(CBSA)
Proposed Regulatory Amendments and Proposed New Regulations Related to the Implementation of the Canada-Peru Free Trade Agreement 1. This notice announces regulatory amendments and a new regulation proposed by the Canada Border Services Agency (CBSA) in support of the implementation of the Canada-Peru Free Trade Agreement (CPFTA). It is further proposed that these regulatory amendments and new regulations come into force on August 1, 2009, on condition that the Governor in Council make them.
Proposed Regulatory Changes
Certification of Origin of Goods Exported to a Free Trade Partner Regulations
2. It is proposed that the criteria in paragraph 2(c) of the Certification of Origin of Goods Exported to a Free Trade Partner Regulations be amended to refer to the case where goods are exported or are to be exported from Canada to Peru. It is also proposed to amend paragraph 3(b) of the Regulations to include reference to goods exported or to be exported from Canada to Peru.
Exporters' and Producers' Records Regulations
3. It is proposed that the definition of “advance ruling” set out in the Exporters' and Producers' Records Regulations, be amended to include reference to the advance ruling provision of the CPFTA.
Free Trade Agreement Advance Rulings Regulations
4. It is proposed that paragraph 2(d) of the Free Trade Agreement Advance Rulings Regulations be amended to expand the classes of persons eligible to apply for an advance ruling to include producers in Peru of a material used in the production of goods produced in Peru. With respect to the modification or revocation of an advance ruling, it is proposed that subparagraph 14(a)(vi) be amended to include reference to goods exported from Peru and the provisions of Article 205 of the CPFTA. It is proposed that paragraph 14(b) of the Regulations be amended to include reference to goods exported from Peru and that a new subparagraph be added to that paragraph in order to reference an interpretation agreed to by Canada and Peru regarding Chapter Two or Three of the CPFTA. It is proposed that paragraph 14(h) of the Regulations be amended to include a new subparagraph such that an advance ruling can be modified or revoked in order to conform with a modification of Chapters Two, Three or Four of the CPFTA.
Tariff item Nos. 9971.00.00 and 9992.00.00 Accounting Regulations
5. It is proposed that paragraph 2(b) of the Regulations be amended to include reference to Peru so that proof of exportation of the goods to Peru is required when accounting for the goods under section 32 of the Customs Act.
Refund of Duties Regulations
6. It is proposed that the title to Part 5.1 of the Refund of Duties Regulations be amended to make reference to Peru. It is also proposed that section 23.1 of the Regulations be amended such that Part 5.1 of the Regulations applies to the granting of a refund of duties paid on goods imported from Peru on or after August 1, 2009, and for which no claim for preferential tariff treatment under the CPFTA was made at the time the goods were accounted for under subsection 32(1), (3) or (5) of the Customs Act. It is also proposed that paragraph 23.3(b) of the Regulations, respecting the amount of refund of duties, be amended to include the CPFTA.
Proof of Origin of Imported Goods Regulations
7. It is proposed that the title before section 6 of the Proof of Origin of Imported Goods Regulations be amended to make reference to the CPFTA.
8. It is proposed that subsection 6(1) of the Regulations be amended to require the importer or owner of the goods for which preferential tariff treatment under the CPFTA is claimed, to furnish to an officer, as proof of origin for purposes of section 35.1 of the Customs Act, a certificate of origin for the goods that is completed in English, French or Spanish at the times set out in section 13 of the Regulations.
9. It is proposed that subsection 6(2) of the Regulations be amended to exempt the importer and owner of goods from the requirement of subsection 35.1(1) of the Customs Act if the importer or owner furnishes to an officer, at the time prescribed by paragraph 13(a) of the Regulations, a written and signed declaration, in English or French, certifying that the goods originate in Peru and that a certificate of origin, for the goods, is in the importer's possession.
10. It is proposed that subsection 6(3) of the Regulations be amended to exempt the importer and owner of casual goods for which benefit of the preferential tariff treatment under the CPFTA is claimed from the requirement of subsection 35.1(1) of the Customs Act, if the goods are entitled to the preferential tariff treatment under the CPFTA pursuant to the CPFTA Rules of Origin for Casual Goods Regulations.
11. It is proposed that subsection 6(4) of the Regulations be amended such that the importer and owner of commercial goods for which the estimated value is less than $1,600, and for which the benefit of preferential tariff treatment under the CPFTA is claimed, be exempt from the requirements of subsection 35.1(1) of the Customs Act if the requirements set out in subsection 6(4) of the Regulations are met. It is also proposed to add a reference to Peru in subparagraphs 6(4)(b)(i) and (ii). Proposed New Regulation
CPFTA Verification of Origin Regulations
12. The new CPFTA Verification of Origin Regulations are proposed to implement the verification provisions of paragraph 4 of Article 405 and Article 406 of the CPFTA. The Regulations describe the process to be followed by officers when verifying claims for preferential tariff treatment under the CPFTA. The Regulations also impose an obligation on an officer to send a notice to a producer who failed to record costs in accordance with the Generally Accepted Accounting Principles applicable in Peru. The Regulations describe the notification requirements with respect to the postponement of a verification visit in Peru.
13. As part of our consultation process, the CBSA has posted this notice containing the descriptions of the proposed regulatory changes and new regulations on our Web-site for review and comment. For more information, visit our Web-site at www.cbsa.gc.ca.
14. Inquiries and comments about these proposals should be directed to:
Caley Sayers
Senior Program Advisor
Origin Policy and Negotiations Unit
Admissibility Branch
E-mail: caley.sayers@cbsa-asfc.gc.ca
August 1, 2009
Customs Notice CN09-019 Inclusion of Intermediary Locations for Release of Customs Self Assessment (CSA) Shipments
(CBSA)
1. Effective immediately, CSA importers can include intermediary locations, as listed on the CSA carriers’ bill of lading, as part of their trade chain partner (TCP) list for delivery of CSA shipments as a consignee. The goods would be consigned to an intermediary location for storage and/or re-distribution to customers in Canada. Release will occur at these locations and the release date will be on the date that the goods were received at the intermediary location
2. During Part II of the importer application process, importers must submit an initial list of their trade chain partners, and are obligated to ensure that the TCP list remain current, and additions and deletions must be provided to CBSA, as per paragraphs 65 and 66 of D Memorandum D17-1-7.
3. The importer is obligated to demonstrate that their system can track and account for goods that are consigned to an intermediary location and determine the release date as the date in which the goods arrived at the intermediary location, prior to adding the intermediary location to their TCP list. The liability will be transferred from the carrier to the importer when proof of delivery (POD) is received from the intermediary location as long as it is listed on the CSA importers TCP.
4. The CSA clearance process will remain as it is today:
a. Importer is CSA approved;
b. Carrier is CSA approved;
c. In highway mode, the driver is registered as outlined in the Presentation of Persons (2003) Regulations; and
d. The goods are eligible.
5. For more information on this process, please refer to D Memorandum 17-1-7 Customs Self Assessment Program for Importers and D-Memorandum 3-1-7 Customs Self Assessment Program for Carriers. Please note that the D memos are currently being updated to reflect this change and should be completed shortly.
6. Any questions may be directed to:
Manager
Customs Self Assessment Policy
Commercial Border Policy Division, Admissibility Branch
Canada Border Services Agency
Telephone: 613-941-2713 • Fax: 613-952-1812
1. Effective immediately, CSA importers can include intermediary locations, as listed on the CSA carriers’ bill of lading, as part of their trade chain partner (TCP) list for delivery of CSA shipments as a consignee. The goods would be consigned to an intermediary location for storage and/or re-distribution to customers in Canada. Release will occur at these locations and the release date will be on the date that the goods were received at the intermediary location
2. During Part II of the importer application process, importers must submit an initial list of their trade chain partners, and are obligated to ensure that the TCP list remain current, and additions and deletions must be provided to CBSA, as per paragraphs 65 and 66 of D Memorandum D17-1-7.
3. The importer is obligated to demonstrate that their system can track and account for goods that are consigned to an intermediary location and determine the release date as the date in which the goods arrived at the intermediary location, prior to adding the intermediary location to their TCP list. The liability will be transferred from the carrier to the importer when proof of delivery (POD) is received from the intermediary location as long as it is listed on the CSA importers TCP.
4. The CSA clearance process will remain as it is today:
a. Importer is CSA approved;
b. Carrier is CSA approved;
c. In highway mode, the driver is registered as outlined in the Presentation of Persons (2003) Regulations; and
d. The goods are eligible.
5. For more information on this process, please refer to D Memorandum 17-1-7 Customs Self Assessment Program for Importers and D-Memorandum 3-1-7 Customs Self Assessment Program for Carriers. Please note that the D memos are currently being updated to reflect this change and should be completed shortly.
6. Any questions may be directed to:
Manager
Customs Self Assessment Policy
Commercial Border Policy Division, Admissibility Branch
Canada Border Services Agency
Telephone: 613-941-2713 • Fax: 613-952-1812
July 30, 2009
Ontario Fleets Expressing Increased Optimism in Latest OTA Survey
(Canadian Transportation & Logistics)
Ontario carriers are beginning to express some optimism heading into the third quarter, according to the latest Ontario Trucking Association (OTA) Business Pulse e-Survey. The Q3 survey suggests that fleets are divided on their expectations for the third quarter, with 32% expressing pessimism and virtually the same percentage expressing optimism. (In the previous survey, 43% were pessimistic and 27% were optimistic).
However, despite the renewed sense of optimism, 35% of respondents were still “unsure” about prospects for the next quarter.
Fifty-two per cent of respondents said they felt the Canadian economy had bottomed out, which was more than double the 25% who felt that way last quarter, according to the survey. In Ontario, however, 54% of carriers felt the economy had yet to bottom out. But in the previous survey, only 19% of respondents had felt the Ontario economy had reached its worst, so the 46% that feel that way now is a marked improvement.
Where the U.S. economy is concerned, 66% of fleet respondents said they foresee further problems. Most carriers don’t expect an immediate improvement in north-south volumes, according to the OTA survey. However, the 26% of carriers that say they expect southbound volumes to improve over the next six months is significantly higher than the 16% who feel further deterioration is in store, another positive change from previous surveys. Read more here.
Ontario carriers are beginning to express some optimism heading into the third quarter, according to the latest Ontario Trucking Association (OTA) Business Pulse e-Survey. The Q3 survey suggests that fleets are divided on their expectations for the third quarter, with 32% expressing pessimism and virtually the same percentage expressing optimism. (In the previous survey, 43% were pessimistic and 27% were optimistic).
However, despite the renewed sense of optimism, 35% of respondents were still “unsure” about prospects for the next quarter.
Fifty-two per cent of respondents said they felt the Canadian economy had bottomed out, which was more than double the 25% who felt that way last quarter, according to the survey. In Ontario, however, 54% of carriers felt the economy had yet to bottom out. But in the previous survey, only 19% of respondents had felt the Ontario economy had reached its worst, so the 46% that feel that way now is a marked improvement.
Where the U.S. economy is concerned, 66% of fleet respondents said they foresee further problems. Most carriers don’t expect an immediate improvement in north-south volumes, according to the OTA survey. However, the 26% of carriers that say they expect southbound volumes to improve over the next six months is significantly higher than the 16% who feel further deterioration is in store, another positive change from previous surveys. Read more here.
U.S. House Defeats Sweeping Reform of Food Safety
(Reuters)
The U.S. House defeated a proposed sweeping reform of the federal food safety system on Wednesday amid complaints it would bury small farmers in paperwork with no assurance of an increase in inspections. The bill was debated under special rules that limited debate to 40 minutes with no amendments allowed and a two-thirds majority needed for passage. It fell eight votes short, 280-150.
The bill would give the Food and Drug Administration the power to order food recalls, step up the frequency of plant inspections, require facilities to have a food safety plan in place and give FDA more access to company records.
Democrats predominantly voted for the bill and most Republicans voted against it. But there was a sizable cross-over – four dozen Republicans voted for the bill. Two dozen Democrats opposed it Read more here.
The U.S. House defeated a proposed sweeping reform of the federal food safety system on Wednesday amid complaints it would bury small farmers in paperwork with no assurance of an increase in inspections. The bill was debated under special rules that limited debate to 40 minutes with no amendments allowed and a two-thirds majority needed for passage. It fell eight votes short, 280-150.
The bill would give the Food and Drug Administration the power to order food recalls, step up the frequency of plant inspections, require facilities to have a food safety plan in place and give FDA more access to company records.
Democrats predominantly voted for the bill and most Republicans voted against it. But there was a sizable cross-over – four dozen Republicans voted for the bill. Two dozen Democrats opposed it Read more here.
WTO Farm Deal Would Open China’s Markets Significantly, Study Finds
(Bridges Weekly Trade News Digest)
A global trade deal at the WTO would lead to significant cuts in China’s already-low agricultural tariffs, new ICTSD research shows.
As governments renew efforts to clinch a deal in the ongoing Doha Round of trade talks, the study shows that the draft accord would cut China’s maximum permitted ‘bound’ farm tariffs by around one sixth - despite current rates already being one quarter of the average world tariff level. Because China’s actual applied tariff levels are close to these bound levels, most cuts would translate directly into new market access for exporters.
“China is one of the least protected markets for agricultural products in the developing world,” notes the author of the study, Professor Tian Zhihong of the China Agricultural University.
The study shows that tariff rates would be brought down to 13% from an initial average of 15%, after accounting for gentler tariff cuts for products deemed to be ‘sensitive’ and for those considered important for food security and livelihoods. With 900 million people working in agriculture, and a growing income gap between cities and the countryside, China has emphasised the need to shield key products from cuts. Read more here.
A global trade deal at the WTO would lead to significant cuts in China’s already-low agricultural tariffs, new ICTSD research shows.
As governments renew efforts to clinch a deal in the ongoing Doha Round of trade talks, the study shows that the draft accord would cut China’s maximum permitted ‘bound’ farm tariffs by around one sixth - despite current rates already being one quarter of the average world tariff level. Because China’s actual applied tariff levels are close to these bound levels, most cuts would translate directly into new market access for exporters.
“China is one of the least protected markets for agricultural products in the developing world,” notes the author of the study, Professor Tian Zhihong of the China Agricultural University.
The study shows that tariff rates would be brought down to 13% from an initial average of 15%, after accounting for gentler tariff cuts for products deemed to be ‘sensitive’ and for those considered important for food security and livelihoods. With 900 million people working in agriculture, and a growing income gap between cities and the countryside, China has emphasised the need to shield key products from cuts. Read more here.
Customs Notices
(CBSA)
The following is now available on the CBSA Web site:
Customs Notice 09-015: Adopting Electronic Export Reporting
This notice is to inform the export community that the Canada Border Services Agency (CBSA) is reviewing the Reporting of Exported Goods Regulations (Regulations). The CBSA aims to complete this review by the summer of 2010.
The following is now available on the CBSA Web site:
Customs Notice 09-015: Adopting Electronic Export Reporting
This notice is to inform the export community that the Canada Border Services Agency (CBSA) is reviewing the Reporting of Exported Goods Regulations (Regulations). The CBSA aims to complete this review by the summer of 2010.
Revised D Notices on CBSA Website
(CBSA)
The following are now available on the CBSA Web site:
D19-13-2: Importing and Exporting Firearms, Weapons and Devices
This memorandum outlines how Tariff Item 9898.00.00 of the Customs Tariff, the Criminal Code, the Firearms Act, and the Export and Import Permits Act relate to the importing and exporting of firearms, firearm parts, weapons, devices, and certain types of ammunition.
D3-1-1: Policy Respecting the Importation and Transportation of Goods
D3-1-5: International Commercial Transportation
D3-1-6: Canada Border Services Agency (CBSA) Post Audit System
D3-3-1: Forwarded and Consolidated Cargo – Import Movements
D3-4-2: Highway Cargo - Import Movements
D2-2-1: Settlers' Effects – Tariff Item No. 9807.00.00
Revisions made to this memorandum are the result of regulatory changes to the definition of a settler and procedural changes. We have included limitations in the importation of unmarked tobacco products for personal use, as per the Excise Act, 2001.
Interim D11-3-1: Marking of Imported Goods
This interim memorandum replaces only the Appendix G of Memorandum D11-3-1, Marking of Imported Goods, dated February 18, 1998.
The following are now available on the CBSA Web site:
D19-13-2: Importing and Exporting Firearms, Weapons and Devices
This memorandum outlines how Tariff Item 9898.00.00 of the Customs Tariff, the Criminal Code, the Firearms Act, and the Export and Import Permits Act relate to the importing and exporting of firearms, firearm parts, weapons, devices, and certain types of ammunition.
D3-1-1: Policy Respecting the Importation and Transportation of Goods
D3-1-5: International Commercial Transportation
D3-1-6: Canada Border Services Agency (CBSA) Post Audit System
D3-3-1: Forwarded and Consolidated Cargo – Import Movements
D3-4-2: Highway Cargo - Import Movements
D2-2-1: Settlers' Effects – Tariff Item No. 9807.00.00
Revisions made to this memorandum are the result of regulatory changes to the definition of a settler and procedural changes. We have included limitations in the importation of unmarked tobacco products for personal use, as per the Excise Act, 2001.
Interim D11-3-1: Marking of Imported Goods
This interim memorandum replaces only the Appendix G of Memorandum D11-3-1, Marking of Imported Goods, dated February 18, 1998.
Partners in Protection Program (PIP) Update
(CBSA)
Partners in Protection (PIP) is a Canada Border Services Agency (CBSA) program that enlists the cooperation of private industry to enhance border and trade chain security, combat organized crime and terrorism and help detect and prevent contraband smuggling.
It is a voluntary program with no membership fee that aims to secure the trade chain, one partnership at a time. Industry strongly supports the PIP program and greatly values the commitment of PIP members to do their part, together with the CBSA, to secure the supply chain and facilitate legitimate trade.
Be on this list of participating PIP members: (last update July 10, 2009)
PIP Legacy Members (last updated May 29, 2009): Legacy Members are those who joined PIP before new security requirements were introduced on June 30, 2008. PIP legacy members have until March 31, 2009 to re-apply under the modernized program. As of April 1st 2009, only those legacy members that have re-applied and are awaiting approval are listed.
Note: Only members that have given permission to publish their names are included / listed.April 28th, 2009: updated list here
Keep in mind PIP is the security component for FAST into Canada! Don’t risk your current FAST approvals!
Contact us today! Let us assist you in meeting your security responsibility into Canada!
FOR FOR MORE INFORMATION : Visit the CBSA website or call 519-966-9821
Partners in Protection (PIP) is a Canada Border Services Agency (CBSA) program that enlists the cooperation of private industry to enhance border and trade chain security, combat organized crime and terrorism and help detect and prevent contraband smuggling.
It is a voluntary program with no membership fee that aims to secure the trade chain, one partnership at a time. Industry strongly supports the PIP program and greatly values the commitment of PIP members to do their part, together with the CBSA, to secure the supply chain and facilitate legitimate trade.
Be on this list of participating PIP members: (last update July 10, 2009)
PIP Legacy Members (last updated May 29, 2009): Legacy Members are those who joined PIP before new security requirements were introduced on June 30, 2008. PIP legacy members have until March 31, 2009 to re-apply under the modernized program. As of April 1st 2009, only those legacy members that have re-applied and are awaiting approval are listed.
Note: Only members that have given permission to publish their names are included / listed.April 28th, 2009: updated list here
Keep in mind PIP is the security component for FAST into Canada! Don’t risk your current FAST approvals!
Contact us today! Let us assist you in meeting your security responsibility into Canada!
FOR FOR MORE INFORMATION : Visit the CBSA website or call 519-966-9821
Canada-U.S. Price Gap Narrows
(Toronto Star)
BMO economist says strong loonie and consumer outcry helped close gap to 6.8% from 18% last year
Canadians are paying a little bit more than Americans for cars, cameras and drills. But we're paying a whole lot more for CDs, chainsaws and barbecues, a new report has found.
On average, Canadians are paying 6.8 per cent more than Americans for a select basket of items, down from 18 per cent a year ago.
“Given the wild swings we've had in the currency, I would say that's not a big gap at all,” said Doug Porter, deputy chief economist at BMO Capital Markets. Read more here.
Related: Canadian dollar at highest level in 10 months (Financial Post)
BMO economist says strong loonie and consumer outcry helped close gap to 6.8% from 18% last year
Canadians are paying a little bit more than Americans for cars, cameras and drills. But we're paying a whole lot more for CDs, chainsaws and barbecues, a new report has found.
On average, Canadians are paying 6.8 per cent more than Americans for a select basket of items, down from 18 per cent a year ago.
“Given the wild swings we've had in the currency, I would say that's not a big gap at all,” said Doug Porter, deputy chief economist at BMO Capital Markets. Read more here.
Related: Canadian dollar at highest level in 10 months (Financial Post)
July 29, 2009
Canada Needs to Put Its House in Order, Too
(David Hale — Financial Post)
It is difficult to imagine the United States and Canada having a trade war after signing a free-trade deal in 1988 that was later broadened under NAFTA to include Mexico. Yet the rhetoric around trade on both sides of the border has been heating up. California recently cancelled an order for Ontario steel. The Federation of Canadian Municipalities voted by a margin of 189-175 in June to exclude U.S. companies from infrastructure projects funded through Canadian cities.
The fact that both countries are federations has produced a unique trade conflict centering on state and provincial government procurement policies, one that could have been avoided if Canada and the United States had properly finished the trade deal they began negotiating in the late 1980s. That conflict can now be resolved if both governments finally address omissions of the past. Read more here.
It is difficult to imagine the United States and Canada having a trade war after signing a free-trade deal in 1988 that was later broadened under NAFTA to include Mexico. Yet the rhetoric around trade on both sides of the border has been heating up. California recently cancelled an order for Ontario steel. The Federation of Canadian Municipalities voted by a margin of 189-175 in June to exclude U.S. companies from infrastructure projects funded through Canadian cities.
The fact that both countries are federations has produced a unique trade conflict centering on state and provincial government procurement policies, one that could have been avoided if Canada and the United States had properly finished the trade deal they began negotiating in the late 1980s. That conflict can now be resolved if both governments finally address omissions of the past. Read more here.
The Canada-U.S. Bilateral Ledger
(Embassy – Leslie Campbell)
Where Canada is winning and losing in Obama’s America
The annual August Congressional break always seems to prompt pundits to tally the administration’s legislative successes and failures. President Obama’s recent record was judged a wash as the session drew to an end.
While the defeat of bills that would have authorized $1.75 billion for procuring seven F22 fighter jets and that would have extended concealed weapons rights to apply between states were considered Obama victories, the announcement that health reform would be delayed until fall, and possibly the end of the year, was judged one of the president’s few sour notes.
The looming summer break also occasioned some informal surveys of President Obama’s overall record thus far. Except for the pundits of the farthest reaches on the right, he’s been deemed successful by almost any measure put forward.
Unfortunately, a mid-year review of Canada-U.S. relations under Obama wouldn’t be quite as rosy, although the fundamental friendship, of course, remains fully intact. Read more here.
Where Canada is winning and losing in Obama’s America
The annual August Congressional break always seems to prompt pundits to tally the administration’s legislative successes and failures. President Obama’s recent record was judged a wash as the session drew to an end.
While the defeat of bills that would have authorized $1.75 billion for procuring seven F22 fighter jets and that would have extended concealed weapons rights to apply between states were considered Obama victories, the announcement that health reform would be delayed until fall, and possibly the end of the year, was judged one of the president’s few sour notes.
The looming summer break also occasioned some informal surveys of President Obama’s overall record thus far. Except for the pundits of the farthest reaches on the right, he’s been deemed successful by almost any measure put forward.
Unfortunately, a mid-year review of Canada-U.S. relations under Obama wouldn’t be quite as rosy, although the fundamental friendship, of course, remains fully intact. Read more here.
Cabinet Ministers Differ on Whether Recession Is Actually Over
(The Canadian Press)
Conservative cabinet ministers aren’t all singing from the same songbook when it comes to the recession.
Finance Minister Jim Flaherty said Tuesday he’s not ready to declare the recession over, as the governor of the Bank of Canada did last week. But Trade Minister Stockwell Day supported the bank’s analysis in a newspaper column Monday.
“I’m not kidding. The recession is over,” Day wrote in the Penticton Western News on Monday. “Last week, after poring over all the numbers (Bank of Canada Governor Mark Carney) was able to declare, not on whim but based on economic fact that the nasty ‘R’ word no longer applied to Canada.” Day added Canada still faces challenges but the economy is showing initial signs of recovery. Read more here.
Related: Correspondence from John McCallum to Jim Flaherty.
Conservative cabinet ministers aren’t all singing from the same songbook when it comes to the recession.
Finance Minister Jim Flaherty said Tuesday he’s not ready to declare the recession over, as the governor of the Bank of Canada did last week. But Trade Minister Stockwell Day supported the bank’s analysis in a newspaper column Monday.
“I’m not kidding. The recession is over,” Day wrote in the Penticton Western News on Monday. “Last week, after poring over all the numbers (Bank of Canada Governor Mark Carney) was able to declare, not on whim but based on economic fact that the nasty ‘R’ word no longer applied to Canada.” Day added Canada still faces challenges but the economy is showing initial signs of recovery. Read more here.
Related: Correspondence from John McCallum to Jim Flaherty.
Railway Carloadings Down in May
(Statistics Canada)
The Canadian railway industry loaded 19.1 million metric tonnes in May, down 21.4% from the same month in 2008. The drop in tonnage was the result of decreased freight loadings in both non-intermodal and intermodal railway transportation systems.
Compared with May last year, non-intermodal loadings fell 22.0% to 17.0 million metric tonnes in May. The decline was widespread, as the majority of commodity groups registered decreased activity. Among the commodity groups with the largest declines in tonnage were potash, coal, iron ore and concentrates, iron and steel (primary or semi-finished), lumber and other cereal grains.
Although overall non-intermodal loadings fell in May, a number of commodity groups saw strong gains in tonnage loaded, including wheat, colza seeds (canola) and fresh, chilled or dried vegetables.
Intermodal loadings declined 16.4% from May 2008 to 2.1 million metric tonnes. The drop stemmed from declines in both containers and trailers loaded onto flat cars.
Rail freight traffic coming from the United States fell 29.4% from May 2008 to 2.0 million metric tonnes. Complete statistic here.
The Canadian railway industry loaded 19.1 million metric tonnes in May, down 21.4% from the same month in 2008. The drop in tonnage was the result of decreased freight loadings in both non-intermodal and intermodal railway transportation systems.
Compared with May last year, non-intermodal loadings fell 22.0% to 17.0 million metric tonnes in May. The decline was widespread, as the majority of commodity groups registered decreased activity. Among the commodity groups with the largest declines in tonnage were potash, coal, iron ore and concentrates, iron and steel (primary or semi-finished), lumber and other cereal grains.
Although overall non-intermodal loadings fell in May, a number of commodity groups saw strong gains in tonnage loaded, including wheat, colza seeds (canola) and fresh, chilled or dried vegetables.
Intermodal loadings declined 16.4% from May 2008 to 2.1 million metric tonnes. The drop stemmed from declines in both containers and trailers loaded onto flat cars.
Rail freight traffic coming from the United States fell 29.4% from May 2008 to 2.0 million metric tonnes. Complete statistic here.
Food Safety Bill to Omit Brokers
(Journal of Commerce Online – R.G.Edmonson)
Amended legislation will not include penalties for brokers, say lobbyists
Customs brokers apparently lobbied successfully to remove language from a bill that would have given the Food and Drug Administration the authority to license and penalize them for violations of a new food safety bill.
Jon Kent, lobbyist for the National Customs Brokers and Forwarders Association of America, said that the House Ways and Means Committee will send an amended Food Safety Improvement Act of 2009 to the House floor on Wednesday without the clauses that raised a storm of protest in the broker community. Read more here.
Mexican Truck Program Revival Clears First Hurdles
(Today’s Trucking)
A plan to allow Mexican trucks to once again cross the American border beyond the longstanding 25-mile restriction zone moved another step closer to reality. According to The Washington Times, a new proposal to reopen the border to select Mexican carriers has gone through all the interagency channels and will be passed along to Capital Hill for a vote.
President Obama has been under pressure by trucking and trade groups to reestablish a version of the Bush Administration’s two year-old, cross-border pilot program he cancelled shortly after taking office.
Saying the move was a breach of NAFTA, Mexico retaliated immediately by slapping tariffs on about 90 U.S. import products.
Now that a new cross-border program has cleared bureaucratic review, businesses interests are hoping the tariffs on $2.4 billion worth of U.S. goods will soon end.
A plan to allow Mexican trucks to once again cross the American border beyond the longstanding 25-mile restriction zone moved another step closer to reality. According to The Washington Times, a new proposal to reopen the border to select Mexican carriers has gone through all the interagency channels and will be passed along to Capital Hill for a vote.
President Obama has been under pressure by trucking and trade groups to reestablish a version of the Bush Administration’s two year-old, cross-border pilot program he cancelled shortly after taking office.
Saying the move was a breach of NAFTA, Mexico retaliated immediately by slapping tariffs on about 90 U.S. import products.
Now that a new cross-border program has cleared bureaucratic review, businesses interests are hoping the tariffs on $2.4 billion worth of U.S. goods will soon end.
EU Commission Publishes Annual Report on US Trade and Investment Barriers
(Europa Online)
The European Commission has published its annual report on barriers to trade and investment in the United States. The report focuses on some key trade barriers and measures that prevent EU exporters from tapping into the full potential of the US market. It notes some continuing concerns and highlights a number of new barriers introduced in 2008.
Only a small proportion of EU-US trade is affected by trade disputes, but raising and addressing these issues helps to boost confidence in the transatlantic marketplace and allows exporters to reap the full benefits available.
• The report highlights positive outcomes in the long-running dispute over hormone-treated beef and in the EU-US first-stage Air Transport Agreement, which creates new opportunities for EU air carriers to operate in the US
• The report reiterates concerns about U.S. legislation governing ports and freight, in particular with respect to the potential costs of the scanning requirement and its impact on EU supply chains. It also highlights problems arising from the complexity of US regulatory systems and regulatory divergences with the EU which can represent an important structural impediment to market access.
• Regarding barriers which have been introduced or reinforced in 2008, the report includes details on registration and documentation procedures (Lacey Act), government procurement (Buy America provisions), tariff barriers (multilayer parquet) and sanitary and phytosanitary measures (dairy import assessment).
The European Union and the United States share the largest bilateral trading partnership worldwide, with 33% of world trade in goods and 44% of world trade in services. In 2008, the EU had a surplus of €63 billion in goods trade with the US, importing EUR186 billion while exporting EUR249 billion. Trade in services has continued to grow in both directions, with total trade in services more than EUR266 billion (2007 figures), with an EU surplus of EUR11 billion. The US is also the leading overseas destination for EU investment.
For the full text of the report please go here.
The European Commission has published its annual report on barriers to trade and investment in the United States. The report focuses on some key trade barriers and measures that prevent EU exporters from tapping into the full potential of the US market. It notes some continuing concerns and highlights a number of new barriers introduced in 2008.
Only a small proportion of EU-US trade is affected by trade disputes, but raising and addressing these issues helps to boost confidence in the transatlantic marketplace and allows exporters to reap the full benefits available.
• The report highlights positive outcomes in the long-running dispute over hormone-treated beef and in the EU-US first-stage Air Transport Agreement, which creates new opportunities for EU air carriers to operate in the US
• The report reiterates concerns about U.S. legislation governing ports and freight, in particular with respect to the potential costs of the scanning requirement and its impact on EU supply chains. It also highlights problems arising from the complexity of US regulatory systems and regulatory divergences with the EU which can represent an important structural impediment to market access.
• Regarding barriers which have been introduced or reinforced in 2008, the report includes details on registration and documentation procedures (Lacey Act), government procurement (Buy America provisions), tariff barriers (multilayer parquet) and sanitary and phytosanitary measures (dairy import assessment).
The European Union and the United States share the largest bilateral trading partnership worldwide, with 33% of world trade in goods and 44% of world trade in services. In 2008, the EU had a surplus of €63 billion in goods trade with the US, importing EUR186 billion while exporting EUR249 billion. Trade in services has continued to grow in both directions, with total trade in services more than EUR266 billion (2007 figures), with an EU surplus of EUR11 billion. The US is also the leading overseas destination for EU investment.
For the full text of the report please go here.
July 27, 2009
Why America Shouldn’t “Buy American”
(Ted Balaker & Nick Gillespie — Reason TV)
Is your iPod unpatriotic?
Its 451 parts are made in dozens of nations, and creating the little doodads employs thousands of foreigners. Final assembly is done in China-a country that right-wingers and left-wingers alike fear is an economic threat to the U.S.
As the recession worsens, maybe patriotic Americans should be smashing foreign-made iPods in protest. Or at least hiring bikini-clad American women to do the job, which is exactly what Reason.tv did. Our patriotic, sledgehammer-wielding bikini bandits headed to California’s Venice Beach to smash some foreign-made iPods to make a political statement about saving American jobs.
Maybe the United Steelworkers Union (USW), one of the biggest “Buy American” backers would like to hire these patriotic ladies for their next rally.
“Every other nation during this economic downturn is directing their stimulus money inward,” thunders USW’s Billy Thompson at a rally in West Virginia. “Now if they can do it, why in the hell can’t we?”
Actually, we are. President Obama’s $800 billion stimulus package came equipped with a “Buy American” provision, and more than 500 state and local governments have signed “buy American” resolutions. And that may be just the beginning of the protectionist push.
Reason.tv went to a Washington, D.C. event where business owners and activists learned how to lobby for more protectionist laws. “If you want to sell it here, build it here,” says one participant who referrs to those who ignore the “buy American” imperative as “uneducated, ignorant people.”
And shouldn’t we be patriotic purchasers? That’s what car ads, draped with Old Glory and heartland visuals, suggest. What could be more patriotic than buying a Jeep Patriot? With American automakers hurting so badly, that’s got to help America.
“That’s nonsense,” says George Mason University economist-and Cafe Hayek blogger-Donald Boudreaux.
“The Jeep Patriot, despite it’s name is actually less American than some Toyota products. It’s literally impossible-at least in any practical sense-to buy American.’”
Boudreaux argues that Americans should buy whatever products they choose; neither guilt nor laws should push them to buy American. “The thing that is most distinctively American is freedom. To insist that Americans should not be free to buy good from foreigners that’s very anti-American.”
And what about your iPod?
Even though plenty of foreigners have jobs thanks to it, so do 14,000 Americans whose duties include designing and marketing the little buggers. So the iPod is a product of America and the world, and these days that describes nearly all the items we buy.
Welcome to the iPod economy, where just about everything is made everywhere.
After hearing the whole story, Reason.tv’s bikini bandits decided to put down their protectionist sledgehammers. Will America’s people, pundits, and politicians follow suit?
Is your iPod unpatriotic?
Its 451 parts are made in dozens of nations, and creating the little doodads employs thousands of foreigners. Final assembly is done in China-a country that right-wingers and left-wingers alike fear is an economic threat to the U.S.
As the recession worsens, maybe patriotic Americans should be smashing foreign-made iPods in protest. Or at least hiring bikini-clad American women to do the job, which is exactly what Reason.tv did. Our patriotic, sledgehammer-wielding bikini bandits headed to California’s Venice Beach to smash some foreign-made iPods to make a political statement about saving American jobs.
Maybe the United Steelworkers Union (USW), one of the biggest “Buy American” backers would like to hire these patriotic ladies for their next rally.
“Every other nation during this economic downturn is directing their stimulus money inward,” thunders USW’s Billy Thompson at a rally in West Virginia. “Now if they can do it, why in the hell can’t we?”
Actually, we are. President Obama’s $800 billion stimulus package came equipped with a “Buy American” provision, and more than 500 state and local governments have signed “buy American” resolutions. And that may be just the beginning of the protectionist push.
Reason.tv went to a Washington, D.C. event where business owners and activists learned how to lobby for more protectionist laws. “If you want to sell it here, build it here,” says one participant who referrs to those who ignore the “buy American” imperative as “uneducated, ignorant people.”
And shouldn’t we be patriotic purchasers? That’s what car ads, draped with Old Glory and heartland visuals, suggest. What could be more patriotic than buying a Jeep Patriot? With American automakers hurting so badly, that’s got to help America.
“That’s nonsense,” says George Mason University economist-and Cafe Hayek blogger-Donald Boudreaux.
“The Jeep Patriot, despite it’s name is actually less American than some Toyota products. It’s literally impossible-at least in any practical sense-to buy American.’”
Boudreaux argues that Americans should buy whatever products they choose; neither guilt nor laws should push them to buy American. “The thing that is most distinctively American is freedom. To insist that Americans should not be free to buy good from foreigners that’s very anti-American.”
And what about your iPod?
Even though plenty of foreigners have jobs thanks to it, so do 14,000 Americans whose duties include designing and marketing the little buggers. So the iPod is a product of America and the world, and these days that describes nearly all the items we buy.
Welcome to the iPod economy, where just about everything is made everywhere.
After hearing the whole story, Reason.tv’s bikini bandits decided to put down their protectionist sledgehammers. Will America’s people, pundits, and politicians follow suit?
Trade Protectionism: We Don’t Buy It
(Rachel Pulfer — Canadian Business)
If you're mad about Buy American, here's the good news: so are Americans.
Of all the sectors due to receive stimulus money under the 2009 American Recovery and Reinvestment Act, waste-water management was supposedly one of the most “shovel-ready.” So for Port Washington, Wisc.–based Aquarius Technologies, which makes waste-water treatment equipment, business in freshly stimulated America should be booming. Yet Tom Pokorsky, Aquarius’s president, says that’s not the case. “Almost no new projects have gone forward yet,” he says. “There have been six projects, worth US$15.6 million in contracts, that have been awarded” — generating a grand total of 17 jobs. “But we have nearly US$7 billion to go, and we’ve only got about two years in which it can be spent.”
What’s the holdup? “Buy American,” Pokorsky replies. “No one can figure out how the heck to comply with it.” Read more here.
If you're mad about Buy American, here's the good news: so are Americans.
Of all the sectors due to receive stimulus money under the 2009 American Recovery and Reinvestment Act, waste-water management was supposedly one of the most “shovel-ready.” So for Port Washington, Wisc.–based Aquarius Technologies, which makes waste-water treatment equipment, business in freshly stimulated America should be booming. Yet Tom Pokorsky, Aquarius’s president, says that’s not the case. “Almost no new projects have gone forward yet,” he says. “There have been six projects, worth US$15.6 million in contracts, that have been awarded” — generating a grand total of 17 jobs. “But we have nearly US$7 billion to go, and we’ve only got about two years in which it can be spent.”
What’s the holdup? “Buy American,” Pokorsky replies. “No one can figure out how the heck to comply with it.” Read more here.
Removal of Customs Duties on Imports of Glasscloth Masking Tape
(Department of Finance)
The Department of Finance is currently reviewing a request for the removal of the customs duties on imports of glasscloth masking tape for use in thermal spray applications.
This masking tape, being a glass fibre woven fabric of rovings and having the character of articles of fibre glass, is classified under tariff item No. 7019.40.99 of the Custom Tariff, dutiable at 15.5% under the Most-Favoured-Nation (MFN) Tariff. There is no General Preferential Tariff (GPT) rate for these goods.
The applicant for duty relief claims that glasscloth masking tape is not available from Canadian production, and that tariff relief would enhance its competitiveness in the domestic market.
If you have an interest in this request, or are aware of others who could potentially be affected by such action, I would appreciate receiving your views by September 4, 2009.
Paul Robichaud
International Trade Policy Division, Department of Finance
14th Floor, East Tower, 140 O’Connor Street
Ottawa, ON K1A 0G5
Phone: (613) 992-2510 • Fax: (613) 992-6761
e-mail: paul.robichaud@fin.gc.ca
At a Border Crossing, Security Trumps Openness
(Nicolai Ouroussoff — New York Times)
It has been nearly eight years since the 9/11 terrorist attacks, but the fears and anxieties they gave rise to continue to take a toll on the design of public buildings. Even the words “United States,” it seems — when spelled out in the wrong size and color — can be an unacceptable security risk.
Four years ago, when the federal General Services Administration unveiled its plans for a new border-crossing station here in northeastern New York State, the design was presented as part of the agency’s campaign to raise the dismal standards of government architecture. Even many in the famously fractious architectural community celebrated the complex — particularly its main building, emblazoned with glossy yellow, 21-foot-high letters spelling “United States” — as a rare project the government could point to with pride.
The Customs and Border Protection agency of the Department of Homeland Security seemed to like it too. After years of working closely with the architects, the New York firm of Smith-Miller & Hawkinson, the agency signed off on the final version of the project in 2007.
Yet three weeks ago, less than a month after the station opened, workers began prying the big yellow letters off the building’s facade on orders from Customs and Border Protection. The plan is to dismantle the rest of the sign this week. Read more here.
It has been nearly eight years since the 9/11 terrorist attacks, but the fears and anxieties they gave rise to continue to take a toll on the design of public buildings. Even the words “United States,” it seems — when spelled out in the wrong size and color — can be an unacceptable security risk.
Four years ago, when the federal General Services Administration unveiled its plans for a new border-crossing station here in northeastern New York State, the design was presented as part of the agency’s campaign to raise the dismal standards of government architecture. Even many in the famously fractious architectural community celebrated the complex — particularly its main building, emblazoned with glossy yellow, 21-foot-high letters spelling “United States” — as a rare project the government could point to with pride.
The Customs and Border Protection agency of the Department of Homeland Security seemed to like it too. After years of working closely with the architects, the New York firm of Smith-Miller & Hawkinson, the agency signed off on the final version of the project in 2007.
Yet three weeks ago, less than a month after the station opened, workers began prying the big yellow letters off the building’s facade on orders from Customs and Border Protection. The plan is to dismantle the rest of the sign this week. Read more here.
Canada to Launch Protest Against Seal Product Ban
(CTV News)
Canada will launch a formal protest with the World Trade Organization over a ban on the import of seal products approved by the European Union, International Trade Minister Stockwell Day announced Monday.
The ban, which was approved Monday at a meeting of EU foreign ministers in Brussels, would be implemented in all 27 EU member countries over the next nine months, in time for Canada's next seal hunt. Read more here.
Canada will launch a formal protest with the World Trade Organization over a ban on the import of seal products approved by the European Union, International Trade Minister Stockwell Day announced Monday.
The ban, which was approved Monday at a meeting of EU foreign ministers in Brussels, would be implemented in all 27 EU member countries over the next nine months, in time for Canada's next seal hunt. Read more here.
Demise of Dollar as International Currency?
(Fora TV)
Niall Ferguson and James Fallows debate the statement by Zhou Xiaochuan, head of China’s central bank, calling for the replacement of the dollar as the dominant world currency with the creation of an international reserve currency.
View the complete video at Fora TV.
Related: Mercosur Promotes Use Of Local Currencies For Regional Trade (WSJ)
Niall Ferguson and James Fallows debate the statement by Zhou Xiaochuan, head of China’s central bank, calling for the replacement of the dollar as the dominant world currency with the creation of an international reserve currency.
View the complete video at Fora TV.
Related: Mercosur Promotes Use Of Local Currencies For Regional Trade (WSJ)
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