October 16, 2009
Inspectors Urged Repairs for Key U.S.-Canada Bridge
An 80-year-old vehicular bridge that handles a fourth of U.S.-Canada trade has needed major repairs, including steps to shore up its main cables and deck, according to a 2007 safety report released on Thursday.
The once-secret report provided the first glimpse into the safety of the privately owned Ambassador Bridge, the busiest border crossing in North America. It was made public after a court battle to block its release and amid a debate on both sides of the border on plans to build an alternative span.
The engineering report commissioned by The Detroit International Bridge company, the privately held firm that owns the bridge, concluded that the suspension span was in "fair" condition and safe for vehicle traffic. Read more here.
How to Request Importer Confidentiality when Importing via U.S. Ports
CIFFA recently learned ‘how companies can request importer confidentiality’ from one of the tradeshow participants at the September FIATA World Congress in Geneva.
For goods arriving in the U.S.A. via marine ports, importer data and potentially confidential commercial information is taken from the manifest data and made public through reports such as the Piers Report. If Canadian cargo is FROB (Freight Remaining on Board), or in a container arriving in North America via a U.S. port, the Canadian commercial data is also publicly available through these reports. If Canadian importers wish to remain private there is a means to so – they can request importer confidentiality.
Importer names on entry documents are confidential and U.S. Customs and Border Protection (CBP) does not disclose names of importers to the public. The privacy statute, 19 CFR 103.31 (d), however, allows the media to collect manifest data at every U.S. port of entry. Reporters collect and publish names of importers from vessel manifest data unless an importer/shipper requests confidentiality.
Importers can request confidentiality for 2 years by writing the Privacy Branch, 799 Ninth St., N.W., Fifth Floor Mint Annex, Washington, DC 20229. After 2 years, the request can be renewed. U.S. CBP is working on an electronic method for submitting this request, but it is not high on the priority list for CBP.
Inspectors Urged Repairs for Key U.S.-Canada Bridge
An 80-year-old vehicular bridge that handles a fourth of U.S.-Canada trade has needed major repairs, including steps to shore up its main cables and deck, according to a 2007 safety report released on Thursday.
The once-secret report provided the first glimpse into the safety of the privately owned Ambassador Bridge, the busiest border crossing in North America. It was made public after a court battle to block its release and amid a debate on both sides of the border on plans to build an alternative span.
The engineering report commissioned by The Detroit International Bridge company, the privately held firm that owns the bridge, concluded that the suspension span was in "fair" condition and safe for vehicle traffic. Read more here.
October 15, 2009
Anxiety in Canada Over Near Parity with U.S. Dollar
(New York Times – Ian Austen)
For Canadians looking to escape winter’s premature arrival in many parts of the country by visiting the United States, the equally unexpected movement of the Canadian dollar toward parity with its American counterpart is welcome news. For corporate Canada, however, the development is less inspiring.
At Cascades, a producer of cardboard used to make boxes and tissue paper, every cent the Canadian dollar gains shaves 4 million Canadian dollars from its operating earnings.
With 40% of the Canadian economy dependent on trade, mostly with the United States, the prospect of the two currencies being at par for the second time since 2007 probably creates more anxiety than joy in Canada. And while currencies around the world have been rising against the United States dollar, many are laggards compared with Canada’s. Since mid-March the Canadian dollar has risen 27%, closing on Wednesday at 97.30 cents, up from 76.53 cents.
“The Canadian dollar is a strong threat to the economy,” said David Watt, a vice president and senior currency strategist at the Royal Bank of Canada. “Once the Canadian dollar starts getting to levels like parity, the recovery scenario goes from assured to dicey.” Read more here.
October 14, 2009
A Balancing Act Between Free Trade and Supply Management Politics
Canada’s policies keep some farmers profitable, but could threaten export opportunities for other agricultural sectors
As negotiators prepare to begin talks with the European Union on the biggest economic agreement Canada has undertaken in decades, the government has already taken a big bargaining chip off the table. The message seems clear: supply management is not up for debate.
Only a handful of Canadian agriculture sectors – dairy, eggs and egg-hatching, chicken and turkey – are supply managed. Supply management assigns quotas to producers, managing production and keeping farmers profitable. However, it also keeps prices high for consumers and, most importantly from a bargaining perspective, represents a major barrier to foreign imports.
For a government that champions free trade and lowering barriers, the position seems dissonant. But because the farms that benefit from supply management are concentrated in Ontario and Quebec, where the majority of House of Commons seats are also concentrated, politicians of all stripes are loathe to mess with it. In fact, in 2005, members of Parliament went as far as to adopt an all-party motion instructing Canadian negotiators at the World Trade Organization not to budge on supply management. Read more here.
Canadian Embassy Suggests Mayors Get Involved in Push to Soften Buy American Policy
Mayors from coast to coast are being asked to wade into an anti-Buy American fight and appeal directly to their U.S. counterparts after one northern Ontario mayor’s efforts attracted national attention.
Victor Fedeli, the mayor of North Bay, Ont., sent letters earlier this month to the mayors of three U.S. cities where North Bay made large purchases recently, imploring them to think about the effect on their community if Canada succumbed to protectionism.
The Canadian Embassy in the U.S. was copied on those letters and Fedeli said officials there contacted him to say having 100 Canadian mayors on board will help build American-based political support for his position.
Letters from Canadian mayors and positive responses in the U.S. will be “one more tool in the arsenal” for officials working to get the Americans to soften their stance, Fedeli said in an interview.
“I think so many mayors have done so much hard work in the last six months that they’re close and I’m really, truly now hoping that this letter-writing campaign will be the straw that breaks the camel’s back and common sense will take over,” Fedeli said. “I was naive to think that my letter alone was going to achieve any real goals. It’s going to take the strength of numbers.” Read more here.
In Recession, China Solidifies Its Lead in Global Trade
With the global recession making consumers and businesses more price-conscious, China is grabbing market share from its export competitors, solidifying a dominance in world trade that many economists say could last long after any economic recovery. China’s exports this year have already vaulted it past
Germany to become the world’s biggest exporter. Now, those market share gains are threatening to increase trade frictions with the United States and Europe. The European Commission proposed on Tuesday to extend antidumping duties on Chinese, as well as Vietnamese, shoe imports.
China is winning a larger piece of a shrinking pie. Although world trade declined this year because of the recession, consumers are demanding lower-priced goods and Beijing, determined to keep its export machine humming, is finding a way to deliver. The country’s factories are aggressively reducing prices – allowing China to gain ground in old markets and make inroads in new ones.
The most striking gains have come in the United States, where China has displaced Canada this year as the largest supplier of imports. In the first seven months of 2008, just under 15% of American imports came from China. Over the same period this year, 19% did. Meanwhile, Canada’s share of American imports fell to 14.5%, from nearly 17%. Read more here.
Memorandum D10-14-29: Tariff Classification of Gloves
1. This memorandum explains the Canada Border Services Agency’s administrative policy regarding the tariff classification of gloves.
2. This memorandum has been updated from its original publication to reflect changes in the Customs Tariff legislation, and the Harmonized System Explanatory Notes. In addition, changes have been made to clarify the administrative policy outlined in some paragraphs of the memorandum.
October 13, 2009
International Trade in Culture Goods, 2008
Data on culture goods trade for 2008 are now available for exports and imports by type of goods and culture framework category here.
GOP Lawmakers Warn of Buy American’s Unintended Consequences
A group of House Republicans turned up their criticism of the Buy American provisions in the $787 billion economic stimulus package, warning that critical infrastructure projects are being delayed and the U.S. is increasingly at risk of retaliation by its trading partners.
The lawmakers, holding a roundtable with like-minded industry groups Thursday, called on the Obama administration to take action to ensure the provisions, designed to spark job creation at home-grown companies, don’t have unintended consequences.
“There’s a reasonable solution here, which is for the Office of Management and Budget to issue final guidance that exempts states and localities from these onerous provisions,” said Rep. Kevin Brady, R-Texas, the ranking member of the House Ways and Means Trade Subcommittee. Read more here.
Carriers Seek TSA Rate Increases
Carriers in the Transpacific Stabilisation Agreement (TSA) are seeking major general rate increases in their 2010 contract renegotiations with shippers. The lines are seeking US$400 per TEU from Asia to the U.S. west coast, $500 per TEU on Asia to the U.S. east and Gulf coasts, and a $200 peak-season surcharge to come into effect at the beginning of next August. Read more here.
The Labelling and Composition of Food Containing Probiotic Microorganisms
Health Canada released its guidance document The Use of Probiotic Microorganisms in Food on April 22, 2009. This document provides guidance on the use of health claims for probiotics, as well as guidance on the safety, quality (stability), and labelling requirements for foods containing probiotic microorganisms.
To assist industry in the application of this guidance document, the Canadian Food Inspection Agency (CFIA) has updated Chapter 8, Health Claims , in the Guide to Food Labelling and Advertising (Guide) to reflect Health Canada’s new guidance on probiotics. The updated Guide also includes a list of probiotic claims that are considered acceptable on food, without the need for further substantiation by the manufacturer or importer, along with conditions for their use.
It is the responsibility of all manufacturers and importers to ensure that their products comply with all relevant Canadian legislation. Labels, advertisements and web sites are expected to be in compliance with this new guidance on probiotics within 6 months of the date of publication of this letter. Products which do not meet the requirements at that time may be subject to enforcement action by the CFIA. However, immediate correction is expected in the case of food products containing probiotics that are represented for therapeutic use (i.e. carrying drug claims) of the label, advertisement or web site, wherever such a claim appears.