(World Trade Interactive)
“America’s system for regulating industrial chemicals is broken” – Frank Lautenberg (D-NJ), Chairman of the Subcommittee on Superfund, Toxics and Environmental Health of the Senate Committee on Environment and Public Works
[Friday] Congress revealed its initial plan to reform the Toxic Substances Control Act. TSCA is the primary law with which the Environmental Protection Agency regulates chemicals in U.S. commerce. It has not been updated since its enactment in 1976. While a full bill was introduced in the Senate by Frank Lautenberg (D-NJ), the House released a discussion draft which will be worked on in the coming months by a broad group of stakeholders including government, industry and non-governmental organizations.
The Lautenberg bill and the House draft reflect congressional priorities such as:
• requiring manufacturers to provide minimum data on chemicals
• requiring EPA to prioritize a list of hazardous chemicals
• creating a public database of information about priority chemicals
• creating incentives to promote green chemistry
Monday, April 19, 2010
India Proposes to Revive Quantitative Restrictions on Imports
(Economic Times)
Nine years after being forced to remove quantitative restrictions on imports under WTO, India proposes to bring changes in the domestic law enabling it to protect its industries against import surges.
The Standing Committee of Parliament has more or less approved a provision in a bill to amend the Foreign Trade (Development and Regulation) Act. The committee was informed by the Commerce Ministry that the quantitative restrictions (QR) provisions are available to all members of the World Trade Organisation (WTO). For availing this facility, the country is required to have an enabling domestic law.
India had to remove QRs on over 700 items in 2001 after it lost a case in WTO against the U.S. which had challenged these restrictions on import of large number of industrial and agricultural items. Read more here.
Nine years after being forced to remove quantitative restrictions on imports under WTO, India proposes to bring changes in the domestic law enabling it to protect its industries against import surges.
The Standing Committee of Parliament has more or less approved a provision in a bill to amend the Foreign Trade (Development and Regulation) Act. The committee was informed by the Commerce Ministry that the quantitative restrictions (QR) provisions are available to all members of the World Trade Organisation (WTO). For availing this facility, the country is required to have an enabling domestic law.
India had to remove QRs on over 700 items in 2001 after it lost a case in WTO against the U.S. which had challenged these restrictions on import of large number of industrial and agricultural items. Read more here.
Obama Eyes Export Control Reforms to Boost Exports
(Doug Palmer — Reuters)
President Barack Obama said on Friday that updating Cold War-era restrictions on U.S. high-technology exports would help the United States create new jobs and boost economic growth. “We are losing business opportunities unnecessarily,” Obama said in a meeting with outside economic advisers just days before Secretary of Defense Roberts Gates is expected to lay out plans for revamping U.S. export controls.
U.S. manufacturers have long complained they are losing high-tech sales to competitors in Europe and Asia because of cumbersome rules designed when the United States was locked in an ideological battle with the Soviet Union.
“We’re also, I actually think, impeding effective monitoring of our national security because if you have export controls across everything you’re not spending time focusing on the handful of things that really do touch on sensitive national security,” Obama said.
Gates is expected to outline actions the administration will take to update and streamline U.S. export controls on commercial goods with potential military applications in a speech on Tuesday, as well as propose additional reforms it would like Congress to make.
“It’s going to be entirely grounded in our national security needs but I think will have a strong potential impact on where we can go in terms of exports,” Obama said. Read more here.
President Barack Obama said on Friday that updating Cold War-era restrictions on U.S. high-technology exports would help the United States create new jobs and boost economic growth. “We are losing business opportunities unnecessarily,” Obama said in a meeting with outside economic advisers just days before Secretary of Defense Roberts Gates is expected to lay out plans for revamping U.S. export controls.
U.S. manufacturers have long complained they are losing high-tech sales to competitors in Europe and Asia because of cumbersome rules designed when the United States was locked in an ideological battle with the Soviet Union.
“We’re also, I actually think, impeding effective monitoring of our national security because if you have export controls across everything you’re not spending time focusing on the handful of things that really do touch on sensitive national security,” Obama said.
Gates is expected to outline actions the administration will take to update and streamline U.S. export controls on commercial goods with potential military applications in a speech on Tuesday, as well as propose additional reforms it would like Congress to make.
“It’s going to be entirely grounded in our national security needs but I think will have a strong potential impact on where we can go in terms of exports,” Obama said. Read more here.
Manufacturers Report Significant Improvement
(Industry Week – Agence France-Presse)
Emerging optimism prevails in the manufacturing sector that the ‘Great Recession’ is finally turning to recovery, according to the quarterly Manufacturers Alliance/MAPI Survey. The March 2010 composite index rose to 78% from 57% reported in the December 2009 report, representing the highest level since the June 2004 survey registered 80%, and marks the second straight quarter it has reached 50% or above.
Just one year ago the March 2009 index registered an historic low 21%.
“The sharp increase in the composite index, along with significant improvement in individual indexes, point to increased confidence that the manufacturing sector will continue to recover from the rapid decline that took hold in the fourth quarter of 2008 and continued through the first half of 2009,” said Donald A. Norman, Ph.D., MAPI Economist. “It is important to recognize, however, that many of the individual indexes are based on year-over-year comparisons and the composite index measures the direction of change rather than the absolute strength of activity in manufacturing. Still, the extent of the increases clearly points to further expansion.” Read more here.
Emerging optimism prevails in the manufacturing sector that the ‘Great Recession’ is finally turning to recovery, according to the quarterly Manufacturers Alliance/MAPI Survey. The March 2010 composite index rose to 78% from 57% reported in the December 2009 report, representing the highest level since the June 2004 survey registered 80%, and marks the second straight quarter it has reached 50% or above.
Just one year ago the March 2009 index registered an historic low 21%.
“The sharp increase in the composite index, along with significant improvement in individual indexes, point to increased confidence that the manufacturing sector will continue to recover from the rapid decline that took hold in the fourth quarter of 2008 and continued through the first half of 2009,” said Donald A. Norman, Ph.D., MAPI Economist. “It is important to recognize, however, that many of the individual indexes are based on year-over-year comparisons and the composite index measures the direction of change rather than the absolute strength of activity in manufacturing. Still, the extent of the increases clearly points to further expansion.” Read more here.
Business, Political, Labor Leaders Support New Detroit River Bridge
(Bill Shea — Crain’s Detroit Business)
A group of state and local political, labor and business leaders gathered this morning [Friday] to express their solidarity for a new public Detroit River bridge, and to lobby for passage of legislation that they call the final hurdle to its creation.
Specifically, the group that included Gov. Jennifer Granholm, Detroit Mayor Dave Bing, Oakland County Executive L. Brooks Patterson and Canadian Ambassador Gary Doer advocated for passage of HB 4961, which would allow Michigan to enter into public-private partnership for its portion of the $5.3 billion Detroit River International Crossing project.
The bill is in the House Transportation Committee and is expected to be taken up this month, DRIC’s backers said in a statement today. If the bill is passed, work on the crossing could begin this year. […]
Backers say the bridge is needed to create 10,000 Michigan construction jobs over five years and 25,000 additional full-time, permanent Michigan jobs created or retained once the bridge is built. It’s also said to be needed to bolster trade capacity and to provide redundancy in case of accident or terrorist attack on the current border infrastructure.
Opponents, who include Ambassador Bridge owner Manuel Moroun and a bloc of state Legislators led by Sen. Alan Cropsey, R-DeWitt, say the new bridge is unneeded because border traffic has declined since 1999.
DRIC is a joint effort by the Michigan Department of Transportation, Transport Canada, Ontario’s Transportation Ministry and the U.S. Federal Highway Administration, and it would link Detroit’s Delray neighborhood and Windsor’s Brighton Beach area with a new bridge to connect I-75 and Highway 401.
It’s expected to take 48 to 52 months to finish and the entire project has a $5.3 billion price tag, with the bridge itself at up to $1 billion. The remainder would be highway, ramp and plaza work, including the Windsor-Essex Parkway that is separate from DRIC and is purely a Canadian effort. Read more here.
A group of state and local political, labor and business leaders gathered this morning [Friday] to express their solidarity for a new public Detroit River bridge, and to lobby for passage of legislation that they call the final hurdle to its creation.
Specifically, the group that included Gov. Jennifer Granholm, Detroit Mayor Dave Bing, Oakland County Executive L. Brooks Patterson and Canadian Ambassador Gary Doer advocated for passage of HB 4961, which would allow Michigan to enter into public-private partnership for its portion of the $5.3 billion Detroit River International Crossing project.
The bill is in the House Transportation Committee and is expected to be taken up this month, DRIC’s backers said in a statement today. If the bill is passed, work on the crossing could begin this year. […]
Backers say the bridge is needed to create 10,000 Michigan construction jobs over five years and 25,000 additional full-time, permanent Michigan jobs created or retained once the bridge is built. It’s also said to be needed to bolster trade capacity and to provide redundancy in case of accident or terrorist attack on the current border infrastructure.
Opponents, who include Ambassador Bridge owner Manuel Moroun and a bloc of state Legislators led by Sen. Alan Cropsey, R-DeWitt, say the new bridge is unneeded because border traffic has declined since 1999.
DRIC is a joint effort by the Michigan Department of Transportation, Transport Canada, Ontario’s Transportation Ministry and the U.S. Federal Highway Administration, and it would link Detroit’s Delray neighborhood and Windsor’s Brighton Beach area with a new bridge to connect I-75 and Highway 401.
It’s expected to take 48 to 52 months to finish and the entire project has a $5.3 billion price tag, with the bridge itself at up to $1 billion. The remainder would be highway, ramp and plaza work, including the Windsor-Essex Parkway that is separate from DRIC and is purely a Canadian effort. Read more here.
Countries to Release Anti-Piracy Text as Deal Nears
(Doug Palmer — Reuters via Washington Post)
Countries negotiating a deal to curb trade in fake and pirated goods are close to reaching an agreement in talks that have raised concerns among digital rights advocates, U.S. trade officials said on Friday.
“The agreement can be concluded soon if other participants make it a priority to achieve such progress now,” Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative’s office, said in a statement.
Digital rights advocates have feared the proposed Anti-Counterfeiting Trade Agreement could allow customs agents to confiscate laptop and music devices if they contain illegal downloads, while other groups have worried it could restrict trade in low-price generic drugs. Read more here.
Countries negotiating a deal to curb trade in fake and pirated goods are close to reaching an agreement in talks that have raised concerns among digital rights advocates, U.S. trade officials said on Friday.
“The agreement can be concluded soon if other participants make it a priority to achieve such progress now,” Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative’s office, said in a statement.
Digital rights advocates have feared the proposed Anti-Counterfeiting Trade Agreement could allow customs agents to confiscate laptop and music devices if they contain illegal downloads, while other groups have worried it could restrict trade in low-price generic drugs. Read more here.
US Scraps Plans for Big Port in Little Maine Town
(WGME-Bangor Daily News-AP)
The federal agency that oversees people entering the United States from Canada is scrapping plans to build a new, larger port of entry in the Maine border town of Forest City.
Instead, U.S. Customs and Border Protection is planning to build a smaller facility on federal land across the border from the New Brunswick community that is also called Forest City. Read more here.
The federal agency that oversees people entering the United States from Canada is scrapping plans to build a new, larger port of entry in the Maine border town of Forest City.
Instead, U.S. Customs and Border Protection is planning to build a smaller facility on federal land across the border from the New Brunswick community that is also called Forest City. Read more here.
Friday, April 16, 2010
News from GHY International
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending April 16, 2010 is now available on our website here
Update to Measures in Force Under SIMA
(CBSA)
The list of goods currently subject to measures under the Special Import Measures Act (SIMA) and the relevant countries of origin or export has been updated, and is available on the CBSA website here.
The list of goods currently subject to measures under the Special Import Measures Act (SIMA) and the relevant countries of origin or export has been updated, and is available on the CBSA website here.
AMPS - Updated Master Penalty Document (short version)
(CBSA)
CBSA has posted on its website a revised short version of the AMPS Master Penalty Document (MPD). This document has been updated to reflect the new penalty amounts.
Please note that the backgrounders are no longer shown...
The new MPD is available here.
CBSA has posted on its website a revised short version of the AMPS Master Penalty Document (MPD). This document has been updated to reflect the new penalty amounts.
Please note that the backgrounders are no longer shown...
The new MPD is available here.
Canada Makes Historic Progress on Agriculture Partnerships in China
(Agriculture and Agri-Food Canada)
Agriculture Minister Gerry Ritz announced yesterday historic agricultural partnerships between Canada and China. Canadian pulse producers led the way with initiatives that will increase the value of Canadian pulse exports to China to an estimated total of $500 million. Minister Ritz made the announcement following an agricultural trade mission to Beijing and Inner Mongolia where he and Canadian farm leaders worked together to strengthen export opportunities for Canadian pulses, canola, beef, grain, and hogs.
“Fifty years ago, Canadian farmers made history by delivering huge shipments of wheat to answer an urgent call for food in China and we are proud of the close partnership we have with China that remains strong today,” said Minister Ritz. “We’re making history again as China continues to lead the world by striving to make its food supply more nutritious and Canadian producers are stepping up with innovative new techniques and products to answer that call.”
Canadian pulse exports to China are projected to expand rapidly based on three factors. First, China agreed to remove import restrictions on Canadian peas after joint research demonstrated that there is no health risk associated with naturally occurring selenium. Second, Pulse Canada and the Chinese Cereals and Oils Association signed a memorandum of agreement to increase the nutritional benefits of staple Chinese foods by adding pulse ingredients. Third, the Government of Canada will invest more than $1 million to help Pulse Canada and their partners build Canada’s research and processing capacity to produce pulse flours and pulse-based ingredients that can be used in Chinese products.
According to industry estimates and overwhelming interest from Chinese buyers, Pulse Canada projects that pulse exports to China could increase to $500 million from the current value of $100 million. Read more here.
Agriculture Minister Gerry Ritz announced yesterday historic agricultural partnerships between Canada and China. Canadian pulse producers led the way with initiatives that will increase the value of Canadian pulse exports to China to an estimated total of $500 million. Minister Ritz made the announcement following an agricultural trade mission to Beijing and Inner Mongolia where he and Canadian farm leaders worked together to strengthen export opportunities for Canadian pulses, canola, beef, grain, and hogs.
“Fifty years ago, Canadian farmers made history by delivering huge shipments of wheat to answer an urgent call for food in China and we are proud of the close partnership we have with China that remains strong today,” said Minister Ritz. “We’re making history again as China continues to lead the world by striving to make its food supply more nutritious and Canadian producers are stepping up with innovative new techniques and products to answer that call.”
Canadian pulse exports to China are projected to expand rapidly based on three factors. First, China agreed to remove import restrictions on Canadian peas after joint research demonstrated that there is no health risk associated with naturally occurring selenium. Second, Pulse Canada and the Chinese Cereals and Oils Association signed a memorandum of agreement to increase the nutritional benefits of staple Chinese foods by adding pulse ingredients. Third, the Government of Canada will invest more than $1 million to help Pulse Canada and their partners build Canada’s research and processing capacity to produce pulse flours and pulse-based ingredients that can be used in Chinese products.
According to industry estimates and overwhelming interest from Chinese buyers, Pulse Canada projects that pulse exports to China could increase to $500 million from the current value of $100 million. Read more here.
Canadian Exporters Ride Resurgence in Global Trade
(CTV News)
Canada’s exporters are pushing deeper into diverse markets as global trade rebounds from the collapse of the crisis, positioning them to bolster the recovery at a crucial time.
After acting as a drag through much of the downturn, Canadian exports are now being buoyed by the global recovery, as a report from Statistics Canada on Tuesday signalled that international trade will add to growth for a second straight quarter.
Companies are relying less on their traditional U.S. markets, boosting shipments to countries such as Germany, Mexico, Britain, Turkey, Ghana, Hong Kong, Australia and Brazil, and finding stronger demand for their goods.
Trade has lingered as the biggest question mark hanging over Canada’s export-dependent economy, and exporters’ ability to expand their reach beyond the slowly healing U.S. market is widely viewed as a key to longer-term economic health. Growth in exports will be particularly crucial if rising interest rates cut into domestic spending. Read more here.
Canada’s exporters are pushing deeper into diverse markets as global trade rebounds from the collapse of the crisis, positioning them to bolster the recovery at a crucial time.
After acting as a drag through much of the downturn, Canadian exports are now being buoyed by the global recovery, as a report from Statistics Canada on Tuesday signalled that international trade will add to growth for a second straight quarter.
Companies are relying less on their traditional U.S. markets, boosting shipments to countries such as Germany, Mexico, Britain, Turkey, Ghana, Hong Kong, Australia and Brazil, and finding stronger demand for their goods.
Trade has lingered as the biggest question mark hanging over Canada’s export-dependent economy, and exporters’ ability to expand their reach beyond the slowly healing U.S. market is widely viewed as a key to longer-term economic health. Growth in exports will be particularly crucial if rising interest rates cut into domestic spending. Read more here.
Thursday, April 15, 2010
Volcanic Ash Shuts European Airports
(Video: Bloomberg • Story: Journal of Commerce Online)
Cargo flights among those canceled across the continent
Drifting ash from a volcanic eruption in Iceland forced airports across northern Europe to shut down on Thursday, canceling as many as 4,000 passenger and cargo flights.
Eurocontrol, the pan-European air traffic control agency, said flights were being affected Thursday to and from the U.K., Scandinavia, Belgium and the Netherlands.
All flights in and out of the U.K. were suspended until 6 p.m. local time at the earliest. Officials said it is too early to say how long it will take the ash to clear. Air space in northern Germany likely will be closed later Thursday, and French authorities are considering whether to close air corridors over France. Read more here.
Cargo flights among those canceled across the continent
Drifting ash from a volcanic eruption in Iceland forced airports across northern Europe to shut down on Thursday, canceling as many as 4,000 passenger and cargo flights.
Eurocontrol, the pan-European air traffic control agency, said flights were being affected Thursday to and from the U.K., Scandinavia, Belgium and the Netherlands.
All flights in and out of the U.K. were suspended until 6 p.m. local time at the earliest. Officials said it is too early to say how long it will take the ash to clear. Air space in northern Germany likely will be closed later Thursday, and French authorities are considering whether to close air corridors over France. Read more here.
Canada Risks Being Shut Out of Pacific Trade Pact, New Zealand PM Warns
(John Ibbitson — Globe & Mail)
Ottawa’s insistence on protecting dairy industry with tariffs at issue
New Zealand’s Prime Minister is warning that unless Canada abandons its protections for the dairy industry, it will not be allowed to join a landmark trade agreement being negotiated among Pacific nations.
Canada has no free trade agreements anywhere in Asia, and a failure to sign on to an expanded Trans-Pacific Partnership would leave this country shut out of the Asia-Pacific region, which is widely viewed as the engine of economic growth in the 21st century.
John Key, who was in Ottawa on Wednesday for talks and dinner with Stephen Harper, said he told the Prime Minister that he hoped Canada would ultimately join the TPP, as it is commonly called.
But “I made it clear, from New Zealand’s point of view, we would want to engage in flexible and comprehensive agreements,” he maintained.
When asked whether any nation would be permitted to join the agreement while carving out protections for its dairy industry, he replied: “That is not our intention. No.” Read more here.
Ottawa’s insistence on protecting dairy industry with tariffs at issue
New Zealand’s Prime Minister is warning that unless Canada abandons its protections for the dairy industry, it will not be allowed to join a landmark trade agreement being negotiated among Pacific nations.
Canada has no free trade agreements anywhere in Asia, and a failure to sign on to an expanded Trans-Pacific Partnership would leave this country shut out of the Asia-Pacific region, which is widely viewed as the engine of economic growth in the 21st century.
John Key, who was in Ottawa on Wednesday for talks and dinner with Stephen Harper, said he told the Prime Minister that he hoped Canada would ultimately join the TPP, as it is commonly called.
But “I made it clear, from New Zealand’s point of view, we would want to engage in flexible and comprehensive agreements,” he maintained.
When asked whether any nation would be permitted to join the agreement while carving out protections for its dairy industry, he replied: “That is not our intention. No.” Read more here.
China Becomes Fastest-Growing US Overseas Market
(People’s Daily Online)
From 2001 to 2009, U.S. exports to China increased 262.8 percent, while its overall exports growths was only 45.5 percent.
“China has become the United States’ fastest-growing overseas market,” said Yao Jian, spokesman of China’s Ministry of Commerce (MOFCOM) Wednesday.
Data from the U.S. government showed that its exports to China increased by 55.2 percent in the first two months of 2010, 38 percentage points higher than its overall exports growth.
In 2009, impacted by the global financial crisis, U.S. exports to China dipped only 0.22 percent and the trade deficit with China fell 15.4 percent, while its overall exports dropped nearly 18 percent.
“In 2009, among the U.S. automakers’ 10 largest overseas markets, China was the only one that witnessed growth. The U.S. aircraft producers’ exports to China grew 36.5 percent in 2009 while its total exports fell 1.8 percent,” said Yao. Read more here.
From 2001 to 2009, U.S. exports to China increased 262.8 percent, while its overall exports growths was only 45.5 percent.
“China has become the United States’ fastest-growing overseas market,” said Yao Jian, spokesman of China’s Ministry of Commerce (MOFCOM) Wednesday.
Data from the U.S. government showed that its exports to China increased by 55.2 percent in the first two months of 2010, 38 percentage points higher than its overall exports growth.
In 2009, impacted by the global financial crisis, U.S. exports to China dipped only 0.22 percent and the trade deficit with China fell 15.4 percent, while its overall exports dropped nearly 18 percent.
“In 2009, among the U.S. automakers’ 10 largest overseas markets, China was the only one that witnessed growth. The U.S. aircraft producers’ exports to China grew 36.5 percent in 2009 while its total exports fell 1.8 percent,” said Yao. Read more here.
Canada’s Great Recession Wasn’t That Bad After All: Statistics Canada
(CBC News – The Canadian Press)
It’s been called the Great Recession by many around the globe. But Statistics Canada says the economic meltdown that devastated the economies of dozens of countries large and small in 2008 and 2009 left Canada relatively unscathed.
According to the federal agency, Canada did suffer through a technical recession – a 3.3% drop in gross domestic product over three quarters between the fall of 2008 and the summer of 2009. But that was shorter and milder than Canada’s previous two recessions. For example, the 1981-82 slump saw GDP fall 4.9% over six quarters, while the 1991-92 downturn resulted in a 3.4% fall-off in output over four quarters.
Recessions are mostly felt by those who lose their jobs, and on this measure the latest downturn was especially mild. Statistics Canada says employment fell just 1.8% in the recent recession, compared with 3.2% in 1991-92 and 5% in 1981-82.
It’s been called the Great Recession by many around the globe. But Statistics Canada says the economic meltdown that devastated the economies of dozens of countries large and small in 2008 and 2009 left Canada relatively unscathed.
According to the federal agency, Canada did suffer through a technical recession – a 3.3% drop in gross domestic product over three quarters between the fall of 2008 and the summer of 2009. But that was shorter and milder than Canada’s previous two recessions. For example, the 1981-82 slump saw GDP fall 4.9% over six quarters, while the 1991-92 downturn resulted in a 3.4% fall-off in output over four quarters.
Recessions are mostly felt by those who lose their jobs, and on this measure the latest downturn was especially mild. Statistics Canada says employment fell just 1.8% in the recent recession, compared with 3.2% in 1991-92 and 5% in 1981-82.
CTA Launches Cargo Crime Study
(Truck News)
The Canadian Trucking Alliance (CTA), working in partnership with the provincial trucking associations, law enforcement and representatives from the insurance industry, has launched a study to examine cargo crime activity in Canada and explore possible solutions.
“The purpose of this study is to identify the trends in cargo crime across the country, identify best practices in combating cargo crime, and develop an action plan for the private and public sector to address this important issue,” said CTA CEO David Bradley. […]
“There appears to be much momentum within the carrier, insurance and law enforcement communities to deal with this issue. The goal of this study is to focus these efforts in one direction by consulting with stakeholders and recording their recommendations on what needs to be done.” Read more here.
The Canadian Trucking Alliance (CTA), working in partnership with the provincial trucking associations, law enforcement and representatives from the insurance industry, has launched a study to examine cargo crime activity in Canada and explore possible solutions.
“The purpose of this study is to identify the trends in cargo crime across the country, identify best practices in combating cargo crime, and develop an action plan for the private and public sector to address this important issue,” said CTA CEO David Bradley. […]
“There appears to be much momentum within the carrier, insurance and law enforcement communities to deal with this issue. The goal of this study is to focus these efforts in one direction by consulting with stakeholders and recording their recommendations on what needs to be done.” Read more here.
Domestic Intermodal Primed for Growth
(Journal of Commerce Online – Bill Mongelluzzo)
Rail likely to benefit as shippers cut transportation costs, carbon footprint
Domestic intermodal rail weathered the economic recession better than most transportation modes, and the industry appears now to be on the verge of experiencing unprecedented growth. The growth in domestic intermodal will be driven by shipper requirements to reduce transportation costs, improved reliability of intermodal services by all rail carriers and corporate America’s desire to reduce its carbon footprint.
“The changes are so profound I believe we are at an inflection point,” Brian McDonald, vice president of intermodal at Union Pacific Railroad, told the Los Angeles Transportation Club.
UP is a case in point. Domestic intermodal was the only sector of UP’s 40 commodity lines to grow during last year’s recession. In fact, UP handled a record number of domestic intermodal units in 2009.
Changing customer requirements will be a primary driver of domestic intermodal growth. Traffic managers are acting under a mandate to reduce transportation costs, and substituting domestic intermodal for over-the-road trucking is the quickest way to cut costs over longer distances, McDonald said. Read more here.
Rail likely to benefit as shippers cut transportation costs, carbon footprint
Domestic intermodal rail weathered the economic recession better than most transportation modes, and the industry appears now to be on the verge of experiencing unprecedented growth. The growth in domestic intermodal will be driven by shipper requirements to reduce transportation costs, improved reliability of intermodal services by all rail carriers and corporate America’s desire to reduce its carbon footprint.
“The changes are so profound I believe we are at an inflection point,” Brian McDonald, vice president of intermodal at Union Pacific Railroad, told the Los Angeles Transportation Club.
UP is a case in point. Domestic intermodal was the only sector of UP’s 40 commodity lines to grow during last year’s recession. In fact, UP handled a record number of domestic intermodal units in 2009.
Changing customer requirements will be a primary driver of domestic intermodal growth. Traffic managers are acting under a mandate to reduce transportation costs, and substituting domestic intermodal for over-the-road trucking is the quickest way to cut costs over longer distances, McDonald said. Read more here.
U.S. Exports Could Double Under Obama Trade Plan
(San Antonio Business Journal)
Annual exports by companies in the greater San Antonio area already total more than $5 billion, but under President Obama’s National Export Initiative, local exporters should stand to benefit tremendously, said a top ranking Commerce Department official during a San Antonio visit.
Under Secretary of Commerce for International Trade Francisco Sanchez, who leads the International Trade Administration, said Wednesday that the president’s National Export Initiative is designed to double exports of U.S. goods and services during the next five years. […]
“Increasing U.S. exports is critical to our nation’s economic recovery and long-term economic growth,” Sánchez says. “The National Export Initiative is a single, comprehensive strategy to promote American exports and American jobs. It will coordinate and leverage the relevant public- and private-sector resources to push and promote the sale of American goods and services abroad.”
One of the aspects of this initiative is to help more companies extend their global reach by exporting to additional countries.
“About 58 percent of U.S. exporters export to only one market,” Sánchez adds. “Imagine the national benefit if by working together we can help companies export to two or more markets in a world in which 95 percent of their customers are outside our borders.” Read more here.
Annual exports by companies in the greater San Antonio area already total more than $5 billion, but under President Obama’s National Export Initiative, local exporters should stand to benefit tremendously, said a top ranking Commerce Department official during a San Antonio visit.
Under Secretary of Commerce for International Trade Francisco Sanchez, who leads the International Trade Administration, said Wednesday that the president’s National Export Initiative is designed to double exports of U.S. goods and services during the next five years. […]
“Increasing U.S. exports is critical to our nation’s economic recovery and long-term economic growth,” Sánchez says. “The National Export Initiative is a single, comprehensive strategy to promote American exports and American jobs. It will coordinate and leverage the relevant public- and private-sector resources to push and promote the sale of American goods and services abroad.”
One of the aspects of this initiative is to help more companies extend their global reach by exporting to additional countries.
“About 58 percent of U.S. exporters export to only one market,” Sánchez adds. “Imagine the national benefit if by working together we can help companies export to two or more markets in a world in which 95 percent of their customers are outside our borders.” Read more here.
Rep. DeFazio Urges Repeal of Mexican Trucks Program
(Transport Topics)
Letter co-signed by 78 members of Congress cites safety issues, addresses retaliatory tariffs
Rep. Peter DeFazio (D-Ore.) sent a bipartisan letter signed by 78 Members of Congress Wednesday to Transportation Secretary Ray LaHood and U.S. Trade Representative Ron Kirk, asking that they consider repealing the program that opens U.S. roadways to Mexican trucks. The program, suspended since early last year under the Obama administration, was begun under the Bush administration under the provisions of the 1993 North American Free Trade Agreement.
But Mexico “has no meaningful system for commercial driver’s licenses, drug testing or hours of service. . . . [NAFTA] is a trade agreement that threatens the safety of the American public,” DeFazio wrote.
DeFazio chairs the House Transportation and Infrastructure Committee’s highways and transit subcommittee. The letter was also signed by Rep. James Oberstar (D-Minn.), who chairs the full committee. Read more here.
Letter co-signed by 78 members of Congress cites safety issues, addresses retaliatory tariffs
Rep. Peter DeFazio (D-Ore.) sent a bipartisan letter signed by 78 Members of Congress Wednesday to Transportation Secretary Ray LaHood and U.S. Trade Representative Ron Kirk, asking that they consider repealing the program that opens U.S. roadways to Mexican trucks. The program, suspended since early last year under the Obama administration, was begun under the Bush administration under the provisions of the 1993 North American Free Trade Agreement.
But Mexico “has no meaningful system for commercial driver’s licenses, drug testing or hours of service. . . . [NAFTA] is a trade agreement that threatens the safety of the American public,” DeFazio wrote.
DeFazio chairs the House Transportation and Infrastructure Committee’s highways and transit subcommittee. The letter was also signed by Rep. James Oberstar (D-Minn.), who chairs the full committee. Read more here.
Wednesday, April 14, 2010
Memorandum D11-4-28
(CBSA)
Haiti Goods Deemed to be Directly Shipped to Canada for the Purposes of the General Preferential Tariff (GPT) and the Least Developed Country Tariff (LDCT)
This memorandum contains the text of the Regulations exempting goods originating in Haiti, for which the benefits of the General Preferential Tariff (GPT) or the Least Developed Country Tariff (LDCT) will be claimed, from the condition of direct shipment from Haiti on a through bill of lading when the goods are shipped through a port in the Dominican Republic.
This memorandum also contains a reference and link to information regarding the entry and accounting of these goods when other supporting documentation respecting the shipment of goods is unavailable at the time of accounting.
Haiti Goods Deemed to be Directly Shipped to Canada for the Purposes of the General Preferential Tariff (GPT) and the Least Developed Country Tariff (LDCT)
This memorandum contains the text of the Regulations exempting goods originating in Haiti, for which the benefits of the General Preferential Tariff (GPT) or the Least Developed Country Tariff (LDCT) will be claimed, from the condition of direct shipment from Haiti on a through bill of lading when the goods are shipped through a port in the Dominican Republic.
This memorandum also contains a reference and link to information regarding the entry and accounting of these goods when other supporting documentation respecting the shipment of goods is unavailable at the time of accounting.
Cadmium Products Now in Crosshairs of Federal and State Legislators
(Lexology – Robert B. Hopkins et al., Duane Morris LLP)
With lead banned in children’s products by the Consumer Product Safety Improvement Act of 2008 (CPSIA), many American politicians, regulators and consumer groups are now calling for a ban on cadmium, another toxic metal that has been used in consumer products. Cadmium is a soft, bluish-white, natural metal with a very-low melting point. It has been used in batteries and jewelry, as well as in coatings on consumer products. Various studies have concluded that it is toxic and that certain exposure levels can lead to significant health problems. As a result, the use of cadmium has been on the decline in recent years. However, with the recent lead ban, it has been reported that some non-U.S. manufacturers in the last two years have turned to cadmium as a replacement for lead.
Cadmium is strictly regulated in the European Union. In the United States, the laws addressing cadmium are not as comprehensive. Only one federal statute deals with its use in consumer products, and this law – in place since 2008 as part of the CPSIA – only bans its use in coatings for children’s toys. This toy-coatings ban is enforced by the Consumer Product Safety Commission (CPSC). No particular CPSC federal statute bans the use of cadmium in other consumer products, including children’s products such as jewelry. The CPSC has a general enforcement statute in place, known as the Federal Hazardous Substances Act (FHSA), which theoretically permits it to ban products containing "hazardous substances." Read more here.
With lead banned in children’s products by the Consumer Product Safety Improvement Act of 2008 (CPSIA), many American politicians, regulators and consumer groups are now calling for a ban on cadmium, another toxic metal that has been used in consumer products. Cadmium is a soft, bluish-white, natural metal with a very-low melting point. It has been used in batteries and jewelry, as well as in coatings on consumer products. Various studies have concluded that it is toxic and that certain exposure levels can lead to significant health problems. As a result, the use of cadmium has been on the decline in recent years. However, with the recent lead ban, it has been reported that some non-U.S. manufacturers in the last two years have turned to cadmium as a replacement for lead.
Cadmium is strictly regulated in the European Union. In the United States, the laws addressing cadmium are not as comprehensive. Only one federal statute deals with its use in consumer products, and this law – in place since 2008 as part of the CPSIA – only bans its use in coatings for children’s toys. This toy-coatings ban is enforced by the Consumer Product Safety Commission (CPSC). No particular CPSC federal statute bans the use of cadmium in other consumer products, including children’s products such as jewelry. The CPSC has a general enforcement statute in place, known as the Federal Hazardous Substances Act (FHSA), which theoretically permits it to ban products containing "hazardous substances." Read more here.
Failing to Walk the Talk on Trade
(National Post – Kevin Libin)
Canada third in G8 compliance, study finds
While Canada pressures Americans to keep borders open to trade – pushing back against Buy American provisions and anti-NAFTA congressmen – in the last year, this country has been as bad as any of its G8 peers in living up to free trade commitments, says a new report.
G8 leaders, including Prime Minister Stephen Harper, vowed in a joint declaration last July at Italy’s L’Aquila summit to "refrain from raising new barriers to investment or to trade in goods and services, imposing new exports restrictions or implementing World Trade Organization inconsistent measures to stimulate exports" as a key means of encouraging the global economic recovery.
Since then, Canada’s actions has earned it the lowest score it has ever received in the 10 years that report cards have been issued by the University of Toronto’s G8 Research Group, said the group’s chairwoman, Erin Fitzgerald. "Given that Canada historically performs very strongly, usually around second place, we were quite surprised this year. The low score, the relative ranking with regard to the other countries, is largely due to the trade commitment," Ms. Fitzgerald said.
France, Germany, Italy, Russia, the U.K. and the United States were all similarly penalized for raising trade barriers – mostly against Asian steel and shoes – in the regular report on how well G8 countries lived up to their commitment. Japan was the only G8 member to fully honour its L’Aquila pledge. Canada’s poor showing on trade resulted in the country slipping to third place in its compliance with G8 declarations, behind the U.S. and Japan, the lowest it has ranked on any post-summit report card. Read more here.
Canada third in G8 compliance, study finds
While Canada pressures Americans to keep borders open to trade – pushing back against Buy American provisions and anti-NAFTA congressmen – in the last year, this country has been as bad as any of its G8 peers in living up to free trade commitments, says a new report.
G8 leaders, including Prime Minister Stephen Harper, vowed in a joint declaration last July at Italy’s L’Aquila summit to "refrain from raising new barriers to investment or to trade in goods and services, imposing new exports restrictions or implementing World Trade Organization inconsistent measures to stimulate exports" as a key means of encouraging the global economic recovery.
Since then, Canada’s actions has earned it the lowest score it has ever received in the 10 years that report cards have been issued by the University of Toronto’s G8 Research Group, said the group’s chairwoman, Erin Fitzgerald. "Given that Canada historically performs very strongly, usually around second place, we were quite surprised this year. The low score, the relative ranking with regard to the other countries, is largely due to the trade commitment," Ms. Fitzgerald said.
France, Germany, Italy, Russia, the U.K. and the United States were all similarly penalized for raising trade barriers – mostly against Asian steel and shoes – in the regular report on how well G8 countries lived up to their commitment. Japan was the only G8 member to fully honour its L’Aquila pledge. Canada’s poor showing on trade resulted in the country slipping to third place in its compliance with G8 declarations, behind the U.S. and Japan, the lowest it has ranked on any post-summit report card. Read more here.
Tuesday, April 13, 2010
AMPS Penalty Changes
(CBSA)
Message EDI10-025
Please be advised that as a result of the Administrative Monetary Penalty System (AMPS) Review, late accounting penalties for high value shipments (Contravention C288) and for low value shipments (Contravention C292) will be assessed at $100.00, effective April 14, 2010. Further information regarding the key changes to the AMPS regime is provided in Customs Notice CN10-002. For questions regarding the AMPS review, the policy contact is Colleen McGonigle (613-952-5203); for questions concerning these specific contraventions (late accounting penalties), the policy contact is Doug Oakman (613-941-3123).
Message EDI10-025
Please be advised that as a result of the Administrative Monetary Penalty System (AMPS) Review, late accounting penalties for high value shipments (Contravention C288) and for low value shipments (Contravention C292) will be assessed at $100.00, effective April 14, 2010. Further information regarding the key changes to the AMPS regime is provided in Customs Notice CN10-002. For questions regarding the AMPS review, the policy contact is Colleen McGonigle (613-952-5203); for questions concerning these specific contraventions (late accounting penalties), the policy contact is Doug Oakman (613-941-3123).
Lines Play Waiting Game on Transpacific
(International Freighting Weekly – Damian Brett)
Carriers keep capacity tight ahead of contract negotiations and rate rises
U.S.-destined containers are piling up in Chinese ports and bookings are being delayed as carriers keep a tight control on capacity in the run up to annual contract negotiations and May’s rate increases. Industry contacts told IFW that carriers had avoided re-introducing tonnage to the trade because they do not want there to be spare capacity while annual contracts are being negotiated at the end of April and because they want to implement rate hikes of between US$800 and $1,000 per 40ft container in May.
The tight capacity has created an auction for space, with carriers prepared to roll containers – cancel the booking on one ship for a ship leaving later – in favour of higher-paying cargo.
One contact said space from north China, particularly Tianjin, Qingdao and Dalian, was extremely tight, with most vessels heading to Vancouver, Tacoma and Seattle running full. Space from south China was slightly easier to come by.
GAC regional logistics manager Peter Orange said: “The carriers are pushing for general rate increases (GRIs) – whether they get the full amount depends on how the contract negotiations go. Contracts are very important to us, not just in terms of space, but also in terms of access to capacity – particularly out of China.” Read more here.
Carriers keep capacity tight ahead of contract negotiations and rate rises
U.S.-destined containers are piling up in Chinese ports and bookings are being delayed as carriers keep a tight control on capacity in the run up to annual contract negotiations and May’s rate increases. Industry contacts told IFW that carriers had avoided re-introducing tonnage to the trade because they do not want there to be spare capacity while annual contracts are being negotiated at the end of April and because they want to implement rate hikes of between US$800 and $1,000 per 40ft container in May.
The tight capacity has created an auction for space, with carriers prepared to roll containers – cancel the booking on one ship for a ship leaving later – in favour of higher-paying cargo.
One contact said space from north China, particularly Tianjin, Qingdao and Dalian, was extremely tight, with most vessels heading to Vancouver, Tacoma and Seattle running full. Space from south China was slightly easier to come by.
GAC regional logistics manager Peter Orange said: “The carriers are pushing for general rate increases (GRIs) – whether they get the full amount depends on how the contract negotiations go. Contracts are very important to us, not just in terms of space, but also in terms of access to capacity – particularly out of China.” Read more here.
Canada’s Trade Surplus Grows in February
(Reuters – David Ljunggren)
Canada posted a larger-than-expected trade surplus of C$1.4 billion ($1.4 billion) in February on increased exports of industrial goods and materials, Statistics Canada data indicated on Tuesday. Analysts had predicted Canada would run a surplus of C$0.60 billion in February.
Exports grew by 2.8% to C$34.02 billion on the back of a 7.2% leap in the value of industrial goods and materials. Prices and volumes both rose by 1.4%, the fifth such advance in the last six months.
Imports increased by 0.9% to C$32.62 billion, thanks largely to shipments of machinery and equipment (up 3.3%) and automotive products (up 3.5%). Imports of energy products dropped 14.2%.
Exports to the United States, which in February took 74% of all Canadian exports, increased by 2.0% while imports grew by 1.2%. Canada's trade surplus with the United States grew to C$4.40 billion from C$4.16 billion in January.
Read more here. Summary statistics and links to the data files are on the Statistics Canada website. Export and import price indexes can be found here.
Canada posted a larger-than-expected trade surplus of C$1.4 billion ($1.4 billion) in February on increased exports of industrial goods and materials, Statistics Canada data indicated on Tuesday. Analysts had predicted Canada would run a surplus of C$0.60 billion in February.
Exports grew by 2.8% to C$34.02 billion on the back of a 7.2% leap in the value of industrial goods and materials. Prices and volumes both rose by 1.4%, the fifth such advance in the last six months.
Imports increased by 0.9% to C$32.62 billion, thanks largely to shipments of machinery and equipment (up 3.3%) and automotive products (up 3.5%). Imports of energy products dropped 14.2%.
Exports to the United States, which in February took 74% of all Canadian exports, increased by 2.0% while imports grew by 1.2%. Canada's trade surplus with the United States grew to C$4.40 billion from C$4.16 billion in January.
Read more here. Summary statistics and links to the data files are on the Statistics Canada website. Export and import price indexes can be found here.
Imports Rose in February, Building Hope for Recovery
(Javier Hernandez — New York Times)
Trade data on Tuesday provided another piece of evidence that spending by consumers and businesses was picking up, bolstering hopes that the recovery was gaining momentum.
The Commerce Department’s monthly report on trade showed a 1.7 percent increase in imports. Exports barely rose, leading the trade deficit to increase 7.4 percent from January, to $39.7 billion, more than forecast.
The surge in imports, while reflecting a healthy pickup in spending, may be a drag on economic expansion in the short term. That is because the government subtracts imports when it calculates gross domestic product, the total value of goods and services in the economy. […]
Much of the growth in imports came from consumer goods, like televisions and pharmaceutical products, as the jobs market improved slightly and Americans began to spend more.
Businesses imported goods to restock inventories and replace aging equipment. Industrial supplies and capital goods, like machinery and tools, bolstered much of the growth. Read more here.
Trade data on Tuesday provided another piece of evidence that spending by consumers and businesses was picking up, bolstering hopes that the recovery was gaining momentum.
The Commerce Department’s monthly report on trade showed a 1.7 percent increase in imports. Exports barely rose, leading the trade deficit to increase 7.4 percent from January, to $39.7 billion, more than forecast.
The surge in imports, while reflecting a healthy pickup in spending, may be a drag on economic expansion in the short term. That is because the government subtracts imports when it calculates gross domestic product, the total value of goods and services in the economy. […]
Much of the growth in imports came from consumer goods, like televisions and pharmaceutical products, as the jobs market improved slightly and Americans began to spend more.
Businesses imported goods to restock inventories and replace aging equipment. Industrial supplies and capital goods, like machinery and tools, bolstered much of the growth. Read more here.
Monday, April 12, 2010
Delays in the Processing of CFIA Import Requests
(CFIA)
Delays in the processing of shipments at the National Import Service Centre have been reported since the closure of the Western Import Service Centre, on April 1st 2010. CFIA is making every effort to resolve these issues and has progressively decreased the processing delays over the last few days. We anticipate that processing times will continue to improve until which point CFIA is in a position to resume delivering our normal service standard (45 minutes for EDI and 2 hours for paper transactions). In an effort to decrease congestion at the NISC, and assist CFIA in improving turnaround time, we would kindly ask that Importers/Brokers please avoid faxing duplicate import release requests to the NISC.
We would like to remind you that the pre-approval (PARS) is available for all regulated commodities, other than meat, for up to 30 days. We encourage Importers/Brokers to take advantage of the pre-approval process to avoid delays at the time of import. For more information follow this link.
We will continue to manage the situation and make all necessary adjustments to ensure that CFIA continues to meet our service standards. We thank you for your usual cooperation.
Delays in the processing of shipments at the National Import Service Centre have been reported since the closure of the Western Import Service Centre, on April 1st 2010. CFIA is making every effort to resolve these issues and has progressively decreased the processing delays over the last few days. We anticipate that processing times will continue to improve until which point CFIA is in a position to resume delivering our normal service standard (45 minutes for EDI and 2 hours for paper transactions). In an effort to decrease congestion at the NISC, and assist CFIA in improving turnaround time, we would kindly ask that Importers/Brokers please avoid faxing duplicate import release requests to the NISC.
We would like to remind you that the pre-approval (PARS) is available for all regulated commodities, other than meat, for up to 30 days. We encourage Importers/Brokers to take advantage of the pre-approval process to avoid delays at the time of import. For more information follow this link.
We will continue to manage the situation and make all necessary adjustments to ensure that CFIA continues to meet our service standards. We thank you for your usual cooperation.
Brokers Seek Exporter Imbalance Solution
(Journal of Commerce Online)
Trade group says members may be able to manage containers into better position
Freight brokers are studying whether they can help correct a steep imbalance in transportation equipment availability that is hurting efforts of U.S. exporters to get goods to overseas markets.
The Transportation Intermediaries Association asked executives at the group’s annual meeting last week in Tucson, Ariz., to look at whether its broker members can coordinate their transport management and information on shipments to help get ocean containers in better position for shippers at U.S. inland points to use them.
American exporters, particularly agriculture shippers, are showing growing frustration this year with the lack of the containers they need to get goods to gateways. Containership operators say they want to serve the U.S. export market. But rates for the shipments and pricing for imports remain too low, they say, and won’t support the cost of getting containers to export markets that are often far from inbound destination points. Read more here.
Trade group says members may be able to manage containers into better position
Freight brokers are studying whether they can help correct a steep imbalance in transportation equipment availability that is hurting efforts of U.S. exporters to get goods to overseas markets.
The Transportation Intermediaries Association asked executives at the group’s annual meeting last week in Tucson, Ariz., to look at whether its broker members can coordinate their transport management and information on shipments to help get ocean containers in better position for shippers at U.S. inland points to use them.
American exporters, particularly agriculture shippers, are showing growing frustration this year with the lack of the containers they need to get goods to gateways. Containership operators say they want to serve the U.S. export market. But rates for the shipments and pricing for imports remain too low, they say, and won’t support the cost of getting containers to export markets that are often far from inbound destination points. Read more here.
Turning a Corner on Trade?
(Forbes – Brian Wingfield)
When it comes to trade policy, April has been anything but the cruelest month for the United States. The question, however, is whether this good fortune will remain.
Friday, press reports out of Beijing indicated that the Chinese government will soon allow the country’s currency to appreciate, a long-standing wish for American manufacturers who feel that they’re being undercut by cheap imports from Asia. But if the renminbi appreciates only slightly against the dollar, U.S. producers won’t have much to cheer about.
Earlier this week, U.S. trade negotiators said they were close to reaching an agreement with Brazil to resolve an eight-year dispute over U.S. cotton subsidies. If a deal is reached, major U.S. industries including autos, pharmaceuticals and wheat producers may escape some $820 million in retaliatory measures from Brazil. The deadline for a settlement is less than two weeks away.
And last month, a World Trade Organization panel reportedly determined that the European Union provided Airbus with subsidies that run afoul of international trade rules. Problem is, both Airbus and its chief U.S. rival, Boeing, have claimed victory. (Airbus says the trade organization rejected 70% of U.S. claims.) A final report isn’t expected until June. Read more here.
When it comes to trade policy, April has been anything but the cruelest month for the United States. The question, however, is whether this good fortune will remain.
Friday, press reports out of Beijing indicated that the Chinese government will soon allow the country’s currency to appreciate, a long-standing wish for American manufacturers who feel that they’re being undercut by cheap imports from Asia. But if the renminbi appreciates only slightly against the dollar, U.S. producers won’t have much to cheer about.
Earlier this week, U.S. trade negotiators said they were close to reaching an agreement with Brazil to resolve an eight-year dispute over U.S. cotton subsidies. If a deal is reached, major U.S. industries including autos, pharmaceuticals and wheat producers may escape some $820 million in retaliatory measures from Brazil. The deadline for a settlement is less than two weeks away.
And last month, a World Trade Organization panel reportedly determined that the European Union provided Airbus with subsidies that run afoul of international trade rules. Problem is, both Airbus and its chief U.S. rival, Boeing, have claimed victory. (Airbus says the trade organization rejected 70% of U.S. claims.) A final report isn’t expected until June. Read more here.
Taxes on Canada Lumber Exports to U.S. to Drop
(Reuters – Allan Dowd)
Lumber prices have recovered enough to allow Canadian forestry firms to begin paying a lower export tax on softwood shipments to the United States starting in May, British Columbia officials said on Friday. Data released on Friday showed the North American lumber price over the past four weeks has averaged $325 per thousand board feet, high enough to reduce the tax rate paid by Western Canadian sawmills to 10% from 15%.
It marks the first time that lumber prices have been high enough to allow for a tax rate reduction since the taxes were imposed under the 2006 U.S.-Canada Softwood Lumber Agreement, British Columbia Forests Minister Pat Bell said. Major lumber producers in British Columbia and Alberta include West Fraser Timber, Canfor, Tolko Industries, and International Forest Products.
Eastern-headquartered producers include Tembec and Domtar, which recently announced it was selling its mills to newcomer Eacom Timber Corp. Sawmills in Central Canada, whose exports are subject to a combination of export taxes and shipment quotas, will see the tax rate drop to 3% from 5% and quota restrictions ease slightly. Read more here.
Lumber prices have recovered enough to allow Canadian forestry firms to begin paying a lower export tax on softwood shipments to the United States starting in May, British Columbia officials said on Friday. Data released on Friday showed the North American lumber price over the past four weeks has averaged $325 per thousand board feet, high enough to reduce the tax rate paid by Western Canadian sawmills to 10% from 15%.
It marks the first time that lumber prices have been high enough to allow for a tax rate reduction since the taxes were imposed under the 2006 U.S.-Canada Softwood Lumber Agreement, British Columbia Forests Minister Pat Bell said. Major lumber producers in British Columbia and Alberta include West Fraser Timber, Canfor, Tolko Industries, and International Forest Products.
Eastern-headquartered producers include Tembec and Domtar, which recently announced it was selling its mills to newcomer Eacom Timber Corp. Sawmills in Central Canada, whose exports are subject to a combination of export taxes and shipment quotas, will see the tax rate drop to 3% from 5% and quota restrictions ease slightly. Read more here.
DFAIT Begins Consultations on Mass Market Exemption to Encryption Controls
(Lexology – Alan Kenigsberg and John O’Connor, Stikeman Elliott LLP)
Canada’s Export Control List contains a list of a wide range of items that may have been created for general commercial use but that may also have a military application (the “Dual-Use List”). Exports of these items to countries other than the United States generally require an export permit. Category 5, Part 2 of the Dual-Use List is of particular importance for many companies as it captures many forms of encryption software, including hardware which uses encryption software and, in some cases, may even apply to the transfer or sharing of information. Due to the potentially broad application of Category 5, Part 2, many innocuous items created for general commercial use, but that may have a relatively small encryption element (such as cell phones, radios, cable modems, etc.), may require an export permit.
Read the complete article here.
Canada’s Export Control List contains a list of a wide range of items that may have been created for general commercial use but that may also have a military application (the “Dual-Use List”). Exports of these items to countries other than the United States generally require an export permit. Category 5, Part 2 of the Dual-Use List is of particular importance for many companies as it captures many forms of encryption software, including hardware which uses encryption software and, in some cases, may even apply to the transfer or sharing of information. Due to the potentially broad application of Category 5, Part 2, many innocuous items created for general commercial use, but that may have a relatively small encryption element (such as cell phones, radios, cable modems, etc.), may require an export permit.
Read the complete article here.
Port of Vancouver Breaks New Ground
(The National Post – Barrie Critchley)
By the middle of next week, another infrastructure-related government-linked entity will have priced an initial offering of debt securities. But this transaction is different: It will mark the first time that debt has been raised against a group of port assets.
Port Metro Vancouver, the marketing name for the country’s largest and busiest port – it handles about $75-billion in goods with more than 160 trading economies each year – is seeking to raise a maximum of $100-million by selling 10-year debt. Road shows get underway next week in Eastern Canada for the offering of unsecured debentures. The issuer, which will use the proceeds repay to bank debt, has been rated AA by Standard & Poor’s.
Port Metro Vancouver is responsible for the operation and development of the assets and jurisdictions of the combined former Fraser River Port Authority, North Fraser Port Authority and Vancouver Port Authority. It now operates as The Vancouver Fraser Port Authority, which is a non-shareholder, financially self-sufficient corporation, established by the federal government in January 2008. Read more here.
By the middle of next week, another infrastructure-related government-linked entity will have priced an initial offering of debt securities. But this transaction is different: It will mark the first time that debt has been raised against a group of port assets.
Port Metro Vancouver, the marketing name for the country’s largest and busiest port – it handles about $75-billion in goods with more than 160 trading economies each year – is seeking to raise a maximum of $100-million by selling 10-year debt. Road shows get underway next week in Eastern Canada for the offering of unsecured debentures. The issuer, which will use the proceeds repay to bank debt, has been rated AA by Standard & Poor’s.
Port Metro Vancouver is responsible for the operation and development of the assets and jurisdictions of the combined former Fraser River Port Authority, North Fraser Port Authority and Vancouver Port Authority. It now operates as The Vancouver Fraser Port Authority, which is a non-shareholder, financially self-sufficient corporation, established by the federal government in January 2008. Read more here.
Customs Agency Loses Some of Its Clout
(Toby Gooley — DC Velocity)
As an independent agency, Customs enjoyed power and influence. Once it was folded into DHS, that all changed.
U.S. Customs and Border Protection (CBP) ain’t what it used to be—and that ain’t good, says Peter A. Friedmann, Washington counsel for the Coalition of New England Companies for Trade (CONECT).
Before it was folded into the Department of Homeland Security (DHS) in 2003, CBP was a “proud, independent” agency, Friedmann said in a March speech at CONECT’s annual Northeast Trade & Transportation Conference in Newport, R.I. Even though Customs was under the aegis of the Treasury Department, the commissioner was influential and made policy, he said.
Under DHS, however, that has changed. “The commissioner is an assistant secretary who spends one-third of his time reporting to a boss who has his own policy office,” Friedmann said. In many areas, Customs is not allowed to make decisions on its own, and it’s unclear who has executive oversight of some programs, he added. Read more here.
As an independent agency, Customs enjoyed power and influence. Once it was folded into DHS, that all changed.
U.S. Customs and Border Protection (CBP) ain’t what it used to be—and that ain’t good, says Peter A. Friedmann, Washington counsel for the Coalition of New England Companies for Trade (CONECT).
Before it was folded into the Department of Homeland Security (DHS) in 2003, CBP was a “proud, independent” agency, Friedmann said in a March speech at CONECT’s annual Northeast Trade & Transportation Conference in Newport, R.I. Even though Customs was under the aegis of the Treasury Department, the commissioner was influential and made policy, he said.
Under DHS, however, that has changed. “The commissioner is an assistant secretary who spends one-third of his time reporting to a boss who has his own policy office,” Friedmann said. In many areas, Customs is not allowed to make decisions on its own, and it’s unclear who has executive oversight of some programs, he added. Read more here.
China Says Trade Data Justify Its Yuan Policy
(Wall Street Journal)
China ran its first monthly trade deficit in six years in March, data issued Saturday show, a development that, while likely temporary, was quickly seized on by the nation’s commerce ministry to argue against the need to revalue the country’s currency.
With imports of commodities surging last month, China swung to a trade deficit of $7.24 billion in March from a surplus of $7.61 billion in February, according to figures issued by China’s Customs agency. Overall, imports were up 66% from a year earlier in March, with purchases of crude oil and copper at near-record levels in volume terms. The import bill was further boosted by rising commodity prices.
Chinese officials had said weeks ago that March could well show a rare trade deficit, a development they highlighted to show how China’s strong growth has been boosting its purchases from other countries. China’s trade surpluses have been shrinking as the government’s stimulus plan boosted purchases from abroad. The cumulative trade surplus for the first quarter of 2010 was down 77% from a year earlier, to $14.49 billion. Read more here.
Related: Yuan rise still on cards despite rare trade deficit (Reuters)
China ran its first monthly trade deficit in six years in March, data issued Saturday show, a development that, while likely temporary, was quickly seized on by the nation’s commerce ministry to argue against the need to revalue the country’s currency.
With imports of commodities surging last month, China swung to a trade deficit of $7.24 billion in March from a surplus of $7.61 billion in February, according to figures issued by China’s Customs agency. Overall, imports were up 66% from a year earlier in March, with purchases of crude oil and copper at near-record levels in volume terms. The import bill was further boosted by rising commodity prices.
Chinese officials had said weeks ago that March could well show a rare trade deficit, a development they highlighted to show how China’s strong growth has been boosting its purchases from other countries. China’s trade surpluses have been shrinking as the government’s stimulus plan boosted purchases from abroad. The cumulative trade surplus for the first quarter of 2010 was down 77% from a year earlier, to $14.49 billion. Read more here.
Related: Yuan rise still on cards despite rare trade deficit (Reuters)
China Slaps Duties on U.S., Russian Silicon Steel
(Reuters)
China has imposed countervailing duties on grain-oriented electrical steel produced in the United States, as well as anti-dumping duties against Russian and U.S. steel, its customs administration said.
U.S. producers will be assessed for anti-dumping duties of up to 64.8 percent, and anti-subsidy duties of up to 44.6 percent, it said on its website on Monday.
The state-backed China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters hailed the Ministry of Commerce’s April 10 ruling, which the Ministry has not yet publicly announced, state news agency Xinhua said.
“During the investigation the Ministry found that U.S. producers had received subsidies by the U.S. government, and their unfair competition hurt Chinese producers,” Xinhua said, quoting an unnamed person at the chamber of commerce.
On Friday, the U.S. announced a final decision to impose stiff duties on Chinese-made oil country tubular goods, which are steel pipe used in the oil industry. Read more here.
China has imposed countervailing duties on grain-oriented electrical steel produced in the United States, as well as anti-dumping duties against Russian and U.S. steel, its customs administration said.
U.S. producers will be assessed for anti-dumping duties of up to 64.8 percent, and anti-subsidy duties of up to 44.6 percent, it said on its website on Monday.
The state-backed China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters hailed the Ministry of Commerce’s April 10 ruling, which the Ministry has not yet publicly announced, state news agency Xinhua said.
“During the investigation the Ministry found that U.S. producers had received subsidies by the U.S. government, and their unfair competition hurt Chinese producers,” Xinhua said, quoting an unnamed person at the chamber of commerce.
On Friday, the U.S. announced a final decision to impose stiff duties on Chinese-made oil country tubular goods, which are steel pipe used in the oil industry. Read more here.
Canada Misses its Chance to Join Major Pacific Free-Trade Deal
(John Ibbitson — Globe & Mail)
Ottawa refused to join the pact in 2006, now told it’s too late
Canada has been shut out of a potentially historic Pacific free trade agreement involving the United States and seven other countries.
When asked in 2006 to join the Trans-Pacific Partnership negotiations that only recently got under way in Australia, the Harper government refused, largely to protect the Quebec and Ontario dairy industry from foreign competition. When Canada changed its mind earlier this year and asked to join, we were told it was too late, according to several sources.
As a result, this country could miss out on being part of a new free trade zone that would encompass 470 million people with a combined GDP of more than $16-trillion.
“It is foolish to hamstring our participation in these negotiations” just to protect the dairy industry, said Jayson Myers, president of the Canadian Manufacturers and Exporters association. Read more here.
Ottawa refused to join the pact in 2006, now told it’s too late
Canada has been shut out of a potentially historic Pacific free trade agreement involving the United States and seven other countries.
When asked in 2006 to join the Trans-Pacific Partnership negotiations that only recently got under way in Australia, the Harper government refused, largely to protect the Quebec and Ontario dairy industry from foreign competition. When Canada changed its mind earlier this year and asked to join, we were told it was too late, according to several sources.
As a result, this country could miss out on being part of a new free trade zone that would encompass 470 million people with a combined GDP of more than $16-trillion.
“It is foolish to hamstring our participation in these negotiations” just to protect the dairy industry, said Jayson Myers, president of the Canadian Manufacturers and Exporters association. Read more here.
Saturday, April 10, 2010
News from GHY International
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending April 9, 2010 is now available on our website here
Friday, April 9, 2010
Modest Job Gains Soften Rate Hike Expectations
(Reuters – Louise Egan)
Fewer Canadians returned to work in March than expected but the three-month hiring trend was the strongest since the financial crisis intensified in the autumn of 2008, suggesting the recovery is entrenched.
In the first disappointing employment report since December, the economy added 17,900 net jobs in March, following gains of 20,900 in February and 43,000 in January, according to Statistics Canada on Friday. Analysts surveyed by Reuters had forecast a gain of 25,000 positions.
The modest employment gains takes some pressure off the Bank of Canada to raise interest rates and brought markets back to earth after speculation of a hike as early as June. The Canadian dollar fell as low as C$1.0084, or 99.17 U.S. cents after the report, before partially retracing its steps. It was near parity with the U.S. dollar just before the data.
Read more here. Summary statistics and links to the data files are on the Statistics Canada website.
Fewer Canadians returned to work in March than expected but the three-month hiring trend was the strongest since the financial crisis intensified in the autumn of 2008, suggesting the recovery is entrenched.
In the first disappointing employment report since December, the economy added 17,900 net jobs in March, following gains of 20,900 in February and 43,000 in January, according to Statistics Canada on Friday. Analysts surveyed by Reuters had forecast a gain of 25,000 positions.
The modest employment gains takes some pressure off the Bank of Canada to raise interest rates and brought markets back to earth after speculation of a hike as early as June. The Canadian dollar fell as low as C$1.0084, or 99.17 U.S. cents after the report, before partially retracing its steps. It was near parity with the U.S. dollar just before the data.
Read more here. Summary statistics and links to the data files are on the Statistics Canada website.
U.S. Chemical Regulation – Update of State Initiatives
(Mondaq – Heather Demirjian and Margaret A. Hill, Blank Rome LLP)
Against the backdrop of efforts by Congress to reform the Toxic Substances Control Act of 1976 ("TSCA"), 15 U.S.C. § 2601 et seq., states like California, Washington and Maine have moved forward with the adoption of "Green Chemistry" laws. The laws will have wide-ranging impacts by restricting the presence of hazardous chemicals in consumer products and establishing mandatory priority chemical notification requirements.
These state "Green Chemistry" laws contain provisions that are very similar to the European Union's chemical regulation governing the "Registration, Evaluation, Authorization and Restriction of Chemical Substances" ("REACH"), which requires the pre-registration of all chemical products and substances that will be sold, used, and distributed in the markets in the European Union. Importantly, these state initiatives are merely the first in a wave of chemical reforms that will forever change chemical regulation at the state, federal and international levels. Read more here.
Against the backdrop of efforts by Congress to reform the Toxic Substances Control Act of 1976 ("TSCA"), 15 U.S.C. § 2601 et seq., states like California, Washington and Maine have moved forward with the adoption of "Green Chemistry" laws. The laws will have wide-ranging impacts by restricting the presence of hazardous chemicals in consumer products and establishing mandatory priority chemical notification requirements.
These state "Green Chemistry" laws contain provisions that are very similar to the European Union's chemical regulation governing the "Registration, Evaluation, Authorization and Restriction of Chemical Substances" ("REACH"), which requires the pre-registration of all chemical products and substances that will be sold, used, and distributed in the markets in the European Union. Importantly, these state initiatives are merely the first in a wave of chemical reforms that will forever change chemical regulation at the state, federal and international levels. Read more here.
Supply Chain Cash Flow Improves to Best Levels in 18 Months [U.S.]
(Industry Week)
New study found rate of payments speed up, delinquencies decline
Measuring payment activities of approximately 350,000 businesses, the March 2010 SCI dropped to 7.65 days beyond terms (DBT), its lowest level – and best reading – since August 2008. The Supply Chain Index (SCI) is a monthly index of accounts receivable activities covering manufacturers, distributors & wholesalers, retailers, services and transportation companies. It is created by Cortera, a community-driven business credit bureau. Read more here.
New study found rate of payments speed up, delinquencies decline
Measuring payment activities of approximately 350,000 businesses, the March 2010 SCI dropped to 7.65 days beyond terms (DBT), its lowest level – and best reading – since August 2008. The Supply Chain Index (SCI) is a monthly index of accounts receivable activities covering manufacturers, distributors & wholesalers, retailers, services and transportation companies. It is created by Cortera, a community-driven business credit bureau. Read more here.
Canada, U.S. Need Unified Border Security Strategy: Fraser Institute
(Montreal Gazette – Eric Lam, Financial Post)
While relations between Canada and the United States have been strained in recent years, it is in the best interests of both countries to set aside their differences and come up with a unified strategy on border security, the Fraser Institute said Thursday. Alexander Moens, a researcher with the Fraser Institute, warned in a report that a variety of factors including protectionism, border security concerns, and environmental issues have all restricted trade growth between the two countries since 9/11.
"Gaining unimpeded access to the U.S. market for Canadian exports and imports remains Canada's top economic interest," Mr. Moens said in the report. "A security deal between the two countries would make Americans more receptive to increased trade, investment, and tourism in Canada."
On Tuesday, Statistics Canada reported that for the first time, countries other than the United States accounted for a quarter of Canada's exports in 2009. Trade with the United States (exports and imports) accounted for only 63% of Canada's totals last year, compared with 71.1% in 2005. By contrast, exports to China have grown 55% in the past five years.
Read more here and/or the Fraser Institute press release (with links to the report itself) here.
While relations between Canada and the United States have been strained in recent years, it is in the best interests of both countries to set aside their differences and come up with a unified strategy on border security, the Fraser Institute said Thursday. Alexander Moens, a researcher with the Fraser Institute, warned in a report that a variety of factors including protectionism, border security concerns, and environmental issues have all restricted trade growth between the two countries since 9/11.
"Gaining unimpeded access to the U.S. market for Canadian exports and imports remains Canada's top economic interest," Mr. Moens said in the report. "A security deal between the two countries would make Americans more receptive to increased trade, investment, and tourism in Canada."
On Tuesday, Statistics Canada reported that for the first time, countries other than the United States accounted for a quarter of Canada's exports in 2009. Trade with the United States (exports and imports) accounted for only 63% of Canada's totals last year, compared with 71.1% in 2005. By contrast, exports to China have grown 55% in the past five years.
Read more here and/or the Fraser Institute press release (with links to the report itself) here.
Global Economy to Grow 3%
(Journal of Commerce Online – Joseph Bonney)
Emerging countries doing best, Eurozone slowest, says trade insurer
The global economy is expected to grow 3% this year, with emerging nations expanding more rapidly than the United States and Europe, the Paris-based trade credit insurer Coface said in a report.
“Emerging countries have nearly recovered their pre-crisis growth level, the United States shows a respectable but risky recovery and the ending of the crisis is very painstaking in Europe,” said Francois David, president of Coface.
Coface said three industrialized countries – Canada, Australia and New Zealand – have returned to their pre-crisis rank of A1, the highest level in Coface’s rankings, and that the United States’ A2 rating has been placed under “positive watch.” Read more here.
Emerging countries doing best, Eurozone slowest, says trade insurer
The global economy is expected to grow 3% this year, with emerging nations expanding more rapidly than the United States and Europe, the Paris-based trade credit insurer Coface said in a report.
“Emerging countries have nearly recovered their pre-crisis growth level, the United States shows a respectable but risky recovery and the ending of the crisis is very painstaking in Europe,” said Francois David, president of Coface.
Coface said three industrialized countries – Canada, Australia and New Zealand – have returned to their pre-crisis rank of A1, the highest level in Coface’s rankings, and that the United States’ A2 rating has been placed under “positive watch.” Read more here.
New Pork Labelling Scheme [UK]
(Lexology – Jane Hanney, Blake Lapthorn)
A new voluntary Code of Practice for the labelling of pork and pork products was introduced at the end of February.
This was developed by the Pig Meat Supply Chain Task Force which represents a broad range of stakeholders, including retailers, food service companies, consumers, processors, industry organisations, government and its agencies. It is intended to provide consumers with clear and unambiguous labelling regarding country of origin, pig production terms and the use of breed names.
While there are specific legal requirements for foods such as beef, veal, fish and shellfish to be labelled with information on country of origin, there is no such legislation covering pork and pork products. These foods have to comply with the Food Labelling Regulations which require that the place of origin or provenance need only be labelled if failure to do so might mislead a purchaser. This has led to a lack of clarity and ambiguities where imported pork processed in the UK is labelled as ‘Produced in the UK’ without additional details on country of origin being required. The new Code is designed to address these issues. Read more here.
A new voluntary Code of Practice for the labelling of pork and pork products was introduced at the end of February.
This was developed by the Pig Meat Supply Chain Task Force which represents a broad range of stakeholders, including retailers, food service companies, consumers, processors, industry organisations, government and its agencies. It is intended to provide consumers with clear and unambiguous labelling regarding country of origin, pig production terms and the use of breed names.
While there are specific legal requirements for foods such as beef, veal, fish and shellfish to be labelled with information on country of origin, there is no such legislation covering pork and pork products. These foods have to comply with the Food Labelling Regulations which require that the place of origin or provenance need only be labelled if failure to do so might mislead a purchaser. This has led to a lack of clarity and ambiguities where imported pork processed in the UK is labelled as ‘Produced in the UK’ without additional details on country of origin being required. The new Code is designed to address these issues. Read more here.
Obama and Free Trade: Q&A With Jagdish Bhagwati
(ReasonTV)
Free trade is never more necessary - or vulnerable - than in times of economic distress. The current global downturn is no exception. Protectionist barriers have shot up all over the world, including the United States.
Last year, Congress killed a pilot program allowing Mexican trucks to transport goods across America and included Buy America provisions in the stimulus bill banning foreign steel and iron from infrastructure projects funded by the legislation.
More disturbingly, President Barack Obama, after chiding Congress for flirting with protectionism, initiated his own ill-advised affair by imposing a 35 percent tariff on cheap Chinese tires.
If the world manages to avoid an all-out trade war of the kind that helped trigger the Great Depression after the U.S. imposed the Smoot-Hawley tariffs in 1930, it will be in no small part due to the efforts of one man: Jagdish N. Bhagwati, an ebullient and irreverent 76-year-old professor of economics at Columbia University.
Bhagwati has done more than perhaps any other person alive to advance the cause of unfettered global trade. A native of India, Bhagwati immigrated to the United States in the late 60s after a brief stint on the Indian Planning Commission, where he learned first-hand the insanity of an economic approach that tried to modernize a country by cutting it off from world trade.
Since then, he has devoted his efforts, both in academia and in the popular press, to showing that there is no better way of improving the lot of both advanced countries and the developing world than through free trade. His path-breaking contributions to trade theory have put him on the short list for a Nobel Prize in economics.
Though a dogged trade advocate, Bhagwati is anything but dogmatic. He is a free spirit who draws intellectual inspiration from many disparate ideological camps. A self-avowed liberal, he is also something of a Gandhian social progressive, though Gandhi himself supported economic autarky. Bhagwati works with numerous Third World NGOs on a host of human rights issues. Yet he has no problem taking on these groups — or his famous student, Nobel laureate Paul Krugman — when they question the benefits of trade.
In fact, he devoted his 2004 magnum opus, In Defense of Globalization, to a point-by-point rebuttal of these critics. Although he doesnt vote Republican because he dislikes the party's nationalistic jingoism, he readily declares that Democrats pose a far bigger threat to international exchange than Republicans.
Free trade is never more necessary - or vulnerable - than in times of economic distress. The current global downturn is no exception. Protectionist barriers have shot up all over the world, including the United States.
Last year, Congress killed a pilot program allowing Mexican trucks to transport goods across America and included Buy America provisions in the stimulus bill banning foreign steel and iron from infrastructure projects funded by the legislation.
More disturbingly, President Barack Obama, after chiding Congress for flirting with protectionism, initiated his own ill-advised affair by imposing a 35 percent tariff on cheap Chinese tires.
If the world manages to avoid an all-out trade war of the kind that helped trigger the Great Depression after the U.S. imposed the Smoot-Hawley tariffs in 1930, it will be in no small part due to the efforts of one man: Jagdish N. Bhagwati, an ebullient and irreverent 76-year-old professor of economics at Columbia University.
Bhagwati has done more than perhaps any other person alive to advance the cause of unfettered global trade. A native of India, Bhagwati immigrated to the United States in the late 60s after a brief stint on the Indian Planning Commission, where he learned first-hand the insanity of an economic approach that tried to modernize a country by cutting it off from world trade.
Since then, he has devoted his efforts, both in academia and in the popular press, to showing that there is no better way of improving the lot of both advanced countries and the developing world than through free trade. His path-breaking contributions to trade theory have put him on the short list for a Nobel Prize in economics.
Though a dogged trade advocate, Bhagwati is anything but dogmatic. He is a free spirit who draws intellectual inspiration from many disparate ideological camps. A self-avowed liberal, he is also something of a Gandhian social progressive, though Gandhi himself supported economic autarky. Bhagwati works with numerous Third World NGOs on a host of human rights issues. Yet he has no problem taking on these groups — or his famous student, Nobel laureate Paul Krugman — when they question the benefits of trade.
In fact, he devoted his 2004 magnum opus, In Defense of Globalization, to a point-by-point rebuttal of these critics. Although he doesnt vote Republican because he dislikes the party's nationalistic jingoism, he readily declares that Democrats pose a far bigger threat to international exchange than Republicans.
Strong Dollar Provides Ego Boost, but Comes with Challenges
(Barbara Yaffe — Vancouver Sun)
Oversized coin needs to be dealt with through increased productivity and international investment, Conference Board of Canada says
Canadians had better develop a game plan for a more muscular Canadian dollar that is going to be around “for a long time to come.”
That was the message Thursday from the Conference Board of Canada which issued a special briefing paper on the challenges posed by a Canadian dollar that this week began running neck and neck with the American greenback.
A stronger dollar clearly is a mixed blessing. […]
The Conference Board argued that Canada must deploy two specific interrelated strategies in response to the rising Canadian dollar.
Businesses must:
- Boost productivity through investment in equipment and machinery, skills upgrading and trade enhancement.
- Increasingly become international players -- inserting themselves into global supply chains through investment or the sharing of resources.
Read more here.
Oversized coin needs to be dealt with through increased productivity and international investment, Conference Board of Canada says
Canadians had better develop a game plan for a more muscular Canadian dollar that is going to be around “for a long time to come.”
That was the message Thursday from the Conference Board of Canada which issued a special briefing paper on the challenges posed by a Canadian dollar that this week began running neck and neck with the American greenback.
A stronger dollar clearly is a mixed blessing. […]
The Conference Board argued that Canada must deploy two specific interrelated strategies in response to the rising Canadian dollar.
Businesses must:
- Boost productivity through investment in equipment and machinery, skills upgrading and trade enhancement.
- Increasingly become international players -- inserting themselves into global supply chains through investment or the sharing of resources.
Read more here.
Thursday, April 8, 2010
Canadians Taking Advantage of Level Loonie
(Video: WIVB TV-Buffalo • Story: Montreal Gazette)
After nearly two years of being abused by the economy, can the Canadian consumer learn to love again?
With the dollar flirting with parity, and e-commerce making discounts more accessible, analysts say the answer is a resounding “yes.”
The real question is whether shoppers will commit to retailers at home or seek a cheap fling with their U.S neighbours.
“Given the combination of the currency returning to par, and the fact that Canadian consumer confidence has bounced back miraculously in the last year, I think we’ll see a real upswing in cross-border shopping,” says Douglas Porter, deputy chief economist with BMO Capital Markets.
“We’re already starting to see some response, both in the three-hour long lineups at the border this past weekend and in companies beginning to cut prices.” Read more here.
After nearly two years of being abused by the economy, can the Canadian consumer learn to love again?
With the dollar flirting with parity, and e-commerce making discounts more accessible, analysts say the answer is a resounding “yes.”
The real question is whether shoppers will commit to retailers at home or seek a cheap fling with their U.S neighbours.
“Given the combination of the currency returning to par, and the fact that Canadian consumer confidence has bounced back miraculously in the last year, I think we’ll see a real upswing in cross-border shopping,” says Douglas Porter, deputy chief economist with BMO Capital Markets.
“We’re already starting to see some response, both in the three-hour long lineups at the border this past weekend and in companies beginning to cut prices.” Read more here.
Despite Path, Customs Head Eyes Long Tenure
(Mike Levine — Fox News)
The key administration officials recently installed by recess appointment can serve in their new jobs through the end of next year, but at least one of them says he plans to keep his job for much longer than that.
Alan Bersin, who last year became the Obama administration’s point man on border security issues, is now the commissioner of U.S. Customs and Border Protection, part of the Department of Homeland Security.
“I look forward to a good and candid and fruitful series of exchanges over the next number of years,” Bersin told a group of reporters on Wednesday, in his first face-to-face with the press since becoming commissioner.
Asked by Fox News whether that means he’s planning to be CBP commissioner beyond what the recess appointment allows, Bersin said: “Absolutely.”
Such a move would require Senate confirmation, but Bersin said he hopes to prove himself to skeptical members of Congress in the months ahead. Read more here.
The key administration officials recently installed by recess appointment can serve in their new jobs through the end of next year, but at least one of them says he plans to keep his job for much longer than that.
Alan Bersin, who last year became the Obama administration’s point man on border security issues, is now the commissioner of U.S. Customs and Border Protection, part of the Department of Homeland Security.
“I look forward to a good and candid and fruitful series of exchanges over the next number of years,” Bersin told a group of reporters on Wednesday, in his first face-to-face with the press since becoming commissioner.
Asked by Fox News whether that means he’s planning to be CBP commissioner beyond what the recess appointment allows, Bersin said: “Absolutely.”
Such a move would require Senate confirmation, but Bersin said he hopes to prove himself to skeptical members of Congress in the months ahead. Read more here.
Get Serious About Freight Theft
(Lloyd’s List — Comment)
That somewhere around $5bn worth of cargo is stolen every year from the global supply chain is surprising in itself. It is perhaps even more surprising that this is not headline news; but beyond the dramatic stories of pirate attacks off the Horn of Africa, which are potent fuel to fire the imagination with, much freight theft is low-level and accumulative.
For the general public, freight theft is essentially a victim-less crime and consequently does not register – although the viciousness of some of the attacks on lorry drivers taking their mandatory breaks on roadside rest stops are the equal of many a Somali pirate. However, while piracy at sea is principally an issue for shipowners, ship operators, and naval security services, the tightening of supply chain security places far more responsibility onto cargo owners, who appear to approach the serious problems posed by freight crime with something of a cavalier attitude.
Certainly, given the multiple concerns of, say, a high street retailer or global automotive manufacturer struggling to get his company through the recession, it is understandable that supply chain security might find itself slipping down the pecking order. That does not, however, mean that it is acceptable. Read more here.
That somewhere around $5bn worth of cargo is stolen every year from the global supply chain is surprising in itself. It is perhaps even more surprising that this is not headline news; but beyond the dramatic stories of pirate attacks off the Horn of Africa, which are potent fuel to fire the imagination with, much freight theft is low-level and accumulative.
For the general public, freight theft is essentially a victim-less crime and consequently does not register – although the viciousness of some of the attacks on lorry drivers taking their mandatory breaks on roadside rest stops are the equal of many a Somali pirate. However, while piracy at sea is principally an issue for shipowners, ship operators, and naval security services, the tightening of supply chain security places far more responsibility onto cargo owners, who appear to approach the serious problems posed by freight crime with something of a cavalier attitude.
Certainly, given the multiple concerns of, say, a high street retailer or global automotive manufacturer struggling to get his company through the recession, it is understandable that supply chain security might find itself slipping down the pecking order. That does not, however, mean that it is acceptable. Read more here.
India’s Infrastructure Plans: Dreams or Reality?
(Export Development Canada – Peter G. Hall)
Explosive growth became the norm for India in the global economy’s boom years, and few pundits disagree that long run growth potential is better here than anywhere else. India’s prowess was tested in the global recession, but the subcontinent has rebounded handily. Its sights are now trained on longer term growth in an ambitious new 5-year plan. Will India achieve its high-growth objectives?
Worries escalated as India’s growth slowed substantially in late 2008, but they were short-lived. By the third quarter of 2009, growth was back to the 8% level. Growth slowed again in the dying months of 2009, but details show that strong underlying growth was hampered by temporary contractions in agricultural production and government spending. Why the resilience? India has below-average export exposure, and monetary policy was very responsive to the downturn. But the key reason is likely India’s pre-recession stimulus plan: its heavy ongoing investment in public infrastructure.
Policymakers in India are keenly aware that poor infrastructure is a key growth inhibitor, and as a result, attention has been paid to infrastructure spending in most of the more recent 5-year plans. The current plan earmarked US $500 billion for various projects, from telecommunications to energy and transportation systems. India has been increasingly looking for private sector participation, with the targeted private component moving from 25% in the 10th plan to 36% in the current plan. Read more here.
Explosive growth became the norm for India in the global economy’s boom years, and few pundits disagree that long run growth potential is better here than anywhere else. India’s prowess was tested in the global recession, but the subcontinent has rebounded handily. Its sights are now trained on longer term growth in an ambitious new 5-year plan. Will India achieve its high-growth objectives?
Worries escalated as India’s growth slowed substantially in late 2008, but they were short-lived. By the third quarter of 2009, growth was back to the 8% level. Growth slowed again in the dying months of 2009, but details show that strong underlying growth was hampered by temporary contractions in agricultural production and government spending. Why the resilience? India has below-average export exposure, and monetary policy was very responsive to the downturn. But the key reason is likely India’s pre-recession stimulus plan: its heavy ongoing investment in public infrastructure.
Policymakers in India are keenly aware that poor infrastructure is a key growth inhibitor, and as a result, attention has been paid to infrastructure spending in most of the more recent 5-year plans. The current plan earmarked US $500 billion for various projects, from telecommunications to energy and transportation systems. India has been increasingly looking for private sector participation, with the targeted private component moving from 25% in the 10th plan to 36% in the current plan. Read more here.
California Moves Toward Requiring Labels on All Fur-Bearing Garments
(World Trade Interactive)
The California State Assembly voted April 5 to require that all garments made with animal fur carry a label indicating the animal from which the fur was taken and the country of origin. If the measure (Assembly Bill 1656) is approved by the state Senate and signed by Gov. Arnold Schwarzenegger, California will join Delaware, New Jersey, New York, Massachusetts and Wisconsin on the list of states that have imposed such a requirement.
The federal Fur Products Labeling Act requires all garments made entirely or partly with fur to include a label disclosing various information, including the name of the animal from which the fur was taken and the country of origin if the product was imported. However, this requirement is waived if the cost of the fur trim used on a garment, or the selling price of a fur product, is $150 or less. This exemption does not apply if the product contains dog or cat fur. Furthermore, the Dog and Cat Protection Act of 2000 prohibits importing, exporting, selling, trading, advertising, transporting or distributing any products made with dog or cat fur.
The sponsors of the California bill noted that the $150 loophole in federal law disadvantages consumers that are allergic to fur or object to wearing it on ethical grounds.
The California State Assembly voted April 5 to require that all garments made with animal fur carry a label indicating the animal from which the fur was taken and the country of origin. If the measure (Assembly Bill 1656) is approved by the state Senate and signed by Gov. Arnold Schwarzenegger, California will join Delaware, New Jersey, New York, Massachusetts and Wisconsin on the list of states that have imposed such a requirement.
The federal Fur Products Labeling Act requires all garments made entirely or partly with fur to include a label disclosing various information, including the name of the animal from which the fur was taken and the country of origin if the product was imported. However, this requirement is waived if the cost of the fur trim used on a garment, or the selling price of a fur product, is $150 or less. This exemption does not apply if the product contains dog or cat fur. Furthermore, the Dog and Cat Protection Act of 2000 prohibits importing, exporting, selling, trading, advertising, transporting or distributing any products made with dog or cat fur.
The sponsors of the California bill noted that the $150 loophole in federal law disadvantages consumers that are allergic to fur or object to wearing it on ethical grounds.
TIACA Seeks Review of Hazmat Rule [Lithium Batteries]
(Journal of Commerce Online – Thomas L. Gallagher)
Air cargo group says restrictions on lithium batteries deviate from international standards
The International Air Cargo Association is calling for modifications to changes proposed by the U.S. government to the way lithium batteries are carried onboard aircraft, warning it will have a significant impact on not only the air cargo sector but also manufacturers, retailers and consumers of electronic products, medical devices, motor vehicles and many other products.
A new ruling by the Pipeline and Hazardous Materials Safety Administration proposes regulations that would require lithium batteries to be stowed in a crew-accessible location except if they are shipped in an FAA-approved container or a Class C cargo compartment. Read more here.
Air cargo group says restrictions on lithium batteries deviate from international standards
The International Air Cargo Association is calling for modifications to changes proposed by the U.S. government to the way lithium batteries are carried onboard aircraft, warning it will have a significant impact on not only the air cargo sector but also manufacturers, retailers and consumers of electronic products, medical devices, motor vehicles and many other products.
A new ruling by the Pipeline and Hazardous Materials Safety Administration proposes regulations that would require lithium batteries to be stowed in a crew-accessible location except if they are shipped in an FAA-approved container or a Class C cargo compartment. Read more here.
U.S. Needs More FDA Food Inspections – Govt Report
(FlexNews – Reuters)
Federal inspectors are conducting fewer reviews of food manufacturing plants, with many facilities going more than five years without being checked, a government investigator said Wednesday. The drop in inspections could make an outbreak of foodborne disease more likely, putting the public at risk, according to a report from the Department of Health and Human Services’ inspector general. A shrinking workforce at the U.S. Food and Drug Administration is responsible for much of the drop in the number of facilities inspected, including those deemed high risk by the agency, the report said.
An estimated 76 million people in the United States get sick every year with foodborne illness and 5,000 die, according to the U.S. Centers for Disease Control and Prevention. “This is unacceptable in our modern society and an important reminder that we must provide FDA with the needed tools,” said Senator Tom Harkin, chairman of the Senate Health, Education, Labor and Pensions Committee, which unanimously passed a food safety bill in November.
The measure awaits full approval from the Senate, which could take place soon after lawmakers return next week. A food safety bill passed in the House in July. Read more here.
Federal inspectors are conducting fewer reviews of food manufacturing plants, with many facilities going more than five years without being checked, a government investigator said Wednesday. The drop in inspections could make an outbreak of foodborne disease more likely, putting the public at risk, according to a report from the Department of Health and Human Services’ inspector general. A shrinking workforce at the U.S. Food and Drug Administration is responsible for much of the drop in the number of facilities inspected, including those deemed high risk by the agency, the report said.
An estimated 76 million people in the United States get sick every year with foodborne illness and 5,000 die, according to the U.S. Centers for Disease Control and Prevention. “This is unacceptable in our modern society and an important reminder that we must provide FDA with the needed tools,” said Senator Tom Harkin, chairman of the Senate Health, Education, Labor and Pensions Committee, which unanimously passed a food safety bill in November.
The measure awaits full approval from the Senate, which could take place soon after lawmakers return next week. A food safety bill passed in the House in July. Read more here.
Wednesday, April 7, 2010
SIMA – Final Determination Respecting Certain Thermal Insulation Board Originating in or Exported from the USA
(CBSA)
4214-27 AD/1386
Faced Rigid Cellular Polyurethane-modified Polyisocyanurate Thermal Insulation Board Originating in or Exported from the United States of America
On April 6, 2010, the President of the Canada Border Services Agency (CBSA) made a final determination of dumping pursuant to paragraph 41(1)(a) of the Special Import Measures Act (SIMA) in respect of faced rigid cellular polyurethane-modified polyisocyanurate thermal insulation board originating in or exported from the United States of America.
The results of the investigation reveal that 97.8% of the goods exported to Canada during the period of investigation (POI) were dumped by a weighted average margin of approximately 21.9%, expressed as a percentage of export price.
The goods in question are commonly classified under the Harmonized System classification number: 3921.13.99.10
Note that this HS code is for convenience of reference only. Refer to the product definition for authoritative details regarding the subject goods.
The Canadian International Trade Tribunal is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by May 6, 2010. Provisional duties will continue to apply until this date.
Additional information about this investigation is contained in a Statement of Reasons, which will be available within 15 days on the CBSA’s website.
Contacts:
Ron McTiernan 613-954-7271 • Wayne Tian 613-946-2574
Margins of Dumping (as percentage of the export price):
Atlas Roofing Corp 7.8%
Carlisle Syntec Inc. 15.9%
Construction Materials International, Inc. 0.0%
Dow Chemical Company 0.0%
Firestone Building Products Inc 15.9%
Hunter Panels LLC 8.9%
Johns Manville 23.8%
All Other Exporters: 168.9%
Canadian Economy to Far Outpace Growth of Other G7 Nations, OECD Says
(MSN – The Canadian Press)
A global economic forecasting group says Canadian economic growth will blow away that of other G7 nations by a wide margin during the first half of 2010. The Paris-based Organization for Economic Development and Co-operation is forecasting that Canada’s economy grew 6.2% in the first quarter, well ahead of the 1.9% overall growth for the G7 nations.
The OECD predicts that Canada’s second-quarter growth will be about 4.5%, nearly double the 2.3% growth expected from the combined G7.
The latest outlook comes as Canadian economic data shows the country embarked upon an enthusiastic rebound at the start of the year. In January, Canada’s gross domestic product advanced 0.6%, driven by growth in activity in factories, at construction sites, in mines and in the oilpatch.
However, economists have cautioned that Canada’s economic growth will likely slow down as the Bank of Canada is expected to raise interest rates this July, while consumers could decrease spending to pay off their debts. Read more here.
A global economic forecasting group says Canadian economic growth will blow away that of other G7 nations by a wide margin during the first half of 2010. The Paris-based Organization for Economic Development and Co-operation is forecasting that Canada’s economy grew 6.2% in the first quarter, well ahead of the 1.9% overall growth for the G7 nations.
The OECD predicts that Canada’s second-quarter growth will be about 4.5%, nearly double the 2.3% growth expected from the combined G7.
The latest outlook comes as Canadian economic data shows the country embarked upon an enthusiastic rebound at the start of the year. In January, Canada’s gross domestic product advanced 0.6%, driven by growth in activity in factories, at construction sites, in mines and in the oilpatch.
However, economists have cautioned that Canada’s economic growth will likely slow down as the Bank of Canada is expected to raise interest rates this July, while consumers could decrease spending to pay off their debts. Read more here.
National Small Business Confidence at Its Highest in Five Years
(CSCB)
Confidence among small and mid-sized business owners remains on the rise. CFIB’s Business Barometer Index rose for the third consecutive month in March, reaching 69.9 – its highest level in five years. This level of optimism is consistent with a healthy sustained economic growth rate of about 4%, which suggests Canada’s strong economic rebound to date will continue.
The full report is available here.
Confidence among small and mid-sized business owners remains on the rise. CFIB’s Business Barometer Index rose for the third consecutive month in March, reaching 69.9 – its highest level in five years. This level of optimism is consistent with a healthy sustained economic growth rate of about 4%, which suggests Canada’s strong economic rebound to date will continue.
The full report is available here.
U.S. and Brazil Reach Agreement on Cotton Dispute
(New York Times – Serwell Chan)
The United States and Brazil have reached an agreement aimed at settling a long-standing trade dispute over American subsidies to cotton growers, officials in both countries said Tuesday.
The announcement came one day before Brazil was to begin imposing up to $830 million in sanctions with authorization from the World Trade Organization. The trade body had ruled last August that American subsidies to cotton growers had violated global trade rules.
Under the preliminary deal, Brazil would hold off on retaliation in exchange for American concessions that include the modification of an export loan program and the establishment of a temporary assistance fund for the Brazilian cotton industry. The broader issues in contention would be deferred until Congress takes up the next farm bill, most likely in 2012.
The Brazilian sanctions were to include $591 million in higher tariffs on a wide array of goods, including autos, pharmaceuticals, medical equipment, electronics, textiles and wheat. Read more here.
The United States and Brazil have reached an agreement aimed at settling a long-standing trade dispute over American subsidies to cotton growers, officials in both countries said Tuesday.
The announcement came one day before Brazil was to begin imposing up to $830 million in sanctions with authorization from the World Trade Organization. The trade body had ruled last August that American subsidies to cotton growers had violated global trade rules.
Under the preliminary deal, Brazil would hold off on retaliation in exchange for American concessions that include the modification of an export loan program and the establishment of a temporary assistance fund for the Brazilian cotton industry. The broader issues in contention would be deferred until Congress takes up the next farm bill, most likely in 2012.
The Brazilian sanctions were to include $591 million in higher tariffs on a wide array of goods, including autos, pharmaceuticals, medical equipment, electronics, textiles and wheat. Read more here.
Capacity Crunch: Exporters Struggling to Get Container Space Aboard Vessels
(CIFFA eBulletin – Alex Binkley, Canadian Sailings)
The pace of the recovery has caught shipping lines with too much capacity in mothballs, and they may not even recover by the summer, Mr. Gobeil said. Canadian exporters and freight forwarders are fuming over a serious shortage of export container shipping capacity that’s threatening exports of machinery, agri-food products, minerals and lumber, he said.
Read the full article here.
The pace of the recovery has caught shipping lines with too much capacity in mothballs, and they may not even recover by the summer, Mr. Gobeil said. Canadian exporters and freight forwarders are fuming over a serious shortage of export container shipping capacity that’s threatening exports of machinery, agri-food products, minerals and lumber, he said.
Read the full article here.
Tuesday, April 6, 2010
AHPA Adopts New Extract Labeling Trade Requirement, Guidance
(Food Ingredients First)
In October 2008 the American Herbal Products Association (AHPA) adopted a trade requirement on how the word “extract” may be used in labeling of herbal ingredients, and established at that time a restriction against the use of the word extract to describe dehydrated plant materials that have not been subject to additional processing other than size reduction, such as cutting or milling. This initial policy was adopted in response to reports of dehydrated but otherwise unprocessed herbs, such as hoodia stem (Hoodia gordonii), being marketed for example as “Hoodia gordonii extract 20:1.”
The AHPA Board of Trustees voted March 11 to revise this original trade requirement to also address the use of extract ratios (such as “20:1” in the above example). The new policy therefore also prohibits the use of such ratios on herbal ingredients that are not processed by one or another extraction process. Click here to read the new rules recommended by the APHA.
In October 2008 the American Herbal Products Association (AHPA) adopted a trade requirement on how the word “extract” may be used in labeling of herbal ingredients, and established at that time a restriction against the use of the word extract to describe dehydrated plant materials that have not been subject to additional processing other than size reduction, such as cutting or milling. This initial policy was adopted in response to reports of dehydrated but otherwise unprocessed herbs, such as hoodia stem (Hoodia gordonii), being marketed for example as “Hoodia gordonii extract 20:1.”
The AHPA Board of Trustees voted March 11 to revise this original trade requirement to also address the use of extract ratios (such as “20:1” in the above example). The new policy therefore also prohibits the use of such ratios on herbal ingredients that are not processed by one or another extraction process. Click here to read the new rules recommended by the APHA.
BIS Eliminates Many Paper Documents
(World Trade Interactive)
The Bureau of Industry and Security has issued a final rule that, effective May 5, will enable it to eliminate the paper versions of most export and re-export licenses, notices of denial of license applications, notices of return of a license application without action, notices of results of classification requests, license exception AGR notification results, and encryption review request results. This rule also changes certain recordkeeping requirements associated with the elimination of paper documents.
The Bureau of Industry and Security has issued a final rule that, effective May 5, will enable it to eliminate the paper versions of most export and re-export licenses, notices of denial of license applications, notices of return of a license application without action, notices of results of classification requests, license exception AGR notification results, and encryption review request results. This rule also changes certain recordkeeping requirements associated with the elimination of paper documents.
Export Restrictions on Strategic Raw Materials and Their Impact on Trade and Global Supply
(WTO – Frank van Tongeren et al., OECD)
This paper examines the presence and impact on trade and global supply of export restrictions applied to selected metals and minerals. The strategic metals and minerals selected for this study have a number of shared characteristics which in turn determine their impact. Their exploitable mineral reserves are generally found in one or a few geographical regions of the world implying that their potential mining and export are concentrated in a few countries. For most of these strategic raw materials, the top three producing countries account for over half of world production. In some cases, production is so concentrated that over half of world production occurs in a single country. This in turn leads to a dependence on such imports by countries that consume these materials or the finished goods produced from them. It also suggests that countries producing these raw materials may influence their prices and quantities made available on world markets.
The metals and minerals in this study are generally used as inputs into high-technology or strategic sectors. Although often needed only in small quantities, these metals are increasingly essential to the development of technologically sophisticated products. They play a critical role in the development of innovative “environmental technologies” to boost energy efficiency and reduce greenhouse gas emissions. Hydrogen-fuel based cars, for example, require platinum-based catalysts; electric-hybrid cars need lithium batteries; and rhenium super alloys are an indispensable input for modern aircraft production. In addition, there are few substitutes available in the short-term for these raw materials. Read more here.
This paper examines the presence and impact on trade and global supply of export restrictions applied to selected metals and minerals. The strategic metals and minerals selected for this study have a number of shared characteristics which in turn determine their impact. Their exploitable mineral reserves are generally found in one or a few geographical regions of the world implying that their potential mining and export are concentrated in a few countries. For most of these strategic raw materials, the top three producing countries account for over half of world production. In some cases, production is so concentrated that over half of world production occurs in a single country. This in turn leads to a dependence on such imports by countries that consume these materials or the finished goods produced from them. It also suggests that countries producing these raw materials may influence their prices and quantities made available on world markets.
The metals and minerals in this study are generally used as inputs into high-technology or strategic sectors. Although often needed only in small quantities, these metals are increasingly essential to the development of technologically sophisticated products. They play a critical role in the development of innovative “environmental technologies” to boost energy efficiency and reduce greenhouse gas emissions. Hydrogen-fuel based cars, for example, require platinum-based catalysts; electric-hybrid cars need lithium batteries; and rhenium super alloys are an indispensable input for modern aircraft production. In addition, there are few substitutes available in the short-term for these raw materials. Read more here.
India-U.S. Financial and Economic Partnership Launched
(RTT News)
India and the United States have launched a bilateral economic and financial partnership that largely focuses on micro-finance, infrastructure and financial sector reforms. The partnership, launched by visiting U.S. Treasury Secretary Timothy Geithner and his Indian counterpart Pranab Mukherjee in New Delhi on Tuesday, aims at increasing trade and investment and create more job opportunities in both countries.
India asked U.S. investors to participate in its $600 billion infrastructure program in the next five years, while America sought greater financial cooperation with India for bringing about global economic stability.
U.S. argues that more open Indian markets would help make it easier and cheaper for India to access capital, which in turn could help finance the country’s growing infrastructure needs. Read more here.
India and the United States have launched a bilateral economic and financial partnership that largely focuses on micro-finance, infrastructure and financial sector reforms. The partnership, launched by visiting U.S. Treasury Secretary Timothy Geithner and his Indian counterpart Pranab Mukherjee in New Delhi on Tuesday, aims at increasing trade and investment and create more job opportunities in both countries.
India asked U.S. investors to participate in its $600 billion infrastructure program in the next five years, while America sought greater financial cooperation with India for bringing about global economic stability.
U.S. argues that more open Indian markets would help make it easier and cheaper for India to access capital, which in turn could help finance the country’s growing infrastructure needs. Read more here.
U.S. Import Boom Will Continue into Summer
(International Freighting Weekly – Mike King)
Retailers stock up as consumer spending gets back on course
U.S. retailers will continue to import containers at significantly higher volume levels than last year until at least late summer, according to leading forecasters. One Asia-based analyst said: “U.S. retail stocks are growing, which is a good indicator for container markets. U.S. retail spending is clearly increasing and we’re expecting 14-16% year-on-year growth into the US this quarter.”
February was the third successive month to show year-on-year volume gains at U.S. container ports, following 28 months of continuous decline, according to the monthly Global Port Tracker report produced for the U.S. National Retail Federation (NRF) by consultancy Hackett Associates. Jonathan Gold, NRF VP for supply chain and customs policy, said: “We expect these numbers to continue to climb as merchants and their customers move away from recession and back toward normal shopping habits.”
Member shipping lines of the Transpacific Stabilisation Agreement are understood to have been successful in introducing general rate increases in both directions on lanes between Asia and the U.S. Read more here.
Retailers stock up as consumer spending gets back on course
U.S. retailers will continue to import containers at significantly higher volume levels than last year until at least late summer, according to leading forecasters. One Asia-based analyst said: “U.S. retail stocks are growing, which is a good indicator for container markets. U.S. retail spending is clearly increasing and we’re expecting 14-16% year-on-year growth into the US this quarter.”
February was the third successive month to show year-on-year volume gains at U.S. container ports, following 28 months of continuous decline, according to the monthly Global Port Tracker report produced for the U.S. National Retail Federation (NRF) by consultancy Hackett Associates. Jonathan Gold, NRF VP for supply chain and customs policy, said: “We expect these numbers to continue to climb as merchants and their customers move away from recession and back toward normal shopping habits.”
Member shipping lines of the Transpacific Stabilisation Agreement are understood to have been successful in introducing general rate increases in both directions on lanes between Asia and the U.S. Read more here.
Trade Balance Hit 34-Year Low in 2009
(CBC News)
Canada imported more than it exported in 2009, the first time the country has posted an annual trade deficit since 1975. Statistics Canada reported Tuesday the country exported $369.7 billion worth of merchandise to the world in 2009, down 24.5% from 2008.
At the same time, imports fell 15.5% to $374.2 billion during the same period, giving Canada a trade deficit of $4.5 billion for the calendar year. That was the first annual trade deficit for Canada’s export-dependent economy since 1975, though the size of the former trade surplus has been on a downward trend since 2004. In 2008, Canada posted a $46.9 billion trade surplus.
The widespread slowdown of the global economy significantly affected the market for Canadian goods, especially in the first half of the year, the data agency said.
Canada maintained its trade surplus with the United States, though it narrowed to $34.8 billion in 2009 from $89.1 billion in 2008. The surplus to the United States alone hit its lowest level since 1997. The trade deficit with countries other than the United States narrowed to $39.3 billion in 2009 from $42.2 billion in 2008.
In 2009, the United States represented 63% of Canada’s total merchandise trade (exports and imports combined), down from 65.7% in 2008 and 71.1% in 2005.
For the first time, countries other than the United States accounted for a quarter of Canada’s exports, up from 16.2% in 2005. China replaced Japan as Canada’s third largest trading partner, behind the United States and the United Kingdom. Exports to China, which have been growing for the past seven years, increased 6.6% to $11.2 billion. Canada’s major exports to China include crops such as canola and commodities such as iron ore, coal and other fuel products. Canada imported $39.7 billion worth of merchandise from China, down seven percent from 2008.
Read more here. Summary statistics and links to the data files are on the Statistics Canada website
Canada imported more than it exported in 2009, the first time the country has posted an annual trade deficit since 1975. Statistics Canada reported Tuesday the country exported $369.7 billion worth of merchandise to the world in 2009, down 24.5% from 2008.
At the same time, imports fell 15.5% to $374.2 billion during the same period, giving Canada a trade deficit of $4.5 billion for the calendar year. That was the first annual trade deficit for Canada’s export-dependent economy since 1975, though the size of the former trade surplus has been on a downward trend since 2004. In 2008, Canada posted a $46.9 billion trade surplus.
The widespread slowdown of the global economy significantly affected the market for Canadian goods, especially in the first half of the year, the data agency said.
Canada maintained its trade surplus with the United States, though it narrowed to $34.8 billion in 2009 from $89.1 billion in 2008. The surplus to the United States alone hit its lowest level since 1997. The trade deficit with countries other than the United States narrowed to $39.3 billion in 2009 from $42.2 billion in 2008.
In 2009, the United States represented 63% of Canada’s total merchandise trade (exports and imports combined), down from 65.7% in 2008 and 71.1% in 2005.
For the first time, countries other than the United States accounted for a quarter of Canada’s exports, up from 16.2% in 2005. China replaced Japan as Canada’s third largest trading partner, behind the United States and the United Kingdom. Exports to China, which have been growing for the past seven years, increased 6.6% to $11.2 billion. Canada’s major exports to China include crops such as canola and commodities such as iron ore, coal and other fuel products. Canada imported $39.7 billion worth of merchandise from China, down seven percent from 2008.
Read more here. Summary statistics and links to the data files are on the Statistics Canada website
DFAIT Handbook of Export and Import Commodity Codes – 2010
(CIFFA eBulletin)
The Department of Foreign Affairs and International Trade has published the handbook of export and import commodity codes for 2010. A list of chapters with changes since 2009 is included. To download the document click here.
The Department of Foreign Affairs and International Trade has published the handbook of export and import commodity codes for 2010. A list of chapters with changes since 2009 is included. To download the document click here.
Oil Above $86, Near 18-Month High, After Rallying 24% Over Past 2 Months
(AP/The Canadian Press)
Oil prices hovered near 18-month highs above US$86 a barrel Tuesday as traders considered whether a recovering U.S. economy warranted further gains. By early afternoon in Europe, benchmark crude for May delivery was up four cents to $86.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.75 to settle at $86.62 on Monday, the highest since October 2008.
Oil has jumped 24% since early February. Crude had traded between $69 and $84 for about nine months before breaking out last week amid investor optimism that an improving U.S. economy will eventually boost crude demand. On Monday, reports showed strong improvements in demand at services businesses and in the housing market.
“We have a general sense that the economy is improving, and investors are now able to see a possible outlook for greater driving demand,” Cameron Hanover said in a report. “There may be a lull as we await this week’s supply and demand statistics.” Read more here.
Oil prices hovered near 18-month highs above US$86 a barrel Tuesday as traders considered whether a recovering U.S. economy warranted further gains. By early afternoon in Europe, benchmark crude for May delivery was up four cents to $86.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.75 to settle at $86.62 on Monday, the highest since October 2008.
Oil has jumped 24% since early February. Crude had traded between $69 and $84 for about nine months before breaking out last week amid investor optimism that an improving U.S. economy will eventually boost crude demand. On Monday, reports showed strong improvements in demand at services businesses and in the housing market.
“We have a general sense that the economy is improving, and investors are now able to see a possible outlook for greater driving demand,” Cameron Hanover said in a report. “There may be a lull as we await this week’s supply and demand statistics.” Read more here.
Anti Dumping Cases Increase as the Technique Becomes More Widely Adopted
(Metal Miner)
Fine words were espoused from all quarters during the economic crisis that countries would not adopt protectionist measures, but one year on and we can see that few have held to that line. The U.S. and Canadian authorities’ action over steel tubes and fasteners from China is one that naturally hit the headlines but to be fair the North Americans are far from alone.
Of course countries do not even have to apply a duty, just the threat of a case being under investigation is enough to choke off imports as the supply chain does not want to be caught holding material if a levy is applied. So when the
Russian government extended its year-long anti-dumping investigation into imports of nickel-bearing flat stainless steel products from China, Korea, Brazil and South Africa they were in effect extending a protectionist move without needing to actually apply a rate. The investigation, which commenced on 27 March 2009, will go on for another three months, the Russian ministry of industry and trade said. Meanwhile the €840/metric ton (US$1180/metric ton) import duty on stainless with nickel content of 2.5% or higher from the European Union expired on 20 March and although there is currently no sign of a new investigation into European stainless, “… producers will have to make some effort in order to reinstate their presence on Russian market,” Steel Business Briefing reported a Russian special steel association spokesman as ominously saying. […]
China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved…
Good work for the lawyers. Will all this legal wrangling ease as markets come out of recession and gradually return to strong growth, probably not. Whatever lawmakers say, anti-dumping and similar trade disputes have become a course of action favored as first resort by domestic metals producers and unions the world over. A sophisticated network of agencies has grown up on the back of it, lawyers, analysts and lobbyists, which can be swung into action if a case looks sufficiently promising. We are not saying many of the cases are not justified; currency manipulation is clearly a major cause of the problems with China; for example, if the Yuan was free floating the U.S. and Europe would have a lot less to complain about. But there are also a large number of cases where the process is used as blatant protectionism. Read more here.
Fine words were espoused from all quarters during the economic crisis that countries would not adopt protectionist measures, but one year on and we can see that few have held to that line. The U.S. and Canadian authorities’ action over steel tubes and fasteners from China is one that naturally hit the headlines but to be fair the North Americans are far from alone.
Of course countries do not even have to apply a duty, just the threat of a case being under investigation is enough to choke off imports as the supply chain does not want to be caught holding material if a levy is applied. So when the
Russian government extended its year-long anti-dumping investigation into imports of nickel-bearing flat stainless steel products from China, Korea, Brazil and South Africa they were in effect extending a protectionist move without needing to actually apply a rate. The investigation, which commenced on 27 March 2009, will go on for another three months, the Russian ministry of industry and trade said. Meanwhile the €840/metric ton (US$1180/metric ton) import duty on stainless with nickel content of 2.5% or higher from the European Union expired on 20 March and although there is currently no sign of a new investigation into European stainless, “… producers will have to make some effort in order to reinstate their presence on Russian market,” Steel Business Briefing reported a Russian special steel association spokesman as ominously saying. […]
China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved…
Good work for the lawyers. Will all this legal wrangling ease as markets come out of recession and gradually return to strong growth, probably not. Whatever lawmakers say, anti-dumping and similar trade disputes have become a course of action favored as first resort by domestic metals producers and unions the world over. A sophisticated network of agencies has grown up on the back of it, lawyers, analysts and lobbyists, which can be swung into action if a case looks sufficiently promising. We are not saying many of the cases are not justified; currency manipulation is clearly a major cause of the problems with China; for example, if the Yuan was free floating the U.S. and Europe would have a lot less to complain about. But there are also a large number of cases where the process is used as blatant protectionism. Read more here.
Monday, April 5, 2010
Canadian Consumers – Willing but Not So Able
(CanadaNewsWire – CIBC World Markets)
While consumer confidence in Canada has bounced back in the last year, CIBC World Markets Inc.’s new Consumer Capability Index finds that weak consumer fundamentals and an interest rate hike will see Canadians start to apply the brakes on spending.
After reaching a 15-year low in late 2008, consumer confidence, as measured by the Conference Board’s Consumer Confidence Index, has improved by 60%, and is now back to its long-term average, although still nearly 20% below its 2007 peak. This increase in confidence saw more Canadians at the cash register last quarter, with personal purchases climbing nearly four per cent on an annualized basis.
The CIBC Consumer Capability Index is designed to measure the ability of Canadian consumers to spend as opposed to their willingness to do so. What it found was a consumer that positively responded to the Bank of Canada’s monetary policy of low interest rates and is comfortable borrowing again. But it also found a consumer with a growing debt burden that is very sensitive to any increases in those low rates.
“Despite Canadian consumers’ high spirits, their recent consumption pattern has not been supported by an equivalent increase in income,” says Benjamin Tal, senior economist at CIBC, in his latest Consumer Watch report. “While improved sentiment can provide a short-term lift to household spending, a sustainable boost in activity must eventually be backed up by improving consumer fundamentals such as income growth, falling unemployment and reduced debt burdens.
The complete CIBC World Markets report is available here.
While consumer confidence in Canada has bounced back in the last year, CIBC World Markets Inc.’s new Consumer Capability Index finds that weak consumer fundamentals and an interest rate hike will see Canadians start to apply the brakes on spending.
After reaching a 15-year low in late 2008, consumer confidence, as measured by the Conference Board’s Consumer Confidence Index, has improved by 60%, and is now back to its long-term average, although still nearly 20% below its 2007 peak. This increase in confidence saw more Canadians at the cash register last quarter, with personal purchases climbing nearly four per cent on an annualized basis.
The CIBC Consumer Capability Index is designed to measure the ability of Canadian consumers to spend as opposed to their willingness to do so. What it found was a consumer that positively responded to the Bank of Canada’s monetary policy of low interest rates and is comfortable borrowing again. But it also found a consumer with a growing debt burden that is very sensitive to any increases in those low rates.
“Despite Canadian consumers’ high spirits, their recent consumption pattern has not been supported by an equivalent increase in income,” says Benjamin Tal, senior economist at CIBC, in his latest Consumer Watch report. “While improved sentiment can provide a short-term lift to household spending, a sustainable boost in activity must eventually be backed up by improving consumer fundamentals such as income growth, falling unemployment and reduced debt burdens.
The complete CIBC World Markets report is available here.
Notice of Conclusion of Re-Investigation: Copper Pipe Fittings from the USA, S. Korea and the PRC
(CBSA)
Dumping file #: 4214-12 • Dumping case #: AD/1358
This notice advises that on April 1, 2010, the Canada Border Services Agency (CBSA) concluded a re investigation of the normal values and the export prices of certain copper pipe fittings originating in or exported from the United States of America, the Republic of Korea and the People’s Republic of China pursuant to the Special Import Measures Act (SIMA). A complete product definition of the subject goods can be found in Appendix 1 to this notice.
The re-investigation was initiated on November 12, 2009, as part of the CBSA’s enforcement of the finding made by the Canadian International Trade Tribunal (Tribunal) on February 19, 2007.
At the initiation of the re-investigation, the CBSA sent Requests for Information (RFI) to exporters to obtain information on the costs and selling prices of subject goods and like goods. Specific normal values for future shipments have been determined for all exporters that provided a complete submission.
Exporters that have received normal values:
• United States
- Elkhart Products Corporation
- Interstate Assembly Systems
- Mueller Industries Inc.
- Nibco Inc.
• Republic of Korea
- Jungwoo Metal Ind. Co., Ltd.
• People’s Republic of China
- Zhuji City Howhi Air Conditioners Made Co., Ltd.
Where sufficient information was not available to determine a specific normal value, normal values for future shipments have been determined by ministerial specification, which is calculated by advancing the export price of the goods by 242%. For all exporters of subject goods not listed above, normal values will be determined by this ministerial specification.
Normal values will be effective for the subject goods released from the CBSA on or after April 1, 2010. All normal values previously in place expire on that date. In addition, the normal values determined on the basis of the re investigation will be applied to any entries of subject goods under appeal that have yet to be re-determined at the time of the conclusion of this re investigation.
This re-investigation was only in relation to dumping and does not change any amounts of subsidy already in place.
Exporters that already have specific amounts of subsidy:
• People’s Republic of China
- Tianli Pipe Fitting Co., Ltd.
- Zhuji City Howhi Air Conditioners Made Co., Ltd.
For all other exporters of subject goods from the People’s Republic of China, the amount of subsidy will be determined in accordance with a ministerial specification, and is equal to 17.73 Chinese Renminbi per kilogram.
It is the responsibility of importers to calculate and declare their anti dumping and countervailing duty liability. In order to determine their liability for anti-dumping duty and/or countervailing duty, importers should contact their suppliers who can provide information on normal values and amounts of subsidy. Under limited circumstances, the CBSA may make this information available to importers. Customs brokers acting on the behalf of importers should be advised that the goods are subject to anti-dumping/countervailing action and be provided with sufficient information necessary to clear the shipments. For more information please refer to Memorandum D14-1-2, Disclosure of Normal Value and Export Price Established Under the Special Import Measures Act for Importers, on the CBSA Web site here.
The onus is on concerned parties to advise the CBSA in a timely manner of any changes to domestic prices, market conditions and/or costs associated with production and sales, as these changes could warrant retroactive assessments of anti-dumping and/or countervailing duty.
Should the importer disagree with the determination made on any importation of goods, a request for redetermination may be filed with the Director General, Anti-dumping and Countervailing Directorate, Ottawa, Ontario K1A 0L8. Such a request must be received within 90 days from the making of the determination, in the form and manner outlined in Memorandum D14-1-3, Procedures for Making a Request for a Redetermination (an Appeal) of Goods Under the Special Import Measures Act.
Any questions concerning the above should be directed to:
Peter Dupuis: 613-954-7341; or Walid Ben Tamarzizt: 613-954-7265
Work on U.S. Customs Starts April 12
(Dave Battagello — Windsor Star)
Customs plaza improvements on the U.S. side of the Detroit-Windsor Tunnel are scheduled to begin April 12.
The multimillion-dollar construction work will last several months and includes two phases -- the first to add another inspection booth, plus modifications to lanes 1 and 2. That work should be completed by June. A second phase will see creation of a bus processing area, expansion of the secondary inspection plaza and improvements to the U.S. customs office space. Read more here.
Customs plaza improvements on the U.S. side of the Detroit-Windsor Tunnel are scheduled to begin April 12.
The multimillion-dollar construction work will last several months and includes two phases -- the first to add another inspection booth, plus modifications to lanes 1 and 2. That work should be completed by June. A second phase will see creation of a bus processing area, expansion of the secondary inspection plaza and improvements to the U.S. customs office space. Read more here.
Canadian Dollar Inches Closer to Parity
(Paul Vieira — Financial Post)
The Canadian dollar inched ever closer to parity Monday morning, as traders rushed back into the markets on strong U.S. jobs data released Good Friday. And according to currency analysts, it is only a matter of days, maybe hours, before the loonie crosses the US$1 mark.
“All the stars have aligned for the Canadian dollar. Almost every single factor we look at is in favour of a Canadian dollar that is at or beyond parity on a sustainable basis,” said Camilla Sutton, Scotia Capital’s director of foreign exchange, suggesting parity could come at any moment. “We are not far now.”
As of 11 a.m. ET, the Canadian dollar was trading at the 99.70 US cents range, up from Thursday’s finish of 99.17 US cents and the highest level since July 2008. Read more here.
The Canadian dollar inched ever closer to parity Monday morning, as traders rushed back into the markets on strong U.S. jobs data released Good Friday. And according to currency analysts, it is only a matter of days, maybe hours, before the loonie crosses the US$1 mark.
“All the stars have aligned for the Canadian dollar. Almost every single factor we look at is in favour of a Canadian dollar that is at or beyond parity on a sustainable basis,” said Camilla Sutton, Scotia Capital’s director of foreign exchange, suggesting parity could come at any moment. “We are not far now.”
As of 11 a.m. ET, the Canadian dollar was trading at the 99.70 US cents range, up from Thursday’s finish of 99.17 US cents and the highest level since July 2008. Read more here.
Friday, April 2, 2010
News from GHY International
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending April 2, 2010 is now available on our website here.
Europe’s Biodiesel Producers Seek EU Anti-Fraud Probe of Canadian Shipments
(Juliane Von Reppet-Bismark — Globe & Mail)
The seizure by Italian customs officials of a shipload of Canadian biodiesel highlights the global battle for a slice of the growing renewable energy market.
A regional judge in Italy on Wednesday approved the seizure of 10,000 tonnes of biodiesel labelled as coming from Quebec and bound for the ports of Venice and Trieste. Italian customs officials blocked the cargo last month after receiving a tip that the material originally came from the United States.
Last May, the European Commission imposed duties on U.S. biodiesel for a five-year period, in response to what it said were illegal U.S. subsidies and export pricing practices. The duties have sent U.S. exports to Europe plummeting, to less than 400,000 tonnes in 2009 from 1.5 million tonnes in 2008.
The European Biodiesel Board (EBB), which represents European producers, believes the duties are being circumvented by the shipment of U.S. biodiesel through other countries, including Canada. The European producers claim the U.S. fuel is being labelled as coming from Canada, or that it is being mixed into Canadian biodiesel, for sale at a lower price than EU biodiesel of comparable quality. Read more here.
The seizure by Italian customs officials of a shipload of Canadian biodiesel highlights the global battle for a slice of the growing renewable energy market.
A regional judge in Italy on Wednesday approved the seizure of 10,000 tonnes of biodiesel labelled as coming from Quebec and bound for the ports of Venice and Trieste. Italian customs officials blocked the cargo last month after receiving a tip that the material originally came from the United States.
Last May, the European Commission imposed duties on U.S. biodiesel for a five-year period, in response to what it said were illegal U.S. subsidies and export pricing practices. The duties have sent U.S. exports to Europe plummeting, to less than 400,000 tonnes in 2009 from 1.5 million tonnes in 2008.
The European Biodiesel Board (EBB), which represents European producers, believes the duties are being circumvented by the shipment of U.S. biodiesel through other countries, including Canada. The European producers claim the U.S. fuel is being labelled as coming from Canada, or that it is being mixed into Canadian biodiesel, for sale at a lower price than EU biodiesel of comparable quality. Read more here.
Thursday, April 1, 2010
Customs Notice 10-006 Advance Commercial Information (ACI) Exemption…
(CBSA)
Advance Commercial Information (ACI) Exemption for Goods on Board a Conveyance That Enters Canadian Waters While it is Proceeding Directly From One Place Outside of Canada to Another Place Outside of Canada
The purpose of this customs notice is to advise that effective April 1, 2010, the Canada Border Services Agency (CBSA) will no longer require Advance Commercial Information (ACI) for goods on board of a conveyance that enters Canadian waters while it is proceeding directly from one place outside of Canada to another place outside of Canada.
Advance Commercial Information (ACI) Exemption for Goods on Board a Conveyance That Enters Canadian Waters While it is Proceeding Directly From One Place Outside of Canada to Another Place Outside of Canada
The purpose of this customs notice is to advise that effective April 1, 2010, the Canada Border Services Agency (CBSA) will no longer require Advance Commercial Information (ACI) for goods on board of a conveyance that enters Canadian waters while it is proceeding directly from one place outside of Canada to another place outside of Canada.
Customs Notice 10-007 United States Loaded Freight Remaining On Board (FROB) Cargo
(CBSA)
The purpose of this customs notice is to notify industry that Canada Border Service Agency (CBSA) will further extend the grace period for Advance Commercial Information (ACI) notification requirements for U.S.-loaded FROB cargo until September 30, 2010.
The purpose of this customs notice is to notify industry that Canada Border Service Agency (CBSA) will further extend the grace period for Advance Commercial Information (ACI) notification requirements for U.S.-loaded FROB cargo until September 30, 2010.
Factories Crank Up Output as Demand Rises
(Reuters – Steven C. Johnson and Jonathan Cable)
Factories in the United States, Europe and Asia cranked up production last month, suggesting recovery from a deep recession was taking root in economies around the globe.
The U.S. manufacturing sector grew at its fastest pace in more than five years last month and activity in Europe bounced higher, with a cheaper euro helping stimulate exports. UK manufacturing expanded at its fastest pace since 1994, while China’s vast industrial sector also grew in March.
U.S. stock indexes rose along with equity markets across Europe and Asia as the data bolstered hopes the worst global downturn in generations was ending. Read more here.
Factories in the United States, Europe and Asia cranked up production last month, suggesting recovery from a deep recession was taking root in economies around the globe.
The U.S. manufacturing sector grew at its fastest pace in more than five years last month and activity in Europe bounced higher, with a cheaper euro helping stimulate exports. UK manufacturing expanded at its fastest pace since 1994, while China’s vast industrial sector also grew in March.
U.S. stock indexes rose along with equity markets across Europe and Asia as the data bolstered hopes the worst global downturn in generations was ending. Read more here.
Containers Pile Up as Lines Skip India on Way to Europe
(International Freighting Weekly – Gavin van Marle, Lloyd’s List)
Shippers suffer as box carriers seek higher returns from Asia
Indian exporters and western apparel retailers are facing a congestion nightmare as containers pile up at India’s ports and container shipping lines operating out of Asia give the country a wide berth en route to Europe.
Grant Liddell, key account director at leading UK logistics provider Uniserve, said trade out of India was prone to severe delays. “It is exactly like the situation was out of China in November, when it was really difficult to get space on vessels to Europe and air freight was also suffering massive congestion,” he said. “Once again we are seeing congestion of the two combining, following the reduction of capacity by both shipping lines and airlines.”
Western India Shippers’ Association vice-president K Venkatesh said the situation was likely to get worse before it gets better. “At a conservative estimate, there are between 20,000 and 35,000 boxes lying around India at the moment, especially in the arc between Nhava Sheva and Tuticorin, and the lines have not so far been able to clear this backlog,” Read more here.
Shippers suffer as box carriers seek higher returns from Asia
Indian exporters and western apparel retailers are facing a congestion nightmare as containers pile up at India’s ports and container shipping lines operating out of Asia give the country a wide berth en route to Europe.
Grant Liddell, key account director at leading UK logistics provider Uniserve, said trade out of India was prone to severe delays. “It is exactly like the situation was out of China in November, when it was really difficult to get space on vessels to Europe and air freight was also suffering massive congestion,” he said. “Once again we are seeing congestion of the two combining, following the reduction of capacity by both shipping lines and airlines.”
Western India Shippers’ Association vice-president K Venkatesh said the situation was likely to get worse before it gets better. “At a conservative estimate, there are between 20,000 and 35,000 boxes lying around India at the moment, especially in the arc between Nhava Sheva and Tuticorin, and the lines have not so far been able to clear this backlog,” Read more here.
U.S. Trade Office Targets China’s Procurement Policy
(Jeff Plungis — Bloomberg)
The U.S. trade office rapped the Chinese government in a report... for imposing procurement and import restrictions that harm American companies, while steering clear of the debate over currency policy. China’s proposal to buy only software and equipment made in that nation discriminates against foreign competitors, the Trade Representative’s office said in an annual report on barriers to U.S. goods and services worldwide. The Obama administration is examining the Asian nation’s regulations and tax policies.
The report doesn’t mention China’s policies on valuing its currency, the renminbi, as one of the impediments to U.S. exports. China, which has held the renminbi, or yuan, at about 6.83 per dollar for the past 20 months to aid exporters, has been criticized by U.S. lawmakers who are looking for the trade office to pursue retaliatory action through import tariffs.
The trade office instead focused on other complaints by U.S. businesses including the proposal to limit government purchases of computer and other technology equipment containing what China has labeled “indigenous innovation.”
“The Obama administration is following through on its commitment to call out and break down barriers to American exports worldwide,” U.S. Trade Representative Ron Kirk said in a statement. Read more here.
The U.S. trade office rapped the Chinese government in a report... for imposing procurement and import restrictions that harm American companies, while steering clear of the debate over currency policy. China’s proposal to buy only software and equipment made in that nation discriminates against foreign competitors, the Trade Representative’s office said in an annual report on barriers to U.S. goods and services worldwide. The Obama administration is examining the Asian nation’s regulations and tax policies.
The report doesn’t mention China’s policies on valuing its currency, the renminbi, as one of the impediments to U.S. exports. China, which has held the renminbi, or yuan, at about 6.83 per dollar for the past 20 months to aid exporters, has been criticized by U.S. lawmakers who are looking for the trade office to pursue retaliatory action through import tariffs.
The trade office instead focused on other complaints by U.S. businesses including the proposal to limit government purchases of computer and other technology equipment containing what China has labeled “indigenous innovation.”
“The Obama administration is following through on its commitment to call out and break down barriers to American exports worldwide,” U.S. Trade Representative Ron Kirk said in a statement. Read more here.
DFAIT Consultations on NAFTA Regulatory Cooperation
(DFAIT)
The Department of Foreign Affairs and International Trade (DFAIT) is requesting input on areas for increased cooperation amongst Canada, the U.S. and Mexico to reduce “significant regulatory-based differences” that hamper Canadian competitiveness. A copy of the Notice published in the Canada Gazette is available here.
Interested parties have until May 26, 2010 to file submissions with DFAIT identifying opportunities to reduce significant barriers in a range of areas including: standards, technical regulations, and conformity assessment procedures for industrial and agricultural products, as well as sanitary and phytosanitary measures.
The Department of Foreign Affairs and International Trade (DFAIT) is requesting input on areas for increased cooperation amongst Canada, the U.S. and Mexico to reduce “significant regulatory-based differences” that hamper Canadian competitiveness. A copy of the Notice published in the Canada Gazette is available here.
Interested parties have until May 26, 2010 to file submissions with DFAIT identifying opportunities to reduce significant barriers in a range of areas including: standards, technical regulations, and conformity assessment procedures for industrial and agricultural products, as well as sanitary and phytosanitary measures.
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