Advancing Our Economic Ties with China: Three Priorities for Canadian Business

(Digital Journal – Canada Newswire)

In a report released last week, the Canadian Chamber of Commerce argues that Canada-China ties are quickly becoming one of Canada’s most important external relationships. Today, more than ever, what happens in China represents both a challenge and an opportunity for Canadian businesses.

“There is a clear need for more and better Canada-China trade,” said Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “Of course, there are barriers in both countries that must be removed in order to open access to the tremendous opportunities ahead and build a partnership of shared growth and prosperity, but we cannot let these stop us from realizing the full benefits of the relationship.”

In the report entitled: Advancing Our Economic Ties With China: Three priorities for Canadian business, the Chamber presents three elements to making Canada’s relationship with China more profitable: implementing a strategy of political engagement with China; removing barriers and irritants to more trade and better trade with China; and, improving the investment relationship with China.

There are opportunities for Canadian businesses to provide China with the goods and services it requires to sustain its own development. These include energy, raw materials, food, financial and engineering services, aerospace and transportation, and higher education. There are also opportunities to plug into value chains – to provide expertise and business services to multinationals involved in trade and investment between China and the United States, China and India, China and Brazil, and so forth. Then, there are untapped opportunities to broaden Canada’s investment relationship with China by loosening certain restrictions on capital flows.

If Canadian businesses improve their productivity and innovation, if governments continue removing barriers to competitiveness in Canada and if the global competitive playing field is better levelled, Canada will prosper in its exchanges with China and the rest of Asia. The full report can be found here

Michigan to Build Ambassador Bridge Ramp Within Months

(Journal of Commerce Online – R.G.Edmonson)

Latest development in battle between MDOT, bridge owner

The Michigan Department of Transportation said it will build an off-ramp connecting the Ambassador Bridge, the busiest U.S.-Canada crossing, to two interstate highways within the next few months.

MDOT received the federal go-ahead after Detroit International Bridge Co., the owner of the bridge, deeded the property to the department. MDOT and DIBC have battled over who should have to build the bridge for two years, with the fight most recently leading to the brief jailing of bridge owner, Manuel “Matty” Moroun. Read more here.

WEF Davos: Governments And Business Must Collaborate To Reduce Supply Chain Risk

(Transport Intelligence – John Manners-Bell)

At the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, the issue of supply chain risk took a high profile, with senior government figures and industry leaders seeking to develop ways in which economic damage caused by disrupted supply chains could be mitigated.

As part of the initiative, a new report was launched at the event. The report, New Models for Addressing Supply Chain and Transport Risks produced in collaboration with Accenture, highlighted the urgent need to review risk management practices. Read more here.

News from Thompson Ahern: Weekly Updates

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending January 27, 2011 is now available on our website here.

EU Trade Deal Expected by Summer

(Embassy – Sneh Duggal)

No date for the summit yet: EU official; partnership agreement also in works

Relatively few issues remain within the Canada-European free trade talks, and officials expect the deal to be completed by the summer, European representatives say.

“The negotiations are still going on, but they are really getting down to details that need to be solved, and simply going on with a very good dynamic,” said Tomás Dupla del Moral, director for the Americas for the European External Action Service, during a visit to Ottawa last week.

There has been widespread speculation on when the deal will be completed, with some reports saying that it could be finished by February or March.

“There is a joint [will], together with the Canadians, to wrap this up this year, ideally before the summer break, but not weeks,” said Matthias Brinkmann, ambassador of the EU to Canada. Read more here.

Leak Offers Hints on Canada-Europe Trade Negotiations

(CBC News – The Canadian Press)

Negotiating position from October suggests exemptions for agriculture, telecommunications

Leaked documents suggest Canada is seeking to carve out telecommunications and agriculture from any new trade agreement with the European Union.  But there is no exemption for water services, a sore point with critics of the negotiations with the world’s richest market.

Trade Minister Ed Fast has called a European trade, services and investment pact one of the Conservative government’s top priorities, arguing it will spur about $12 billion in additional economic activity.  The government has said it wants to reach a deal this year with the 27 nations of the EU, and negotiations are set to resume again later this month.

But little is known about what has gone on behind closed doors since talks began in 2009. Read more here.

Trade Stats Speak Volumes

(Export Development Canada – Peter G. Hall)

Data is normally the analyst’s best friend. Add a dollop of volatility, and it can fast become a foe. Data’s wacky wanderings of late have foiled many a forecast and contributed to an exaggerated, widespread sense of unease. International trade data were no exception, volatile right through the end of 2011. Do they give any hints of where global trade activity is headed this year?

Price movements are part of the turbulence. Although they matter deeply, prices can distort the real flows of goods and services that are occurring. Net of price fluctuations, the latest trade activity compared with the same point last year is still generally robust worldwide, with the exception of Europe. Cumulative numbers for 2011 compared with 2010 are far more impressive, up 6.2% with Central and Eastern Europe, Asia and the US leading the charge. So far, so good.

Given this picture, what do we make of scary press reports and the global fear-factor? Recent worries are in part a reaction to recent figures. Data toward year-end soured considerably, down 3.8% at annual rates in the final quarter, with one month of data pending. This is a significant setback, and has all but snuffed out export momentum heading into the New Year. Built-in growth heading in to 2012 is just 0.3%, compared with 3.9% at the same time last year. Troubling indeed. Read more here.

Benefits of Border Deal Will Be Felt Soon, U.S. Envoy Says

(The Vancouver Sun – Mark Kennedy, Postmedia News)

Canadians will start feeling the benefits this year of a new Canada-U.S border deal designed to better guard against terrorism and speed up cross-border traffic, says a senior U.S. official.  The prediction was made Monday in an interview with Postmedia News by David Heyman, assistant secretary for policy at the U.S. Department of Homeland Security.

Heyman was in Ottawa meeting with Canadian officials and others to discuss Canada-U.S. issues — notably the Beyond the Border action plan announced in December by Prime Minister Stephen Harper and U.S. President Barack Obama.  The much-touted border-security deal came 10 months after both leaders launched negotiations to strike an accord. The result of those talks is an “action plan” that maps out a plan to adopt a joint “perimeter security” approach to protecting the border.

The reforms — many of them involving pilot projects that might not see full implementation for years — aim to integrate programs for Canada-U.S. security and to streamline the flow of goods between the two countries through pre-inspection and pre-clearance.  The success of the new strategy will hinge on the results of the pilot projects that are rolled out over the next two years, and the action plan also concedes that progress on many initiatives will depend on “the availability of funding.” Read more here.