Thursday, February 26, 2009
Revised D-Memos
D19-5-1:
Administration of the Hazardous Products Act and Regulations
• This memorandum has been updated to accurately reflect the Canada Border Services Agency’s (CBSA) role in administering the provisions of the Hazardous Products Act.
• Terminology has been updated to reflect changes in the CBSA’s organizational structure.
• A legislative reference section has been added to identify relevant sections of the Customs Act, Canada Border Services Agency Act and Hazardous Products Act.
• The designated symbols and signal words in Appendix A have been removed and replaced with a list of Product Safety Offices.
• The hazardous products list in Appendix B has been removed and replaced with designated hazard symbols.
• Paragraph 9 has been updated to reflect the new time frames for detention of goods.
• Paragraph 11 has been updated to include new information regarding responsibility for disposal of goods.
• Information on the Radiation Emitting Devices Act and the Cosmetic Regulations has been added to paragraph 12.
• The Contact Information section has been updated.
Download the PDF here.
D15-2-43:
Certain Steel Structural Tubing Known As Hollow Structural Sections (HSS)
• This memorandum refers to the application, pursuant to section 3 of the Special Import Measures Act (SIMA), of anti-dumping duty to importations of certain steel structural tubing originating in or exported from the Republic of Korea, South Africa and Turkey.
• The memorandum is divided into 5 sections, all under "Guidelines and General Information."
• A detailed description of the goods is provided.
• The milestone dates of the investigation are provided.
• The applicable Harmonized System classification numbers are provided.
Download the PDF here.
Canada Holds Fire on New U.S. Meat Labeling Rules
Canada's agriculture minister said on Wednesday he sees no reason at this time to revive a trade challenge against the United States over its new meat labeling rules. "Right now, they've gone with what we're asking for," Gerry Ritz told reporters.
Ritz later clarified that he was concerned, however, by new voluntary labeling guidelines issued by Washington, which have been a source of confusion for industry players as they await implementation of the new rules as of March 16.
The rule requiring more explicit labels on meat sold in U.S. grocery stores initially sparked a complaint by Ottawa at the World Trade Organization because it viewed the policy as unfair to the Canadian livestock industry. Ottawa agreed in January to put that complaint on hold after Washington made the rules more flexible in the final days of the Bush administration.
However, the Obama administration gave the rule a second look and Agriculture Secretary Tom Vilsack has asked the U.S. industry to add the extra information voluntarily to labels. He warned he may rewrite the rule to enforce the changes if industry does not comply on a voluntary basis. Read more here.
Wednesday, February 25, 2009
The Evolution of Protectionism
Have the effects of cross-border trade influenced U.S. policy in favor of protectionism?
If your business is involved in the global marketplace, there’s rarely been a time so fraught with potential disaster as right now. A confluence of factors has combined to create a perfect storm that threatens to make it more difficult and more costly to move goods across borders. In essence, we’re seeing the evolution of protectionism beyond its traditional meaning to encompass a whole range of new threats.
Protectionism is of course a loaded word that carries a connotation of xenophobia or nationalism--an “us against them” mentality. Historically, it’s usually referred to the practice of erecting barriers to foreign goods or investment to promote domestic industry. Economists don’t like it because it can short-circuit the free market system, foster inefficiency and drive up prices.
This strain of protectionism has always been around and always will be. A case in point is the “buy American” provision included in the economic stimulus bill, which requires any iron or steel used in the construction projects funded by that legislation to be purchased in the U.S. Those industries have been among the most ardent in seeking to stave off imports over the years, and they’ve never lacked for political backers. That support has only grown with an economy in free-fall and a new team in the White House that thinks it has a mandate for immediate and far-reaching change. Trade policy will be a much bigger part of the effort to revitalize the economy than most people realize, and it’ll be strongly influenced by an energized and emboldened group of lawmakers and administration officials convinced that a healthy dose of enforcement will go a long way toward curing our economic ills. Read more here.
Obama: U.S. to Survive Economic “Day of Reckoning”
President Barack Obama sought to strike a delicate balance between hope and reality on Tuesday to reassure Americans mired in economic crisis that they would survive a “day of reckoning.”
Riding high in opinion polls as he delivered his first address to a joint session of Congress, Obama was careful to include a sober assessment of the grim economic situation and his efforts to fix it.
But the politician whose memoir was called “The Audacity of Hope” and who won the White House in last November’s election amid chants of “yes, we can” was also back in stride, telling recession-weary Americans they can expect better days ahead.
“While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover,” Obama, a Democrat, said in a televised speech five weeks after taking office.
“And the United States of America will emerge stronger than before,” he said to loud applause in the packed chamber. Obama was interrupted by applause more than 60 times as he addressed Congress, where Democrats control both chambers. Read the complete article here.
New Release of CFIA EDI
Please be advised that a new version of the CFIA EDI system is tentatively scheduled to rollout on March 3, 2009. The system was updated to address business requirements, and to expedite / streamline requests for release. Clients will not be required to make any changes to their existing systems as a result of these upgrades. The CFIA Import Control Division does not expect these changes to cause any interruptions of service.
IBM Releases 2009 Chief Supply Chain Officer Study: Volatile Times Demand Pervasive Visibility and Flexibility
IBM’s Global Supply Chain study, based on face-to-face interviews with nearly 400 supply chain executives in 25 countries, reveals that 70% say their number one challenge is overwhelming and fragmented data, as well as a lack of ability to make sense out of the information. However fixing this “visibility” problem is low on action plans because it is costly, difficult, silos are worse than ever and respondents say they are just too busy.
Supply chain leaders understand the threat of information blind spots, but they are only cautiously optimistic that they are taking steps to use their valuable information for real competitive advantage. Just 16% indicated that they are effective at integration and visibility of information across the supply chain with external partners.
The study shows the greatest opportunity for these executives are smart devices and integrated ERP systems that capture real time visibility: forecasts/orders, schedules/commitments, pipeline inventory, and shipment lifecycle status. Automating real-time detection with smart devices increases flexibility, speed and accuracy to promote better decision-making.
The Global Supply Chain study, titled The Smarter Supply Chain of the Future, was developed by IBM Global Business Services’ Supply Chain Management Practice in conjunction with the IBM Institute for Business Value, which develops fact-based strategic insights for senior business executives. Supply chain executives in 29 industries participated in structured interviews and candidly talked about their most serious challenges. Read more here.
Get Ready for Canadian Rule
Now that Dubai has collapsed, Canada’s looking like the next best place to weather the economic storm. “When the tidal wave comes, the question is can you still feel the ground under your feet? And we can.” That’s the view of Sandra Pupatello, Ontario’s minister of International Trade and Investment, whom I met with today in New York.
Surprisingly, Canada’s economy is outperforming the rest of the developed world. Its banks were too strictly regulated to take in the worst excesses of the subprime madness and as a result, it’s beating even Swiss banks: In fact, at the beginning of the crisis last fall, the country’s banks were rated the best capitalized in the world. While the U.S. has been tiptoeing up to the necessity of bank nationalization, Stephen Harper’s Conservative government has no problem with charges of “socialism.” They’ve put into place one of the most generous bank stimulus plans around to try to stem the credit crunch. Read more here.
Private and Public Investment 2009 (Intentions)
Investments in non-residential construction and machinery and equipment are expected to total $237.5 billion in 2009, down 6.6% from 2008. While public sector capital spending is expected to increase 9.5%, private sector investment is anticipated to fall by 13.1%, mainly due to the mining and oil and gas extraction industry. Investment intentions in the mining and oil and gas extraction sector total $44.9 billion, 26.4% less than in 2008.
Capital spending will decline primarily in Alberta and British Columbia.
Private sector investment is expected to drop 13.1% to $157.9 billion in 2009. The decrease is largely attributable to the mining and oil and gas extraction sector. If that sector had been excluded, the decline in private-sector investment would have been reduced by half.
In contrast, total public sector investment will be $79.6 billion, up 9.5% from 2008. As a result, the public sector share of total capital spending will climb from 28.6% in 2008 to 33.5% in 2009.
Charts and a link to the data files can be found here.
Harper Hits Mark With Border Security Message
It’s a message Canadian diplomats and political heavyweights doggedly repeat, but with only a brief mention, President Barack Obama granted problems at the Canada-U.S. border their moment in the sun.
During his high-profile press conference in Ottawa on Feb. 19, President Obama expressed concern over the “thickening of borders,” and called attention to the need to “eas[e] some of these bottlenecks in our border.”
“Now we’ve got very real security concerns, as does Canada, but I think that it is possible for us to balance our security concerns with an open border that continues to encourage this extraordinary trade relationship in which we have one and a half billion dollars worth of trade going back and forth every single day,” the president said.
Hot on his heels, Prime Minister Stephen Harper tried to hammer home a clear message that Canada is a committed security partner, and serious about countering terrorist threats at the border.
“Not only have we since 9/11 made significant investments in security and security along our border, the view of this government is unequivocal: threats to the United States are threats to Canada,” Mr. Harper said. “There is no such thing as a threat to the national security of the United States which does not represent a direct threat to this country.”
Broadcast live across the U.S. on networks such as CNN, this one-two punch successfully caught the attention of a few members of the White House Press Corps.
Carrie Budoff Brown, a reporter with Washington, D.C.-based Politico, said the exchange raised an issue she rarely follows.
“The president got my attention, in part because I didn’t understand that there are bridges that are very clogged, when he said we have to start thinking about clearing up the bottlenecks,” she said. “The indication was that we have to pay attention to what’s going on up there.”
Other American reporters said they felt Mr. Harper took good advantage of the opportunity to speak to Americans through the unique lens of their own media. Read more here.
Canada’s Beef Industry Calls on Ottawa to File Trade Challenge Against U.S.
Only a week after expressing hope that U.S. President Barack Obama would soften a trade rule that is already hurting Canada's ailing beef industry, worried producers say they've learned that Washington's final plan will hurt them even more.
The final U.S. Country-Of-Origin-Labelling rule, which takes effect March 16, would effectively force all American meat companies to label beef with a sticker that states where the product came from, the Canadian Cattlemen's Association said Tuesday.
Some companies have already stopped buying Canadian beef and cattle due to the extra cost of meeting an interim version of the trade rule that was introduced in September. The final rule will be even more costly and onerous, CCA President Brad Wildeman said Tuesday.
“The association is calling for the Canadian government to undertake all available actions, including an early resumption of a World Trade Organization challenge against these U.S. trade restrictive actions,” Mr. Wildeman said in a news release. Read more here.
Tuesday, February 24, 2009
Drawing a Tight Ring Around North America
Among the issues discussed by Prime Minister Harper and President Obama on Thursday were border security and the effect a tightening of our common border can have on trade for both countries. At their joint press conference, Harper stated unequivocally the Canadian government regarded any threat against the U. S. as a threat against Canada.
While such words will be encouraging to the Americans that we take seriously their concerns about security and the risk of terrorist attacks, in concrete terms what has to be done on our part to satisfy the Americans that they have no need to be unduly concerned about security threats from our side of the border?
Assessing U. S. measures taken to increase border security, it should be recognized that not all hurt legitimate movement of goods and people. Indeed, some enhance border security for both countries. The use of drone surveillance aircraft, for example, makes good sense: Both countries gain from monitoring possible illegal crossings along a border that is both long, and sparsely populated.
We have more reason to be concerned about measures that slow down cross-border traffic through official border crossings. This has already had a significant impact on trade, which, in relative terms, is much more detrimental to the Canadian economy than to that of the U. S. Read more here.
Japan Stations Food Safety Officials in Canada, Other Countries
The Japanese government has stationed 26 food safety officials at nine of its foreign diplomatic missions. The officials, mostly employees of the agriculture and health ministries, will consult with governments and relevant agencies, gather information, and inform local Japanese communities about food safety problems. In addition to the Japanese Embassy in Ottawa, officials have been stationed in the US, China, Australia, Thailand, France and Italy as well as at EU headquarters. Canada is one of Japan’s top five sources of imported food.
“Mexico, a Key Sourcing Hub for the Global Aerospace Industry” – Breakfast Presentation, March 5, 2009
(Canadian Chamber of Commerce)
The Canadian Chamber of Commerce in Mexico in partnership with The Mexican Consulate and ProMexico in Toronto is pleased to invite you to attend to this informative breakfast presentation and networking event, which highlights Mexico’s aerospace industry opportunities.
If you are among the constantly growing number of Canadian companies in the aerospace sector or related sectors such as electronic, tool making, metal mechanic and plastic, this is a must attend event. Join us for an expert panel presentation and discussion on Mexico’s aerospace industry.
Date: Thursday, March 5, 2009
Time: 8:00 a.m. – 10:30 a.m.
Location: Four Points by Sheraton Toronto Airport
6257 Airport Rd, Mississauga ON L4V 1E4
Registration online here.
U.S. COOL to Go Ahead Under Scrutiny
In a move expected to create more uncertainty for [U.S.] importers of Canadian livestock and meat, the U.S. Department of Agriculture’s final rule on country-of-origin labelling (COOL) will take effect as planned next month.
President Barack Obama’s ag secretary, Tom Vilsack, confirmed that much in a release Friday, but Vilsack also published a letter he wrote to U.S. food industry stakeholders Friday, inviting them to “voluntarily adopt” practices that may tighten COOL beyond importers’ comfort zones.
USDA, Vilsack said in a release, “will be closely reviewing industry compliance with the rule and will evaluate the practicality of the suggestions for voluntary action in my letter.”
Depending on industry’s performance after the final rule takes effect March 16, as outlined in his letter, Vilsack said he would then “carefully consider whether modifications to the (COOL) rule will be necessary to achieve the intent of Congress.”
The “suggestions” in Vilsack’s letter include:
• tighter terminology on labels, including information about what production step took place in a given country, such as “Born in Country X and Raised and Slaughtered in Country Y”;
• voluntary labelling of processed foods, for which the definitions in the final rule “may be too broadly drafted” – meaning that in Vilsack’s view, products subject to curing, smoking, steaming, grilling or broiling should include a voluntary label; and
• a tighter inventory allowance – meaning that where a ground beef package, for example, could previously bear the name a country for up to 60 days even if product from that country isn’t in inventory, that number should be voluntarily reduced to 10 days, Vilsack said, to limit the levels of product without clear COOL and to give the label more credibility.
Read more here.
Harper Stresses Importance of Trade
Prime Minister Stephen Harper swept into Manhattan for a series of high-level meetings on the economic crisis Monday, publicly promoting open trade between Canada and the United States while privately casting about for input on how best to deal with worsening financial conditions at home.
Mr. Harper, looking to extend the momentum generated by U.S. President Barack Obama’s inaugural visit to Ottawa last week, warned against the escalating protectionist rhetoric in the United States and overseas, and took pains to remind Americans that cross-border trade will play a vital role in the recovery of both countries.
However, he also insisted that the global economy will remain mired in recession until Washington figures out a way to revive its ailing banks.
“The fact of the matter is, President Obama has a massive mess on his hands – and it is essential that the United States somehow stabilize its financial sector,” he said during an interview with Fox Business News. “Because if we don’t stabilize the financial sector, in the United States and abroad, we will not turn this recession around.” Read more here.
Monday, February 23, 2009
‘Buy America’ in Stimulus (But Good Luck With That)
The “Buy America” clause in the $787 billion stimulus package signed into law on Tuesday has a certain quaintness to it. Far more than in the past, the phrase has come to mean “Buy America – if it is still made here.”
Take the $43 billion earmarked for green technology. Most of the nation’s solar panels and wind turbines are imported, mainly from Europe and Asia, and the new law waves aside Buy America restrictions if “the relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities.”
The provision will apply mainly to the nearly $150 billion that will be spent on infrastructure projects, including green technology. Supporters of the original measure hoped that all of the “iron, steel and manufactured goods” used in the various projects would be made in the United States. But the legislation signed by President Obama is full of exceptions that quiet even the fiercest critics of that original plan.
“We are not happy with any Buy America provision, but we can live with this one,” said Martin A. Regalia, chief economist for the United States Chamber of Commerce, which represents many multinational companies that have moved manufacturing offshore for products likely to be used to build or repair highways, bridges, schools, rapid-transit systems, waterways and homes.
Most of the support for a clause to protect American businesses came from small manufacturers, with operations concentrated in the United States. But even they no longer make much of the machinery and materials likely to be needed for a wave of investment.
Trade data tell the story. By late last year, 37% of all manufactured goods sold in America were imported. That was more than double the percentage in 1991, according to Commerce Department data, and nearly four times the level in 1978. Buy America had far more impact in the 1930s and in the early 1980s, two other periods in which Congress enacted similar measures with the goal of generating good jobs in manufacturing and lifting output. Read more here.
More Container Shipping Lines Announce Rate Increases
APL and CMA CGM are set to join the growing ranks of global container shipping lines seeking to push up their rates over the next few months, particularly in the Europe-Asia trade.
This month has already seen several major lines announce such plans, including Germany’s Hapag-Lloyd and Danish global operator Maersk Line.
Now, APL, a unit of Singapore-based global shipping, logistics and marine terminals group Neptune Orient Lines (NOL), has reported that it intends to implement rate increases in both the eastbound and westbound Asia-Europe container trades over the next few weeks.
“Eastbound, for traffic from Europe to Asia, effective March 15, the quantum of the increase will be up to US$175 per container for paper and scrap commodities and $100 per container for all other commodities,” stated APL. “The quantum of the freight rate increase sought on containers shipped from Asia to Europe on the westbound leg is $250 per TEU, with implementation effective April 1. Read more here (subscription required)
EDC and PROFIT Magazine Introduce Canada’s Export Achievement Awards
Export Development Canada (EDC) and PROFIT Magazine have announced the launch of their co-sponsored Canada Export Achievement Awards.
This new awards program will recognize and celebrate the export achievements of successful Canadian small-to-medium-sized enterprises (SMEs), and is intended to inspire and encourage other Canadian companies to expand internationally. The awards are also meant to identify best exporting practices that other companies can adopt in their own efforts to globalize their sales and production.
“EDC is proud to be involved in this new award that highlights the importance of international trade and investment to Canada’s current and future prosperity,” said Eric Siegel, President and CEO of EDC. “Recognizing and promoting innovation and leadership among Canadian exporters will not only benefit the winners, but will also help nurture a trade culture among all Canadian companies.”
“As a long-time supporter of Canadian entrepreneurs with the vision and skills to penetrate foreign markets, PROFIT is delighted to be a founding partner of the Canada Export Achievement Awards,” said Ian Portsmouth, Editor and Associate Publisher of PROFIT. “We believe this exciting program will demonstrate how much opportunity lies beyond our borders, and how to seize it.”
All Canadian SMEs that meet the eligibility criteria are encouraged to enter. Five winners will be selected, one from each Canadian region defined as Pacific, Prairies and the Territories, Ontario, Quebec and Atlantic Canada. The criteria for the award will focus on the company’s export activities and their relation to its overall performance, with an emphasis on innovation and creativity.
Winners will receive national media coverage in PROFIT and L’actualité magazines, in addition to other marketing and public relations opportunities. Official recognition as a Canada Export Achievement Award winner may also be used to raise the recipient’s profile with customers, investors, the media and potential employees.
The submission deadline is June 30, 2009. Companies may download an application form or learn more about the program at the export awards website.
Harper Hopes U.S. Develops a More “Pragmatic Approach” to Border Security
Prime Minister Stephen Harper says he hopes the new U.S. administration will take an approach to border security that involves much less red tape.
In an interview with CTV News on Friday, Harper said it’s too early to speculate whether U.S. President Barack Obama will try to make it easier for people and trade to cross the border.
But he says intends to eventually tell Obama that there is too much paperwork and processes that slow everything up but don’t identify real risks.
Harper called it a “gun registry” approach to border security, a reference to the former Liberal government’s move to force long gun owners to register their firearms.
Harper says there must be a more sensitive approach that properly identifies security risks while not interfering with commerce and tourism.
During the Bush administration’s term, the U.S. government imposed tougher requirements for people crossing the border. Read more here.
More Container Shipping Lines Announce Rate Increases
APL and CMA CGM are set to join the growing ranks of global container shipping lines seeking to push up their rates over the next few months, particularly in the Europe-Asia trade.
This month has already seen several major lines announce such plans, including Germany’s Hapag-Lloyd and Danish global operator Maersk Line.
Now, APL, a unit of Singapore-based global shipping, logistics and marine terminals group Neptune Orient Lines (NOL), has reported that it intends to implement rate increases in both the eastbound and westbound Asia-Europe container trades over the next few weeks.
“Eastbound, for traffic from Europe to Asia, effective March 15, the quantum of the increase will be up to US$175 per container for paper and scrap commodities and $100 per container for all other commodities,” stated APL. “The quantum of the freight rate increase sought on containers shipped from Asia to Europe on the westbound leg is $250 per TEU, with implementation effective April 1. Read more here (subscription required)