions interested in protectionism. As well, they’re worried Dick Cheney, the former vice-president, and other Republicans will accuse them of being soft on terrorism.
We talk about friendship and free trade, but the Americans are not listening. Janet Napolitano, the American secretary of homeland security, thought, until she was corrected, that some of the 9/11 terrorists came from Canada. At an appearance last week in Toronto, former presidents George W. Bush and Bill Clinton were unaware Canadians now need a passport or approved document to get into the States. Read the complete editorial here.
Trade experts say a border is “thick” when bureaucracy impedes the movement of goods, services and people. The Canada-U.S. border is now so thick it has love handles.
If our fatso border doesn’t slim down, it could ruin Canada’s and America’s long-term relationship of being good neighbours and each other’s best trading partner.
The border is getting fatter because Canadians and Americans view it differently. Canadians think it’s a line on a map that we should be able to cross quickly. Americans are focused on protectionism and the horrors of terrorism and want a border like China’s Great Wall.
The border’s problems are compounded by the fact that America has a Democratic president and a Congress controlled by Democrats. They are susceptible to the pleadings of unions interested in protectionism. As well, they’re worried Dick Cheney, the former vice-president, and other Republicans will accuse them of being soft on terrorism.
We talk about friendship and free trade, but the Americans are not listening. Janet Napolitano, the American secretary of homeland security, thought, until she was corrected, that some of the 9/11 terrorists came from Canada. At an appearance last week in Toronto, former presidents George W. Bush and Bill Clinton were unaware Canadians now need a passport or approved document to get into the States. Read the complete editorial here.
Britain Launches Anti-protectionism Trade Website
(Peter Griffiths — Reuters)
Britain launched a website on Monday that will give live updates on global protectionism to foster free trade and help the world economy recover from the worst recession since the 1930s.
British Business Secretary Peter Mandelson said the Global Trade Alert site would act as a watchdog to deter governments from protectionist measures that he warned would only make the recession “longer and more painful”.
“Everyone is watching everyone else and there is a lot to be said for peer pressure,” he said. “(The) trading system faces a huge crisis of demand and of credit, but the real long-term risk to its health lies in protectionism.” Read more here.
Related: “Early warning on protectionism needed” Times Editorial by Lord Peter Mandelson.
Britain launched a website on Monday that will give live updates on global protectionism to foster free trade and help the world economy recover from the worst recession since the 1930s.
British Business Secretary Peter Mandelson said the Global Trade Alert site would act as a watchdog to deter governments from protectionist measures that he warned would only make the recession “longer and more painful”.
“Everyone is watching everyone else and there is a lot to be said for peer pressure,” he said. “(The) trading system faces a huge crisis of demand and of credit, but the real long-term risk to its health lies in protectionism.” Read more here.
Related: “Early warning on protectionism needed” Times Editorial by Lord Peter Mandelson.
Ottawa Pours $1M Into U.S. Border Crossing
(The Canadian Press)
The federal government says it's planning to invest $1 million to improve the Canadian customs facility at the Peace Bridge in Fort Erie, Ont. The bridge links Canada to the United States at Buffalo, N.Y.
In a statement, Justice Minister Rob Nicholson says the project includes the construction of a fifth inspection booth for Canada-bound commercial vehicles. Nicholson, an MP for the area, says the funding provides much-needed economic stimulus to the community while also supporting international trade.
He says the improvements will reduce traffic congestion, facilitate local border crossings and complement projects on the American side of the border. Construction is schedule to begin in September, 2009, and is scheduled for completion in February, 2010. Ottawa's contribution will be matched by the Buffalo and Fort Erie Public Bridge Authority.
The Peace Bridge is the third-busiest Canada-U.S. commercial truck crossing.
Related: Government of Canada press release.
The federal government says it's planning to invest $1 million to improve the Canadian customs facility at the Peace Bridge in Fort Erie, Ont. The bridge links Canada to the United States at Buffalo, N.Y.
In a statement, Justice Minister Rob Nicholson says the project includes the construction of a fifth inspection booth for Canada-bound commercial vehicles. Nicholson, an MP for the area, says the funding provides much-needed economic stimulus to the community while also supporting international trade.
He says the improvements will reduce traffic congestion, facilitate local border crossings and complement projects on the American side of the border. Construction is schedule to begin in September, 2009, and is scheduled for completion in February, 2010. Ottawa's contribution will be matched by the Buffalo and Fort Erie Public Bridge Authority.
The Peace Bridge is the third-busiest Canada-U.S. commercial truck crossing.
Related: Government of Canada press release.
Friday, June 5, 2009
Appointment of Close Obama Associate as U.S. Ambassador Good News for Canada
(The Canadian Press – Lee-Anne Goodman)
The close friendship between the incoming U.S. ambassador to Canada and President Barack Obama is delighting those who have been hoping for a better relationship with the United States. David Jacobson, a 57-year-old Chicago lawyer who served as a key fundraiser during Obama’s historic run for White House, got the official nod on Thursday after weeks of speculation.
The president announced his pick for Canada along with a handful of other appointments to countries including Mexico, Saudi Arabia and South Africa.
I am grateful that these individuals will help represent our nation abroad during this important time for our country and the world,” Obama, who was in Egypt on Thursday to deliver a speech to the Muslim world, said in a statement. “They bring a depth of experience and I look forward to working with them in the months and years to come.”
Jacobson replaces George W. Bush confidante David Wilkins, who left the post the day before Obama’s inauguration in January. While his appointment has yet to be confirmed by the U.S. Senate, there’s no indication it will be held up. In the wake of a series of senior Obama cabinet appointees stepping aside because of past tax issues, the administration has been careful to do extensive and meticulous vetting of its would-be ambassadors to avoid any further embarrassments.
Kory Teneycke, spokesman for Prime Minister Stephen Harper, said the PMO welcomed working with Jacobson once his appointment has been confirmed. “It’s good news,” he said, calling the U.S. “our friend, our neighbour, our ally, our largest trading partner.” Read more here.
The close friendship between the incoming U.S. ambassador to Canada and President Barack Obama is delighting those who have been hoping for a better relationship with the United States. David Jacobson, a 57-year-old Chicago lawyer who served as a key fundraiser during Obama’s historic run for White House, got the official nod on Thursday after weeks of speculation.
The president announced his pick for Canada along with a handful of other appointments to countries including Mexico, Saudi Arabia and South Africa.
I am grateful that these individuals will help represent our nation abroad during this important time for our country and the world,” Obama, who was in Egypt on Thursday to deliver a speech to the Muslim world, said in a statement. “They bring a depth of experience and I look forward to working with them in the months and years to come.”
Jacobson replaces George W. Bush confidante David Wilkins, who left the post the day before Obama’s inauguration in January. While his appointment has yet to be confirmed by the U.S. Senate, there’s no indication it will be held up. In the wake of a series of senior Obama cabinet appointees stepping aside because of past tax issues, the administration has been careful to do extensive and meticulous vetting of its would-be ambassadors to avoid any further embarrassments.
Kory Teneycke, spokesman for Prime Minister Stephen Harper, said the PMO welcomed working with Jacobson once his appointment has been confirmed. “It’s good news,” he said, calling the U.S. “our friend, our neighbour, our ally, our largest trading partner.” Read more here.
New on the WTO Website – Map of WTO Disputes
(WTO)
View the map on the WTO website.
Click on a country to see a country’s involvement as complainant, respondent or third party.
Example: The one case brought by Canada against Australia concerns measures affecting the importation of salmon.
View the map on the WTO website.
Click on a country to see a country’s involvement as complainant, respondent or third party.
Example: The one case brought by Canada against Australia concerns measures affecting the importation of salmon.
DFAIT – State of Trade and Investment Update 2009
(CIFFA eBulletin)
Canada’s State of Trade: Trade and Investment Update 2009 is Foreign Affairs and International Trade Canada’s annual flagship report highlighting Canada’s international trade and investment at home an abroad in 2008.
Backgrounder information and an Executive Summary can be found here.
Canada’s State of Trade: Trade and Investment Update 2009 is Foreign Affairs and International Trade Canada’s annual flagship report highlighting Canada’s international trade and investment at home an abroad in 2008.
Backgrounder information and an Executive Summary can be found here.
Thursday, June 4, 2009
Ottawa Pushes for New Chapter in Free Trade with U.S.
(The Globe and Mail – Campbell Clark and Rhéal Séguin)
To get around Buy American provisions, PM hopes to bring awarding of local contracts under the free-trade umbrella
The Canadian government is asking the provinces to join it in creating a new trade deal with the United States. Motivated by growing concern that Canadian firms are being frozen out of billions of dollars worth of bids in an increasingly protectionist United States, the Prime Minister is attempting to redraw the U.S.-Canada trade map.
Because the 1993 North American free-trade agreement does not include spending by local jurisdictions, contracts across North America involving everything from sewage systems to subway repairs are being awarded outside the framework of continental free trade.
And as the recession continues, Canadian firms have reported it is increasingly difficult to win rich contracts in U.S. cities because of the Buy American provisions of President Barack Obama’s massive economic stimulus package, even though NAFTA countries are supposed to be exempt from them.
So at a press conference yesterday, Prime Minister Stephen Harper said he wants to bring the awarding of local contracts – in both the United States and Canada – under the free-trade umbrella.
Any Canadian proposal to add a new chapter to NAFTA, however carries the risk that the United States will demand trade concessions in other areas. Read more here.
To get around Buy American provisions, PM hopes to bring awarding of local contracts under the free-trade umbrella
The Canadian government is asking the provinces to join it in creating a new trade deal with the United States. Motivated by growing concern that Canadian firms are being frozen out of billions of dollars worth of bids in an increasingly protectionist United States, the Prime Minister is attempting to redraw the U.S.-Canada trade map.
Because the 1993 North American free-trade agreement does not include spending by local jurisdictions, contracts across North America involving everything from sewage systems to subway repairs are being awarded outside the framework of continental free trade.
And as the recession continues, Canadian firms have reported it is increasingly difficult to win rich contracts in U.S. cities because of the Buy American provisions of President Barack Obama’s massive economic stimulus package, even though NAFTA countries are supposed to be exempt from them.
So at a press conference yesterday, Prime Minister Stephen Harper said he wants to bring the awarding of local contracts – in both the United States and Canada – under the free-trade umbrella.
Any Canadian proposal to add a new chapter to NAFTA, however carries the risk that the United States will demand trade concessions in other areas. Read more here.
New Book Published on Carriage of Goods
(International Freighting Weekly – James Falkner)
TT Club has published a new transport manager’s handbook on the Conventions for the International Carriage of Goods. It replaces an earlier version and offers a guide to what conventions are in use in which countries, for all modes of freight transport.
The handbook is designed specifically for transport managers who do not have a legal background, but who have to deal with claims and insurance for their companies.
TT Club has published a new transport manager’s handbook on the Conventions for the International Carriage of Goods. It replaces an earlier version and offers a guide to what conventions are in use in which countries, for all modes of freight transport.
The handbook is designed specifically for transport managers who do not have a legal background, but who have to deal with claims and insurance for their companies.
Editorial: The Peril of ‘Buy American’
(New York Times)
It’s not surprising that Democrats in Congress could not resist adding a “Buy American” provision to the fiscal stimulus bill earlier this year. It might seem sensible (or at least politically useful) to ensure that taxpayer dollars would be used exclusively to support American jobs.
But as states and municipalities start spending stimulus money, the idea is starting to look as counterproductive as it should have looked from the beginning. It is sparking conflict with American allies and, rather than supporting employment at home, the “Buy American” effort could ultimately cost American jobs.
Foreign and domestic companies that employ hundreds of workers in this country cannot bid for government projects because they cannot guarantee the American provenance of all the steel, iron and manufactured goods in their supply chain, as the provision requires. Others are scrambling to figure out whether American-made alternatives exist to replace their foreign inputs.
The steel company Duferco Farrell, for example, has cut about 600 jobs in Pennsylvania after it lost orders from its biggest customer because some of its goods are partly produced abroad. The Westlake Chemical Corporation of Houston has lost sales to a Canadian vinyl pipe maker that is cutting back production because it can’t bid for some American jobs.
America’s trading partners expected more of President Obama, who signed a declaration against protectionism at the summit of the biggest nations in April. He convinced Congress to add a clause to its “Buy American” effort promising Washington would meet its international obligations. But cities and some states are not bound by the rules of the World Trade Organization and the North American Free Trade Agreement. Read more here.
It’s not surprising that Democrats in Congress could not resist adding a “Buy American” provision to the fiscal stimulus bill earlier this year. It might seem sensible (or at least politically useful) to ensure that taxpayer dollars would be used exclusively to support American jobs.
But as states and municipalities start spending stimulus money, the idea is starting to look as counterproductive as it should have looked from the beginning. It is sparking conflict with American allies and, rather than supporting employment at home, the “Buy American” effort could ultimately cost American jobs.
Foreign and domestic companies that employ hundreds of workers in this country cannot bid for government projects because they cannot guarantee the American provenance of all the steel, iron and manufactured goods in their supply chain, as the provision requires. Others are scrambling to figure out whether American-made alternatives exist to replace their foreign inputs.
The steel company Duferco Farrell, for example, has cut about 600 jobs in Pennsylvania after it lost orders from its biggest customer because some of its goods are partly produced abroad. The Westlake Chemical Corporation of Houston has lost sales to a Canadian vinyl pipe maker that is cutting back production because it can’t bid for some American jobs.
America’s trading partners expected more of President Obama, who signed a declaration against protectionism at the summit of the biggest nations in April. He convinced Congress to add a clause to its “Buy American” effort promising Washington would meet its international obligations. But cities and some states are not bound by the rules of the World Trade Organization and the North American Free Trade Agreement. Read more here.
Globalization Dented, not Derailed
(Export Development Canada – Stephen S. Poloz)
Globalization always rubs some people the wrong way, but this is especially the case during recessions. This one is worse than usual, because many blame globalization for the contagion that brought the U.S. financial crisis and economic downturn to their shores.
Protectionist rhetoric and practice is on the rise, and there has been a sharp decline in international trade flows. With transportation costs creeping higher, and some predicting an eventual return to sky-high energy costs, it would seem that globalization faces its own perfect storm.
Obviously, there is more than one way to look at this, but let’s begin by carefully defining globalization. Most would agree that globalization refers to the emergence of borderless business.
One manifestation of this trend is the development of global supply chains, where companies fragment their production processes just as they would if they were in a single building, but instead locate each process in a specialized facility located anywhere in the world that makes good business sense. The processes are then connected by international trade, rather than by a conveyor belt – our trade dependence rises.
That’s a good definition, but not the whole picture. A second manifestation of globalization is cross-border investment, as some companies replicate their operations in their target sales markets. To illustrate, Canadian companies have levels of sales from their foreign-based affiliates that are about the same order of magnitude as total Canadian exports. These sales do not show up in our basic trade statistics, but they are very important to Canadian incomes and to the sustainability of our companies. Read the article or view the video here.
Globalization always rubs some people the wrong way, but this is especially the case during recessions. This one is worse than usual, because many blame globalization for the contagion that brought the U.S. financial crisis and economic downturn to their shores.
Protectionist rhetoric and practice is on the rise, and there has been a sharp decline in international trade flows. With transportation costs creeping higher, and some predicting an eventual return to sky-high energy costs, it would seem that globalization faces its own perfect storm.
Obviously, there is more than one way to look at this, but let’s begin by carefully defining globalization. Most would agree that globalization refers to the emergence of borderless business.
One manifestation of this trend is the development of global supply chains, where companies fragment their production processes just as they would if they were in a single building, but instead locate each process in a specialized facility located anywhere in the world that makes good business sense. The processes are then connected by international trade, rather than by a conveyor belt – our trade dependence rises.
That’s a good definition, but not the whole picture. A second manifestation of globalization is cross-border investment, as some companies replicate their operations in their target sales markets. To illustrate, Canadian companies have levels of sales from their foreign-based affiliates that are about the same order of magnitude as total Canadian exports. These sales do not show up in our basic trade statistics, but they are very important to Canadian incomes and to the sustainability of our companies. Read the article or view the video here.
Wednesday, June 3, 2009
New Documents to Assist ACE Transition
(CBP)
U.S. Customs and Border Protection is providing supporting documentation on its website for the new ACE entry summary process it successfully piloted in Buffalo last month and in Chicago, Laredo and Long Beach in May.
ACE or the Automated Commercial Environment is a CBP initiative designed to modernize the agency’s international trade business processes, improve homeland security and re-engineer the technology system that supports them.
The latest ACE pilot program allows the trade community to file and CBP to process, in ACE, the two most common entry types, 01 Consumption and 11 Informal. The ACE entry summary pilot will be extended to additional ports in stages to permit rigorous testing before it is implemented nationally. ACE entry summary processing for remaining entry types will be added throughout the next few years.
The ACE outreach documents will assist the international trade community in their transition to ACE. This information includes additional links to helpful memos and directives on ACE entry summary processing, and will be continually updated with every major ACE release.
• ACE Entry Summary Instructions These instructions are organized the way the data is transmitted and stored in ACE. They include descriptions of the entry summary data fields and links to program and policy documents.
• Business Rules and Process Document (Trade) Version 1.1 ACE is a true electronic system of record keeping for entry summary processing. This significant change requires revised operational policies and procedures, and this document informs the public of those changes. Links to program and policy documents are included as well.
• CBP Form 7501 TEST – Document/Payment Transmittal This test 7501 transmittal may be used by the trade as a cover sheet to submit required paper documents or monies due related to an ACE entry summary.
• ACE Entry Summary Rejection Response This response template may be used to respond to a CBP initiated electronic entry summary rejection.
CBP has been working closely with the members of the Trade Support Network and the ACE ambassador representatives to develop these documents, and will continue this collaboration over the coming months to ensure clear and transparent guidance on CBP’s importing requirements.
U.S. Customs and Border Protection is providing supporting documentation on its website for the new ACE entry summary process it successfully piloted in Buffalo last month and in Chicago, Laredo and Long Beach in May.
ACE or the Automated Commercial Environment is a CBP initiative designed to modernize the agency’s international trade business processes, improve homeland security and re-engineer the technology system that supports them.
The latest ACE pilot program allows the trade community to file and CBP to process, in ACE, the two most common entry types, 01 Consumption and 11 Informal. The ACE entry summary pilot will be extended to additional ports in stages to permit rigorous testing before it is implemented nationally. ACE entry summary processing for remaining entry types will be added throughout the next few years.
The ACE outreach documents will assist the international trade community in their transition to ACE. This information includes additional links to helpful memos and directives on ACE entry summary processing, and will be continually updated with every major ACE release.
• ACE Entry Summary Instructions These instructions are organized the way the data is transmitted and stored in ACE. They include descriptions of the entry summary data fields and links to program and policy documents.
• Business Rules and Process Document (Trade) Version 1.1 ACE is a true electronic system of record keeping for entry summary processing. This significant change requires revised operational policies and procedures, and this document informs the public of those changes. Links to program and policy documents are included as well.
• CBP Form 7501 TEST – Document/Payment Transmittal This test 7501 transmittal may be used by the trade as a cover sheet to submit required paper documents or monies due related to an ACE entry summary.
• ACE Entry Summary Rejection Response This response template may be used to respond to a CBP initiated electronic entry summary rejection.
CBP has been working closely with the members of the Trade Support Network and the ACE ambassador representatives to develop these documents, and will continue this collaboration over the coming months to ensure clear and transparent guidance on CBP’s importing requirements.
Feds Say Bridge Treated Fairly
(The Windsor Star – Dave Battagello)
The Canadian government has assured Michigan lawmakers that Canada is committed to building another border crossing as quickly as possible, despite a bid by the Ambassador Bridge to derail the process.
Michael Wilson, Canada’s Ambassador to the United States, said in a letter to state leaders that bridge allegations of unfair treatment surrounding its twin span proposal are unfounded. Wilson denied complaints by bridge officials that the Canadian government has delayed the twin span’s environmental assessment and said the view that the government-sponsored Detroit River International Crossing bridge is costly and not needed are misguided.
Wilson’s three-page letter was addressed to the speaker of the Michigan House of Representatives and Senate majority leader. A copy was also issued to Michigan Gov. Jennifer Granholm.
Wilson said the bridge twinning was ruled out by DRIC because of negative environmental impacts in Windsor, lack of system redundancy and inadequate space for a border inspection plaza in Windsor. “In Canada, the bridge company does not have any of the approvals necessary to proceed with construction,” Wilson said. Read more here.
The Canadian government has assured Michigan lawmakers that Canada is committed to building another border crossing as quickly as possible, despite a bid by the Ambassador Bridge to derail the process.
Michael Wilson, Canada’s Ambassador to the United States, said in a letter to state leaders that bridge allegations of unfair treatment surrounding its twin span proposal are unfounded. Wilson denied complaints by bridge officials that the Canadian government has delayed the twin span’s environmental assessment and said the view that the government-sponsored Detroit River International Crossing bridge is costly and not needed are misguided.
Wilson’s three-page letter was addressed to the speaker of the Michigan House of Representatives and Senate majority leader. A copy was also issued to Michigan Gov. Jennifer Granholm.
Wilson said the bridge twinning was ruled out by DRIC because of negative environmental impacts in Windsor, lack of system redundancy and inadequate space for a border inspection plaza in Windsor. “In Canada, the bridge company does not have any of the approvals necessary to proceed with construction,” Wilson said. Read more here.
Tuesday, June 2, 2009
In Tough Times, We Can’t Afford Provincial Barriers
(The Globe and Mail – Gordon Gibson)
Section 121 of the BNA Act needs teeth
A reason for the success of our federalism is decentralization of power, from Ottawa to the provinces and from the provinces to towns and the private sector. Indeed, we need more of this. But there is one area where the feds should take a legal sledgehammer to the provinces and do what the Americans call a “cramdown” to free up trade in this country.
Petty impediments to interprovincial trade in terms of local licensing and standards and particularly in provincial and municipal procurement have always been a nuisance. Now they’re a major problem, driven by tough times.
First, the United States is turning more protectionist and inserting “Buy American” requirements into more and more government projects. In some cases, NAFTA offers no defence and, even when it does, the rules take years to enforce. When a town in California instructs a contractor to rip up some piping because the valves were made in Canada, you know you have a problem. But the Americans can reply: “Your provinces do the same thing”
Second, Ottawa is working hard to negotiate a free-trade agreement with the European Union. This would be a good thing on its own merits, with the additional advantage of making us a bit less reliant on America. But there’s a huge stumbling block for the Eurocrats. Since so much of the purchasing in Canada is controlled by the provinces, the EU wants any deal to be enforceable on provincial and municipal procurement as well. This is a deal breaker. Read more here.
Section 121 of the BNA Act needs teeth
A reason for the success of our federalism is decentralization of power, from Ottawa to the provinces and from the provinces to towns and the private sector. Indeed, we need more of this. But there is one area where the feds should take a legal sledgehammer to the provinces and do what the Americans call a “cramdown” to free up trade in this country.
Petty impediments to interprovincial trade in terms of local licensing and standards and particularly in provincial and municipal procurement have always been a nuisance. Now they’re a major problem, driven by tough times.
First, the United States is turning more protectionist and inserting “Buy American” requirements into more and more government projects. In some cases, NAFTA offers no defence and, even when it does, the rules take years to enforce. When a town in California instructs a contractor to rip up some piping because the valves were made in Canada, you know you have a problem. But the Americans can reply: “Your provinces do the same thing”
Second, Ottawa is working hard to negotiate a free-trade agreement with the European Union. This would be a good thing on its own merits, with the additional advantage of making us a bit less reliant on America. But there’s a huge stumbling block for the Eurocrats. Since so much of the purchasing in Canada is controlled by the provinces, the EU wants any deal to be enforceable on provincial and municipal procurement as well. This is a deal breaker. Read more here.
President´s FY 2010 FDA Budget Proposes Food Industry User Fees
(Mondaq – Michael D. Flanagan et al., Foley & Lardner LLP)
President Barack H. Obama’s recently released Fiscal Year (FY) 2010 budget for the U.S. Food and Drug Administration (FDA) proposes historic spending for the agency of more than $3 billion, an increase of more than $500 million over FY 2009 spending. One of the two major initiatives proposed by the FY 2010 budget is “Protecting America’s Food Supply.” To help fund the budget increases, the president’s proposal would impose four new user fees to generate more than $200 million. The president’s FY 2010 budget for the United States Department of Agriculture (USDA) also proposes new user fees, but would require new legislation to allow the USDA to collect the fees.
Under the food safety initiative, funding for food-industry regulatory activities would exceed $1 billion, a $259 million increase over FY 2009 spending levels. Notably for the food industry, the budget proposes to collect nearly $95 million in new user fees. The proposed user fees would be allocated to register food facilities, increase food inspections, issue food and feed export certificates, and re-inspect food facilities that fail to meet the FDA’s safety standards. Read more here.
President Barack H. Obama’s recently released Fiscal Year (FY) 2010 budget for the U.S. Food and Drug Administration (FDA) proposes historic spending for the agency of more than $3 billion, an increase of more than $500 million over FY 2009 spending. One of the two major initiatives proposed by the FY 2010 budget is “Protecting America’s Food Supply.” To help fund the budget increases, the president’s proposal would impose four new user fees to generate more than $200 million. The president’s FY 2010 budget for the United States Department of Agriculture (USDA) also proposes new user fees, but would require new legislation to allow the USDA to collect the fees.
Under the food safety initiative, funding for food-industry regulatory activities would exceed $1 billion, a $259 million increase over FY 2009 spending levels. Notably for the food industry, the budget proposes to collect nearly $95 million in new user fees. The proposed user fees would be allocated to register food facilities, increase food inspections, issue food and feed export certificates, and re-inspect food facilities that fail to meet the FDA’s safety standards. Read more here.
Monday, June 1, 2009
Tighter U.S. Border Risky to Both Sides
(The Toronto Star)
This country’s financial future hangs somewhere between the optimism of Washington security czar Janet Napolitano’s Wednesday visit here and the pessimism of Monday’s new “papers, please” border controls. In the fight to keep trade flowing freely, painful Canadian sacrifices in blood, money and principles are proving poorly matched against U.S. terrorism fears and rising protectionism.
Two hard truths frame our current reality. Apart from national unity, not much is more vital to this country than timely access to the world’s richest market. And nothing Ottawa has done since 9/11, not even Afghanistan missions costly in lives and loonies, convinced Washington that America’s back door is latched and locked.
That failure, multiplied by recession and the reflex U.S. “Buy American” response, has risky consequences. Along with squeezing arteries carrying more than a $1 million in goods and services every minute, they threaten the success of two economies moving beyond trade to making things together.
Without open capillaries between corporations operating in both countries, job-creating industries vital to Canada, including an auto sector already staggering under continental restructuring, will strangle. After all, only a bonehead CEO would invest on the wrong side of a thickening border easily closed by a terrorist strike.
Liberals recognized that danger and their Conservative successors have been just as willing to counter it by testing Canadian sensibilities. From intrusive anti-terrorism laws to abandoning a teenage Guantanamo Bay prisoner, to sending troops to Asia, key decisions continue to be shaped by determination to prove Ottawa takes security seriously. Read more here.
Day Blasts “Buy American’’ Movement
(Canwest News Service)
International Trade Minister Stockwell Day lashed out Friday at growing American protectionism, warning that if trade barriers continue multiplying, retaliatory action is inevitable.
Day, in Calgary to speak to the city’s chamber of commerce, said Ottawa is aggressively lobbying political, diplomatic and business leaders in the United States in a bid to quell “Buy American’’ fervour.
He encouraged Calgary’s business community and provinces to join the federal effort.
“If this continues - the Buy America provisions - people everywhere are going to get hurt,’’ Day told reporters after his speech. “Workers will be hurt in Canada and the United States, and we want to see this turn around.’’
Day said the Harper government would like to see U.S. President Barack Obama sign an executive order overruling a decision by Congress to expand Buy American rules that bar Canadian companies from bidding on $787 billion US worth of economic-stimulus projects.
The fallout is already being felt in Canada, as some municipal and state governments are prohibiting Canadian firms from bidding on lucrative infrastructure contracts.
In response, one municipality west of Toronto has banned the purchase of goods from any country that bars Canadians products. A similar resolution will be debated at the Federation of Canadian Municipalities’ annual conference next month. Read more here.
International Trade Minister Stockwell Day lashed out Friday at growing American protectionism, warning that if trade barriers continue multiplying, retaliatory action is inevitable.
Day, in Calgary to speak to the city’s chamber of commerce, said Ottawa is aggressively lobbying political, diplomatic and business leaders in the United States in a bid to quell “Buy American’’ fervour.
He encouraged Calgary’s business community and provinces to join the federal effort.
“If this continues - the Buy America provisions - people everywhere are going to get hurt,’’ Day told reporters after his speech. “Workers will be hurt in Canada and the United States, and we want to see this turn around.’’
Day said the Harper government would like to see U.S. President Barack Obama sign an executive order overruling a decision by Congress to expand Buy American rules that bar Canadian companies from bidding on $787 billion US worth of economic-stimulus projects.
The fallout is already being felt in Canada, as some municipal and state governments are prohibiting Canadian firms from bidding on lucrative infrastructure contracts.
In response, one municipality west of Toronto has banned the purchase of goods from any country that bars Canadians products. A similar resolution will be debated at the Federation of Canadian Municipalities’ annual conference next month. Read more here.
Saturday, May 30, 2009
MPs Comment on New Border Rules
(Video: CPAC)
Gord Brown (Conservative, Leeds-Grenville) and Brian Masse (NDP, Windsor West), members of the “all-party Border Caucus” (Canada-United States Inter-Parliamentary Group), respond to the new Border Security Agreement signed by Janet Napolitano and Peter Van Loan at last week’s summit in Ottawa.
Gord Brown (Conservative, Leeds-Grenville) and Brian Masse (NDP, Windsor West), members of the “all-party Border Caucus” (Canada-United States Inter-Parliamentary Group), respond to the new Border Security Agreement signed by Janet Napolitano and Peter Van Loan at last week’s summit in Ottawa.
Friday, May 29, 2009
Canada Gets Serious About Consumer-Product Safety
(Law.com – Peter Pliszka and Richard Butler, Fasken Martineau DuMoulin)
Manufacturers, importers, retailers and advertisers that sell products in Canada can expect to see a flurry of regulatory change relating to consumer products later this year. The activity – culminating in House of Commons Bill C-6, "An Act respecting the safety of consumer products" – stems from an increased focus by the Canadian government on the regulatory controls for consumer products.
Bill C-6, known colloquially as the Canada Consumer Product Safety Act (CCPSA), was introduced in Canada's House of Commons on January 29. If enacted into law as drafted, the CCPSA will reconstitute the federal organization Health Canada as a powerful regulator of consumer products, providing it with unprecedented authority to inspect and influence the supply chain for consumer goods.
The legislation currently governing consumer product safety in Canada is the federal Hazardous Products Act (HPA). Health Canada, the country's public health agency, is responsible for administration and enforcement of the HPA and its regulations, through its Product Safety Program. […]
The regulatory tools conferred upon Health Canada by the HPA are limited because they apply only to the list of products that fall within the scope of the HPA, and the powers are reactive in nature. At present, the HPA does not confer upon Health Canada any legislated authority to compel parties in the supply chain to initiate product recalls. Therefore, Health Canada must rely on the cooperation of private parties with respect to consumer product recalls.
As the Canadian government's vehicle for delivering an overhaul of consumer product regulation in Canada, the new CCPSA will repeal and replace Part I of the HPA. The CCPSA will apply to all "consumer products," other than exceptional products prescribed by regulation.
Read the complete article here.
Manufacturers, importers, retailers and advertisers that sell products in Canada can expect to see a flurry of regulatory change relating to consumer products later this year. The activity – culminating in House of Commons Bill C-6, "An Act respecting the safety of consumer products" – stems from an increased focus by the Canadian government on the regulatory controls for consumer products.
Bill C-6, known colloquially as the Canada Consumer Product Safety Act (CCPSA), was introduced in Canada's House of Commons on January 29. If enacted into law as drafted, the CCPSA will reconstitute the federal organization Health Canada as a powerful regulator of consumer products, providing it with unprecedented authority to inspect and influence the supply chain for consumer goods.
The legislation currently governing consumer product safety in Canada is the federal Hazardous Products Act (HPA). Health Canada, the country's public health agency, is responsible for administration and enforcement of the HPA and its regulations, through its Product Safety Program. […]
The regulatory tools conferred upon Health Canada by the HPA are limited because they apply only to the list of products that fall within the scope of the HPA, and the powers are reactive in nature. At present, the HPA does not confer upon Health Canada any legislated authority to compel parties in the supply chain to initiate product recalls. Therefore, Health Canada must rely on the cooperation of private parties with respect to consumer product recalls.
As the Canadian government's vehicle for delivering an overhaul of consumer product regulation in Canada, the new CCPSA will repeal and replace Part I of the HPA. The CCPSA will apply to all "consumer products," other than exceptional products prescribed by regulation.
Read the complete article here.
CBP is Accepting 2009 Claims for Antidumping and Countervailing Duties until July 28
(CBP)
U.S. Customs and Border Protection (CBP) today [Friday] announced in the Federal Register that the CBP Revenue Division is accepting fiscal year 2009 claims for antidumping and countervailing duties.
The notice list all domestic producers who are entitled to file a claim under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA). The purpose of this law is to disburse anti-dumping and countervailing duties collected by CBP to domestic producers injured by foreign dumping and subsidies.
Any domestic producer who is entitled to file a claim under the CDSOA must file their claim with the CBP Revenue Division no later than July 28.
The notice gives detailed instructions and requirements to be followed to ensure timely filing of claims. In order to be considered timely filed, the CBP Revenue Division must receive all fiscal year 2009 claims no later than July 28.
Any certifications received after July 28 will not be eligible to receive a distribution.
Continued Dumping and Subsidy Offset Act of 2000 Certification, CBP Form 7401, may be used to apply for CDSOA distribution. This form is available at http://www.pay.gov and can also be found attached to the May 29 Federal Register Notice. This certification can be submitted electronically through www.pay.gov or by mail.
U.S. Customs and Border Protection (CBP) today [Friday] announced in the Federal Register that the CBP Revenue Division is accepting fiscal year 2009 claims for antidumping and countervailing duties.
The notice list all domestic producers who are entitled to file a claim under the Continued Dumping and Subsidy Offset Act of 2000 (CDSOA). The purpose of this law is to disburse anti-dumping and countervailing duties collected by CBP to domestic producers injured by foreign dumping and subsidies.
Any domestic producer who is entitled to file a claim under the CDSOA must file their claim with the CBP Revenue Division no later than July 28.
The notice gives detailed instructions and requirements to be followed to ensure timely filing of claims. In order to be considered timely filed, the CBP Revenue Division must receive all fiscal year 2009 claims no later than July 28.
Any certifications received after July 28 will not be eligible to receive a distribution.
Continued Dumping and Subsidy Offset Act of 2000 Certification, CBP Form 7401, may be used to apply for CDSOA distribution. This form is available at http://www.pay.gov and can also be found attached to the May 29 Federal Register Notice. This certification can be submitted electronically through www.pay.gov or by mail.
Understanding Chinese Rules of Origin to Lower Costs and Ensure Compliance
(World Trade Interactive – Zhaokang Jiang)
Companies doing business in China can lower the costs of cross-border trade and avoid compliance risks by ensuring that they have a sound understanding of China’s preferential and non-preferential rules of origin. Zhaokang Jiang, head of Sandler, Travis & Rosenberg’s Beijing office, offers the following guidance on this important topic.
There are two types of rules of origin: one applies to most-favored-nation trade (non-preferential ROO) and the other applies to imports under bilateral and regional trade agreements or unilateral preference programs. The World Trade Organization does not have an agreement on product-specific and detailed ROO, and international trade is governed by national laws and bilateral and multilateral international agreements. Read more here.
Companies doing business in China can lower the costs of cross-border trade and avoid compliance risks by ensuring that they have a sound understanding of China’s preferential and non-preferential rules of origin. Zhaokang Jiang, head of Sandler, Travis & Rosenberg’s Beijing office, offers the following guidance on this important topic.
There are two types of rules of origin: one applies to most-favored-nation trade (non-preferential ROO) and the other applies to imports under bilateral and regional trade agreements or unilateral preference programs. The World Trade Organization does not have an agreement on product-specific and detailed ROO, and international trade is governed by national laws and bilateral and multilateral international agreements. Read more here.
U.S. Security Czar Softens Stand on Border
(Adelle Loiselle — The Canadian Press)
Laws same, enforcement techniques will be different at Canadian, Mexican borders, U.S. official says
A senior U.S. official who earlier stoked concerns that Canada”s border would be treated no different than Mexico”s now says that while the law governing the crossings is the same, the techniques used to implement it will be different.
U.S. Homeland Security Secretary Janet Napolitano”s words — made in Detroit late yesterday — come less than a week before new rules kick in that require a passport or other secure document to enter the U.S.
“We”re going to be using a different mix of manpower and technology between the ports of entry, for example, than we would at the southern border,” Napolitano said at a joint news conference with Public Safety Minister Peter Van Loan.
“So, the law is the same but the techniques we use to implement that law will be differentiated because of the differences between Canada and Mexico.” Read more here.
Laws same, enforcement techniques will be different at Canadian, Mexican borders, U.S. official says
A senior U.S. official who earlier stoked concerns that Canada”s border would be treated no different than Mexico”s now says that while the law governing the crossings is the same, the techniques used to implement it will be different.
U.S. Homeland Security Secretary Janet Napolitano”s words — made in Detroit late yesterday — come less than a week before new rules kick in that require a passport or other secure document to enter the U.S.
“We”re going to be using a different mix of manpower and technology between the ports of entry, for example, than we would at the southern border,” Napolitano said at a joint news conference with Public Safety Minister Peter Van Loan.
“So, the law is the same but the techniques we use to implement that law will be differentiated because of the differences between Canada and Mexico.” Read more here.
Bid to Kill “Buy U.S.” Hinges on Provinces
(Paul Vieira — National Post)
Ottawa urges officials to open markets to U. S.
The federal government is looking to cut a deal with Washington that would persuade U. S. legislators to repeal controversial Buy American measures that Canadian firms say are costing them sales and forcing them to shed jobs.
The key element of such a pact, however, is getting the provinces and territories to open up their procurement markets to U. S. suppliers. At present, provinces and municipalities are not bound by global trade law and are free to discriminate against U. S. companies in favour of local suppliers.
International Trade Minister Stockwell Day has been in talks with the provinces to determine their willingness. If most are, Ottawa”s goal is to persuade Washington to drop the Buy American clauses on the understanding that provinces would commit to talks aimed at opening their markets. Read more here.
Ottawa urges officials to open markets to U. S.
The federal government is looking to cut a deal with Washington that would persuade U. S. legislators to repeal controversial Buy American measures that Canadian firms say are costing them sales and forcing them to shed jobs.
The key element of such a pact, however, is getting the provinces and territories to open up their procurement markets to U. S. suppliers. At present, provinces and municipalities are not bound by global trade law and are free to discriminate against U. S. companies in favour of local suppliers.
International Trade Minister Stockwell Day has been in talks with the provinces to determine their willingness. If most are, Ottawa”s goal is to persuade Washington to drop the Buy American clauses on the understanding that provinces would commit to talks aimed at opening their markets. Read more here.
Thursday, May 28, 2009
NDP Introduces Buy Canadian Legislation
(Ottawa Business Journal)
A private member’s bill introduced Monday by the New Democrats would require the federal government to give priority to Canadian companies when purchasing goods and services. Bill C-392, known as the Made in Canada Act, makes exceptions for emergency purchases, cases where there are no Canadian bidders or if the procurement falls under international trade agreements.
“This bill will help build new markets for Canadian suppliers, strengthen sustainability and our environmental commitments, and encourage Canadian entrepreneurship,” said NDP MP Irene Mathyssen in a statement. The bill defines a Canadian product as one in which more than 50% of the total value is manufactured, produced or assembled in Canada.
Canadian politicians continue to voice concerns over “Buy American” provisions attached to U.S. stimulus legislation that are appearing in other pieces of legislation, such as funds for local governments to improve drinking water systems. Last week, Conservative Industry Minister Tony Clement said the measures are “of grave concern to Canada” and warned protectionist impulses could backfire on the U.S. economy.
A private member’s bill introduced Monday by the New Democrats would require the federal government to give priority to Canadian companies when purchasing goods and services. Bill C-392, known as the Made in Canada Act, makes exceptions for emergency purchases, cases where there are no Canadian bidders or if the procurement falls under international trade agreements.
“This bill will help build new markets for Canadian suppliers, strengthen sustainability and our environmental commitments, and encourage Canadian entrepreneurship,” said NDP MP Irene Mathyssen in a statement. The bill defines a Canadian product as one in which more than 50% of the total value is manufactured, produced or assembled in Canada.
Canadian politicians continue to voice concerns over “Buy American” provisions attached to U.S. stimulus legislation that are appearing in other pieces of legislation, such as funds for local governments to improve drinking water systems. Last week, Conservative Industry Minister Tony Clement said the measures are “of grave concern to Canada” and warned protectionist impulses could backfire on the U.S. economy.
No Industry Exempt from Global Downdraft
(Export Development Canada – Peter G. Hall)
Canadian exporters have faced significant new-millennium challenges. The irrepressible loonie, increased global competition, a thickening border with our top customer, bottlenecks in trade infrastructure – any one of these would have been challenge enough. Even so, exporters have managed to grow their business and create key success stories, thanks to vibrant global demand. With that key element now gone, export sales have suddenly become tough for all industries.
Exports fell into recession last year, led by a sharp drop in auto sector shipments and ongoing woes in the forestry industry. But at the same time, others were soaring. It was a great time to be producing raw materials: the energy, agri-food and fertilizer industries each saw sky-high gains. Also, exports of other transportation equipment, ores and metals, and industrial machinery and equipment posted respectable gains. The story for 2009 is much more uniform.
This year, there seem to be two categories: bad, and worse. Many of last year’s high-flyers will experience the deepest sectoral declines in 2009 export shipments. Few were not shocked by the extent of the collapse in energy and base metal prices, significant enough to put certain key projects in jeopardy, at least in the short term. Energy sector exports are forecast to tumble by 41% this year, before regaining 16% of the lost ground in 2010. Collectively, ores and metals will see a 33% drop in 2009 before a modest rebound in prices lifts 2010 shipments by 11%. Read more or watch the video version here.
Canadian exporters have faced significant new-millennium challenges. The irrepressible loonie, increased global competition, a thickening border with our top customer, bottlenecks in trade infrastructure – any one of these would have been challenge enough. Even so, exporters have managed to grow their business and create key success stories, thanks to vibrant global demand. With that key element now gone, export sales have suddenly become tough for all industries.
Exports fell into recession last year, led by a sharp drop in auto sector shipments and ongoing woes in the forestry industry. But at the same time, others were soaring. It was a great time to be producing raw materials: the energy, agri-food and fertilizer industries each saw sky-high gains. Also, exports of other transportation equipment, ores and metals, and industrial machinery and equipment posted respectable gains. The story for 2009 is much more uniform.
This year, there seem to be two categories: bad, and worse. Many of last year’s high-flyers will experience the deepest sectoral declines in 2009 export shipments. Few were not shocked by the extent of the collapse in energy and base metal prices, significant enough to put certain key projects in jeopardy, at least in the short term. Energy sector exports are forecast to tumble by 41% this year, before regaining 16% of the lost ground in 2010. Collectively, ores and metals will see a 33% drop in 2009 before a modest rebound in prices lifts 2010 shipments by 11%. Read more or watch the video version here.
U.S., Canada Discuss Possibility of Shared Border Facilities
(World Trade Interactive)
U.S. and Canadian officials met in Ottawa May 27 to discuss management of their common border. With respect to customs issues, the two sides said only that they would explore the possibility of sharing border facilities, equipment and technology. They also agreed on a framework for cross-border operations during and following an emergency.
Border Management.
Secretary of Homeland Security Janet Napolitano and Canadian Minister of Public Safety Peter Van Loan issued a joint statement following their meeting stating that they are committed to a “collaborative approach” to border management that “enhances our security and public safety while facilitating the trade and travel that connects our two countries.” The officials said they plan to meet twice a year to monitor progress toward the following goals.
• explore models for joint or shared border facilities, equipment and technology, as well as cross-designation of personnel
• develop joint threat and risk assessments and advance initiatives that manage risk while facilitating the movement of legitimate goods and people
• endeavor to share information relevant to preventing people or goods that threaten mutual safety and security from entering either nation or crossing the shared border
• expand integrated law enforcement operations along the shared border and waterways
Read the complete article here.
U.S. and Canadian officials met in Ottawa May 27 to discuss management of their common border. With respect to customs issues, the two sides said only that they would explore the possibility of sharing border facilities, equipment and technology. They also agreed on a framework for cross-border operations during and following an emergency.
Border Management.
Secretary of Homeland Security Janet Napolitano and Canadian Minister of Public Safety Peter Van Loan issued a joint statement following their meeting stating that they are committed to a “collaborative approach” to border management that “enhances our security and public safety while facilitating the trade and travel that connects our two countries.” The officials said they plan to meet twice a year to monitor progress toward the following goals.
• explore models for joint or shared border facilities, equipment and technology, as well as cross-designation of personnel
• develop joint threat and risk assessments and advance initiatives that manage risk while facilitating the movement of legitimate goods and people
• endeavor to share information relevant to preventing people or goods that threaten mutual safety and security from entering either nation or crossing the shared border
• expand integrated law enforcement operations along the shared border and waterways
Read the complete article here.
‘I’m busy doing my job’, Flaherty Says of Recession, $50B Deficit
(Video: CTF/Global TV • Story: CBC News)
Finance minister rejects opposition parties’ calls for his resignation
The $50-billion deficit Canada is facing this fiscal year is necessary to help Canadians weather the worst economic recession since the Second World War, Finance Minister Jim Flaherty said Thursday, rejecting calls from the opposition to resign.
“I’m busy doing my job. There’s a global recession going on,” Flaherty told CBC News.
Flaherty announced Tuesday the deficit will rise by more than $16 billion in 2009-10 from the $34 billion he forecast in January’s budget.
The announcement prompted calls from the opposition on Wednesday for him to step down. Liberal Leader Michael Ignatieff called Flaherty’s handling of the global recession “incompetence on a historic scale.”
Flaherty said Thursday the projected deficit only represents about 3.3 per cent of Canada’s gross domestic product. That pales compared to the 10 per cent and greater deficits Japan, the United Kingdom and the United States are facing, Flaherty said. Read more here.
Finance minister rejects opposition parties’ calls for his resignation
The $50-billion deficit Canada is facing this fiscal year is necessary to help Canadians weather the worst economic recession since the Second World War, Finance Minister Jim Flaherty said Thursday, rejecting calls from the opposition to resign.
“I’m busy doing my job. There’s a global recession going on,” Flaherty told CBC News.
Flaherty announced Tuesday the deficit will rise by more than $16 billion in 2009-10 from the $34 billion he forecast in January’s budget.
The announcement prompted calls from the opposition on Wednesday for him to step down. Liberal Leader Michael Ignatieff called Flaherty’s handling of the global recession “incompetence on a historic scale.”
Flaherty said Thursday the projected deficit only represents about 3.3 per cent of Canada’s gross domestic product. That pales compared to the 10 per cent and greater deficits Japan, the United Kingdom and the United States are facing, Flaherty said. Read more here.
Wednesday, May 27, 2009
CP Notice: U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) Lacey Act Blanket Declaration Pilot Program
(CP Rail)
This is further to our Customer Bulletin of March 24, 2009, concerning USDA APHIS implementation of the Revised Lacey Act Provisions.
This update will be of particular interest to Shippers and U.S. Importers who:
a) Ship / Import goods to the U.S. subject to Lacey Act provisions b) Participate in U.S. Customs and Border Protection's (USCBP)
Automated Line Release (ALR) program The USDA is introducing a blanket Declaration Pilot Program for shippers using the USCBP ALR program.
The Pilot Program allows importers and shippers currently using ALR codes to continue doing so provided they participate in the Pilot. Those who do not participate in the program will have their ALR C4 code inactivated effective June 1, 2009.
The Lacey Act Blanket Declaration Pilot Program is open only to those entities currently participating in one of Customs and Border Protection's expedited border release programs, Automated Line Release (ALR) or Border Release Advance Screening and Selectivity (BRASS). This pilot program will test the feasibility of collecting the information required through the use of a periodic "blanket" declaration, with subsequent reconciliation reports.
Eligible importers who wish to participate in the pilot must send a letter to APHIS (to the address provided below) specifically requesting participation in the program. The letter must contain the importer's C4 code and the name and telephone number of an individual who will serve as a point of contact should APHIS require additional information.
The blanket declaration must be submitted in paper form and mailed to:
Lacey Act c/o U.S. Department of Agriculture
Box 10 4700 River Road • Riverdale, MD 20737
Canadian Pacific strongly encourages shippers and U.S. importers to review the details of this program. Participation will protect your Automated Line Release reporting privileges and help facilitate the cross border fluidity of your Lacey Act eligible goods.
Details on the USDA APHIS Program are available at the USDA website. Specific questions should be directed to your customs broker or the USDA APHIS.
This is further to our Customer Bulletin of March 24, 2009, concerning USDA APHIS implementation of the Revised Lacey Act Provisions.
This update will be of particular interest to Shippers and U.S. Importers who:
a) Ship / Import goods to the U.S. subject to Lacey Act provisions b) Participate in U.S. Customs and Border Protection's (USCBP)
Automated Line Release (ALR) program The USDA is introducing a blanket Declaration Pilot Program for shippers using the USCBP ALR program.
The Pilot Program allows importers and shippers currently using ALR codes to continue doing so provided they participate in the Pilot. Those who do not participate in the program will have their ALR C4 code inactivated effective June 1, 2009.
The Lacey Act Blanket Declaration Pilot Program is open only to those entities currently participating in one of Customs and Border Protection's expedited border release programs, Automated Line Release (ALR) or Border Release Advance Screening and Selectivity (BRASS). This pilot program will test the feasibility of collecting the information required through the use of a periodic "blanket" declaration, with subsequent reconciliation reports.
Eligible importers who wish to participate in the pilot must send a letter to APHIS (to the address provided below) specifically requesting participation in the program. The letter must contain the importer's C4 code and the name and telephone number of an individual who will serve as a point of contact should APHIS require additional information.
The blanket declaration must be submitted in paper form and mailed to:
Lacey Act c/o U.S. Department of Agriculture
Box 10 4700 River Road • Riverdale, MD 20737
Canadian Pacific strongly encourages shippers and U.S. importers to review the details of this program. Participation will protect your Automated Line Release reporting privileges and help facilitate the cross border fluidity of your Lacey Act eligible goods.
Details on the USDA APHIS Program are available at the USDA website. Specific questions should be directed to your customs broker or the USDA APHIS.
Napolitano Clarifies Sept. 11 Remarks
(Bill Curry — Globe & Mail)
It’s the American myth that just won’t die, and U.S. Homeland Security Secretary Janet Napolitano distanced herself from it before Wednesday’s visit to Ottawa, reiterating that she does not believe the Sept. 11 attackers came from Canada.
“Now we know the 9/11 terrorists did not use the Canadian border,” she said Tuesday in Detroit, a month after she suggested in an interview that they did.
“However, we also know that just as our economy has become globalized, so has terrorism. And it erupts in many ways, in many different facets beyond the traditional al-Qaeda episodes that we have seen in the past and attacks we have seen in the past.”
Ms. Napolitano’s comments fall short of what opposition MPs want to hear from her Wednesday on Parliament Hill in her first Canadian visit as secretary: a clear statement to the U.S. audience that Canada is not a threat. Read more here.
It’s the American myth that just won’t die, and U.S. Homeland Security Secretary Janet Napolitano distanced herself from it before Wednesday’s visit to Ottawa, reiterating that she does not believe the Sept. 11 attackers came from Canada.
“Now we know the 9/11 terrorists did not use the Canadian border,” she said Tuesday in Detroit, a month after she suggested in an interview that they did.
“However, we also know that just as our economy has become globalized, so has terrorism. And it erupts in many ways, in many different facets beyond the traditional al-Qaeda episodes that we have seen in the past and attacks we have seen in the past.”
Ms. Napolitano’s comments fall short of what opposition MPs want to hear from her Wednesday on Parliament Hill in her first Canadian visit as secretary: a clear statement to the U.S. audience that Canada is not a threat. Read more here.
Tuesday, May 26, 2009
Borderline Breakdown
(Macleans.ca)
Border security is still a very sore point in Canada-U.S. relations
The greatest test of whether the election of President Barack Obama will really repair the strains in Canada-U.S. relations gets under way this month when the secretary of homeland security, Janet Napolitano, comes to visit. The transformation of land border security over the last eight years came to symbolize the tense relations between Ottawa and the Bush administration. The almost 9,000 km of friendly frontier, and gateway to $1.6 billion in trade per day, turned into another front in the war on terror, patrolled by now-armed guards and unmanned drones, riddled with new regulations that business complains tie up trade, and as of June 1, a passport requirement for the first time. From the Canadian point of view, it was the work largely of an overzealous American administration and Congress taking a series of unilateral actions. “The previous attitude was that any additional step that could be taken should be taken without regard for trade,” Public Safety Minister Peter Van Loan told Maclean’s. Like many Canadians, he hopes that will change under Obama. “Now we want to focus on security that is actually effective, and addresses real security threats—counterterrorism, the drug trade, organized crime, immigration issues—and we want to find ways to improve the flow of goods across the border.”
But from the U.S. point of view, the last eight years looked rather different. The world changed on 9/11, and Americans and Canadians reacted with what Paul Rosenzweig, a former senior Department of Homeland Security official who worked on border issues under George W. Bush, diplomatically refers to as “a different sense of urgency.” He suspects Ottawa and Washington will find it just as difficult to resolve their differences under Obama as they did under Bush. “One of the things I’ve learned is that there is this myth that Canadians and Americans are a lot alike in how they view things like trade and terrorism,” Rosenzweig said in an interview. “And they simply are not.” Where Canadians saw U.S. unilateralism, Americans saw Canadian complacency. On both sides, there was an erosion of trust. Can it be rebuilt? “My advice to Secretary Napolitano,” says Rosenzweig, “would be to explore how much of our inability to achieve common objectives with Canada was the product of political issues relating to the Bush administration—and how much of it was fundamental.”
Read more here.
Border security is still a very sore point in Canada-U.S. relations
The greatest test of whether the election of President Barack Obama will really repair the strains in Canada-U.S. relations gets under way this month when the secretary of homeland security, Janet Napolitano, comes to visit. The transformation of land border security over the last eight years came to symbolize the tense relations between Ottawa and the Bush administration. The almost 9,000 km of friendly frontier, and gateway to $1.6 billion in trade per day, turned into another front in the war on terror, patrolled by now-armed guards and unmanned drones, riddled with new regulations that business complains tie up trade, and as of June 1, a passport requirement for the first time. From the Canadian point of view, it was the work largely of an overzealous American administration and Congress taking a series of unilateral actions. “The previous attitude was that any additional step that could be taken should be taken without regard for trade,” Public Safety Minister Peter Van Loan told Maclean’s. Like many Canadians, he hopes that will change under Obama. “Now we want to focus on security that is actually effective, and addresses real security threats—counterterrorism, the drug trade, organized crime, immigration issues—and we want to find ways to improve the flow of goods across the border.”
But from the U.S. point of view, the last eight years looked rather different. The world changed on 9/11, and Americans and Canadians reacted with what Paul Rosenzweig, a former senior Department of Homeland Security official who worked on border issues under George W. Bush, diplomatically refers to as “a different sense of urgency.” He suspects Ottawa and Washington will find it just as difficult to resolve their differences under Obama as they did under Bush. “One of the things I’ve learned is that there is this myth that Canadians and Americans are a lot alike in how they view things like trade and terrorism,” Rosenzweig said in an interview. “And they simply are not.” Where Canadians saw U.S. unilateralism, Americans saw Canadian complacency. On both sides, there was an erosion of trust. Can it be rebuilt? “My advice to Secretary Napolitano,” says Rosenzweig, “would be to explore how much of our inability to achieve common objectives with Canada was the product of political issues relating to the Bush administration—and how much of it was fundamental.”
Read more here.
U.S. Food Labelling Unfair and Uneconomical
(Michael J. Armstrong — The ChronicleHerald)
When Canada recently resumed its World Trade Organization challenge of the U.S. Country-Of-Origin Labelling (COOL) laws, we were in effect doing both countries a favour. That’s because COOL in its current form is unfair, uneconomical and unjustified. COOL has more to do with protecting U.S. livestock producers than protecting U.S. consumers.
Signed into law last March, COOL affects certain foods that come from a foreign country but are packaged in the U.S.A. If an American packing plant buys hogs from Canada to make pork chops, U.S. grocery stores selling those chops must identify the meat’s Canadian origin. In principle, this sounds good.
In practice, however, meat packers don’t want the extra work required by COOL, which forces them to track which country the meat in each package comes from. For example, steaks from American cattle must be labelled “Product of the U.S.” whereas steaks from Canadian cattle must be labelled “Product of Canada and the U.S.” Since Washington forbids general labels such as “Made from U.S. and/or Canadian cattle,” packers must change their operating procedures to handle Canadian animals separately from American ones.
U.S. processors are already cutting back on imports. Sales of Canadian cattle and hogs into the U.S. have plunged as more American plants stick to domestic livestock so they simply can label everything “Product of the U.S.” So the labelling law is costly because it affects much more than labels. It is harming Canadian producers. Read more here.
When Canada recently resumed its World Trade Organization challenge of the U.S. Country-Of-Origin Labelling (COOL) laws, we were in effect doing both countries a favour. That’s because COOL in its current form is unfair, uneconomical and unjustified. COOL has more to do with protecting U.S. livestock producers than protecting U.S. consumers.
Signed into law last March, COOL affects certain foods that come from a foreign country but are packaged in the U.S.A. If an American packing plant buys hogs from Canada to make pork chops, U.S. grocery stores selling those chops must identify the meat’s Canadian origin. In principle, this sounds good.
In practice, however, meat packers don’t want the extra work required by COOL, which forces them to track which country the meat in each package comes from. For example, steaks from American cattle must be labelled “Product of the U.S.” whereas steaks from Canadian cattle must be labelled “Product of Canada and the U.S.” Since Washington forbids general labels such as “Made from U.S. and/or Canadian cattle,” packers must change their operating procedures to handle Canadian animals separately from American ones.
U.S. processors are already cutting back on imports. Sales of Canadian cattle and hogs into the U.S. have plunged as more American plants stick to domestic livestock so they simply can label everything “Product of the U.S.” So the labelling law is costly because it affects much more than labels. It is harming Canadian producers. Read more here.
Criminal Conviction for False NAFTA Certificate of Origin
(Susan Kohn Ross — The Journal of Commerce)
The Patriot Act contains a provision which allows the U.S. to prosecute for export violations, see 18 U.S.C. 554. Gerardo Cantu was indicted under 46 counts, one each per shipment. Cantu pled guilty to ten (10) counts agreeing that he imported fabric rolls from China, moved them in-bond and intended to import them into Mexico relying on phony NAFTA Certificates of Origin. Cantu was sentenced to six (6) months in prison, three (3) years probation, and an $8,000 fine for fraudulently and knowingly facilitating the transportation, concealment and sale of Chinese textiles from the United States to Mexico with falsified invoices and NAFTA certificates of origin.
The violations came to light when an outbound shipment was designed [sic] for examination and a NAFTA Certificate of Origin claiming U.S. origin was found. Cantu was interviewed and admitted he was doing so in order to evade Mexican duties.
Any wonder why we keep seeing more export inspections?
Comment on the Roundtable blog.
The Patriot Act contains a provision which allows the U.S. to prosecute for export violations, see 18 U.S.C. 554. Gerardo Cantu was indicted under 46 counts, one each per shipment. Cantu pled guilty to ten (10) counts agreeing that he imported fabric rolls from China, moved them in-bond and intended to import them into Mexico relying on phony NAFTA Certificates of Origin. Cantu was sentenced to six (6) months in prison, three (3) years probation, and an $8,000 fine for fraudulently and knowingly facilitating the transportation, concealment and sale of Chinese textiles from the United States to Mexico with falsified invoices and NAFTA certificates of origin.
The violations came to light when an outbound shipment was designed [sic] for examination and a NAFTA Certificate of Origin claiming U.S. origin was found. Cantu was interviewed and admitted he was doing so in order to evade Mexican duties.
Any wonder why we keep seeing more export inspections?
Comment on the Roundtable blog.
Trade and Hard Times
(The New York Times)
Foreign trade has been a potent force for good over more than half a century. It propelled Japan’s emergence from the ashes of World War II and helped it become an industrial powerhouse. It is the cornerstone of development strategies from China to Brazil. It is what links countries all over the world in a network of production that underpins global prosperity.
Today, trade is collapsing, one more casualty of the global financial crisis. That is especially bad news for countries that are dependent on trade for economic growth, including many developing nations that had nothing to do with the financial mess.
Exports from the United States declined 30 percent and imports 34 percent in the first quarter of the year from the previous three months. Imports into countries that use the euro from outside the area were down 21 percent compared with the first quarter of last year. At this rate, the World Trade Organization’s dire projection in March that global trade would decline 9 percent this year will soon start to look outright boastful.
The drop in trade is spreading economic weakness across the world, as one country’s drop in imports translates into a fall in exports, and production, in another. Read more here.
Foreign trade has been a potent force for good over more than half a century. It propelled Japan’s emergence from the ashes of World War II and helped it become an industrial powerhouse. It is the cornerstone of development strategies from China to Brazil. It is what links countries all over the world in a network of production that underpins global prosperity.
Today, trade is collapsing, one more casualty of the global financial crisis. That is especially bad news for countries that are dependent on trade for economic growth, including many developing nations that had nothing to do with the financial mess.
Exports from the United States declined 30 percent and imports 34 percent in the first quarter of the year from the previous three months. Imports into countries that use the euro from outside the area were down 21 percent compared with the first quarter of last year. At this rate, the World Trade Organization’s dire projection in March that global trade would decline 9 percent this year will soon start to look outright boastful.
The drop in trade is spreading economic weakness across the world, as one country’s drop in imports translates into a fall in exports, and production, in another. Read more here.
Customs Notices: 2010 Olympic & Paralympic Remission Orders
(Canada Border Services Agency)
The following customs notices are now available on the Canada Border Services Agency’s website:
CN09-009: Temporary Importations Using the 2010 Olympic and Paralympic Winter Games Remission Order
CN09-010: Permanent Importations Using the 2010 Olympic and Paralympic Winter Games Remission Order
The following customs notices are now available on the Canada Border Services Agency’s website:
CN09-009: Temporary Importations Using the 2010 Olympic and Paralympic Winter Games Remission Order
CN09-010: Permanent Importations Using the 2010 Olympic and Paralympic Winter Games Remission Order
Winnipeg to Become a Massive “Inland Port”
(Canadian Consulting Engineer)
The Government of Manitoba has introduced legislation to build a huge “inland port” around Winnipeg's international airport. The idea of CentrePort Canada is to take advantage of the city's location close to the geographic centre of North America. Winnipeg is located on the International Mid transportation corridor, which gives access by road and rail south into the U.S. and Mexico via the Emerson Border. To the west are routes into Asia via the ports of Vancouver and Prince Rupert, while to the northeast lie air cargo routes over the North Pole to Europe.
The CentrePort Canada Act enables the creation of a corporation to develop and run the port on 20 acres of land northwest of the James Armstrong Richardson International Airport. The inland port would be a massive trucking and rail depot, as well as having private distribution centres, warehouses and manufacturing plants.
Prime Minister Stephen Harper committed $100 million in federal funds to help develop the port when he was touring the province to observe flooding in the area in April. The total cost is estimated at $212 million. One of the first jobs is to build a four-lane expressway to link the port to the airport.
Canada Post is already building a new mail distribution plant east of the airport on 11 hectares of land.
The Government of Manitoba has introduced legislation to build a huge “inland port” around Winnipeg's international airport. The idea of CentrePort Canada is to take advantage of the city's location close to the geographic centre of North America. Winnipeg is located on the International Mid transportation corridor, which gives access by road and rail south into the U.S. and Mexico via the Emerson Border. To the west are routes into Asia via the ports of Vancouver and Prince Rupert, while to the northeast lie air cargo routes over the North Pole to Europe.
The CentrePort Canada Act enables the creation of a corporation to develop and run the port on 20 acres of land northwest of the James Armstrong Richardson International Airport. The inland port would be a massive trucking and rail depot, as well as having private distribution centres, warehouses and manufacturing plants.
Prime Minister Stephen Harper committed $100 million in federal funds to help develop the port when he was touring the province to observe flooding in the area in April. The total cost is estimated at $212 million. One of the first jobs is to build a four-lane expressway to link the port to the airport.
Canada Post is already building a new mail distribution plant east of the airport on 11 hectares of land.
AAEI Says 10+2 Costs Will Mount
(American Shipper)
The American Association of Exporters and Importers [AAEI] in comments filed last week urged caution over the costs of U.S. Customs’ Importer Security Filing interim final rule.
ISF, also known as ‘10+2’, requires cargo information to be transmitted to CBP agents at least 24 hours before goods are shipped to the United States.
“AAEI expressed concern to U.S. Customs and Border Protection that the costs of ‘10+2’ compliance are still unknown,” the association said. “In the first months of implementation, the only cost CBP is capturing is the transaction fee for filing. However, AAEI notes that the true costs are much higher, especially for small and medium-sized enterprises. Plus, hidden costs of ‘10+2’ compliance will add up quickly due to delays and slowdowns in the supply chain.
“AAEI is also concerned about the lack of tangible benefits for voluntary participation in the costly C-TPAT program…” Read more here (subscription required).
The American Association of Exporters and Importers [AAEI] in comments filed last week urged caution over the costs of U.S. Customs’ Importer Security Filing interim final rule.
ISF, also known as ‘10+2’, requires cargo information to be transmitted to CBP agents at least 24 hours before goods are shipped to the United States.
“AAEI expressed concern to U.S. Customs and Border Protection that the costs of ‘10+2’ compliance are still unknown,” the association said. “In the first months of implementation, the only cost CBP is capturing is the transaction fee for filing. However, AAEI notes that the true costs are much higher, especially for small and medium-sized enterprises. Plus, hidden costs of ‘10+2’ compliance will add up quickly due to delays and slowdowns in the supply chain.
“AAEI is also concerned about the lack of tangible benefits for voluntary participation in the costly C-TPAT program…” Read more here (subscription required).
Monday, May 25, 2009
Use Trade Sanctions to Beat ‘Buy America’: Export Chief
(David Akin — Canwest News Service)
The leader of the country’s biggest industry association wants Ottawa to threaten trade sanctions against U.S. companies to force American officials to work harder at improving a deteriorating economic relationship between the two countries.
Jayson Myers, president of the Canadian Manufacturers and Exporters, said he prefers a negotiated end to the economic problems caused by the “Buy America” provision that has stuck itself to much of President Barack Obama’s economic stimulus package.
As a result, many Canadian firms with a long history of sales to American customers are getting shut out.
“Clearly the threat of retaliation is something that does attract attention in the United States and the retaliatory pressures we’re seeing right now against “Buy America” provisions are certainly causing a lot of concern in the U.S. administration,” Mr. Myers said in a joint interview with Canwest News Service and Global National. “It’s something the Canadian government should use as a negotiating lever here.” Read more here.
The leader of the country’s biggest industry association wants Ottawa to threaten trade sanctions against U.S. companies to force American officials to work harder at improving a deteriorating economic relationship between the two countries.
Jayson Myers, president of the Canadian Manufacturers and Exporters, said he prefers a negotiated end to the economic problems caused by the “Buy America” provision that has stuck itself to much of President Barack Obama’s economic stimulus package.
As a result, many Canadian firms with a long history of sales to American customers are getting shut out.
“Clearly the threat of retaliation is something that does attract attention in the United States and the retaliatory pressures we’re seeing right now against “Buy America” provisions are certainly causing a lot of concern in the U.S. administration,” Mr. Myers said in a joint interview with Canwest News Service and Global National. “It’s something the Canadian government should use as a negotiating lever here.” Read more here.
Smile! The U.S. Sees You Coming
(Tonda MacCharles — Toronto Star)
High in the sky, down on the ground, agents with high-tech tools guard the border
About 15 metres before a car from Canada reaches the border inspection booth, the screenings begin.
A camera snaps your licence plate.
An electronic card reader mounted on a yellow post scans your car for the presence of any radio-frequency ID cards inside. If there is an enhanced driver’s licence embedded with biometric information, its unique PIN number is read without you offering it.
The Customs and Border Protection computer connects with your province’s database and in less than a second – .56 to be exact – your personal information is uploaded to a screen in the booth. A second camera snaps the driver’s face.
Welcome to the United States of America.
If Canadians were under the impression that the Canada-loving U.S. President Barack Obama would heed pleas to loosen border controls to ease trade and traffic, there should no longer be any confusion. He has not. Read more here.
High in the sky, down on the ground, agents with high-tech tools guard the border
About 15 metres before a car from Canada reaches the border inspection booth, the screenings begin.
A camera snaps your licence plate.
An electronic card reader mounted on a yellow post scans your car for the presence of any radio-frequency ID cards inside. If there is an enhanced driver’s licence embedded with biometric information, its unique PIN number is read without you offering it.
The Customs and Border Protection computer connects with your province’s database and in less than a second – .56 to be exact – your personal information is uploaded to a screen in the booth. A second camera snaps the driver’s face.
Welcome to the United States of America.
If Canadians were under the impression that the Canada-loving U.S. President Barack Obama would heed pleas to loosen border controls to ease trade and traffic, there should no longer be any confusion. He has not. Read more here.
Canada Promotes Vital Free Trade Agreements with Colombia and Peru
(Agriculture and Agri-Food Canada)
Colombia and Peru are vital markets for Canadian livestock, grain, and pulse producers and the Government of Canada is working hard to quickly pass and implement free trade agreements with both countries. Agriculture Minister Gerry Ritz led a Canadian delegation to Colombia and Peru to advance quick implementation of these important free trade agreements.
Meetings between Canada and Colombia resulted in a clear path that will enable Colombia to fully reopen the Colombian market to Canadian beef and livestock.
“Canada’s Conservative Government is working hard to create opportunities for Canadians producers around the world and we are building a strong relationship between Canada and Colombia as we move forward with our free trade agreement,” said Minister Ritz. “I am confident that we can meet and exceed Colombia’s high quality and safety standards to reopen that market to our beef and livestock this summer.
“This breakthrough agreement gives us a clear direction to once again scientifically prove that Canadian beef and livestock are safe. We continue to deliver the same stringent sanitary and health standards whether we are producing food for Canadian grocery stores or markets around the world.”
In addition to the Andean Community’s ongoing study of Canadian beef and livestock sanitary and phytosanitary systems, it was agreed that the Canadian Food Inspection Agency (CFIA) will provide Colombia with detailed analysis of the two most recent cases of bovine spongiform encephalopathy, complete a technical questionnaire requested by Colombia, and provide updated information about Canada’s livestock and food safety systems and sanitary procedures. Colombia will deliver a final decision within 15 days of receiving the requested information from CFIA. If all requirements are satisfactorily met by Canada, Colombia will fully reopen its market to Canadian beef and livestock. Read more here.
Colombia and Peru are vital markets for Canadian livestock, grain, and pulse producers and the Government of Canada is working hard to quickly pass and implement free trade agreements with both countries. Agriculture Minister Gerry Ritz led a Canadian delegation to Colombia and Peru to advance quick implementation of these important free trade agreements.
Meetings between Canada and Colombia resulted in a clear path that will enable Colombia to fully reopen the Colombian market to Canadian beef and livestock.
“Canada’s Conservative Government is working hard to create opportunities for Canadians producers around the world and we are building a strong relationship between Canada and Colombia as we move forward with our free trade agreement,” said Minister Ritz. “I am confident that we can meet and exceed Colombia’s high quality and safety standards to reopen that market to our beef and livestock this summer.
“This breakthrough agreement gives us a clear direction to once again scientifically prove that Canadian beef and livestock are safe. We continue to deliver the same stringent sanitary and health standards whether we are producing food for Canadian grocery stores or markets around the world.”
In addition to the Andean Community’s ongoing study of Canadian beef and livestock sanitary and phytosanitary systems, it was agreed that the Canadian Food Inspection Agency (CFIA) will provide Colombia with detailed analysis of the two most recent cases of bovine spongiform encephalopathy, complete a technical questionnaire requested by Colombia, and provide updated information about Canada’s livestock and food safety systems and sanitary procedures. Colombia will deliver a final decision within 15 days of receiving the requested information from CFIA. If all requirements are satisfactorily met by Canada, Colombia will fully reopen its market to Canadian beef and livestock. Read more here.
Asia Pacific Foundation of Canada Launches 'Asian Business Cases'
(The Canada Asia News)
The Asia Pacific Foundation of Canada today launched a new publication, ‘Asian Business Cases,' which offers executives and researchers valuable insights into the way major companies solve problems and overcome obstacles in their Asian operations. Taken from the portfolio of case studies in the archive of the Richard Ivey School of Business at The University of Western Ontario, Asian Business Cases will be available at no cost via email subscription.
The quarterly publication is being supported by Export Development Canada (EDC). The new publication is intended to help both established companies and new entrants clear some of the hurdles faced in doing business in Asia. Each issue will profile several studies of business decisions involving the same country, industry or topic. The first issue examines some of the challenges faced by companies setting up joint ventures in China and is available here.
Sunday, May 24, 2009
Here’s a Thought – How About Erasing the Canada-U.S. Border?
(Barbara Yaffee — Vancouver Sun)
A book by Toronto journalist John Ibbitson suggests we’re overdue for a North American environmental, economic and security accord
A new book is challenging Canadians to consider the benefits of a radical scenario: Erasing the Canada-U.S. border.
That’s right. The two nations would retain their distinct sovereignty but there would be no more passports or work visas.
The continent would see a free flow of goods, services and people; common rules for immigration and refugees; joint inspection of shipping containers from abroad; an integrated terrorist watch list; a system of security enforcement around the perimeter of the continent.
“The worst that will happen is that we may have to adopt American spelling,” posits author John Ibbitson, a Toronto journalist writing on U.S. politics from Washington, D.C. Read more here.
A book by Toronto journalist John Ibbitson suggests we’re overdue for a North American environmental, economic and security accord
A new book is challenging Canadians to consider the benefits of a radical scenario: Erasing the Canada-U.S. border.
That’s right. The two nations would retain their distinct sovereignty but there would be no more passports or work visas.
The continent would see a free flow of goods, services and people; common rules for immigration and refugees; joint inspection of shipping containers from abroad; an integrated terrorist watch list; a system of security enforcement around the perimeter of the continent.
“The worst that will happen is that we may have to adopt American spelling,” posits author John Ibbitson, a Toronto journalist writing on U.S. politics from Washington, D.C. Read more here.
New Requirements on Border ID Stir Worries at Crossings
(Ginger Thompson — New York Times)
After years of delay and hundreds of millions of dollars in preparations, Customs and Border Protection officials said new security measures would go into effect on June 1, requiring Americans entering the country by land or sea to show government-approved identification.
Currently, Americans crossing borders or arriving on cruise ships can prove their nationality by showing thousands of other forms of identification. But after the start of the Western Hemisphere Travel Initiative, Americans will be required to present a passport or one of five other secure identification cards.
Coming as the summer vacation season starts, the measure is expected to lengthen lines at least temporarily at border crossings and seaports. But the biggest impact is expected along the nearly 4,000-mile border that the United States shares with Canada, which both countries once boasted was the world’s longest undefended frontier. Read more here.
After years of delay and hundreds of millions of dollars in preparations, Customs and Border Protection officials said new security measures would go into effect on June 1, requiring Americans entering the country by land or sea to show government-approved identification.
Currently, Americans crossing borders or arriving on cruise ships can prove their nationality by showing thousands of other forms of identification. But after the start of the Western Hemisphere Travel Initiative, Americans will be required to present a passport or one of five other secure identification cards.
Coming as the summer vacation season starts, the measure is expected to lengthen lines at least temporarily at border crossings and seaports. But the biggest impact is expected along the nearly 4,000-mile border that the United States shares with Canada, which both countries once boasted was the world’s longest undefended frontier. Read more here.
Border Lineups to U.S. From B.C. Will Only Get Longer
(Doug Ward — Vancouver Sun/Canwest News)
Peace Arch construction project to continue into 2010
British Columbians heading to the U.S. on weekends this spring and summer — especially holiday weekends — should gird themselves for life in the slow lane.
Major construction at the Peace Arch border crossing in Blaine, Wash., has cut its southbound traffic capacity in half, creating bottlenecks also at the nearby Pacific Highway crossing.
Lineups should be shorter for northbound travellers — certainly shorter than the three- to four-hour lineups some faced at the end of the recent Victoria Day weekend.
Faith St. John, speaking for the Canada Border Services Agency, said that a combination of “unique circumstances” created longer than usual lineups at Canadian stations along the Washington State border last Monday. Read more here.
Peace Arch construction project to continue into 2010
British Columbians heading to the U.S. on weekends this spring and summer — especially holiday weekends — should gird themselves for life in the slow lane.
Major construction at the Peace Arch border crossing in Blaine, Wash., has cut its southbound traffic capacity in half, creating bottlenecks also at the nearby Pacific Highway crossing.
Lineups should be shorter for northbound travellers — certainly shorter than the three- to four-hour lineups some faced at the end of the recent Victoria Day weekend.
Faith St. John, speaking for the Canada Border Services Agency, said that a combination of “unique circumstances” created longer than usual lineups at Canadian stations along the Washington State border last Monday. Read more here.
Port Effectiveness Research
(Port Performance Research Network)
Do you think ports are effective in meeting your needs?
Tell us where they are effective and where their performance falls short.
The Port Performance Research Network (PPRN), chaired at Dalhousie University, is working to identify and evaluate the key components of port effectiveness in delivering port services to port users. We want to understand how port users evaluate ports, what is most important to port users in terms of the services received, and how you evaluate the performance of ports you use. In this study, participants are asked to rate the importance of various performance criteria and then to apply them to ports they use. This survey is being piloted in Canada. When this research is completed, the PPRN will be implementing a port satisfaction survey that will be used throughout the world to evaluate port performance in meeting customer needs. This should guide ports in improving the quality of their services, which will be a significant benefit to the companies who use ports. We have designed this survey to be as short as possible while still capturing the important factors companies consider when evaluating ports.
If you are interested, and have personal experience with port usage in the last year, take 15-20 minutes (time depending on the extent of your usage) and visit the study web site and participate. We will let you know about the research via industry media and a direct report if you contact us. All responses will be confidential and anonymous.
Deadline June 30, 2009
If you have any questions about this survey or want to be placed on an annual panel, please contact Mary Brooks at (902) 494-1825 or m.brooks@dal.ca.
Do you think ports are effective in meeting your needs?
Tell us where they are effective and where their performance falls short.
The Port Performance Research Network (PPRN), chaired at Dalhousie University, is working to identify and evaluate the key components of port effectiveness in delivering port services to port users. We want to understand how port users evaluate ports, what is most important to port users in terms of the services received, and how you evaluate the performance of ports you use. In this study, participants are asked to rate the importance of various performance criteria and then to apply them to ports they use. This survey is being piloted in Canada. When this research is completed, the PPRN will be implementing a port satisfaction survey that will be used throughout the world to evaluate port performance in meeting customer needs. This should guide ports in improving the quality of their services, which will be a significant benefit to the companies who use ports. We have designed this survey to be as short as possible while still capturing the important factors companies consider when evaluating ports.
If you are interested, and have personal experience with port usage in the last year, take 15-20 minutes (time depending on the extent of your usage) and visit the study web site and participate. We will let you know about the research via industry media and a direct report if you contact us. All responses will be confidential and anonymous.
Deadline June 30, 2009
If you have any questions about this survey or want to be placed on an annual panel, please contact Mary Brooks at (902) 494-1825 or m.brooks@dal.ca.
Friday, May 22, 2009
CPSC Staff Recommends Specific Registration Form for Durable Infant/Toddler Goods
(World Trade Interactive)
The Consumer Product Safety Commission will vote May 28 on a staff recommendation for a proposed rule requiring manufacturers of durable infant or toddler products to provide consumers with registration forms with each such product. The rule would also require manufacturers to (a) maintain a record of the names, addresses, e-mail addresses and other contact information of consumers who register their ownership of such products in order to improve the effectiveness of recall efforts and (b) permanently place their name and contact information, model name and number, and date of manufacture on each covered product.
The Consumer Product Safety Commission will vote May 28 on a staff recommendation for a proposed rule requiring manufacturers of durable infant or toddler products to provide consumers with registration forms with each such product. The rule would also require manufacturers to (a) maintain a record of the names, addresses, e-mail addresses and other contact information of consumers who register their ownership of such products in order to improve the effectiveness of recall efforts and (b) permanently place their name and contact information, model name and number, and date of manufacture on each covered product.
Thursday, May 21, 2009
Andean Region Holds Promise
(Export Development Canada – Peter G. Hall)
When it comes to Canadian exports, the Andean region – Bolivia, Colombia, Ecuador, Peru and Venezuela – is not likely top-of-mind. But Canadian exporters and investors have been very active in the region in recent years, and there is much potential for growth well into the future.
Last year, Canada exported $2.1 billion worth of goods to the region. What is more, 2008 growth was about double Canada’s average, at an impressive 19%. This was no flash in the pan, either – growth has maintained a solid, double-digit pace in each of the last four years. Not only that, but over the same period, Canada also saw consistently strong growth in each of the five markets.
Agri-food exports dominate all other industry categories, at about 40% of total regional shipments, yet growth is below the regional average. Machinery and equipment exports together account for a sizable 16% of Canadian exports to the region, and as a group, grew at a 22% pace over the past four years. Other top exports are paper products, minerals and refined petroleum products.
Canada’s activity in the region is not confined to exporting. Canadian firms have undertaken direct investments in the region of over $4.4 billion, over half of which is in Peru. Colombia makes up an additional $1 billion, a tally that is growing by 28% annually. Venezuelan holdings are at $850 million, and rising 15.5% annually. Canada is also importing from the region. Growth in the past three years has been well below export growth, but with inbound shipments of $4.4 billion, is about 2.5 times as large. Crude and refined petroleum account for one third of imports, while precious metals make up an additional 27%. Imports of fruits, nuts and coal are also significant. Read more here.
When it comes to Canadian exports, the Andean region – Bolivia, Colombia, Ecuador, Peru and Venezuela – is not likely top-of-mind. But Canadian exporters and investors have been very active in the region in recent years, and there is much potential for growth well into the future.
Last year, Canada exported $2.1 billion worth of goods to the region. What is more, 2008 growth was about double Canada’s average, at an impressive 19%. This was no flash in the pan, either – growth has maintained a solid, double-digit pace in each of the last four years. Not only that, but over the same period, Canada also saw consistently strong growth in each of the five markets.
Agri-food exports dominate all other industry categories, at about 40% of total regional shipments, yet growth is below the regional average. Machinery and equipment exports together account for a sizable 16% of Canadian exports to the region, and as a group, grew at a 22% pace over the past four years. Other top exports are paper products, minerals and refined petroleum products.
Canada’s activity in the region is not confined to exporting. Canadian firms have undertaken direct investments in the region of over $4.4 billion, over half of which is in Peru. Colombia makes up an additional $1 billion, a tally that is growing by 28% annually. Venezuelan holdings are at $850 million, and rising 15.5% annually. Canada is also importing from the region. Growth in the past three years has been well below export growth, but with inbound shipments of $4.4 billion, is about 2.5 times as large. Crude and refined petroleum account for one third of imports, while precious metals make up an additional 27%. Imports of fruits, nuts and coal are also significant. Read more here.
Van Loan and Napolitano to Hold First Formal High-Level Border Meeting
(Public Safety Canada)
During their recent meeting in Washington, D.C., Public Safety Minister Peter Van Loan and Department of Homeland Security Secretary, Janet Napolitano, agreed to establish a formal mechanism of twice yearly high-level meetings to manage issues on the shared border, a process that did not previously exist. The first of these meetings will take place May 26th in Detroit, Michigan and May 27th in Ottawa.
“I look forward to hosting Janet Napolitano on her first official visit to Canada as Secretary of Homeland Security, and renewing our practical problem-solving discussions following my recent trip to Washington,” said Minister Van Loan.
The regular High-Level Meeting mechanism is seen as a major positive step forward for Canada, strengthening the relationship with the U.S. and creating an opportunity for both countries to smooth trade and improve security at the border.
“As close neighbours, our security and trade interests are shared. The Prime Minister reminded us recently that threats to the national security of the United States also represent threats to Canada,” added Minister Van Loan. “The Secretary’s visit will allow us to advance initiatives and develop a mutual appreciation of the economic importance of smooth trade and the progress both countries have been making to improve security.”
During their recent meeting in Washington, D.C., Public Safety Minister Peter Van Loan and Department of Homeland Security Secretary, Janet Napolitano, agreed to establish a formal mechanism of twice yearly high-level meetings to manage issues on the shared border, a process that did not previously exist. The first of these meetings will take place May 26th in Detroit, Michigan and May 27th in Ottawa.
“I look forward to hosting Janet Napolitano on her first official visit to Canada as Secretary of Homeland Security, and renewing our practical problem-solving discussions following my recent trip to Washington,” said Minister Van Loan.
The regular High-Level Meeting mechanism is seen as a major positive step forward for Canada, strengthening the relationship with the U.S. and creating an opportunity for both countries to smooth trade and improve security at the border.
“As close neighbours, our security and trade interests are shared. The Prime Minister reminded us recently that threats to the national security of the United States also represent threats to Canada,” added Minister Van Loan. “The Secretary’s visit will allow us to advance initiatives and develop a mutual appreciation of the economic importance of smooth trade and the progress both countries have been making to improve security.”
U.S. Protectionism ‘Hurts Americans’: Clement
(National Post – Sheldon Alberts, Canwest News Services)
Industry Minister Tony Clement on Wednesday slammed the Democratic-led U.S. Congress for expanding “injurious” Buy American rules that bar Canadian firms from bidding on American economic-stimulus projects, suggesting Capitol Hill lawmakers are ignorant to the potential for their actions to backfire on the U.S. economy.
Mr. Clement, who is on a two-day trip to Washington to press Congress to resist protectionist impulses, told reporters the situation is “of grave concern to Canada.” “What’s happened is that these provisions seem to be expanding in scope and they are cascading down the system,” he said.
The Harper government has grown increasingly alarmed in recent weeks amid evidence that Buy American provisions attached to the massive US$787-billion economic-stimulus legislation are finding their way into several other pieces of legislation.
One of those new appropriations bills is the Water Quality Investment Act, which will provide US$13.4-billion for local governments in the U.S. to improve their drinking-water systems. It’s been approved by the House with Buy American rules and is awaiting Senate passage.
But the fallout from Buy American is already being felt among Canadian firms – from sewage pipe manufacturers to water treatment companies – that are being shut out of valuable infrastructure contracts being awarded to local and state governments receiving stimulus funds. Read more here.
Industry Minister Tony Clement on Wednesday slammed the Democratic-led U.S. Congress for expanding “injurious” Buy American rules that bar Canadian firms from bidding on American economic-stimulus projects, suggesting Capitol Hill lawmakers are ignorant to the potential for their actions to backfire on the U.S. economy.
Mr. Clement, who is on a two-day trip to Washington to press Congress to resist protectionist impulses, told reporters the situation is “of grave concern to Canada.” “What’s happened is that these provisions seem to be expanding in scope and they are cascading down the system,” he said.
The Harper government has grown increasingly alarmed in recent weeks amid evidence that Buy American provisions attached to the massive US$787-billion economic-stimulus legislation are finding their way into several other pieces of legislation.
One of those new appropriations bills is the Water Quality Investment Act, which will provide US$13.4-billion for local governments in the U.S. to improve their drinking-water systems. It’s been approved by the House with Buy American rules and is awaiting Senate passage.
But the fallout from Buy American is already being felt among Canadian firms – from sewage pipe manufacturers to water treatment companies – that are being shut out of valuable infrastructure contracts being awarded to local and state governments receiving stimulus funds. Read more here.
Consultations Towards a Canada-European Union Comprehensive Economic Agreement
(Dept. of International Trade)
In order to ensure that Canadian priorities are taken into account during the negotiations, the Government of Canada is consulting Canadian stakeholders with an interest in the EU market.
Closing date is June 30, 2009
In order to ensure that Canadian priorities are taken into account during the negotiations, the Government of Canada is consulting Canadian stakeholders with an interest in the EU market.
Closing date is June 30, 2009
Wednesday, May 20, 2009
World Trade Set to Fall 13%, OECD Urges Governments to Avoid Protectionism
(OECD)
With world trade volumes likely to shrink by as much as 13% in 2009 from 2008 levels, the OECD is urging governments to avoid protectionist measures and keep markets open in order to allow economies to benefit from the recovery when it comes.
Speaking at a meeting in Brussels to present a new OECD publication on trade policy, International Trade: Free, Fair And Open?, OECD Director for Trade and Agriculture Ken Ash warned that government actions to discriminate against foreign goods, services, firms or workers “could have a devastating effect in terms of prolonging and deepening the recession.”
• Consumers would be hurt by higher prices and reduced choice.
• Domestic industries would face higher input costs, as a huge amount of trade today is in intermediate goods and services.
• Exporters would be penalised twice: through higher costs and through retaliation from other countries. The net effect on the economy would be even bigger job losses than otherwise
European Trade Commissioner Catherine Ashton, speaking at the same event, stressed the need to help citizens better understand the role of trade in contributing to economic growth and job creation.
The new OECD publication, International Trade: Free, Fair And Open?, was written with that objective. Part of the OECD’s Insights series of publications aimed at a wide public, it explains that while open markets are a necessary condition for growth and prosperity they are not sufficient on their own to guarantee positive outcomes. Trade policy must be accompanied by other policies if the potential benefits are to be realised and the negative impacts of liberalisation on vulnerable individuals and sectors are to be addressed. “Today, in particular, effective labour market policies need to be in place to assist those that need to adjust,” Mr. Ash said.
With world trade volumes likely to shrink by as much as 13% in 2009 from 2008 levels, the OECD is urging governments to avoid protectionist measures and keep markets open in order to allow economies to benefit from the recovery when it comes.
Speaking at a meeting in Brussels to present a new OECD publication on trade policy, International Trade: Free, Fair And Open?, OECD Director for Trade and Agriculture Ken Ash warned that government actions to discriminate against foreign goods, services, firms or workers “could have a devastating effect in terms of prolonging and deepening the recession.”
• Consumers would be hurt by higher prices and reduced choice.
• Domestic industries would face higher input costs, as a huge amount of trade today is in intermediate goods and services.
• Exporters would be penalised twice: through higher costs and through retaliation from other countries. The net effect on the economy would be even bigger job losses than otherwise
European Trade Commissioner Catherine Ashton, speaking at the same event, stressed the need to help citizens better understand the role of trade in contributing to economic growth and job creation.
The new OECD publication, International Trade: Free, Fair And Open?, was written with that objective. Part of the OECD’s Insights series of publications aimed at a wide public, it explains that while open markets are a necessary condition for growth and prosperity they are not sufficient on their own to guarantee positive outcomes. Trade policy must be accompanied by other policies if the potential benefits are to be realised and the negative impacts of liberalisation on vulnerable individuals and sectors are to be addressed. “Today, in particular, effective labour market policies need to be in place to assist those that need to adjust,” Mr. Ash said.
Canada’s Minister of International Trade Recommends Canadian Companies to Leverage the Hong Kong Platform to Explore Opportunities in China
(Hong Kong Trade Development Council)
Stockwell Day, Canada’s Minister of International Trade, sees Hong Kong as a springboard to the great business opportunities of China. Leading a trade mission to China last month, the Minister expects trade relations between the two countries to more than triple in the next decade.
During his stay in Hong Kong, he was interviewed by the HKTDC Editor. A webcast interview and an article have subsequently been produced.
Related Links: Webcast interview and Hong Kong Trader article “City of Hope.”
Stockwell Day, Canada’s Minister of International Trade, sees Hong Kong as a springboard to the great business opportunities of China. Leading a trade mission to China last month, the Minister expects trade relations between the two countries to more than triple in the next decade.
During his stay in Hong Kong, he was interviewed by the HKTDC Editor. A webcast interview and an article have subsequently been produced.
Related Links: Webcast interview and Hong Kong Trader article “City of Hope.”
Tuesday, May 19, 2009
Updated: Product Inspection of Imported Fish
(CFIA)
Please be advised that the following has been updated on the CFIA web site:
“Product Inspection of Imported Fish” Section 5 added to version 2.
Please be advised that the following has been updated on the CFIA web site:
“Product Inspection of Imported Fish” Section 5 added to version 2.
USDA Proposes Rule to Implement Assessment on Dairy Imports
(World Trade Interactive)
The Department of Agriculture’s Agricultural Marketing Service is seeking comments by June 18 on proposed amendments to the Dairy Promotion and Research Order that would implement an assessment on imported dairy products. The 2002 Farm Bill requires the imposition of such an assessment to fund promotion and research, while the 2008 Farm Bill specifies a mandatory import assessment rate of 7.5 cents per hundredweight of milk or equivalent thereof.
According to AMS, the assessments on imported dairy products would be collected by U.S. Customs and Border Protection from importers at the time the entry summary documents are filed. If the importer has adequate documentation concerning the milk solids content of the imported dairy product, the assessment would be based on that; otherwise, a default assessment rate for each HTSUS number would be applied. The assessments collected would be transferred to the Dairy Board to fund the national dairy promotion and research program. The Dairy Board would establish a compliance program and procedures to verify, as necessary, that correct assessments have been paid by importers.
The Department of Agriculture’s Agricultural Marketing Service is seeking comments by June 18 on proposed amendments to the Dairy Promotion and Research Order that would implement an assessment on imported dairy products. The 2002 Farm Bill requires the imposition of such an assessment to fund promotion and research, while the 2008 Farm Bill specifies a mandatory import assessment rate of 7.5 cents per hundredweight of milk or equivalent thereof.
According to AMS, the assessments on imported dairy products would be collected by U.S. Customs and Border Protection from importers at the time the entry summary documents are filed. If the importer has adequate documentation concerning the milk solids content of the imported dairy product, the assessment would be based on that; otherwise, a default assessment rate for each HTSUS number would be applied. The assessments collected would be transferred to the Dairy Board to fund the national dairy promotion and research program. The Dairy Board would establish a compliance program and procedures to verify, as necessary, that correct assessments have been paid by importers.
Thickening Carbon Border
(Globe and Mail)
Jim Prentice, the federal Minister of the Environment, was right to warn in a speech in Washington last Wednesday against “trade protectionism in the name of environmental protection.” But trade and environmental motives may be difficult to disentangle, and Canada must be ready to defend its vital interests as an exporting nation by adopting a serious policy to reduce carbon emissions.
Mr. Prentice was specifically directing his speech at a draft bill in the U.S. House of Representatives, called the American Clean Energy and Security Act. Even more particularly, he is justifiably worried about provisions in the bill for “international reserve allowances” that could well have the effect of protective tariffs.
The draft bill in the House energy and commerce committee would charge these so-called allowances, at the border, to exporters into the United States from other countries that do not have greenhouse-gas-emissions regimes “commensurate” to the one that the U.S. would adopt under this same bill.
Though Mr. Prentice had some fun saying, “Like beauty and fairness, the definition of ‘commensurate’ will apparently lie in the eye of the American beholder,” the bill does elaborate on this word, if only in two paragraphs. Read more here.
Jim Prentice, the federal Minister of the Environment, was right to warn in a speech in Washington last Wednesday against “trade protectionism in the name of environmental protection.” But trade and environmental motives may be difficult to disentangle, and Canada must be ready to defend its vital interests as an exporting nation by adopting a serious policy to reduce carbon emissions.
Mr. Prentice was specifically directing his speech at a draft bill in the U.S. House of Representatives, called the American Clean Energy and Security Act. Even more particularly, he is justifiably worried about provisions in the bill for “international reserve allowances” that could well have the effect of protective tariffs.
The draft bill in the House energy and commerce committee would charge these so-called allowances, at the border, to exporters into the United States from other countries that do not have greenhouse-gas-emissions regimes “commensurate” to the one that the U.S. would adopt under this same bill.
Though Mr. Prentice had some fun saying, “Like beauty and fairness, the definition of ‘commensurate’ will apparently lie in the eye of the American beholder,” the bill does elaborate on this word, if only in two paragraphs. Read more here.
U.S. Customs Update Seminar in Winnipeg
(IE Canada)
When: June 2, 2009
Where: Delta Winnipeg, 350 St. Mary Avenue, Winnipeg, Manitoba
IE Canada is hosting a one day seminar where you will have the opportunity to hear a U.S. Customs Update.
In this session, attendees will learn about the latest developments in U.S. Customs procedures and requirements, including:
• Implementation of the new declaration for all imports of plants and plant products under amendments to the Lacey Act;
• NAFTA
• Steel Importation (Anti-dumping, mill certificates, country of origin)
• New conformity certification requirements for imports of consumer products under the Consumer Product Safety Improvement Act.
Speakers: Kristina Nelson, Senior Import Specialist, US Customs and Border Protection, Pembina, North Dakota and Judy Bahr, Senior Import Specialist, US Customs and Border Protection, Pembina, North Dakota
For a copy of the brochure, click here or to register online click here.
When: June 2, 2009
Where: Delta Winnipeg, 350 St. Mary Avenue, Winnipeg, Manitoba
IE Canada is hosting a one day seminar where you will have the opportunity to hear a U.S. Customs Update.
In this session, attendees will learn about the latest developments in U.S. Customs procedures and requirements, including:
• Implementation of the new declaration for all imports of plants and plant products under amendments to the Lacey Act;
• NAFTA
• Steel Importation (Anti-dumping, mill certificates, country of origin)
• New conformity certification requirements for imports of consumer products under the Consumer Product Safety Improvement Act.
Speakers: Kristina Nelson, Senior Import Specialist, US Customs and Border Protection, Pembina, North Dakota and Judy Bahr, Senior Import Specialist, US Customs and Border Protection, Pembina, North Dakota
For a copy of the brochure, click here or to register online click here.
Saturday, May 16, 2009
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