(National Post – Jacqueline Thorpe)
The Canadian economy looks to have escaped a recession in the first half of 2008 and will pick up momentum through the end of the year, despite extreme turmoil in financial markets and continued weakness in the United States, the Bank of Canada said yesterday.
Still, 2008 as a whole will be the worst showing for the economy since 1992, when it was crawling out of the recession of the early 1990s, according to bank forecasts. Indeed, the bank believes growth will be weaker than what will be seen in the United States, which is facing no immediate end of troubles.
The bank said a wave of income from rising commodity prices will keep the economy afloat through the end of the year.
“Recent increases in commodity prices lead to higher wages and salaries, higher government revenues, higher corporate profits and equity valuations and stronger investment growth, particularly in the energy sector,” it said in its quarterly review of the economy.
The bank forecasts the economy will grow at an annualized pace of 0.8% in the second quarter, up from an earlier forecast of 0.3%. The economy contracted 0.3% in the first quarter. Two back-to-back quarters of declining activity are required to meet the widely accepted definition of a recession.
Businesses drew on inventories in the first quarter after importing heavily at the end of 2007. This idled factory production and weighed heavily on growth, but the bank believes this process has now been worked through and growth should bounce back in the second quarter.
But this will by no means be a stellar year for the economy. Growth is projected to be just 1% for all of 2008, its slowest rate since a 0.9% expansion in 1992.The economy is expected to bounce back more strongly to 2.3% in 2009 and 3.3% in 2010. Read the complete article.
Friday, July 18, 2008
Ontario and Quebec Urge Stronger Ties to EU
(The Canada Press – Canada NewsWire)
Two Canadian provincial cabinet ministers, one from Ontario and one from Quebec, joined the Canada Europe Roundtable for Business (CERT) at a meeting with European Union Trade Commissioner Peter Mandelson in Brussels, Belgium today.
The meeting demonstrated strong support from Canadian political and business leaders for the negotiation of a trade agreement between Canada and the EU.
CERT Co-Chairs Roy MacLaren and William Emmot presented a declaration in support of such an agreement signed by 96 prominent business leaders from Canada and Europe. Quebec cabinet minister Raymond Bachand and Ontario cabinet minister Sandra Pupatello presented a common position on behalf of the two Canadian provinces in support of commencing Canada-EU trade negotiations.
A Canada-EU trade agreement would provide European companies with a gateway into the vast North American market, while increasing Canadian opportunities in the European Common Market – boosting transatlantic economic growth over the medium- to long-term.
“Today’s meeting clearly demonstrates the desire of the Canadian and European business communities, and the political support, to work towards the creation of a Canada-EU trade agreement bringing benefit for trade in services, as well as goods, and promoting investment,” said Roy MacLaren, Co-Chair CERT.
Two Canadian provincial cabinet ministers, one from Ontario and one from Quebec, joined the Canada Europe Roundtable for Business (CERT) at a meeting with European Union Trade Commissioner Peter Mandelson in Brussels, Belgium today.
The meeting demonstrated strong support from Canadian political and business leaders for the negotiation of a trade agreement between Canada and the EU.
CERT Co-Chairs Roy MacLaren and William Emmot presented a declaration in support of such an agreement signed by 96 prominent business leaders from Canada and Europe. Quebec cabinet minister Raymond Bachand and Ontario cabinet minister Sandra Pupatello presented a common position on behalf of the two Canadian provinces in support of commencing Canada-EU trade negotiations.
A Canada-EU trade agreement would provide European companies with a gateway into the vast North American market, while increasing Canadian opportunities in the European Common Market – boosting transatlantic economic growth over the medium- to long-term.
“Today’s meeting clearly demonstrates the desire of the Canadian and European business communities, and the political support, to work towards the creation of a Canada-EU trade agreement bringing benefit for trade in services, as well as goods, and promoting investment,” said Roy MacLaren, Co-Chair CERT.
Thursday, July 17, 2008
New Partners in Protection Program Now in Effect
The CBSA recently issued notification of changes to the Partners in Protection (PIP) program. According to Customs, steps have been taken to ensure that PIP is better aligned with the WCO Framework of Standards to Secure and Facilitate Global Trade (SAFE), and the WCO Authorized Economic Operator concept.
As well, it aligns PIP with the US C-TPAT (Customs-Trade Partnership Against Terrorism) program; both CBSA and US Customs and Border Protection will “apply high security standards and perform similar site validations when approving companies for membership in their respective programs”, according to a news release issued on 30 June by US Customs. “The goal of these arrangements is to link the various international industry partnership programs, so that together they create a unified and sustainable security standard that can assist in securing and facilitating global cargo trade.”
The revised Security Profile can now be downloaded from the links indicated below (English and French versions). This is a fillable PDF form. Note that you will require the latest version of Adobe Acrobat Reader in order open the file.
Mutual recognition between modernized PIP & C-TPAT
In 2007, under the Security and Prosperity Partnership of North America (SPP), the Government of Canada announced $11.6 million in funding to strengthen the PIP program in order to achieve mutual recognition and compatibility with the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) program.
This milestone was reached on June 28, 2008, when the CBSA signed an arrangement with U.S. Customs and Border Protection.
On balance, stakeholders such as the Canadian Trucking Alliance have given the thumbs up to the announcement, while expressing disappointment that the programs weren’t more fully integrated.
Carriers and other participants who were members of the PIP program before June 30th, 2008, will have six months to re-apply to the re-vamped program. They will be required to complete a security profile, which will be reviewed by CBSA. A follow-up site validation may be required, but CBSA has indicated that this step may not be undertaken if a C-TPAT validation has been carried out within the past two years. Ultimately carriers will be required to sign a Memorandum of Understanding with CBSA that sets out the roles and responsibilities of the respective parties.
“If a carrier is already a C-TPAT member, this should be a relatively straightforward exercise, and they will continue to receive the benefits these programs provide, such as access to FAST lanes at busy international crossings,” said CTA Chief Executive Officer David Bradley. “I’m also pleased to see that CBSA listened to CTA and others in the business community and significantly revised an initial suspend/cancel policy that would have literally driven carriers out of the program. I am confident that the trucking industry, the single largest industry sector in PIP, will be able to comply with these tougher new requirements.”
However, Bradley admitted that he “remains disappointed that CBSA and CBP have fallen short of the goal of full mutual recognition – that is, a situation where a carrier need only apply to PIP or C-TPAT, but not both. But we have at least taken an important step forward, and I’m hopeful that we will get there eventually.”
Related Links:
• CBSA Partners in Protection (PIP)
• CBP Customs & Trade Partnership Against Terrorism (C-TPAT)
• WCO SAFE Program (PDF file)
• WCO Authorized Economic Operator Guidelines (AEO)
Download Links & Passwords
• Adobe Acrobate Reader v. 9
• PIP Security Profile–English (Password: PIPpep041987)
• PIP Security Profile–French (Password: PEPpip041987)
As well, it aligns PIP with the US C-TPAT (Customs-Trade Partnership Against Terrorism) program; both CBSA and US Customs and Border Protection will “apply high security standards and perform similar site validations when approving companies for membership in their respective programs”, according to a news release issued on 30 June by US Customs. “The goal of these arrangements is to link the various international industry partnership programs, so that together they create a unified and sustainable security standard that can assist in securing and facilitating global cargo trade.”
The revised Security Profile can now be downloaded from the links indicated below (English and French versions). This is a fillable PDF form. Note that you will require the latest version of Adobe Acrobat Reader in order open the file.
Mutual recognition between modernized PIP & C-TPAT
In 2007, under the Security and Prosperity Partnership of North America (SPP), the Government of Canada announced $11.6 million in funding to strengthen the PIP program in order to achieve mutual recognition and compatibility with the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) program.
This milestone was reached on June 28, 2008, when the CBSA signed an arrangement with U.S. Customs and Border Protection.
On balance, stakeholders such as the Canadian Trucking Alliance have given the thumbs up to the announcement, while expressing disappointment that the programs weren’t more fully integrated.
Carriers and other participants who were members of the PIP program before June 30th, 2008, will have six months to re-apply to the re-vamped program. They will be required to complete a security profile, which will be reviewed by CBSA. A follow-up site validation may be required, but CBSA has indicated that this step may not be undertaken if a C-TPAT validation has been carried out within the past two years. Ultimately carriers will be required to sign a Memorandum of Understanding with CBSA that sets out the roles and responsibilities of the respective parties.
“If a carrier is already a C-TPAT member, this should be a relatively straightforward exercise, and they will continue to receive the benefits these programs provide, such as access to FAST lanes at busy international crossings,” said CTA Chief Executive Officer David Bradley. “I’m also pleased to see that CBSA listened to CTA and others in the business community and significantly revised an initial suspend/cancel policy that would have literally driven carriers out of the program. I am confident that the trucking industry, the single largest industry sector in PIP, will be able to comply with these tougher new requirements.”
However, Bradley admitted that he “remains disappointed that CBSA and CBP have fallen short of the goal of full mutual recognition – that is, a situation where a carrier need only apply to PIP or C-TPAT, but not both. But we have at least taken an important step forward, and I’m hopeful that we will get there eventually.”
Related Links:
• CBSA Partners in Protection (PIP)
• CBP Customs & Trade Partnership Against Terrorism (C-TPAT)
• WCO SAFE Program (PDF file)
• WCO Authorized Economic Operator Guidelines (AEO)
Download Links & Passwords
• Adobe Acrobate Reader v. 9
• PIP Security Profile–English (Password: PIPpep041987)
• PIP Security Profile–French (Password: PEPpip041987)
Exporter Jitters Deepen
(Export Development Canada – Peter G. Hall)
For most Canadian exporters, 2008 will be a year of red ink. Few exporting industries are exempt from the recession currently hitting the trade sector, which is weighing heavily on overall economic growth this year. Getting out of this predicament depends on a lot of factors, not the least of which is the fear factor. How are Canadian exporters feeling about their prospects?
Twice a year, Export Development Canada surveys Canadian exporters to gauge their confidence. The most recent survey was conducted during April and May, and the results are sobering. EDC’s Trade Confidence Index (TCI) tumbled to 66.1, a second successive drop and a new all-time low for the 8-year-old series. The decline over the last year is a marked departure from the narrow range the Index has fluctuated in since 2003.
Exporters were most worried about global economic conditions in the recent survey. Last fall, less than a third of exporters expected global conditions to worsen. This spring, that number shot up to 51%. Only 9% of those surveyed expected improved conditions, the smallest share of optimists on record. The results are hardly surprising, given deteriorating economic data, runaway commodity prices and an international financial sector that is still finding its feet.
Worries weren’t confined to the international economy, though. In the past few years, many exporters have relied on Canada’s strong domestic economy for relief, but the effects of this antidote seem to be wearing off. In fact, those surveyed have never been more pessimistic about the domestic economy, with 42% expecting conditions to worsen, up 10 percentage points since last fall. Just 11% expected the economy to get better, again, the smallest share on record.
These results suggest that exporters expect an extended drought. Even so, the survey holds hints of hope. First, most respondents feel that international sales have hit bottom. Almost half of those polled believe that international sales will improve in the near term, while the share expecting worse conditions fell 10 percentage points to just 15%. Second, perceptions of international trade opportunities brightened. Pessimism spiked in the Fall, 2007 survey, only to be reversed in the spring; 77% of exporters now expect similar or improved near-term opportunities.
A third glimmer of hope – perhaps wishful thinking – is exporters’ view of the Canadian dollar. Most believed that the dollar’s ascent will be checked. Just under a quarter of exporters thought that the loonie would keep climbing, down sharply from 52% a year ago, while the remainder expected a static or declining currency. As such, exporters’ top coping strategy is simply to ride out the storm, absorbing the loss. Fewer are passing on higher costs; their ranks shrunk from 27% to just 18% in the past six months. Not surprising, given intensifying global competition.
Among industries, only the oil and gas/mining and transportation sectors bucked the overall trend in confidence. The index for light manufacturing fell the most, and is now ranked second-lowest.
The bottom line? Make no mistake, the latest TCI results are sombre. But the lingering scent of hope, amid very trying times, is inspiring.
For most Canadian exporters, 2008 will be a year of red ink. Few exporting industries are exempt from the recession currently hitting the trade sector, which is weighing heavily on overall economic growth this year. Getting out of this predicament depends on a lot of factors, not the least of which is the fear factor. How are Canadian exporters feeling about their prospects?
Twice a year, Export Development Canada surveys Canadian exporters to gauge their confidence. The most recent survey was conducted during April and May, and the results are sobering. EDC’s Trade Confidence Index (TCI) tumbled to 66.1, a second successive drop and a new all-time low for the 8-year-old series. The decline over the last year is a marked departure from the narrow range the Index has fluctuated in since 2003.
Exporters were most worried about global economic conditions in the recent survey. Last fall, less than a third of exporters expected global conditions to worsen. This spring, that number shot up to 51%. Only 9% of those surveyed expected improved conditions, the smallest share of optimists on record. The results are hardly surprising, given deteriorating economic data, runaway commodity prices and an international financial sector that is still finding its feet.
Worries weren’t confined to the international economy, though. In the past few years, many exporters have relied on Canada’s strong domestic economy for relief, but the effects of this antidote seem to be wearing off. In fact, those surveyed have never been more pessimistic about the domestic economy, with 42% expecting conditions to worsen, up 10 percentage points since last fall. Just 11% expected the economy to get better, again, the smallest share on record.
These results suggest that exporters expect an extended drought. Even so, the survey holds hints of hope. First, most respondents feel that international sales have hit bottom. Almost half of those polled believe that international sales will improve in the near term, while the share expecting worse conditions fell 10 percentage points to just 15%. Second, perceptions of international trade opportunities brightened. Pessimism spiked in the Fall, 2007 survey, only to be reversed in the spring; 77% of exporters now expect similar or improved near-term opportunities.
A third glimmer of hope – perhaps wishful thinking – is exporters’ view of the Canadian dollar. Most believed that the dollar’s ascent will be checked. Just under a quarter of exporters thought that the loonie would keep climbing, down sharply from 52% a year ago, while the remainder expected a static or declining currency. As such, exporters’ top coping strategy is simply to ride out the storm, absorbing the loss. Fewer are passing on higher costs; their ranks shrunk from 27% to just 18% in the past six months. Not surprising, given intensifying global competition.
Among industries, only the oil and gas/mining and transportation sectors bucked the overall trend in confidence. The index for light manufacturing fell the most, and is now ranked second-lowest.
The bottom line? Make no mistake, the latest TCI results are sombre. But the lingering scent of hope, amid very trying times, is inspiring.
More Border States Plan to Ease Travel with Enhanced Licenses
(USA Today)
A growing number of states on the borders with Canada and Mexico are establishing or considering enhanced driver's licenses designed to give residents a more convenient identification option for border crossings.
In February, Washington became the first state to establish the new licenses. To receive a license labeled “enhanced,” applicants are required to show proof of US citizenship in addition to the other identification documents required for obtaining traditional licenses.
Since then, 21,000 Washington residents have received the licenses, which allow them to get back into the USA through any border crossing or seaport without a passport, according to Department of Licensing spokeswoman Gigi Zenk.
New York and Vermont will follow in coming months. Arizona Gov. Janet Napolitano has proposed the idea for residents there, and Michigan is working toward a plan. Click here for the complete article.
A growing number of states on the borders with Canada and Mexico are establishing or considering enhanced driver's licenses designed to give residents a more convenient identification option for border crossings.
In February, Washington became the first state to establish the new licenses. To receive a license labeled “enhanced,” applicants are required to show proof of US citizenship in addition to the other identification documents required for obtaining traditional licenses.
Since then, 21,000 Washington residents have received the licenses, which allow them to get back into the USA through any border crossing or seaport without a passport, according to Department of Licensing spokeswoman Gigi Zenk.
New York and Vermont will follow in coming months. Arizona Gov. Janet Napolitano has proposed the idea for residents there, and Michigan is working toward a plan. Click here for the complete article.
Wednesday, July 16, 2008
Canadian International Trade Tribunal Issues Order: Carbon Steel Pipe Nipples and Adaptor Fittings From China
(MarketWatch)
The Canadian International Trade Tribunal today issued an order following the expiry review of its finding made on July 16, 2003, as amended on June 8, 2007, concerning carbon steel pipe nipples and adaptor fittings, in nominal diameters up to and including 6 inches or the metric equivalents, originating in or exported from the People's Republic of China.
The Tribunal found that the dumping of carbon steel pipe nipples and adaptor fittings from China was likely to result in injury or retardation. The Canada Border Services Agency will therefore continue to impose anti-dumping duties on these products.
The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters. More information available at the CITT website.
The Canadian International Trade Tribunal today issued an order following the expiry review of its finding made on July 16, 2003, as amended on June 8, 2007, concerning carbon steel pipe nipples and adaptor fittings, in nominal diameters up to and including 6 inches or the metric equivalents, originating in or exported from the People's Republic of China.
The Tribunal found that the dumping of carbon steel pipe nipples and adaptor fittings from China was likely to result in injury or retardation. The Canada Border Services Agency will therefore continue to impose anti-dumping duties on these products.
The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters. More information available at the CITT website.
Everyone’s Wondering: What’s This ‘Americas Strategy’?
(Embassy – Michelle Collins)
Twelve months ago, as Prime Minister Stephen Harper embarked on a tour of Latin America to raise Canada’s profile in the region and demonstrate that his foreign policy would be geared toward these hemispheric neighbours, many took the trip as a sign that he was indeed serious about the Americas.
Yet one year later, there are few updates from the government about what is involved in this pillar of its foreign policy, the mainstream media say there’s no story to report, and most Canadians have nary a notion that their government ever committed itself to an “Americas Strategy.”
On his six-day trip through Colombia, Chile, Barbados and Haiti, Mr. Harper visited aid projects built with Canadian funds, met with Canadian investors, and delivered speeches to economists and business crowds, all with parliamentary reporters in tow.
While in Chile, Mr. Harper delivered a speech declaring Canada a country of the Americas and said that expanding political and economic engagement in the Americas would be a major foreign policy goal for his government. “Re-engagement in our hemisphere is a critical international priority for our government. Canada is committed to playing a bigger role in the Americas and to doing so for the long term,” Mr. Harper said.
Mr. Harper and his officials, such as former foreign affairs minister Maxime Bernier, repeatedly declared that the policy is built on “three key objectives” of prosperity, security and governance.
Since that time, the government has made a handful of funding announcements for increased aid projects in Latin America and moved ahead on free trade agreements with Peru and Colombia. Most recently, Foreign Affairs Minister David Emerson announced that the Department of International Trade was opening four new trade offices in the region; two in Mexico and two in Brazil.
Beyond developments in the area of trade, however, little else about the strategy has been released publicly.
Although a Memorandum to Cabinet on the Americas Strategy was delivered in the last two months, ministers and officials at the Foreign Affairs Department refuse to talk about what’s in it.
When Mr. Harper’s government began ramping up the rhetoric about re-engaging the Americas, Latin American diplomats based in Ottawa were encouraged that this would be their chance to finally reap more of the benefits of globalization and tap into Canada’s economic prowess.
But more than a year later, those same diplomats are left with more questions than answers about what Mr. Harper’s plans really are and are expressing concern that, like other prime ministers before him, Mr. Harper’s commitment to the Americas has tumbled on his list of foreign policy priorities.
Meanwhile, Secretary of State for Foreign Affairs and International Trade Helena Guergis has travelled to the area several times over the last few months, but only her announcements about domestic sports programs get reported in the media.
Additionally, aside from a media advisory, the government says little about the trips and Ms. Guergis herself is difficult to track down. Embassy made several requests to interview the minister about her trip to Belize and Guatemala this past week, but to no avail.
Indeed, Maclean’s political affairs columnist Paul Wells believes that the fact Ms. Guergis is the one being sent on these trips is evidence that the Americas are no longer a genuine priority. “I do get the impression this was an interesting idea, but the idea of an American Canada, understood in the Americas, it’s not automatic, it’s not driven by market forces, not driven by the attention space of ordinary Canadians, and would have to be artificial and built,” Mr. Wells said.
Mr. Wells said “serious distractions” to the west, east and the north – from China to Europe and Russia – are more interesting and geographically closer to Canada. Plus, he notes, Canada’s top foreign policy challenge remains Afghanistan, and the Latin American countries have not made any significant troop contributions to the conflict. “It’s just one example of how far away we are from the idea of this having a concrete application to the rest of the foreign policy universe,” Mr. Wells said.
Toronto Star reporter Allan Woods said that given the way Mr. Harper kicked off this foreign policy strategy, one might expect to have heard more about it by now. He said Mr. Harper’s trip last year was really the first Conservative-led foreign policy initiative since the party rose to power in early 2006, and the government itself billed it as the grandest one up to that point.
Mr. Woods said that at the time, he did plan to follow the issue over the next several months, but that since then, he hasn’t seen all that much happen. “A couple of trips does not a foreign policy make, and a couple of free trade agreements does not a foreign policy make,” Mr. Woods said. “It’s unfortunate because I’ve been on many trips with Harper, and that one was by far the most interesting; it was something of their own making and they just didn’t seem to follow up on it. The onus was on them to explain this.”
CTV reporter Robert Fife points out that if this were a focus, Mr. Harper would be talking about it. He said that if the Conservatives want to promote the Americas, they are going to have to convince people that free trade with these countries is a good thing. “If the prime minister wants to shine a light on it, he usually gets pretty good coverage on any issue he talks about,” Mr. Fife said. “If this issue is such a central plank in the Conservative foreign policy, then it should speak for itself; if you’re not going down there, then it can’t be much of a priority.” Read the complete article.
Twelve months ago, as Prime Minister Stephen Harper embarked on a tour of Latin America to raise Canada’s profile in the region and demonstrate that his foreign policy would be geared toward these hemispheric neighbours, many took the trip as a sign that he was indeed serious about the Americas.
Yet one year later, there are few updates from the government about what is involved in this pillar of its foreign policy, the mainstream media say there’s no story to report, and most Canadians have nary a notion that their government ever committed itself to an “Americas Strategy.”
On his six-day trip through Colombia, Chile, Barbados and Haiti, Mr. Harper visited aid projects built with Canadian funds, met with Canadian investors, and delivered speeches to economists and business crowds, all with parliamentary reporters in tow.
While in Chile, Mr. Harper delivered a speech declaring Canada a country of the Americas and said that expanding political and economic engagement in the Americas would be a major foreign policy goal for his government. “Re-engagement in our hemisphere is a critical international priority for our government. Canada is committed to playing a bigger role in the Americas and to doing so for the long term,” Mr. Harper said.
Mr. Harper and his officials, such as former foreign affairs minister Maxime Bernier, repeatedly declared that the policy is built on “three key objectives” of prosperity, security and governance.
Since that time, the government has made a handful of funding announcements for increased aid projects in Latin America and moved ahead on free trade agreements with Peru and Colombia. Most recently, Foreign Affairs Minister David Emerson announced that the Department of International Trade was opening four new trade offices in the region; two in Mexico and two in Brazil.
Beyond developments in the area of trade, however, little else about the strategy has been released publicly.
Although a Memorandum to Cabinet on the Americas Strategy was delivered in the last two months, ministers and officials at the Foreign Affairs Department refuse to talk about what’s in it.
When Mr. Harper’s government began ramping up the rhetoric about re-engaging the Americas, Latin American diplomats based in Ottawa were encouraged that this would be their chance to finally reap more of the benefits of globalization and tap into Canada’s economic prowess.
But more than a year later, those same diplomats are left with more questions than answers about what Mr. Harper’s plans really are and are expressing concern that, like other prime ministers before him, Mr. Harper’s commitment to the Americas has tumbled on his list of foreign policy priorities.
Meanwhile, Secretary of State for Foreign Affairs and International Trade Helena Guergis has travelled to the area several times over the last few months, but only her announcements about domestic sports programs get reported in the media.
Additionally, aside from a media advisory, the government says little about the trips and Ms. Guergis herself is difficult to track down. Embassy made several requests to interview the minister about her trip to Belize and Guatemala this past week, but to no avail.
Indeed, Maclean’s political affairs columnist Paul Wells believes that the fact Ms. Guergis is the one being sent on these trips is evidence that the Americas are no longer a genuine priority. “I do get the impression this was an interesting idea, but the idea of an American Canada, understood in the Americas, it’s not automatic, it’s not driven by market forces, not driven by the attention space of ordinary Canadians, and would have to be artificial and built,” Mr. Wells said.
Mr. Wells said “serious distractions” to the west, east and the north – from China to Europe and Russia – are more interesting and geographically closer to Canada. Plus, he notes, Canada’s top foreign policy challenge remains Afghanistan, and the Latin American countries have not made any significant troop contributions to the conflict. “It’s just one example of how far away we are from the idea of this having a concrete application to the rest of the foreign policy universe,” Mr. Wells said.
Toronto Star reporter Allan Woods said that given the way Mr. Harper kicked off this foreign policy strategy, one might expect to have heard more about it by now. He said Mr. Harper’s trip last year was really the first Conservative-led foreign policy initiative since the party rose to power in early 2006, and the government itself billed it as the grandest one up to that point.
Mr. Woods said that at the time, he did plan to follow the issue over the next several months, but that since then, he hasn’t seen all that much happen. “A couple of trips does not a foreign policy make, and a couple of free trade agreements does not a foreign policy make,” Mr. Woods said. “It’s unfortunate because I’ve been on many trips with Harper, and that one was by far the most interesting; it was something of their own making and they just didn’t seem to follow up on it. The onus was on them to explain this.”
CTV reporter Robert Fife points out that if this were a focus, Mr. Harper would be talking about it. He said that if the Conservatives want to promote the Americas, they are going to have to convince people that free trade with these countries is a good thing. “If the prime minister wants to shine a light on it, he usually gets pretty good coverage on any issue he talks about,” Mr. Fife said. “If this issue is such a central plank in the Conservative foreign policy, then it should speak for itself; if you’re not going down there, then it can’t be much of a priority.” Read the complete article.
Europe Looks No Longer Immune to U.S. Economic Storm
(International Herald Tribune – Mark Landler)
Europe, which held the world’s economic storms at bay for the last year, has finally succumbed.
Spain, Ireland and Denmark are either in, or on the brink, of a recession. Italy is stagnating. France is weakening fast. And Germany, the sturdy locomotive of European growth, is suddenly faltering – dashing most residual hopes that Europe could escape the upheaval in the United States.
On Tuesday, an influential poll of German investors by the Center for European Economic Research in Mannheim found that confidence has plummeted to its lowest level since the survey was started in 1991.
Shares in Spain swooned after that country’s housing crisis claimed its first big casualty: a property developer that filed for protection from creditors. And in Britain, the inflation rate surged – as it has elsewhere in Europe – to 3.8% because of soaring prices for food and fuel.
“We’ve seen a sea change in Europe,” said Thomas Mayer, the chief European economist at Deutsche Bank in London. “All the bad news around the world has finally come to us.”
While most economists had predicted that Europe would suffer fallout from the financial market chaos and the broader American malaise, the speed of the deterioration has surprised the soothsayers.
As recently as June, Mayer noted, the European Central Bank was projecting only a modest dip in growth in the second quarter. Two weeks ago, it raised interest rates, citing the risk of inflation. Now the risk is that Europe could face a shrinking economy this summer.
In that sense, Europe finds itself on a precipice similar to that in the United States, which is already in or verging on a serious slump. But given the historic resilience of the U.S. economy, some economists give the Americans slightly better odds of avoiding a classically defined recession – in which economic growth shrinks for two quarters in a row – than the Europeans.
“It is not impossible that the euro zone will dip into recession while the U.S. manages to skirt it,” said Holger Schmieding, the chief European economist at Bank of America in London.
Such a statement would have been far-fetched four months ago, when investor confidence and industrial output was rising in Germany and France, despite a buoyant currency that makes European exports more expensive in the United States and other dollar-linked markets.
One dynamic that has not changed since then is the euro, which hit a new record high against the dollar Tuesday.
The tense mood in the United States is pushing investors to sell dollars and seek refuge in the euro. For all the storm clouds here, Europe still looks like a safe harbor next to the United States, where fears about the solvency of Fannie Mae and Freddie Mac have rattled the broader market.
Still, the strong euro – combined with high oil prices – is finally exacting a toll on Europe’s export machine.
German exports slumped 3.2% in May from the previous month, the largest monthly decline since June 2004. The country’s once-robust trade surplus shrank to €14.4 billion, or $23 billion, from €18.8 billion, according to government statistics. Click here for the complete article.
Europe, which held the world’s economic storms at bay for the last year, has finally succumbed.
Spain, Ireland and Denmark are either in, or on the brink, of a recession. Italy is stagnating. France is weakening fast. And Germany, the sturdy locomotive of European growth, is suddenly faltering – dashing most residual hopes that Europe could escape the upheaval in the United States.
On Tuesday, an influential poll of German investors by the Center for European Economic Research in Mannheim found that confidence has plummeted to its lowest level since the survey was started in 1991.
Shares in Spain swooned after that country’s housing crisis claimed its first big casualty: a property developer that filed for protection from creditors. And in Britain, the inflation rate surged – as it has elsewhere in Europe – to 3.8% because of soaring prices for food and fuel.
“We’ve seen a sea change in Europe,” said Thomas Mayer, the chief European economist at Deutsche Bank in London. “All the bad news around the world has finally come to us.”
While most economists had predicted that Europe would suffer fallout from the financial market chaos and the broader American malaise, the speed of the deterioration has surprised the soothsayers.
As recently as June, Mayer noted, the European Central Bank was projecting only a modest dip in growth in the second quarter. Two weeks ago, it raised interest rates, citing the risk of inflation. Now the risk is that Europe could face a shrinking economy this summer.
In that sense, Europe finds itself on a precipice similar to that in the United States, which is already in or verging on a serious slump. But given the historic resilience of the U.S. economy, some economists give the Americans slightly better odds of avoiding a classically defined recession – in which economic growth shrinks for two quarters in a row – than the Europeans.
“It is not impossible that the euro zone will dip into recession while the U.S. manages to skirt it,” said Holger Schmieding, the chief European economist at Bank of America in London.
Such a statement would have been far-fetched four months ago, when investor confidence and industrial output was rising in Germany and France, despite a buoyant currency that makes European exports more expensive in the United States and other dollar-linked markets.
One dynamic that has not changed since then is the euro, which hit a new record high against the dollar Tuesday.
The tense mood in the United States is pushing investors to sell dollars and seek refuge in the euro. For all the storm clouds here, Europe still looks like a safe harbor next to the United States, where fears about the solvency of Fannie Mae and Freddie Mac have rattled the broader market.
Still, the strong euro – combined with high oil prices – is finally exacting a toll on Europe’s export machine.
German exports slumped 3.2% in May from the previous month, the largest monthly decline since June 2004. The country’s once-robust trade surplus shrank to €14.4 billion, or $23 billion, from €18.8 billion, according to government statistics. Click here for the complete article.
Tuesday, July 15, 2008
Bush Touts Mortgage Plans, Offshore Drilling
(CNN)
Under the backdrop of a deteriorating economic picture, President Bush said Tuesday he is taking action to help people with falling home values and high gas prices.
Bush highlighted plans to stabilize the mortgage lenders Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) and lift the ban on offshore oil drilling as two steps his administration is taking to address some of the nation's economic ills.
On the gas price front, Bush reiterated his call for more drilling off the East and West Coasts and in Alaska.
“The only thing standing between these vast resources and the American people is action from Congress,” he said. “The sooner Congress lifts the ban, the sooner we can get these resources from the ocean floor to the refineries to the gas pump.”
There were two bans restricting drilling off most of the U.S. coast - one from the President and one from Congress.
On Monday Bush lifted the executive ban, putting pressure on the Democratic-controlled Congress to do the same.
So far, the Democrats have resisted calls for more drilling, arguing the amount of oil it would bring to market would have little effect on prices, and the nation's efforts would be better spent developing alternatives to oil and focusing on conservation. Complete article here, and more on lifting of the offshore drilling ban here.
“Made in Canada” Food Labelling Rules to Kick in Next Year
(Canadian Press)
The Conservative government has fleshed out food labelling guidelines unveiled earlier this year by Prime Minister Stephen Harper.
Agriculture Minister Gerry Ritz announced in Cornwall, Ont. that the new rules come into effect on Jan. 1, 2009, and apply to all foods produced from that day forward.
Under the new rules, foods labelled as a Canadian product must contain “all or virtually all contents” that are from Canada.
It’s currently legal to call a product “made in Canada” if 51 per cent of the production costs were incurred here and the final transformation of product was in Canada.
The government says 90 per cent of the 1,500 Canadians who filled out an online survey after Harper’s announcement in May agreed with the new guidelines.
The new guidelines come from the Food and Consumer Safety Action Plan announced by Harper in December.
The Conservative government has fleshed out food labelling guidelines unveiled earlier this year by Prime Minister Stephen Harper.
Agriculture Minister Gerry Ritz announced in Cornwall, Ont. that the new rules come into effect on Jan. 1, 2009, and apply to all foods produced from that day forward.
Under the new rules, foods labelled as a Canadian product must contain “all or virtually all contents” that are from Canada.
It’s currently legal to call a product “made in Canada” if 51 per cent of the production costs were incurred here and the final transformation of product was in Canada.
The government says 90 per cent of the 1,500 Canadians who filled out an online survey after Harper’s announcement in May agreed with the new guidelines.
The new guidelines come from the Food and Consumer Safety Action Plan announced by Harper in December.
Australian Dollar to Reach Parity with USD in September
(Adelaide Now – Meredith Booth)
The Australian dollar will reach parity with the U.S. dollar in September then overtake it for a few months, a currency expert with Australia’s largest bank said yesterday.
As Australia’s currency soared to a 25-year high today, trading at US97.64c triggered by a surging gold price, Commonwealth Bank chief currency strategist Richard Grace expected it to soon surpass the greenback on strong income from Australia’s exports and an ailing U.S. economy.
It was the local currency’s highest closing level since January 25, 1983 – in the days of a fixed exchange rate – when the Australian dollar ended the local session at 97.90 US cents.
“Our thinking is it will spend three months beyond parity ... it’s not just a U.S. dollar story, we think the Aussie will appreciate across the board with the pound the yen and the euro,’’ Mr. Grace said. “We have got a very strong Australian dollar story; we’ve got an investment boom going on in this economy and we think the Aussie dollar is adjusting to export and import prices and strong terms of trade,’’ he said. More here.
Note: The current exchange rate with the Canadian dollar is 0.973.
The Australian dollar will reach parity with the U.S. dollar in September then overtake it for a few months, a currency expert with Australia’s largest bank said yesterday.
As Australia’s currency soared to a 25-year high today, trading at US97.64c triggered by a surging gold price, Commonwealth Bank chief currency strategist Richard Grace expected it to soon surpass the greenback on strong income from Australia’s exports and an ailing U.S. economy.
It was the local currency’s highest closing level since January 25, 1983 – in the days of a fixed exchange rate – when the Australian dollar ended the local session at 97.90 US cents.
“Our thinking is it will spend three months beyond parity ... it’s not just a U.S. dollar story, we think the Aussie will appreciate across the board with the pound the yen and the euro,’’ Mr. Grace said. “We have got a very strong Australian dollar story; we’ve got an investment boom going on in this economy and we think the Aussie dollar is adjusting to export and import prices and strong terms of trade,’’ he said. More here.
Note: The current exchange rate with the Canadian dollar is 0.973.
The WTO Launches World Trade Report 2008: Trade in a Globalizing World
(WTO)
The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system.
The theme of this year’s Report is “Trade in a Globalizing World”. The Report provides a reminder of what we know about the gains from international trade and highlights the challenges arising from higher levels of integration. It addresses a range of interlinking questions, starting with a consideration of what constitutes globalization, what drives it, what benefits does it bring, what challenges does it pose and what role does trade play in this world of ever-growing inter-dependency.
The Report asks why some countries have managed to take advantage of falling trade costs and greater policy-driven trading opportunities while others have remained largely outside international commercial relations. It also considers who the winners and losers are from trade and what complementary action is needed from policy-makers to secure the benefits of trade for society at large. In examining these complex and multi-faceted questions, the Report reviews both the theoretical gains from trade and empirical evidence that can help to answer these questions. More information on the report at the WTO website.
The World Trade Report is an annual publication that aims to deepen understanding about trends in trade, trade policy issues and the multilateral trading system.
The theme of this year’s Report is “Trade in a Globalizing World”. The Report provides a reminder of what we know about the gains from international trade and highlights the challenges arising from higher levels of integration. It addresses a range of interlinking questions, starting with a consideration of what constitutes globalization, what drives it, what benefits does it bring, what challenges does it pose and what role does trade play in this world of ever-growing inter-dependency.
The Report asks why some countries have managed to take advantage of falling trade costs and greater policy-driven trading opportunities while others have remained largely outside international commercial relations. It also considers who the winners and losers are from trade and what complementary action is needed from policy-makers to secure the benefits of trade for society at large. In examining these complex and multi-faceted questions, the Report reviews both the theoretical gains from trade and empirical evidence that can help to answer these questions. More information on the report at the WTO website.
Memorandum D3-5-2: Marine Cargo – Import Movements
(CBSA)
This memorandum has been revised to reflect current carrier and cargo policies and reporting procedures, including Advance Commercial Information (ACI) program requirements. It has been revised to update the contact information at the Canada Border Services Agency (CBSA).
The contents of the following customs notices related to the ACI program have been incorporated into this memorandum (as well as in D3-1-1, Policy Respecting the Importation and Transportation of Goods; D3-2-1, International Air Traffic; D3-2-2, Air Cargo – Import Movements and D3-5-1, Vessels in International Service):
• Customs Notice N – 605, Advance Commercial Information – Updates on Cargo and Conveyance Electronic Reporting for Air Mode and for Marine Shipments Loaded in the United States;
• Customs Notice – 630, Advance Commercial Information (ACI) – Updates on the Implementation of ACI Phase II Air and Marine; and,
• Customs Notice – 652, Advance Commercial Information (ACI) – Updates on the Implementation of ACI Phase II Air and Marine.
Procedures and guidelines regarding loading or discharge of cargo at non-CBSA port have been moved from D3-5-2 to D3-5-1.
ACI data elements have been added to Appendix B of this memorandum. Full document available here (PDF file).
This memorandum has been revised to reflect current carrier and cargo policies and reporting procedures, including Advance Commercial Information (ACI) program requirements. It has been revised to update the contact information at the Canada Border Services Agency (CBSA).
The contents of the following customs notices related to the ACI program have been incorporated into this memorandum (as well as in D3-1-1, Policy Respecting the Importation and Transportation of Goods; D3-2-1, International Air Traffic; D3-2-2, Air Cargo – Import Movements and D3-5-1, Vessels in International Service):
• Customs Notice N – 605, Advance Commercial Information – Updates on Cargo and Conveyance Electronic Reporting for Air Mode and for Marine Shipments Loaded in the United States;
• Customs Notice – 630, Advance Commercial Information (ACI) – Updates on the Implementation of ACI Phase II Air and Marine; and,
• Customs Notice – 652, Advance Commercial Information (ACI) – Updates on the Implementation of ACI Phase II Air and Marine.
Procedures and guidelines regarding loading or discharge of cargo at non-CBSA port have been moved from D3-5-2 to D3-5-1.
ACI data elements have been added to Appendix B of this memorandum. Full document available here (PDF file).
CN Decision Couldn’t Have Come at Worse Time For Port
(Tom Peters—Chronicle Herald)
CN has announced it will reduce the number of trains serving the Port of Halifax from two to one, citing the decline in container cargo as the main reason.
The two trains were each running at less than 50 per cent capacity, so they will be combined. There will be one train with the same number of cars and with capacity for additional volume, according to CN spokeswoman Julie Senecal.
She says merging the two trains will have minimal impact on shipping times to Montreal, Toronto and Chicago. CN will discuss the move with its customers “in order to accommodate their specific needs, but CN sees no impact on import or export traffic over Halifax as a result of this change,” she said.
Calvin Whidden, general manager at Cerescorp, operator of the Fairview Cove terminal, is pretty much on track with CN’s thinking.
“My feeling is, with the volumes going through the terminals today, one train can handle them, but I can’t say if the shippers or lines have a concern,” he said.
CN’s decision couldn’t have come at a worse time for the port.
The reasoning behind the decision is understandable. But what kind of a message does this send to port customers and potential customers, both shipping lines and cargo owners? CN claims to be a strong partner of the port and says it is working hard with the port and others to develop more business. In that context, it is difficult to understand the cut.
And no matter how one tries to disguise it or talk around it, Halifax is a one-rail-line port. It’s a known fact in the global shipping industry and it has had an influence on decisions by shipping lines whether to include Halifax as a port of call. Whether having more than one rail line actually results in lower rates for shippers, only the shippers would know. But there is the perception two or more rail lines are better than one.
That is not in Halifax’s future.
In the meantime, Mr. Whidden is optimistic things will work out under the new CN schedule.
“I truly believe customers can be served by one train a day, providing CN ramps up when the business gets bigger, and we hope that is soon. But two half-trains equal one full train, and I’m hoping that’s as simple as it is,” he says. Read the complete article.
CN has announced it will reduce the number of trains serving the Port of Halifax from two to one, citing the decline in container cargo as the main reason.
The two trains were each running at less than 50 per cent capacity, so they will be combined. There will be one train with the same number of cars and with capacity for additional volume, according to CN spokeswoman Julie Senecal.
She says merging the two trains will have minimal impact on shipping times to Montreal, Toronto and Chicago. CN will discuss the move with its customers “in order to accommodate their specific needs, but CN sees no impact on import or export traffic over Halifax as a result of this change,” she said.
Calvin Whidden, general manager at Cerescorp, operator of the Fairview Cove terminal, is pretty much on track with CN’s thinking.
“My feeling is, with the volumes going through the terminals today, one train can handle them, but I can’t say if the shippers or lines have a concern,” he said.
CN’s decision couldn’t have come at a worse time for the port.
The reasoning behind the decision is understandable. But what kind of a message does this send to port customers and potential customers, both shipping lines and cargo owners? CN claims to be a strong partner of the port and says it is working hard with the port and others to develop more business. In that context, it is difficult to understand the cut.
And no matter how one tries to disguise it or talk around it, Halifax is a one-rail-line port. It’s a known fact in the global shipping industry and it has had an influence on decisions by shipping lines whether to include Halifax as a port of call. Whether having more than one rail line actually results in lower rates for shippers, only the shippers would know. But there is the perception two or more rail lines are better than one.
That is not in Halifax’s future.
In the meantime, Mr. Whidden is optimistic things will work out under the new CN schedule.
“I truly believe customers can be served by one train a day, providing CN ramps up when the business gets bigger, and we hope that is soon. But two half-trains equal one full train, and I’m hoping that’s as simple as it is,” he says. Read the complete article.
Premier Doer Praises NAFTA
(Agio Press-GlobalAtlanta.com)
Manitoba Premier Gary Doer praises NAFTA and the benefits the trade agreement provides for the three countries involved at a recent trade conference in the U.S.
Manitoba Premier Gary Doer praises NAFTA and the benefits the trade agreement provides for the three countries involved at a recent trade conference in the U.S.
Fannie and Freddie Symptoms of Larger Problem
(Video: Real News/Text: Globe & Mail)
AFL-CIO economist says this system amounts to “Socialism for the rich and capitalism for the poor” and predicts that the two mortgage lenders may eventually be nationalized.
Fannie and Freddie: Wards of the State
Former treasury secretary Snow says White House had to bail out mortgage giants or face ‘a catastrophe’
John Snow devoted much of his tenure as U.S. treasury secretary trying to convince investors they were wrong to assume the federal government would bail out housing behemoths Fannie Mae and Freddie Mac if the two companies ever got into trouble.
Owners of the debt issued by Fannie Mae and Freddie Mac gave the warning about as much heed as a teenager would over a threat to make curfew or face a locked door – what parent is going to leave his or her child out in the cold?
The teenagers bet right. With Fannie Mae and Freddie Mac on the brink of collapse, President George W. Bush's administration moved late Sunday to guarantee solvency for two companies that buy or finance almost half of the $12-trillion (U.S.) of U.S. mortgages.
“The market has been proven right,” Mr. Snow, treasury secretary from February, 2003, to July, 2006, and now chairman of New York-based Cerberus Capital Management, said in an interview Monday. “The systemic risk became so large. It could be a catastrophe.”
The reversal is remarkable for an administration that has spent almost eight years trying to reduce the government's role in the world’s largest economy. Mr. Bush's tax cuts were the most obvious example of the administration's market-based orthodoxy, but the White House tangled regularly with legislators in a failed bid to restrain Fannie Mae's and Freddie Mac’s growth. Read the complete article.
Monday, July 14, 2008
Companies Hurt While Inventories Waylaid at Ports by CBSA Rules
(CBC News)
Newly expanded rules at the Canada Border Services Agency to test for fumes in containers arriving at ports across the country are putting businesses — and Canadian trade — under threat, business owners say.
The backlog of containers docked at ports across the country has been growing since the CBSA added formaldehyde to the list of fumigants its employees must test for before the marine containers can travel to their final destinations.
Port authorities say many more containers have come up positive since formaldehyde was listed in June, making them too dangerous for examination by inspectors and leaving their cargo stuck at port for weeks, instead of days.
“Sales orders are being cancelled because goods are not being delivered as per the sales contracts. Canadian importers are suffering, Canada’s trade is suffering,” Ruth Snowden, executive director of the Canadian International Freight Forwarders Association, told CBC News.
CBSA regulations dictate that containers that test positive have to be ventilated until fumigants reach an acceptable level. Freight companies, however, are demanding the government agency reconsider the rules in order to get the containers moving again, and to keep their customers in business.
One woman who owns a coffee roasting business in London, Ont., said that if her beans — which were supposed to be delivered from South America three weeks ago — arrive spoiled, they will ruin her business too.
“I can’t sell coffee, I don’t have revenue,” said Maria Fiallos, owner of Las Chicas del Café. “I don’t have revenue for my Canadian business, I don’t have revenue for the coffee growers in Nicaragua.”
Another business owner, Mike Calnan, is still waiting for a shipment of antique vehicles from Britain that were scheduled to appear at the Ottawa air show on Canada Day. He said their absence was an incredible disappointment after he put almost a year’s work into getting them to Canada.
Both Calnan’s and Fiallos’ shipments are sitting idle at the Port of Halifax, where almost every container that has arrived in the last three weeks and has been targeted for testing has come up positive for formaldehyde — a chemical commonly found in glue and used in everything from cars to furniture.
“We’re very concerned about it and we urge the CBSA to work to improve the process to basically minimize the delays,” said the Halifax port’s manager of business development, Patrick Bohan.
The CBSA has said it is looking into new “highly sensitive detection technology” that may make the testing process more efficient, but that the health and safety of its employees is its top priority.
Some experts say formaldehyde could lead to cancer if people are exposed to very small amounts over long periods of time, as evidenced in experiments with animals.
“At no time will the CBSA compromise the health and safety of its employees. CBSA has the appropriate measures in place to protect its employees from any possible exposure to hazardous chemicals,” the CBSA agency said in a statement this week.
Newly expanded rules at the Canada Border Services Agency to test for fumes in containers arriving at ports across the country are putting businesses — and Canadian trade — under threat, business owners say.
The backlog of containers docked at ports across the country has been growing since the CBSA added formaldehyde to the list of fumigants its employees must test for before the marine containers can travel to their final destinations.
Port authorities say many more containers have come up positive since formaldehyde was listed in June, making them too dangerous for examination by inspectors and leaving their cargo stuck at port for weeks, instead of days.
“Sales orders are being cancelled because goods are not being delivered as per the sales contracts. Canadian importers are suffering, Canada’s trade is suffering,” Ruth Snowden, executive director of the Canadian International Freight Forwarders Association, told CBC News.
CBSA regulations dictate that containers that test positive have to be ventilated until fumigants reach an acceptable level. Freight companies, however, are demanding the government agency reconsider the rules in order to get the containers moving again, and to keep their customers in business.
One woman who owns a coffee roasting business in London, Ont., said that if her beans — which were supposed to be delivered from South America three weeks ago — arrive spoiled, they will ruin her business too.
“I can’t sell coffee, I don’t have revenue,” said Maria Fiallos, owner of Las Chicas del Café. “I don’t have revenue for my Canadian business, I don’t have revenue for the coffee growers in Nicaragua.”
Another business owner, Mike Calnan, is still waiting for a shipment of antique vehicles from Britain that were scheduled to appear at the Ottawa air show on Canada Day. He said their absence was an incredible disappointment after he put almost a year’s work into getting them to Canada.
Both Calnan’s and Fiallos’ shipments are sitting idle at the Port of Halifax, where almost every container that has arrived in the last three weeks and has been targeted for testing has come up positive for formaldehyde — a chemical commonly found in glue and used in everything from cars to furniture.
“We’re very concerned about it and we urge the CBSA to work to improve the process to basically minimize the delays,” said the Halifax port’s manager of business development, Patrick Bohan.
The CBSA has said it is looking into new “highly sensitive detection technology” that may make the testing process more efficient, but that the health and safety of its employees is its top priority.
Some experts say formaldehyde could lead to cancer if people are exposed to very small amounts over long periods of time, as evidenced in experiments with animals.
“At no time will the CBSA compromise the health and safety of its employees. CBSA has the appropriate measures in place to protect its employees from any possible exposure to hazardous chemicals,” the CBSA agency said in a statement this week.
Government of Canada Bans More Harmful Chemicals
(Environment Canada)
Canada’s Environment Minister, the Honourable John Baird, and the Minister of Health, the Honourable Tony Clement, announced today [Friday] that the Government of Canada will publish final regulations to reduce the levels of Polybrominated Diphenyl Ethers(PBDEs) that could be entering the environment. Today’s announcement is just one more example of how our the Government’s Chemicals Management Plan is taking action to protect our environment from harmful chemicals.
“Once again, when it comes to taking action on toxic chemicals, our Government is leading the way,” said Minister Baird. “Right now, we’re taking action to address all PBDEs, and today we are banning those substances that have been identified as an immediate concern to the environment” said Minister Baird.
“The Government of Canada is committed to taking action on chemical substances,” said Minister Clement. “These regulations will achieve real results by minimizing the amount of these substances in our environment.”
PBDEs are used to slow the spread of fire in a wide variety of plastics, fabrics, glues, sealants and foams. While they were not found to be harmful to human health, they are toxic to the environment because they build up and last a long time in the environment.
PBDEs are not manufactured in Canada but are imported for use in commercial and consumer products. There are three commercial mixtures that contain PBDEs: PentaBDE is used mostly in flexible polyurethane foam, which is used as cushioning in upholstered furniture, automotive seating and carpet backing; OctaBDE is used in acrylonitrile butadiene styrene (ABS) plastics as a flame retardant for computer housings, pipes, appliances and automotive parts; DecaBDE is primarily used in the high impact polystyrene component of electronic equipment housings, and is also the main commercial PBDE product used as a flame retardant in upholstery and drapery textiles.
The new regulations will prohibit the manufacture of all PBDEs and restrict the import, use and sale of PentaBDE and OctaBDE which meet the criteria for virtual elimination under the Canadian Environmental Protection Act, 1999.
The regulations are a first step in mitigating the risk posed by PBDEs in Canada. Additional actions are being developed to complement these Regulations, including: a regulation to control PBDEs already contained in manufactured products; a voluntary approach to minimize releases to the environment from the use of the DecaBDE commercial mixture in manufacturing operations in Canada; a detailed review of newly published science on DecaBDE, to determine if there is a need for further controls on the DecaBDE commercial mixture; and monitoring of Canadians’ exposure to PBDEs and concentrations in the environment.
These actions, collectively, will minimize Canadians’ exposure to PBDEs and help to ensure that Canada’s environment is protected.
For more information on the PBDEs Regulations and further actions to manage PBDEs is available here.
Canada’s Environment Minister, the Honourable John Baird, and the Minister of Health, the Honourable Tony Clement, announced today [Friday] that the Government of Canada will publish final regulations to reduce the levels of Polybrominated Diphenyl Ethers(PBDEs) that could be entering the environment. Today’s announcement is just one more example of how our the Government’s Chemicals Management Plan is taking action to protect our environment from harmful chemicals.
“Once again, when it comes to taking action on toxic chemicals, our Government is leading the way,” said Minister Baird. “Right now, we’re taking action to address all PBDEs, and today we are banning those substances that have been identified as an immediate concern to the environment” said Minister Baird.
“The Government of Canada is committed to taking action on chemical substances,” said Minister Clement. “These regulations will achieve real results by minimizing the amount of these substances in our environment.”
PBDEs are used to slow the spread of fire in a wide variety of plastics, fabrics, glues, sealants and foams. While they were not found to be harmful to human health, they are toxic to the environment because they build up and last a long time in the environment.
PBDEs are not manufactured in Canada but are imported for use in commercial and consumer products. There are three commercial mixtures that contain PBDEs: PentaBDE is used mostly in flexible polyurethane foam, which is used as cushioning in upholstered furniture, automotive seating and carpet backing; OctaBDE is used in acrylonitrile butadiene styrene (ABS) plastics as a flame retardant for computer housings, pipes, appliances and automotive parts; DecaBDE is primarily used in the high impact polystyrene component of electronic equipment housings, and is also the main commercial PBDE product used as a flame retardant in upholstery and drapery textiles.
The new regulations will prohibit the manufacture of all PBDEs and restrict the import, use and sale of PentaBDE and OctaBDE which meet the criteria for virtual elimination under the Canadian Environmental Protection Act, 1999.
The regulations are a first step in mitigating the risk posed by PBDEs in Canada. Additional actions are being developed to complement these Regulations, including: a regulation to control PBDEs already contained in manufactured products; a voluntary approach to minimize releases to the environment from the use of the DecaBDE commercial mixture in manufacturing operations in Canada; a detailed review of newly published science on DecaBDE, to determine if there is a need for further controls on the DecaBDE commercial mixture; and monitoring of Canadians’ exposure to PBDEs and concentrations in the environment.
These actions, collectively, will minimize Canadians’ exposure to PBDEs and help to ensure that Canada’s environment is protected.
For more information on the PBDEs Regulations and further actions to manage PBDEs is available here.
CN Cuts Back on Port Calls to Halifax
(Tom Peters — Chronicle Herald)
Declining container cargo at the Port of Halifax has prompted CN to cut back on the number of trains calling the Port of Halifax.
The lone rail operator into the port said Friday it will only have one train a day serving Halifax instead of two.
CN spokeswoman Julie Senecal said the decision takes effect immediately.
“CN is eliminating one train in both directions between Halifax and Central Canada,” she said. But the serving train will have adequate capacity for the cargo that is moving daily and will have space available if volumes increase, she said.
Because of the port’s declining volumes, the two trains were operating at less than half capacity.
“We will move the same footage (train length) in and out of Halifax but we will do it with one train,” Ms. Senecal said. “It will have minimal impact on transit times.”
The Halifax Port Authority released its six-month container cargo figures this week and TEUs (20-foot equivalent units) are down 16.3 per cent from the same period last year.
The port authority said there were several factors contributing to the decline: the 2007 loss of two weekly services, the high Canadian dollar, the weakening U.S. economy impacting both imports and exports, the high cost of bunker fuel and continued consolidation of international shipping lines.
Karen Oldfield, port authority president and CEO, said Friday that when it comes to rail service, the authority’s priority is its customers.
“We understand that CN has spoken directly to port customers and has advised there will be absolutely no impact or change or effect to customer service,” she said. “Our job is to be very vigilant and monitor that assurance and to make sure that the rail service is seamless.”
Ms. Oldfield said the next step will be for CN to explain to terminal operators and some key stakeholders next week how it plans to alter its service without negative impact.
She said the key to this move by CN is service and reliability “and CN is telling customers there will be no change in service and that is what we have to focus on.”
Declining container cargo at the Port of Halifax has prompted CN to cut back on the number of trains calling the Port of Halifax.
The lone rail operator into the port said Friday it will only have one train a day serving Halifax instead of two.
CN spokeswoman Julie Senecal said the decision takes effect immediately.
“CN is eliminating one train in both directions between Halifax and Central Canada,” she said. But the serving train will have adequate capacity for the cargo that is moving daily and will have space available if volumes increase, she said.
Because of the port’s declining volumes, the two trains were operating at less than half capacity.
“We will move the same footage (train length) in and out of Halifax but we will do it with one train,” Ms. Senecal said. “It will have minimal impact on transit times.”
The Halifax Port Authority released its six-month container cargo figures this week and TEUs (20-foot equivalent units) are down 16.3 per cent from the same period last year.
The port authority said there were several factors contributing to the decline: the 2007 loss of two weekly services, the high Canadian dollar, the weakening U.S. economy impacting both imports and exports, the high cost of bunker fuel and continued consolidation of international shipping lines.
Karen Oldfield, port authority president and CEO, said Friday that when it comes to rail service, the authority’s priority is its customers.
“We understand that CN has spoken directly to port customers and has advised there will be absolutely no impact or change or effect to customer service,” she said. “Our job is to be very vigilant and monitor that assurance and to make sure that the rail service is seamless.”
Ms. Oldfield said the next step will be for CN to explain to terminal operators and some key stakeholders next week how it plans to alter its service without negative impact.
She said the key to this move by CN is service and reliability “and CN is telling customers there will be no change in service and that is what we have to focus on.”
A Flame-Throwing Frenchman
(Washington Post – Editorial)
Mr. Sarkozy jeopardizes prospects at the next trade talks
The world economy could use an injection of expanded trade. But prospects for a global agreement to slash subsidies and tariffs are dim as trade ministers and other officials from 30 leading member-states of the World Trade Organization prepare for a crucial meeting in Geneva next Monday. At stake is the Doha Round of trade liberalization talks, which began with great promise in 2001 but have moved fitfully ever since. The Doha Round was conceptually sound: On the theory that trade has already lifted millions of people out of poverty around the world, its goal was for industrial countries to open their agricultural markets to the developing world in return for greater access to developing-country markets for manufactured goods and services. This objective has proven politically ambitious – it required sacrifice not only from Europe and the United States but also, as it turned out, from emerging markets such as China, India and Brazil, which are as eager to protect their booming industries as they are to sell more crops.
The latest threat to the Doha Round comes from an all-too-familiar source: France, that bastion of anti-globalization sentiment. President Nicolas Sarkozy came to office promising fresh French thinking about economics. But, temporarily doing double duty as titular head of the European Union, Mr. Sarkozy has launched a series of verbal attacks on the European Union's representative at the talks, Peter Mandelson of Britain. Mr. Sarkozy, at variance with the view of E.U. economists, has accused Mr. Mandelson of selling out Europe's workers to the tune of "100,000" lost jobs, and its farmers to the tune of a "20%" drop in production. To these off-the-cuff figures, Mr. Sarkozy has added the assertion that "in a world where there are 800 million poor people who cannot satisfy their hunger and where a kid dies every 30 seconds from hunger, I will never accept a reduction in agricultural production on the altar of global liberalism." Actually, as Mr. Mandelson's spokesman replied in a remarkable point-by-point rebuttal, the less market share the developed world's farmers take up with the help of subsidies, the more opportunities there will be, over time, for poor countries to feed themselves.
At the Group of Eight summit in Japan, Mr. Sarkozy toned down his remarks a bit, indicating that he would like to see an agreement but just doesn't think it's in the cards. This is still disappointing. Mr. Sarkozy has, to some extent, kept his promises of a shakeup in one of Europe's most statist economies – for example, by challenging the entrenched privileges of state employees. But perhaps a fight with France's farmers is one more battle than he cares to wage. If so, Mr. Sarkozy could at least keep quiet until the ministers have had a chance to look over the draft proposals their subordinates have developed with the aid of WTO officials. They are said to represent bridgeable differences among the various countries, even if the ultimate reductions in trade barriers might be modest. The Doha Round might indeed fail, as Mr. Sarkozy implies. Why he would want to share the blame is beyond us.
Mr. Sarkozy jeopardizes prospects at the next trade talks
The world economy could use an injection of expanded trade. But prospects for a global agreement to slash subsidies and tariffs are dim as trade ministers and other officials from 30 leading member-states of the World Trade Organization prepare for a crucial meeting in Geneva next Monday. At stake is the Doha Round of trade liberalization talks, which began with great promise in 2001 but have moved fitfully ever since. The Doha Round was conceptually sound: On the theory that trade has already lifted millions of people out of poverty around the world, its goal was for industrial countries to open their agricultural markets to the developing world in return for greater access to developing-country markets for manufactured goods and services. This objective has proven politically ambitious – it required sacrifice not only from Europe and the United States but also, as it turned out, from emerging markets such as China, India and Brazil, which are as eager to protect their booming industries as they are to sell more crops.
The latest threat to the Doha Round comes from an all-too-familiar source: France, that bastion of anti-globalization sentiment. President Nicolas Sarkozy came to office promising fresh French thinking about economics. But, temporarily doing double duty as titular head of the European Union, Mr. Sarkozy has launched a series of verbal attacks on the European Union's representative at the talks, Peter Mandelson of Britain. Mr. Sarkozy, at variance with the view of E.U. economists, has accused Mr. Mandelson of selling out Europe's workers to the tune of "100,000" lost jobs, and its farmers to the tune of a "20%" drop in production. To these off-the-cuff figures, Mr. Sarkozy has added the assertion that "in a world where there are 800 million poor people who cannot satisfy their hunger and where a kid dies every 30 seconds from hunger, I will never accept a reduction in agricultural production on the altar of global liberalism." Actually, as Mr. Mandelson's spokesman replied in a remarkable point-by-point rebuttal, the less market share the developed world's farmers take up with the help of subsidies, the more opportunities there will be, over time, for poor countries to feed themselves.
At the Group of Eight summit in Japan, Mr. Sarkozy toned down his remarks a bit, indicating that he would like to see an agreement but just doesn't think it's in the cards. This is still disappointing. Mr. Sarkozy has, to some extent, kept his promises of a shakeup in one of Europe's most statist economies – for example, by challenging the entrenched privileges of state employees. But perhaps a fight with France's farmers is one more battle than he cares to wage. If so, Mr. Sarkozy could at least keep quiet until the ministers have had a chance to look over the draft proposals their subordinates have developed with the aid of WTO officials. They are said to represent bridgeable differences among the various countries, even if the ultimate reductions in trade barriers might be modest. The Doha Round might indeed fail, as Mr. Sarkozy implies. Why he would want to share the blame is beyond us.
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