Auto Industry Protectionism Could Do More Harm Than Good: Analysts

(The Canadian Press)

Industry watchers say the Canadian Auto Workers union needs to be careful to avoid causing more damage than it corrects by pushing for a national strategy to deal with Asian and European imports.

The CAW said last week it would negotiate with the Detroit Three automakers as they seek cost savings amid a historic drop in vehicle sales, but only if certain conditions are met, including the development of what the union calls a “comprehensive national auto strategy.”

The union has argued for years that manufacturers in South Korea and Japan, among others, have an unfair advantage because they keep out North American competitors while the U.S. and Canadian markets are largely open.

CAW economist Jim Stanford said he would expect any auto strategy to address this “incredible trade imbalance.” “The imports from offshore ... took almost 30% of Canada’s market last year and there’s been a huge surge in imports from Japan, Korea and Europe, soon from China,” Stanford said in an interview.

“We do not export any significant volume of automotive products back to those countries and us trying to help out the companies, whether it’s with government assistance or cost savings from the workers, will do nothing if we allow that imbalance to carry on.”

Stanford said he believes the Canadian industry has three options in this respect: working to open trade so it can export more vehicles overseas, encouraging foreign manufacturers to invest in Canada, or imposing trade restrictions on foreign countries to protect the domestic industry. Read more here.

Import and Export Gaps Concern Auditor General

(CanWest News Service – David Akin)

Canada’s borders are poorly protected against potentially harmful pests and diseases that could harm the country’s $100-billion-a-year forestry and agriculture industries, federal Auditor General Sheila Fraser warned Thursday. “The findings of our audit are serious,” Fraser said. “The impact that an invasive species can have, either on biodiversity or on the economy of the country, are potentially very significant.”

The Canadian Food Inspection Agency (CFIA) is responsible for making sure imported plants are pest-free. Fraser said her biggest complaint about the way the agency operates is that it is still largely a paper-based organization with thousands of faxes flying back and forth across the country and among importers. “It’s not surprising that things get lost or misplaced. They don’t have good information about what is coming into the country, the results of inspections, are inspections being carried out as planned – and it goes on and on,” Fraser said.

Agriculture Minister Gerry Ritz, who is responsible to Parliament for the CFIA, said the agency must do better. “This is a problem that was identified under the previous government after years of Liberal cuts to CFIA,” Ritz said in an e-mail statement. “We are giving CFIA the tools and budget that are needed to properly fulfil their mandate.” Read more here.

Canada January Job Losses Biggest on Record

(Reuters – Louise Egan)

Canada suffered its worst job losses in over three decades in January as the recession forced employers to cut a record 129,000 workers and pushed the unemployment rate to 7.2% from 6.6% in December. The report by Statistics Canada showed the biggest monthly downturn in employment since the federal agency began using its current methodology in 1976. It also showed record job losses in the manufacturing sector.

“I can’t see one glimmer of hope in this report when we dig beneath the headlines,” said Derek Holt, economist at Scotia Capital. “The optimists are just taking body blows all over the place here,” he said.

The Canadian dollar fell immediately after the report to C$1.2506 to the U.S. dollar, or 79.96 U.S. cents, from C$1.2415, or 80.55 U.S. cents, earlier.

Read the complete article here. Summary statistics and a link to the data files are on the Statistics Canada website

Update Regarding Implementation of Lacey Act Amendments

(Canadian Embassy via IE Canada)

A notice was published in the Federal Register earlier this week with the revised implementation plan for the Lacey Act amendments. A copy of the notice is available here.

Below is a further update provided by the Canadian Embassy regarding a recent meeting with the United States Trade Representative (USTR) with respect to the revised Lacey Act implementation plan. We were asked not to distribute this update until the revised implementation plan was published.

The information provided in this update should be verified against the Federal Register notice.

Canadian Embassy Update

On Thursday, January 15, Kevin Thompson, Counsellor (Trade Policy), Canadian Embassy and a representative from the European Commission Mission in Washington (EC) met with USTR to discuss the respective comments filed by Canada and the EC to the APHIS Lacey Act Implementation Plan Federal Register Notice of October 8. We wanted to use the opportunity to underscore key points in our respective submissions and to seek additional information on the next steps in the Administration’s implementation plan for the import declaration. The following are the key points coming out the meeting:

1. APHIS anticipates issuing a revised implementation plan and schedule early next week. There will be substantial changes to the schedule as it appeared in the October 8 Notice. The USG has revised its approach to identify a positive list of products for which the declaration will be required (as opposed to an all encompassing requirement, subject to exceptions).

From what we were able to gleam, the implementation plan will be broken into three six month phases:

Phase I – April to September 30, 2009, covering
• 4401, 4403, 4404, 4407, 4408, 4409, 4417, 4418

Phase II – October 1 to March 31, 2010, covering
• 4402, 4405, 4410 to 4416, 4419, 4420 and 4701 to 4705

Phase III – April 1 to September 30, 2010
• 4421, 4801 to 4811 and 940169, 9403.03 to 9403.07

You will note the following:

• The 3 phases only apply to wood and wood products. Chapter 44 is divided into Phase I and II.

• Chapter 6 has been dropped off the implementation schedule (will not apply to horticultural plants or Christmas Trees)

• the implementation plan takes the USG to the end of the 2 year period before which a review can taken place under the legislation. Thus, product categories not on this list will likely not be subject to import declaration before the completion of the review. USG intends to conduct studies of whether to include other products beyond what is identified in this revised schedule.

• Chap 4706 and 4707 will not be included because this encompasses recovered (waste and scrap) material. Intention is not to collect information if the answer is already known.

• Import Declaration will only be required for the good that is being imported and that is identified on the implementation schedule (for instance, it will not be required for any manuals or labels that accompany the good being imported).

2. Phase I of the schedule is fixed. However, USG will be eliciting comments on Phases II and III. The USG encourages comments on an ongoing basis describing the process as very fluid.

3. In terms of the electronic entry system, CBP is currently working on modifications to the Automated Commercial System (ACS). Thus, in order to avoid duplication of information, the intention is not to have a completely separate system, but to integrate additional information requirements into existing ACS environment.

4. Ideally, USG would like to have electronic system operational for several weeks (possibly a month) before the declaration requirement becomes enforceable, to enable trade to practice. That’s the plan, although it may not be realistic.

5. Paper Declarations – no declarations have been filed to date. Apparently, APHIS has set up a mailbox for imports to send voluntary declarations.

6. Time of submission – the rules for when the import declaration will have to be submitted will likely be the same as existing rules for other types of customs documentation (time of entry, time of release)

7. Import declaration information will likely be governed by same confidentiality requirements as other types of customs documentation. However, it is anticipated that some form of aggregate information will be publicly released (ENGOs are pushing for this)

8. Database of internationally recognized scientific names. Currently, CBP is contemplating a drop-down menu for specifying scientific names.

9. Use of commercial short-form nomenclature (e.g. SPF). Unlikely at this stage. Statute requires genus and species.

10. Blanket or Simplified Declaration – Discussions are underway regarding the use of a simplified declaration such as that suggested by Canada. However, it appears unlikely that they will be able to implement by April 1. USTR would welcome any additional suggestions we would have to operationalize the simplified declaration.

11. Wood Packaging – Chapter 4415. USTR encourages us to raise this issue again in order to highlight difficulties.

Trade Issues 2009: A Roundup

(Tom Travis — Entrepreneur.com)

With a new administration, there’s sure to be more changes to U.S. trade policy. Here are eight areas you should be paying particular attention to.

With President Barack Obama’s administration now in place, there will be inevitable changes to U.S. trade policy. While we don’t know the exact scope of these changes, it’s clear the U.S. trade agenda will increasingly focus on the growing responsibilities of all players in the global supply chain. Longstanding concerns such as trade enforcement, food and product safety, labor rights, environmental issues, transfer pricing, and cargo security are expected to see close scrutiny.

Importers, exporters, customs brokers, retailers, transportation and logistics companies — everyone involved in international trade — should get ready now by paying particular attention to the following issues… FTAs/preference programs; Product safety; Food safety; Trade remedies; Intellectual property rights (IPR); Corruption; Transfer pricing; and Exports.

Read the complete article here. More information about the advisory services of Sandler, Travis & Rosenberg, P.A. (ST&R) can be found here.

Derek Burney and Fen Osler Hampson: A Four-Point Plan to Save Free Trade with the U.S.

(The National Post)

No one should be surprised that Washington’s US$819-billion stimulus package, which was approved by the House of Representatives and is now before the Senate, contains “Buy America” provisions — notably for steel. This is the way the United States often reacts to economic downturns.

According to the current version of the legislation, “None of the funds appropriated or otherwise made available by this act may be used for a project for the construction, alteration, maintenance or repair of a public building or public work unless all of the iron and steel used in the project is produced in the United States.” In all the euphoria in Canada about President Barack Obama’s election, many may have forgotten that his Congressional allies include several of the most protectionist elements in the U.S. They are now calling in their chits. The new President and his more balanced administration appointees will be tested severely in the weeks ahead — trying to navigate between short-term political pressures and long-term national interest.

What should Canada do in the current circumstances? Our view is that the best defence in this situation is a good offence, based on principled and skillful diplomacy. Read the complete article here.

U.S. Pledge Leaves Canada Exposed

(Barrie McKenna — Globe & Mail)

Amended Buy American clause fails to offer blanket exemption Ottawa seeks

A pledge by the United States to honour its trade commitments would still leave Canada dangerously exposed to Buy American restrictions in the massive economic-stimulus package.

An amended Buy American clause included in the stimulus bill being debated by the U.S. Senate is a step in the right direction, but it’s a long way from the blanket exemption for Canadian products sought by Ottawa, according to trade experts and key exporters.

The Senate had been expected to vote on the bill last night but stopped work on it without completing its negotiations.

In Williamsburg, Va., President Barack Obama, speaking to Democrats at a retreat, predicted that if the bill does not go forward quickly, “an economy that is already in crisis will be faced with catastrophe.”

Warning against continued “gamesmanship” in debate on the bill, he said that no one would get everything they wanted, but that the legislation should move forward because it is in the interests of the American people.

He did not directly address the Buy American restrictions that have worried Canada.

“It leaves a wide hole for favouring U.S.-made steel and other goods over Canadian products,” Toronto trade lawyer Lawrence Herman argued. “[There’s] absolutely no guarantee that, in specific cases, the preference won’t apply to the detriment of Canadian exports.”

Canadian steel fabricators, who make everything from bridge trusses to building frames, warned that the altered language would protect only direct U.S.-government spending when the bulk of federally funded infrastructure is done by states and cities. Read more here.

Harper, Calderon Agree to Oppose U.S. Trade Threat

(Toronto Star)

Canada and Mexico have most to lose from protectionist measures

Prime Minister Stephen Harper and Mexican President Felipe Calderon have agreed to stand shoulder-to-shoulder in opposition to the protectionist threat posed by the United States, their mutual trading partner.

Harper, who is pulling out all the stops in a campaign to head off “Buy American” provisions in President Barack Obama’s massive stimulus package, telephoned Calderon to discuss economic issues, the Prime Minister’s Office said yesterday.

Speaking as American legislators rushed to hammer out the details of the $800-billion-plus (U.S.) economic recovery plan, the two leaders on Wednesday “stressed the importance of resisting protectionist efforts” that have emerged in the United States and other countries.

As partners with the United States in the North American Free Trade Agreement (NAFTA), Canada and Mexico have more to lose than other nations from the protectionist measures. The economic stimulus package, if passed by Congress, would bar foreign-made goods and equipment from being used in public works projects financed with the $800 billion.

Responding to Obama’s plea to avoid starting a global trade war, senators voted late Wednesday to water down the wording in the Senate’s version of the legislation.

The federal Conservatives welcomed the Senate move as a step in the right direction. International Trade Minister Stockwell Day called it a triumph of Canadian diplomacy and further proof Ottawa will work well with Obama. Read more here.

Trade-offs

(Andrew Steele — The Globe and Mail)

There should only be three issues on Stephen Harper’s agenda when Barack Obama visits next week: trade, trade and trade. Protectionism is always a major threat to prosperity during an economic downturn.

The famous story of the Smoot-Hawley Act spurring on the Great Depression got a lot of play during the 1993-94 debates about NAFTA, and began another round of rotation with this current economic downturn.

What a lot of Canadians forget about the infamous protectionist tariffs in the bill was that Canada actually raised tariffs preemptively, a full month before the bill had even passed. Our trade barriers started on about 30% of U.S. exports to Canada, and after a new Conservative administration was elected in the days following the bill, that was raised to cover more than 75% of U.S. exports. At the same time, the Bennett Tories sought preferential treatment from Britain and the Empire, a bit of a ridiculous move considering the relative proximity of - say - British Columbia to Bellingham, Washington versus Birmingham, England or Bombay, India. Read more here.

Related: Obama needs more Canada.

Western Premiers Push Positive Trade Message to U.S. Audiences

(Canadian Press)

Prairie premiers were pushing a positive message of the benefits of cross-border trade to audiences in Texas.

Saskatchewan’s Brad Wall, Alberta’s Ed Stelmach and Manitoba Premier Gary Doer were in Texas on Wednesday, the second day of a trade mission to the U.S.

The trip coincided with a debate in Washington about two ``Buy American’’ provisions tacked on to the U.S. economic stimulus package.

President Barack Obama’s bid on Tuesday to soften the protectionist language economic stimulus package appears to have worked.

Late Wednesday, the U.S. Senate included a requirement in the stimulus package that international trade agreements must not be violated as a result of the “Buy American’’ provision.

The Prairie premiers, along with the Harper government, had raised the alarm about such measures.

Doer said Obama’s comments were helpful.

“Protectionist measures are just not the way to go,’’ Doer said Wednesday from Houston.

Wall said he’ll keep pushing trade as beneficial for both countries until it’s clear that the protectionism measures are going to be dropped. Read more here.

The Deflation Debate: Myth and Reality

(Peter Hall — Export Development Canada)

Concern about deflation is gathering momentum. The dreaded ‘d’ word surfaced last fall, and is now a regular in business news. It has even crept into emerging market analysis, unimaginable just weeks ago. Are we really on a deflation precipice, or is this just headline-grabbing alarmism?

Recent data are fuelling the deflation debate. Price growth is getting razor-thin in the world’s major economies, and in some cases annual consumer price increases are negative. Moreover, consumer price growth has stalled almost overnight. Recall that just six months ago, central banks the world over were fretting about runaway prices. On the surface, things look pretty grim.

From this perspective, things will only worsen in the coming months. Take Canada, for example, where CPI growth fell from 3.5% last August to just 1.2% in December. The recent monthly movements that have reduced yearly growth so rapidly virtually assure that we will see outright declines in CPI for quite a few months in the middle of this year. This will occur whether monthly growth is in line with the Bank of Canada’s inflation target or not. At that time those who heralded deflation’s imminence will likely proclaim its arrival with much fanfare. Are they right?

Whether or not they are right, they’ll have lots of company. The same phenomenon is already suppressing headline prices in most large nations, sparking the same debate. Eurozone price growth, at 4% in July, is now 1.6% and falling. UK CPI growth was 5.2% in September, and is now 3.1%. US CPI growth has tumbled even more dramatically, from 5.5% in July to -0.1% in December. In each case, the negatives are bound to deepen in the coming months. Anecdotal evidence suggests that even emerging markets won’t dodge the drop. But is it actually deflation? Read more here.

Minister Day Launches Campaign to Help Canadian Business Expand Abroad

(Foreign Affairs and International Trade Canada)

The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today launched the annual advertising campaign for the Canadian Trade Commissioner Service while delivering a speech at the Toronto Board of Trade. The two-month campaign includes billboards in nine airports across Canada, web advertising and ads in select Canadian business magazines and newspapers.

“Our economic prosperity depends on opening doors for Canadian businesses so they can reach out to global opportunities and create jobs. We also rely on the will of our trading partners to open doors to us,” said Minister Day. “Our government has taken a number of important steps to open these doors, such as through free trade agreements. We have legislation to implement an agreement with the European Free Trade Association moving through Parliament right now and new ones on the horizon with countries in Asia and the Americas. We are also strongly focused on the European Union. The new advertising campaign will help us tell Canadian businesses how trade commissioners can assist them in making crucial global connections.”

The Trade Commissioner Service is expanding quickly. Just last year, the Government of Canada announced that it will open new trade offices and satellite offices at home and abroad as part of the Global Commerce Strategy. Since then, domestic satellite offices have opened in Windsor, the Waterloo region, Ottawa, Quebec City and Victoria.

“These new trade offices play a critical role in ensuring that all Canadian businesses, no matter where they are, have access to the global network of highly skilled trade commissioners,” explained Minister Day.

“The Trade Commissioner Service is an invaluable tool for Canadian business,” said Carol Wilding, President and Chief Executive Officer of the Toronto Board of Trade. “Our members do business all over the world and benefit from the services provided by trade commissioners in a variety of markets.”

“The trade commissioner assured us that it is possible to make it; there are mechanisms in place and a knowledge base to effectively enter new markets. To know that my country is behind me in making these business developments is incredible,” said Geoff Schimmel, Chief Executive Officer of Loyalist Forest Products.

Trade commissioners help Canadian companies and organizations do business through four key services: preparing them for entry into international markets, assessing market potential, finding qualified contacts and resolving problems.With more than 115 years of experience, the Trade Commissioner Service currently maintains offices in 150 cities abroad and 17 regional offices across Canada.

WTO Top Court Again Condemns U.S. Dumping Measure

(Reuters)

The World Trade Organisation’s top court backed the European Union on Wednesday in its challenge of a U.S. method for dealing with unfairly priced imports, confirming a series of previous rulings.

The European Union launched the appeal even though it won the original case in October, because the original panel refused to rule on some instances challenged by Brussels. The United States subsequently also appealed.

The case had attracted attention as an example of a growing rift between the WTO’s dispute panels and its Appellate Body over the extent to which zeroing can be permitted under international trade rules.

And with the economic crisis fuelling fears of protectionism which could deepen the world’s recession, trade remedies such as anti-dumping measures to tackle cheap imports are coming under added scrutiny by both governments and trade lawyers.

In a 166-page report, the Appellate Body overturned many reservations of the original dispute panel, and recommended that the United States bring the measures into line with trade law. Read more here.

Lawmakers Push for Food Safety Reforms

(Associated Press)

Lawmakers vowed Wednesday to press for stronger food safety laws and more money for inspections as the list of recalled peanut products surpassed 1,000 in an ongoing national salmonella outbreak.

“There is an openness to putting together the strongest legislation possible,” said Rep. Rosa DeLauro, D-Conn., who introduced a bill to reorganize federal food safety enforcement and make it more accountable.

Meanwhile, the number of recalled peanut products approached 1,100 in what independent experts said appears to be a record for foods consumed by humans.

The 2007 recall of melamine-tainted pet food eventually grew to 1,179 products but “this is human food,” said Caroline Smith DeWaal, food safety director for the Center for Science in the Public Interest. “I’m certainly not aware of any recall where so many individual branded products had to be called back, which makes it really complicated for consumers.”

The salmonella outbreak has sickened at least 550 people, eight of whom have died. A Georgia peanut-processing plant that produces just 1 percent of U.S. peanut products is being blamed. Authorities say Peanut Corp. of America shipped peanut butter, paste and other products that had tested positive for salmonella. The company denies any wrongdoing. Read more here.

Canada Making Headway in Battle Against ‘Buy American’ Plan: Day

(Virginia Galt — Globe & Mail)

Canada has made “great headway” in its bid to win relief from the Buy American initiative in the United States, International Trade Minister Stockwell Day said Thursday.

“It’s not finished yet ...we are keeping on this full-court press, 24/7 to work with our American counterparts to see this through to what we hope will be a successful conclusion,” Mr. Day said in a speech to the Toronto Board of Trade.

Mr. Day was commenting on the move by the U.S. Senate to water down controversial protectionist proposals that had threatened to ignite a cross-border trade war.

The multi-billion-dollar stimulus package now includes a requirement that the U.S. not violate its international trade agreements.

“The developments we have seen over the last week show the power of diplomacy ... That’s what we have put to the test,” Mr. Day said.

The damage to Canada’s economy would have been enormous if the Buy American provision of the stimulus package had not been amended, Mr. Day said, adding that Canadian firms export more than $11-billion worth of steel and iron products to the U..S. each year.

“I’m not saying it’s over …we still want to fully understand all the implications. So there’s still work to do, but progress has been very positive. First the [U.S.] president’s remarks and then the actual amendment shows that we are getting through,” Mr. Day said at a later news conference. Read more here.

‘Buy American’ Bill Eased

(Toronto Star)

Prodded by Barack Obama and his former rival John McCain, the U.S. Senate last night took the air out of the “Buy American” bubble, easing fears of a trade war in the president’s first month in power.

Senators in a voice vote agreed to change a protectionist provision inserted into the U.S. government’s economic stimulus bill with the addition of a crucial clause – that the bill be “applied in a manner consistent with U.S. obligations under international agreements.”

The wording approved by the Senate appears to go a long way to meet the concerns of the Canadian government, which has argued that the United States should not enact laws that contravene its commitments to liberalized trading regimes under the World Trade Organization and the North American Free Trade Agreement.

Analysts said the amendment should restore calm in Canada, Europe and elsewhere in the orbit of American trade relations, where nerves had frayed amid concerns the world’s largest economy was turning inward under the duress of a global downturn. Canadian government officials could not be reached for comment.

“Canadians should be able to take a deep breath. But this should not give us a false sense of confidence in the road ahead,” said Paul Frazer, a former Canadian diplomat and Washington consultant. Read more here.

Davos Annual Meeting 2009 - The Fight Against Protectionism

(World Economic Forum)



Foreign investment restrictions, energy nationalism and financial bailouts are all cited as new omens of protectionism as the global downturn deepens.

Related: Trade Diagnosis Clear, Solution Waits

Carriers Assess Cleaning Container Charges

(CIFFA e-Bulletin)

Recently CIFFA was advised that an ocean carrier terminal assessed container cleaning charges to a trucker on an empty import container. The fee for the cleaning in this instance amounted to $450.00. Evidence as to what prompted the cleaning requirement was pictures that showed little indication of anything to be removed from the container, however as the cleaning requirement was only identified upon the container being made available to another trucker for an export move (kudos to that trucker for exercising his due diligence in inspecting the box prior to accepting it) the additional terminal costs added to the cleaning cost significantly.

There is no question that it is a requirement that importers ensure that containers are clean upon return to the ocean carrier and in reality they are ultimately liable for any expenses assessed for cleaning the container should they fail to do so. Truckers are being held ransom for these charges even though they really have no legal tie between themselves and the contract of carriage representing the transportation between the carrier and the customer. They do however, as a result of the interchange agreements signed by them with the marine carrier, assume this responsibility, some apparently unknowingly.

What should be of greater concern is the fact that no container should be accepted by the terminal or receiving depot, unclean. In fact these containers should be refused by the terminal and the trucker instructed to return them to the importer for cleaning. One obvious reason for this would be if in fact the goods that had been contained in the container were in any way dangerous and were part of the problem, (leakage, spill etc.). The empty container would have or should have had any DG labels/placards removed so there would be no indication as to the nature of the goods that had been contained therein. We understand however that the delays this was creating influenced the decision to no longer perform this function upon return of the empty.

CBP Testing Program to Police Bond Insufficiency Statuses

(CSCB)

The following is excerpted from a news release from the National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA).

Under current policy, CBP’s Revenue Division renders continuous bonds insufficient for a variety of reasons. When rendered insufficient, entries are not accepted against that bond. The bond insufficiency status is only discovered when an entry is transmitted using the insufficient bond and the entry is not accepted with an “insufficient bond” message.

This methodology creates a sudden and unexpected disruption to import clearances. Depending on the reason for the insufficiency, an importer may be without a continuous bond for days, requiring the use of single transaction bonds to continue importing until the sufficiency problem is sorted out. Delays in entry processing, additional costs and exposure due to the use of single entry bonds, and storage charges are often the result.

The Revenue Division has set up a test program to help resolve the problem. The Bond Team will post information on continuous bonds scheduled to be rendered insufficient to surety accounts in ACE on the surety’s Business Activity Log (BAL). The posting will give the trade at least ten (10) business days to resolve issues before the bond is rendered insufficient. The BAL posting will explain why the bond may be subject to being rendered insufficient.

[NCBFAA] members should contact their surety bond providers to request that they be notified immediately when the surety receives a posting for a bond that they have placed. Brokers and sureties should review their processes to make sure that the Revenue Division receives a timely reply.

The Revenue Division will accept responses directly from brokers or brokers may elect to work through their surety representatives. The Bond Team has asked that brokers also copy the surety in their responses to the Revenue Division so that the surety does not duplicate the responses. This will also help the surety track responses. Our members should review the instructions on the CBP website for address corrections for this test.

The test will begin on February 3, 2009. The Revenue Division will not commit to permanently adopting this process unless this test yields significant results and a substantial majority of these problems are corrected timely. It is important that [NCBFAA] members participate and respond timely to have this test advance to a regular program and resolve a major problem.

Day Only “Slightly Encouraged” After U.S. Meeting

(CTV News)

International Trade Minister Stockwell Day is only “slightly encouraged” after meeting with his U.S. counterpart to talk about a “Buy American” proposal that could cripple cross-border trade.

Day met with U.S. economic envoy Peter Allgeier at the World Economic Forum in Davos, Switzerland on the weekend.

They discussed a proposed amendment to the US$880 billion stimulus bill that could, in part, keep Canadian steel products out of the U.S.

Day believes the move violates the terms of the North American Free Trade Agreement. He said he made Canada’s position clear to Allgeier, but came away from the meeting with little more than a hint of reassurance that Canada would be exempted from the measure.

“I was slightly encouraged — and I say slightly because it’s a very serious issue with no guarantees that we will come out with what we want here,” Day told CTV’s Canada AM.

“He said he had been following closely our position, he had been following what the prime minister said last week in the House of Commons and he’d been following what I have been saying.”

Day said U.S. President Barack Obama’s administration appears to be taking the issue seriously, but is making no promises that the end result will be in Canada’s favour. Read more here.