(Winnipeg Free Press – Julian Beltrame, The Canadian Press)
The federal government has extended a $1-billion lifeline to Canada’s struggling pulp and paper industry in an effort to match billions of dollars in subsidies available to U.S. rivals. But the irony is that the effort may have the effect of touching off another costly and protracted trade fight with the United States over whether Canada is unfairly subsidizing its forestry industry.
The government’s announcement Wednesday was quickly followed by a release from the notoriously litigious U.S. Coalition for Fair Lumber Imports, which labelled the program an unfair subsidy. “To the extent that the subsidy goes to corporate groups that produce softwood lumber, this likely constitutes a violation of the U.S.-Canada Softwood Lumber Agreement,” said the group’s chairman Steve Swanson in a release.
Trade Minister Stockwell Day said the Canadian program is designed to level the playing field with the U.S., adding that the government has sought legal advice to ensure it does not contravene the agreement. “I would suggest anyone on the U.S. side who thinks this is not compliant with (the softwood agreement) needs to look in the mirror,” he told reporters late Wednesday. Read more here.
June 19, 2009
N. America’s Empty Ports to Get Busier as Year Ends – Analyst
(Wall Street Journal – Laura Mandaro)
The sharp drop in container volume at North America’s largest ports is likely to moderate toward year-end as consumer demand picks up for boxed goods like TV sets and sneakers, says a forecasting firm. IHS Global Insight, which estimates the volume of inbound container shipments at about a dozen U.S. and Canadian ports, expects volumes to fall at a slower pace as the year winds down and to even flatten.
“By the fourth quarter there will be signs of a turnaround. We will have stopped declining in terms of volume,” said Paul Bingham, managing director in global commerce and transportation at IHS Global Insight.
Supporting forecasts for a recovery is the recent improvement in consumer sentiment surveys that suggest households will buy more of the manufactured goods that Asia exports to the U.S. and Canada on large ocean-going ships, he said. Read more here.
The sharp drop in container volume at North America’s largest ports is likely to moderate toward year-end as consumer demand picks up for boxed goods like TV sets and sneakers, says a forecasting firm. IHS Global Insight, which estimates the volume of inbound container shipments at about a dozen U.S. and Canadian ports, expects volumes to fall at a slower pace as the year winds down and to even flatten.
“By the fourth quarter there will be signs of a turnaround. We will have stopped declining in terms of volume,” said Paul Bingham, managing director in global commerce and transportation at IHS Global Insight.
Supporting forecasts for a recovery is the recent improvement in consumer sentiment surveys that suggest households will buy more of the manufactured goods that Asia exports to the U.S. and Canada on large ocean-going ships, he said. Read more here.
Trade Agreement with Peru Opens Doors to Latin America
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today [Thursday] announced that legislation to implement Canada’s free trade agreement with Peru has been adopted by Parliament and received Royal Assent. This agreement will provide benefits to Canadian companies by eliminating tariffs on goods, promoting two-way investment and expanding access for Canadian companies in this key market.
“Ensuring free and open trade is vital to the international effort against the global recession. Canadians can count on our government to oppose protectionism and defend free and open trade on the world stage,” said Minister Day. “This agreement with Peru will provide opportunities for Canadian companies looking to expand their business into Latin America. It will open new doors in key sectors such as extractive industries, manufacturing, agriculture and financial services – all areas in which Canadians have extensive expertise.”
Canadian producers will benefit from the elimination of tariffs on exports into Peru. Many agricultural exports such as wheat, barley, lentils and peas will enjoy immediate duty-free access.
The legislation also involves parallel agreements on labour cooperation and the environment. The labour agreement commits Canada and Peru to respecting and enforcing standards such as the elimination of child and forced labour, freedom of association and the right to bargain collectively. The environmental provisions commit both countries to pursuing high levels of environmental protection, enforcing and maintaining their domestic environmental laws, and not relaxing these laws to encourage trade and investment.
“These agreements will help increase prosperity, help provide better working conditions, and improve environmental management,” said Minister Day. “We recognize the progress made so far, and we will continue to engage Peru on these issues. This is another example of the government’s commitment to strengthening our relationships in Latin America.”
The Government of Canada is working to implement all three agreements as early as July 1, 2009.
For more detailed information, and for the complete text of the agreements between Canada and Peru, please visit the International Trade Canada website.
Related: Peruvian’s Protecting the Amazon Attacked (Pacific Free Press)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today [Thursday] announced that legislation to implement Canada’s free trade agreement with Peru has been adopted by Parliament and received Royal Assent. This agreement will provide benefits to Canadian companies by eliminating tariffs on goods, promoting two-way investment and expanding access for Canadian companies in this key market.
“Ensuring free and open trade is vital to the international effort against the global recession. Canadians can count on our government to oppose protectionism and defend free and open trade on the world stage,” said Minister Day. “This agreement with Peru will provide opportunities for Canadian companies looking to expand their business into Latin America. It will open new doors in key sectors such as extractive industries, manufacturing, agriculture and financial services – all areas in which Canadians have extensive expertise.”
Canadian producers will benefit from the elimination of tariffs on exports into Peru. Many agricultural exports such as wheat, barley, lentils and peas will enjoy immediate duty-free access.
The legislation also involves parallel agreements on labour cooperation and the environment. The labour agreement commits Canada and Peru to respecting and enforcing standards such as the elimination of child and forced labour, freedom of association and the right to bargain collectively. The environmental provisions commit both countries to pursuing high levels of environmental protection, enforcing and maintaining their domestic environmental laws, and not relaxing these laws to encourage trade and investment.
“These agreements will help increase prosperity, help provide better working conditions, and improve environmental management,” said Minister Day. “We recognize the progress made so far, and we will continue to engage Peru on these issues. This is another example of the government’s commitment to strengthening our relationships in Latin America.”
The Government of Canada is working to implement all three agreements as early as July 1, 2009.
For more detailed information, and for the complete text of the agreements between Canada and Peru, please visit the International Trade Canada website.
Related: Peruvian’s Protecting the Amazon Attacked (Pacific Free Press)
Manufacturers Say 10+2 Costs $20 Billion
(Journal of Commerce Online – Alan Field)
Manufacturers say operations, delays to double cost of tariffs
U.S. Customs and Border Protection’s Importer Security Filing rule will impose an annual cost of more than $20 billion on the U.S. economy, according to a study by a manufacturers’ group. The “10+2” rule will require manufacturers and other importers to provide expensive new data to the government, says a report by the Customs and Border Coalition, a group launched by the National Association of Manufacturers in December.
Based on a survey of companies accounting for nearly 60% of seaborne manufactured imports, the survey corroborates an earlier report issued by the NAM, said NAM President John Engler. “The potential impact of this rule is huge,” Engler said. “To put the cost in perspective, it is virtually the equivalent of doubling the import tariffs that manufacturers now pay to bring products and components into the United States.” Read more here.
Manufacturers say operations, delays to double cost of tariffs
U.S. Customs and Border Protection’s Importer Security Filing rule will impose an annual cost of more than $20 billion on the U.S. economy, according to a study by a manufacturers’ group. The “10+2” rule will require manufacturers and other importers to provide expensive new data to the government, says a report by the Customs and Border Coalition, a group launched by the National Association of Manufacturers in December.
Based on a survey of companies accounting for nearly 60% of seaborne manufactured imports, the survey corroborates an earlier report issued by the NAM, said NAM President John Engler. “The potential impact of this rule is huge,” Engler said. “To put the cost in perspective, it is virtually the equivalent of doubling the import tariffs that manufacturers now pay to bring products and components into the United States.” Read more here.
June 18, 2009
Beijing Orders ‘Buy China’ for Stimulus Projects
(The Associated Press – Joe McDonald)
China has imposed a requirement for its stimulus projects to use domestically made goods – a move that could strain ties with trading partners after Beijing criticized Washington’s “Buy American” stimulus provisions.
Projects must obtain official permission to use imported goods, said an order issued by China’s main planning agency and eight other government bodies.
Even before the order, business groups worried that foreign companies might be excluded from construction and other projects financed by Beijing’s 4 trillion yuan ($586 billion) stimulus. Foreign makers of wind turbines complain they have been shut out of bidding on a $5 billion stimulus-financed power project.
“Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China,” says the order, dated June 1 and reported this week by state media. “Projects that really need to buy imports should be approved by the relevant government departments before purchasing activity starts.” Read more here.
China has imposed a requirement for its stimulus projects to use domestically made goods – a move that could strain ties with trading partners after Beijing criticized Washington’s “Buy American” stimulus provisions.
Projects must obtain official permission to use imported goods, said an order issued by China’s main planning agency and eight other government bodies.
Even before the order, business groups worried that foreign companies might be excluded from construction and other projects financed by Beijing’s 4 trillion yuan ($586 billion) stimulus. Foreign makers of wind turbines complain they have been shut out of bidding on a $5 billion stimulus-financed power project.
“Government investment projects should buy domestically made products unless products or services cannot be obtained in reasonable commercial conditions in China,” says the order, dated June 1 and reported this week by state media. “Projects that really need to buy imports should be approved by the relevant government departments before purchasing activity starts.” Read more here.
Exporters’ Abject Pessimism Fades
(Export Development Canada – Peter G. Hall)
Last fall’s crisis of confidence sent worldwide gauges of business and consumer sentiment reeling. A growing sense that the global economy is no longer in freefall has recently increased the feel-good factor. Canadian exporters concur: the abject pessimism recorded six months ago has faded, with the Spring 2009 Trade Confidence Index posting its largest one-period gain since the post-9/11 surge.
The jump in confidence is needed relief. The Spring result interrupted a three-period tumble dating back to the fall of 2007, with each successive drop setting a new record low level. Market turbulence in the fall of 2008 only deepened what was already a serious loss of confidence. As impressive as the current gain is, it lifted the Index to just a whisker above the previous low point in the Fall of 2001.
Key to improved sentiment is a sense that both global and domestic economic conditions will improve. About one-quarter of respondents see brighter near-term prospects, up sharply from the previous survey. There was an even more dramatic change in the share of those expecting worse conditions. From a clear majority in the past survey, the pessimists shrunk back to about a quarter of total respondents. The remaining half of exporters in the survey expect current conditions to persist – hardly comforting, given the very subdued current levels of international trade activity.
Exporters are less enthusiastic about actual sales prospects. Although 37% of respondents expect near-term international sales to increase, the share fell slightly from the Fall 2008 result, and is well below the 50% norm. Domestic sales are not expected to fill the gap. True, 30% actually expect domestic sales to climb in the coming months, a slight gain over the previous survey – but the share is down from 40% a year earlier. For both foreign and domestic sales, the dominant group is the share of exporters expecting no growth – again, a sobering result given the current state of demand. Read more here.
Last fall’s crisis of confidence sent worldwide gauges of business and consumer sentiment reeling. A growing sense that the global economy is no longer in freefall has recently increased the feel-good factor. Canadian exporters concur: the abject pessimism recorded six months ago has faded, with the Spring 2009 Trade Confidence Index posting its largest one-period gain since the post-9/11 surge.
The jump in confidence is needed relief. The Spring result interrupted a three-period tumble dating back to the fall of 2007, with each successive drop setting a new record low level. Market turbulence in the fall of 2008 only deepened what was already a serious loss of confidence. As impressive as the current gain is, it lifted the Index to just a whisker above the previous low point in the Fall of 2001.
Key to improved sentiment is a sense that both global and domestic economic conditions will improve. About one-quarter of respondents see brighter near-term prospects, up sharply from the previous survey. There was an even more dramatic change in the share of those expecting worse conditions. From a clear majority in the past survey, the pessimists shrunk back to about a quarter of total respondents. The remaining half of exporters in the survey expect current conditions to persist – hardly comforting, given the very subdued current levels of international trade activity.
Exporters are less enthusiastic about actual sales prospects. Although 37% of respondents expect near-term international sales to increase, the share fell slightly from the Fall 2008 result, and is well below the 50% norm. Domestic sales are not expected to fill the gap. True, 30% actually expect domestic sales to climb in the coming months, a slight gain over the previous survey – but the share is down from 40% a year earlier. For both foreign and domestic sales, the dominant group is the share of exporters expecting no growth – again, a sobering result given the current state of demand. Read more here.
June 17, 2009
CBP: Input Sought on Registration, Foreign Assembler Information Collections
(World Trade Interactive)
U.S. Customs and Border Protection is extending to July 17 the comment period on the proposed extension without change of forms 4455 and 4457, Certificate of Registration. This certificate is used to expedite duty-free or reduced duty entry for foreign-made personal articles that are taken abroad, which are dutiable each time they are brought into the U.S. unless there is acceptable proof of prior possession. It is also used for the registration, examination and supervised lading of commercial shipments of articles exported for repair, alteration, processing, etc., that will subsequently be returned to the U.S. either free of duty or at a reduced rate.
In addition, CBP is seeking comments by August 17 on the proposed extension of the Foreign Assembler’s Declaration (with Endorsement by Importer), which is used to substantiate a claim for duty-free treatment of U.S.-fabricated components sent abroad for assembly and subsequently returned to the U.S.
U.S. Customs and Border Protection is extending to July 17 the comment period on the proposed extension without change of forms 4455 and 4457, Certificate of Registration. This certificate is used to expedite duty-free or reduced duty entry for foreign-made personal articles that are taken abroad, which are dutiable each time they are brought into the U.S. unless there is acceptable proof of prior possession. It is also used for the registration, examination and supervised lading of commercial shipments of articles exported for repair, alteration, processing, etc., that will subsequently be returned to the U.S. either free of duty or at a reduced rate.
In addition, CBP is seeking comments by August 17 on the proposed extension of the Foreign Assembler’s Declaration (with Endorsement by Importer), which is used to substantiate a claim for duty-free treatment of U.S.-fabricated components sent abroad for assembly and subsequently returned to the U.S.
There Are Better Plans Than Buy Canadian
(Embassy – Leslie Campbell)
After enduring years of border thickening and complaining with little result, the “Buy American” provision in President Obama’s stimulus bill may have gone one step too far, awakening Canada from its torpor and simultaneously uniting the federal, provincial and municipal governments around one problem – something few other issues can do.
As is now well known, Obama’s stimulus plan, formally called the American Recovery and Reinvestment Act of 2009, contained a provision stipulating that all of the “iron, steel and manufactured goods used in the project are [to be] produced in the United States.”
The Canadian Manufacturers and Exporters (CME) noted in a May 25 briefing document that two subsequent bills, the Water Quality Investment Act, and the Green Schools Act contain similar protectionist clauses and the CME fears that most new appropriations bills will contain similar language.
Initial hopes that Canada would be protected by existing trade agreements proved mostly false. Much of the stimulus money is transferred to the states and local government for “shovel-ready” public projects to be started immediately. State and municipal procurement preferences are not covered under existing international treaties.
The Canadian government has been active on the issue since Buy American first emerged, and the Canadian Embassy in Washington brought all 13 of Canada’s consul generals to Capitol Hill on June 9 [see video below] to hold meetings with a reported total of 75 members of Congress and staff. Read more here.
After enduring years of border thickening and complaining with little result, the “Buy American” provision in President Obama’s stimulus bill may have gone one step too far, awakening Canada from its torpor and simultaneously uniting the federal, provincial and municipal governments around one problem – something few other issues can do.
As is now well known, Obama’s stimulus plan, formally called the American Recovery and Reinvestment Act of 2009, contained a provision stipulating that all of the “iron, steel and manufactured goods used in the project are [to be] produced in the United States.”
The Canadian Manufacturers and Exporters (CME) noted in a May 25 briefing document that two subsequent bills, the Water Quality Investment Act, and the Green Schools Act contain similar protectionist clauses and the CME fears that most new appropriations bills will contain similar language.
Initial hopes that Canada would be protected by existing trade agreements proved mostly false. Much of the stimulus money is transferred to the states and local government for “shovel-ready” public projects to be started immediately. State and municipal procurement preferences are not covered under existing international treaties.
The Canadian government has been active on the issue since Buy American first emerged, and the Canadian Embassy in Washington brought all 13 of Canada’s consul generals to Capitol Hill on June 9 [see video below] to hold meetings with a reported total of 75 members of Congress and staff. Read more here.
All Politics Is Local
(Canadian Embassy, Washington DC)
On June 9, 2009, Canada’s most senior diplomats in the U.S. met with over 75 members of Congress and staff to drive home the message that the Buy American restrictions in the U.S. Recovery Act are costing jobs on both sides of the border. The Canadian delegation was accompanied by close to 30 American business leaders who support the message that by working together our two countries can kick-start the North American economy.
On June 9, 2009, Canada’s most senior diplomats in the U.S. met with over 75 members of Congress and staff to drive home the message that the Buy American restrictions in the U.S. Recovery Act are costing jobs on both sides of the border. The Canadian delegation was accompanied by close to 30 American business leaders who support the message that by working together our two countries can kick-start the North American economy.
June 16, 2009
All’s Not Fair in Trade War
(Mark Bonokowski — Toronto Sun)
Halton Hills mayor’s best intentions have turned into a protectionist nightmare
When Halton Hills Mayor Rick Bonnette crafted his municipality’s free trade/fair trade proposal in response to U.S. President Barack Obama’s protectionist “Buy American” edict — and he purposefully wrote it so clearly and so precisely so that it would not be misconstrued as a “Buy Canadian” initiative — little did he expect it would be so muddied and misinterpreted.
But it was.
As written here in the lead-up to the recent annual meeting of the Federation of Canadian Municipalities —attended in Whistler, B.C. by hundreds of mayors, councillors and city executives from across this country — Bonnette’s local proposal had gained so much momentum since its launch in Halton Hills that it found its way onto the national agenda, with delegates at the convention voting 189-175 to have it become a country-wide strategy, but with a 120-day “wait time” tagged on to allow for negotiations.
But it was not a “Buy Canadian” proposal. Read more here.
Halton Hills mayor’s best intentions have turned into a protectionist nightmare
When Halton Hills Mayor Rick Bonnette crafted his municipality’s free trade/fair trade proposal in response to U.S. President Barack Obama’s protectionist “Buy American” edict — and he purposefully wrote it so clearly and so precisely so that it would not be misconstrued as a “Buy Canadian” initiative — little did he expect it would be so muddied and misinterpreted.
But it was.
As written here in the lead-up to the recent annual meeting of the Federation of Canadian Municipalities —attended in Whistler, B.C. by hundreds of mayors, councillors and city executives from across this country — Bonnette’s local proposal had gained so much momentum since its launch in Halton Hills that it found its way onto the national agenda, with delegates at the convention voting 189-175 to have it become a country-wide strategy, but with a 120-day “wait time” tagged on to allow for negotiations.
But it was not a “Buy Canadian” proposal. Read more here.
Provinces Have Only Themselves to Blame for Buy American Woes
(Barrie McKenna — Globe & Mail)
It should have been a historic moment: Ten provinces and Ottawa united in wanting a sweeping reciprocal agreement with the United States to open up the two countries’ state, provincial and local purchasing markets.
Sadly, this watershed offer comes about 10 years too late. When the hundreds of billions in stimulus money are long gone, buried under layers of asphalt, reciprocity won’t be worth nearly as much.
This is a classic case of 20-20 hindsight.
After the signing of the North American free-trade agreement, Canada had a golden opportunity to do a deal that would have averted much of today’s frustration and heartache about U.S. “Buy American” restrictions. Read more here.
It should have been a historic moment: Ten provinces and Ottawa united in wanting a sweeping reciprocal agreement with the United States to open up the two countries’ state, provincial and local purchasing markets.
Sadly, this watershed offer comes about 10 years too late. When the hundreds of billions in stimulus money are long gone, buried under layers of asphalt, reciprocity won’t be worth nearly as much.
This is a classic case of 20-20 hindsight.
After the signing of the North American free-trade agreement, Canada had a golden opportunity to do a deal that would have averted much of today’s frustration and heartache about U.S. “Buy American” restrictions. Read more here.
Buy Australia Policy Sparks Fears of Trade War
(Jacob Saulwick—Sidney Morning Herald)
The “Buy Australia” policy to be included in the state budget risks setting off an international trade war, the Trade Minister, Simon Crean, says.
Today's NSW budget will include a leg-up for Australian firms bidding for Government contracts in a bid to preserve jobs. But Mr Crean said giving Australian companies preferential treatment amounted to a de facto tariff and, in contributing to a “tit-for-tat downward spiral”, could have the perverse result of driving up unemployment.
“The bigger problem is that it triggers an international trade war. The gist of this runs completely contrary to everything we have said in terms of arguing not just for increased liberalisation of markets and the opening of markets but stopping the spread of protectionism.
“And what people have to understand is that there is a large number of jobs in Australia that are as the result of trade, not just in the export business but also in the import business.” Read more here.
The “Buy Australia” policy to be included in the state budget risks setting off an international trade war, the Trade Minister, Simon Crean, says.
Today's NSW budget will include a leg-up for Australian firms bidding for Government contracts in a bid to preserve jobs. But Mr Crean said giving Australian companies preferential treatment amounted to a de facto tariff and, in contributing to a “tit-for-tat downward spiral”, could have the perverse result of driving up unemployment.
“The bigger problem is that it triggers an international trade war. The gist of this runs completely contrary to everything we have said in terms of arguing not just for increased liberalisation of markets and the opening of markets but stopping the spread of protectionism.
“And what people have to understand is that there is a large number of jobs in Australia that are as the result of trade, not just in the export business but also in the import business.” Read more here.
CBP Makes “Significant Change” in Textile Entry Requirements
(via World Trade Interactive)
U.S. Customs and Border Protection recently issued a memorandum to its field offices outlining “a significant change in textile entry requirements” in light of the elimination of quotas on merchandise from China entered after Dec. 31, 2008.
Formal Entry
On May 24, 1989, CBP provided a list of HTSUS numbers that required formal entry regardless of value because of quota/visa concerns as well as a separate list of HTSUS numbers for which formal entry was required because of regulatory requirements. With the elimination of the China quotas, however, there is no longer a requirement to file a formal entry as established by TBT-01-036, except (pursuant to 19 CFR 143.21(a)) with respect to shipments of articles valued in excess of $250 that are classified in HTSUS Sections VII, VIII, XI and XII; Chapter 94; and Chapter 99, subchapters III and IV. The following HTSUS numbers currently fall within these sections:
• 3901.10.1000 - 4304.00.0000
• 5001.00.0000 - 6704.90.0000
• 9401.10.4000 - 9406.00.8090
• 9903.02.21 - 9904.52.50
CBP states that it is in the process of reviewing the above regulations to raise the $250 limit but that before a change can be implemented it must be proposed through the formal regulatory process.
Commercial Samples
With the elimination of the visa arrangements, CBP states, no provisions remain that allow for properly marked commercial sample shipments. As a result, samples entering the U.S. must now meet the conditions in HTSUS chapter 98, under subheading 9811.00.60, providing for mutilated samples, or another chapter 98 provision, as appropriate. Read more here.
U.S. Customs and Border Protection recently issued a memorandum to its field offices outlining “a significant change in textile entry requirements” in light of the elimination of quotas on merchandise from China entered after Dec. 31, 2008.
Formal Entry
On May 24, 1989, CBP provided a list of HTSUS numbers that required formal entry regardless of value because of quota/visa concerns as well as a separate list of HTSUS numbers for which formal entry was required because of regulatory requirements. With the elimination of the China quotas, however, there is no longer a requirement to file a formal entry as established by TBT-01-036, except (pursuant to 19 CFR 143.21(a)) with respect to shipments of articles valued in excess of $250 that are classified in HTSUS Sections VII, VIII, XI and XII; Chapter 94; and Chapter 99, subchapters III and IV. The following HTSUS numbers currently fall within these sections:
• 3901.10.1000 - 4304.00.0000
• 5001.00.0000 - 6704.90.0000
• 9401.10.4000 - 9406.00.8090
• 9903.02.21 - 9904.52.50
CBP states that it is in the process of reviewing the above regulations to raise the $250 limit but that before a change can be implemented it must be proposed through the formal regulatory process.
Commercial Samples
With the elimination of the visa arrangements, CBP states, no provisions remain that allow for properly marked commercial sample shipments. As a result, samples entering the U.S. must now meet the conditions in HTSUS chapter 98, under subheading 9811.00.60, providing for mutilated samples, or another chapter 98 provision, as appropriate. Read more here.
Study Highlights Need to Modernize Freight Transportation System
(World Trade Interactive)
The RAND Corporation released recently a study finding that the long-term efficiency and effectiveness of the U.S. freight transportation system is threatened by bottlenecks, inefficient use of some infrastructure components, vulnerability to disruptions and crucial environmental and energy concerns. Demand for freight transportation is expected to increase in the future, a RAND press release states, but the nation’s highways, ports and railroads are nearing the limits of their capacity in key urban areas and transportation corridors, and delays and uncertainty in the system’s performance translate into higher prices for consumers and reduced productivity.
“There’s an opportunity now for the United States to develop policies and plans that will improve the flexibility and security of the freight transportation system, which is currently vulnerable to a host of dangers that could cause costly disruptions, whether from a terrorist attack or a natural disaster, such as an earthquake,” said Richard Hillestad, lead author of the study. “The whole functionality of freight transportation is built on reliability and speed, and those elements need to be protected.”
Read more here or download the complete report (163 page PDF via STR Trade).
The RAND Corporation released recently a study finding that the long-term efficiency and effectiveness of the U.S. freight transportation system is threatened by bottlenecks, inefficient use of some infrastructure components, vulnerability to disruptions and crucial environmental and energy concerns. Demand for freight transportation is expected to increase in the future, a RAND press release states, but the nation’s highways, ports and railroads are nearing the limits of their capacity in key urban areas and transportation corridors, and delays and uncertainty in the system’s performance translate into higher prices for consumers and reduced productivity.
“There’s an opportunity now for the United States to develop policies and plans that will improve the flexibility and security of the freight transportation system, which is currently vulnerable to a host of dangers that could cause costly disruptions, whether from a terrorist attack or a natural disaster, such as an earthquake,” said Richard Hillestad, lead author of the study. “The whole functionality of freight transportation is built on reliability and speed, and those elements need to be protected.”
Read more here or download the complete report (163 page PDF via STR Trade).
Tending the Northern Border
(William Testa — BizTimes.com)
Despite the fact that the U.S. is Canada’s largest trading partner and vice versa, northern border crossing conditions have sometimes been given short shrift. Today, in some places along the border, freight and travelers use outdated infrastructure in a post 9/11 world where security concerns have tended to slow cross-border movement.
Accordingly, suggestions have been raised on both sides of the border to improve passenger and trade flows between the two countries. The Seventh District’s Great Lakes crossings, specifically the Detroit River crossings, are focal points of the growing debate on how best to improve the U.S.-Canada border.
U.S.–Canada border crossing policy
Over the last few years, the majority of U.S. border policies have focused more on Mexico and the flow of immigrants and illicit activity crossing the southern border into the U.S. The heightened attention on the Mexico border has been a concern both to Canadian officials and those whose economic interests depend on cross-border trade between our two countries. For example, automotive-intensive communities in Michigan and much of the surrounding region are especially keen to see border crossings made easier. Much of the fragile North American automotive industry continues to operate with highly inter-connected supply chains that traverse the border between the Midwest and Ontario.
Responding to these concerns, the Brookings Metropolitan Policy Program and the Canadian International Council held a forum recently on the challenges and opportunities to improve U.S.-Canada border policy and management.
Among the experts to speak at the Brookings forum, Christopher Sands of the Hudson Institute discussed his paper characterizing the U.S.-Canada border policies past and present and recommending a broad framework for improvement. Sands specializes in Canada, U.S.–Canada relations, and North American economic integration. Read more here.
Despite the fact that the U.S. is Canada’s largest trading partner and vice versa, northern border crossing conditions have sometimes been given short shrift. Today, in some places along the border, freight and travelers use outdated infrastructure in a post 9/11 world where security concerns have tended to slow cross-border movement.
Accordingly, suggestions have been raised on both sides of the border to improve passenger and trade flows between the two countries. The Seventh District’s Great Lakes crossings, specifically the Detroit River crossings, are focal points of the growing debate on how best to improve the U.S.-Canada border.
U.S.–Canada border crossing policy
Over the last few years, the majority of U.S. border policies have focused more on Mexico and the flow of immigrants and illicit activity crossing the southern border into the U.S. The heightened attention on the Mexico border has been a concern both to Canadian officials and those whose economic interests depend on cross-border trade between our two countries. For example, automotive-intensive communities in Michigan and much of the surrounding region are especially keen to see border crossings made easier. Much of the fragile North American automotive industry continues to operate with highly inter-connected supply chains that traverse the border between the Midwest and Ontario.
Responding to these concerns, the Brookings Metropolitan Policy Program and the Canadian International Council held a forum recently on the challenges and opportunities to improve U.S.-Canada border policy and management.
Among the experts to speak at the Brookings forum, Christopher Sands of the Hudson Institute discussed his paper characterizing the U.S.-Canada border policies past and present and recommending a broad framework for improvement. Sands specializes in Canada, U.S.–Canada relations, and North American economic integration. Read more here.
June 15, 2009
Government of Canada Announces $450 Million in New Funding for BDC to Assist Canadian Businesses
(Ministry of Industry)
The Honourable Denis Lebel, Minister of State (Economic Development Agency of Canada for the Regions of Quebec), on behalf of the Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada is providing $450 million to the Business Development Bank of Canada (BDC) in support of small and medium-sized enterprises and innovative firms.
The funding will include $100 million to establish the Operating Line of Credit Guarantee and $350 million over three years to help drive venture capital investment in promising Canadian technology businesses.
“Today’s announcement will enable BDC to team up with financial institutions to give businesses with strong balance sheets and business fundamentals access to credit that will enable them to continue playing a key role in the vitality of our country’s economy. The venture capital funding will help growth-oriented businesses achieve even more ambitious objectives, while stimulating the Canadian economy.”
The Operating Line of Credit Guarantee will be delivered under the Business Credit Availability Program as part of the government’s Extraordinary Financing Framework announced in Canada’s Economic Action Plan, and it will improve access to financing for Canadian businesses during this period of economic uncertainty.
Read the complete government press release here.
The Honourable Denis Lebel, Minister of State (Economic Development Agency of Canada for the Regions of Quebec), on behalf of the Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada is providing $450 million to the Business Development Bank of Canada (BDC) in support of small and medium-sized enterprises and innovative firms.
The funding will include $100 million to establish the Operating Line of Credit Guarantee and $350 million over three years to help drive venture capital investment in promising Canadian technology businesses.
“Today’s announcement will enable BDC to team up with financial institutions to give businesses with strong balance sheets and business fundamentals access to credit that will enable them to continue playing a key role in the vitality of our country’s economy. The venture capital funding will help growth-oriented businesses achieve even more ambitious objectives, while stimulating the Canadian economy.”
The Operating Line of Credit Guarantee will be delivered under the Business Credit Availability Program as part of the government’s Extraordinary Financing Framework announced in Canada’s Economic Action Plan, and it will improve access to financing for Canadian businesses during this period of economic uncertainty.
Read the complete government press release here.
Manufacturing Ranked #1 Industry for Economic Prosperity
(Industry Week – Adrienne Selko)
Americans still believe that manufacturing remains the backbone of the economy says new Deloitte study
A new annual index released earlier this week by Deloitte LLP and The Manufacturing Institute shows that Americans view manufacturing as the most important industry for a strong national economy. There is a wide perception gap, however, between the public’s highly positive views of manufacturing’s contributions to America’s economic success and their negative views about pursuing a career in manufacturing.
The survey, Public Viewpoint on Manufacturing (PDF), which assessed public perceptions and understanding of a wide range of issues related to manufacturing, shows that the majority of respondents (71%) view manufacturing as a national priority with 59% agreeing that the U.S. manufacturing industry effectively competes on a global scale. These results fall in line with public perceptions that manufacturing plays a larger role in overall economic prosperity compared to the technology, energy, health care, retail, communications and financial services industries.
“The public’s ranking of manufacturing as the top industry of importance to our economy, as well as its belief that U.S. manufacturers can compete globally, is very telling,” said Craig Giffi, Deloitte LLP vice chairman and U.S. Consumer & Industrial Products industry leader. “Americans clearly still believe that manufacturing remains the backbone of the economy.” Read more here.
Americans still believe that manufacturing remains the backbone of the economy says new Deloitte study
A new annual index released earlier this week by Deloitte LLP and The Manufacturing Institute shows that Americans view manufacturing as the most important industry for a strong national economy. There is a wide perception gap, however, between the public’s highly positive views of manufacturing’s contributions to America’s economic success and their negative views about pursuing a career in manufacturing.
The survey, Public Viewpoint on Manufacturing (PDF), which assessed public perceptions and understanding of a wide range of issues related to manufacturing, shows that the majority of respondents (71%) view manufacturing as a national priority with 59% agreeing that the U.S. manufacturing industry effectively competes on a global scale. These results fall in line with public perceptions that manufacturing plays a larger role in overall economic prosperity compared to the technology, energy, health care, retail, communications and financial services industries.
“The public’s ranking of manufacturing as the top industry of importance to our economy, as well as its belief that U.S. manufacturers can compete globally, is very telling,” said Craig Giffi, Deloitte LLP vice chairman and U.S. Consumer & Industrial Products industry leader. “Americans clearly still believe that manufacturing remains the backbone of the economy.” Read more here.
Minister Day Launches Advertisements to Promote Canada’s Asia-Pacific Gateway
(Minister of International Trade)
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today launched an international advertising campaign promoting Canada’s Asia-Pacific Gateway as the fastest, most reliable way to transport goods between Asia and North America.
“Our economic prosperity depends on moving goods quickly and efficiently around the world,” said Minister Day. “We are working hard with our partners throughout Asia and North America to promote the benefits of using Canada’s transportation system to move products from the factory floor to store shelves.
“The Government of Canada has taken a number of important steps to enhance the country’s transportation network. This international ad campaign will help make businesses more aware of the advantages of moving their goods through our seaports and airports, and on our highways and railways.”
Beginning June 15, advertisements will appear featuring the slogan “With Canada’s Pacific Gateway, everything gets there sooner than you think.” The ads will be placed in marine and air shipping trade publications in the United States, Japan, Korea and China, including Journal of Commerce, Logistics Management, Air Cargo World, Payload Asia, China’s Foreign Trade and Maritime Press. The ads will appear in publications and as online web banners at intervals over the next 10 months.
Read the complete government press release here.
The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today launched an international advertising campaign promoting Canada’s Asia-Pacific Gateway as the fastest, most reliable way to transport goods between Asia and North America.
“Our economic prosperity depends on moving goods quickly and efficiently around the world,” said Minister Day. “We are working hard with our partners throughout Asia and North America to promote the benefits of using Canada’s transportation system to move products from the factory floor to store shelves.
“The Government of Canada has taken a number of important steps to enhance the country’s transportation network. This international ad campaign will help make businesses more aware of the advantages of moving their goods through our seaports and airports, and on our highways and railways.”
Beginning June 15, advertisements will appear featuring the slogan “With Canada’s Pacific Gateway, everything gets there sooner than you think.” The ads will be placed in marine and air shipping trade publications in the United States, Japan, Korea and China, including Journal of Commerce, Logistics Management, Air Cargo World, Payload Asia, China’s Foreign Trade and Maritime Press. The ads will appear in publications and as online web banners at intervals over the next 10 months.
Read the complete government press release here.
U.S., Others Agree to Move Ahead on Anti-Counterfeiting Trade Agreements Talks
(World Trade Interactive)
The Obama administration has decided to continue negotiating a new multilateral Anti-Counterfeiting Trade Agreement, according to a June 12 announcement from the Office of the U.S. Trade Representative, having determined that the ACTA “remains an important part of the U.S. trade agenda.” Talks are set to resume in Morocco in July, with a goal of concluding an agreement in 2010.
The ACTA negotiations were launched in October 2007 and participants currently include the U.S., Australia, Canada, the European Union, Japan, Mexico, Morocco, New Zealand, Singapore, South Korea and Switzerland. USTR states that the ACTA is intended to help governments combat more effectively the proliferation of counterfeit and pirated goods that undermines legitimate trade and the sustainable development of the world economy and in some cases contributes to organized crime and exposes consumers to dangerous fake products. Specifically, this agreement aims to increase international cooperation, strengthen the framework of practices that contribute to effective enforcement and strengthen relevant intellectual property rights enforcement measures themselves. Read more here.
The Obama administration has decided to continue negotiating a new multilateral Anti-Counterfeiting Trade Agreement, according to a June 12 announcement from the Office of the U.S. Trade Representative, having determined that the ACTA “remains an important part of the U.S. trade agenda.” Talks are set to resume in Morocco in July, with a goal of concluding an agreement in 2010.
The ACTA negotiations were launched in October 2007 and participants currently include the U.S., Australia, Canada, the European Union, Japan, Mexico, Morocco, New Zealand, Singapore, South Korea and Switzerland. USTR states that the ACTA is intended to help governments combat more effectively the proliferation of counterfeit and pirated goods that undermines legitimate trade and the sustainable development of the world economy and in some cases contributes to organized crime and exposes consumers to dangerous fake products. Specifically, this agreement aims to increase international cooperation, strengthen the framework of practices that contribute to effective enforcement and strengthen relevant intellectual property rights enforcement measures themselves. Read more here.
What To Do About Buy America?
(Globe & Mail)
U.S. states and municipalities buying goods for infrastructure projects are discriminating against Canadian manufacturers, despite Ottawa's lobbying efforts. Six panelists offer their solutions: William Robson (president of the C.D. Howe Institute), Ken Lewenza (president of the Canadian Auto Workers union), Chuck Gastle (a trade lawyer at Bennett Gastle P.C.), John Hayward (president of pump maker Hayward Gordon Ltd.), Gordon Giffin (former U.S. ambassador to Canada) and David Miller (mayor of Toronto).
Click here to read the article.
U.S. states and municipalities buying goods for infrastructure projects are discriminating against Canadian manufacturers, despite Ottawa's lobbying efforts. Six panelists offer their solutions: William Robson (president of the C.D. Howe Institute), Ken Lewenza (president of the Canadian Auto Workers union), Chuck Gastle (a trade lawyer at Bennett Gastle P.C.), John Hayward (president of pump maker Hayward Gordon Ltd.), Gordon Giffin (former U.S. ambassador to Canada) and David Miller (mayor of Toronto).
Click here to read the article.
Harper Should Appeal to Obama, Exporters Say
(Kevin Carmichael — Globe & Mail)
Prime Minister Stephen Harper is coming under pressure to appeal directly to President Barack Obama to exclude Canada from his economic stimulus program’s Buy American provisions.
Canadian Manufacturers & Exporters, the Ottawa-based trade association that represents some 10,000 companies, wants Mr. Harper to seize a growing recognition of the issue in Washington to bring about a quick resolution before any more stimulus money is spent at the exclusion of Canadian bids.
“At the end of the day, it’s an issue that will be resolved faster and more efficiently if the request comes from the Prime Minister to the President,” said Jayson Myers, president of the CME, which accounts for 90 per cent of Canada’s exports.
Mr. Myers has been leading a lobby in the U.S. capital to match the fine print of Mr. Obama’s $787-billion (U.S.) stimulus plan with the spirit of his pledge that the spending will be done in a way that is consistent with the U.S.’s obligations under the North American Free Trade Agreement. Read more here.
Prime Minister Stephen Harper is coming under pressure to appeal directly to President Barack Obama to exclude Canada from his economic stimulus program’s Buy American provisions.
Canadian Manufacturers & Exporters, the Ottawa-based trade association that represents some 10,000 companies, wants Mr. Harper to seize a growing recognition of the issue in Washington to bring about a quick resolution before any more stimulus money is spent at the exclusion of Canadian bids.
“At the end of the day, it’s an issue that will be resolved faster and more efficiently if the request comes from the Prime Minister to the President,” said Jayson Myers, president of the CME, which accounts for 90 per cent of Canada’s exports.
Mr. Myers has been leading a lobby in the U.S. capital to match the fine print of Mr. Obama’s $787-billion (U.S.) stimulus plan with the spirit of his pledge that the spending will be done in a way that is consistent with the U.S.’s obligations under the North American Free Trade Agreement. Read more here.
Subscribe to:
Posts (Atom)
