May 21, 2011
Canada Consumer Product Safety Act: Quick Reference Guide
New on the Health Canada Consumer Product Safety Act website is the Canada Consumer Product Safety Act Quick Reference Guide.
Memorandum D15-2-54: Certain Aluminum Extrusions Originating in or Exported from the People’s Republic of China
(CBSA)
Application of anti-dumping and countervailing duties:
1. This memorandum refers to the application of anti-dumping and countervailing duties to importations of certain aluminum extrusions originating in or exported from the People’s Republic of China.
2. This memorandum is being revised to reflect the Canadian International Trade Tribunal’s determination dated February 10, 2011, granting additional product exclusions from their findings made on March 17, 2009.
3. This memorandum is also being revised to list additional Harmonized System classification numbers under heading 76.10, where importers have been found to regularly classify subject aluminum extrusions.
Application of anti-dumping and countervailing duties:
1. This memorandum refers to the application of anti-dumping and countervailing duties to importations of certain aluminum extrusions originating in or exported from the People’s Republic of China.
2. This memorandum is being revised to reflect the Canadian International Trade Tribunal’s determination dated February 10, 2011, granting additional product exclusions from their findings made on March 17, 2009.
3. This memorandum is also being revised to list additional Harmonized System classification numbers under heading 76.10, where importers have been found to regularly classify subject aluminum extrusions.
Brazil Calls for WTO to Discuss Relationship between Trade and Exchange Rates
(Bridges Weekly)
A Brazilian proposal for the WTO to examine the impact of currency exchange rates on international trade met with a mostly favourable response from WTO members last week, sources report.
Arguing that the relationship between trade and exchange rates risked falling into a “no man’s land” between different international institutions, Brazil is calling for a two-year ‘work programme’ in the WTO’s Working Group on Trade, Debt, and Finance (WGTDF) consisting of analysis and debate on economic theory and case studies, as well as possible reform measures.
Brazil has struggled to cope with the value of its currency, the real, which has soared by almost 50% in real terms since the late 2008, causing the country’s exports, particularly of manufactured goods, to become less competitive overseas in overseas markets, while imports continue to rise. Exchange rates, linked as they are to countries’ fiscal and monetary policies, are sensitive issues for several governments, and declarations from the Group of 20 leading economies have yielded little more than anodyne remarks about pursuing “more market-determined exchange rate systems” and “refraining from competitive devaluation.” Read more here.
A Brazilian proposal for the WTO to examine the impact of currency exchange rates on international trade met with a mostly favourable response from WTO members last week, sources report.
Arguing that the relationship between trade and exchange rates risked falling into a “no man’s land” between different international institutions, Brazil is calling for a two-year ‘work programme’ in the WTO’s Working Group on Trade, Debt, and Finance (WGTDF) consisting of analysis and debate on economic theory and case studies, as well as possible reform measures.
Brazil has struggled to cope with the value of its currency, the real, which has soared by almost 50% in real terms since the late 2008, causing the country’s exports, particularly of manufactured goods, to become less competitive overseas in overseas markets, while imports continue to rise. Exchange rates, linked as they are to countries’ fiscal and monetary policies, are sensitive issues for several governments, and declarations from the Group of 20 leading economies have yielded little more than anodyne remarks about pursuing “more market-determined exchange rate systems” and “refraining from competitive devaluation.” Read more here.
Canada Westbound Transpacific Stabilization Agreement GRI Effective July 1
(CIFFA eBulletin)
Container shipping lines in the Canada Westbound Transpacific Stabilization Agreement (CWTSA) have agreed that a General Rate Increase (GRI) will be implemented effective July 1, 2011. CWTSA carriers will adopt an across-the-board GRI in the following amounts:
Dry Cargo: US$80 per 20-foot container and $100 per 40-foot container for all Canada West Coast, East Coast and inland point intermodal (IPI) cargo, including container yard (CY) and door moves.
Refrigerated Cargo: US$160 per 20-foot container and $200 per 40-foot container for all Canada West Coast, East Coast and inland point intermodal (IPI) cargo, including container yard (CY) and door moves.
As of July 1, 2011, high cube containers will subject to a charge of US$50.00 per container and will be applicable to all cargo with local equipment pick up in Halifax and Vancouver. CWTSA is a discussion forum of major container shipping lines serving the trade from ports and inland points in Canada to destinations throughout Asia and the Indian Subcontinent.
Container shipping lines in the Canada Westbound Transpacific Stabilization Agreement (CWTSA) have agreed that a General Rate Increase (GRI) will be implemented effective July 1, 2011. CWTSA carriers will adopt an across-the-board GRI in the following amounts:
Dry Cargo: US$80 per 20-foot container and $100 per 40-foot container for all Canada West Coast, East Coast and inland point intermodal (IPI) cargo, including container yard (CY) and door moves.
Refrigerated Cargo: US$160 per 20-foot container and $200 per 40-foot container for all Canada West Coast, East Coast and inland point intermodal (IPI) cargo, including container yard (CY) and door moves.
As of July 1, 2011, high cube containers will subject to a charge of US$50.00 per container and will be applicable to all cargo with local equipment pick up in Halifax and Vancouver. CWTSA is a discussion forum of major container shipping lines serving the trade from ports and inland points in Canada to destinations throughout Asia and the Indian Subcontinent.
Ed Fast: A Rookie Minister with Two Big Free-Trade Deals on His Plate
(The Globe and Mail – Steven Chase)
Ed Fast may be the first International Trade Minister in Canadian history who’s won an award for gospel music – but colleagues say the B.C. MP’s approach is more diplomat than preacher.
One of nine new ministers appointed to Stephen Harper’s majority government cabinet Wednesday, Mr. Fast developed a reputation during five years on the backbenches as a low-key, but effective tactician who uses quiet pressure rather than confrontation to get results.
Chuck Strahl, the recently-retired Harper minister who, like Mr. Fast, calls B.C.’s Fraser Valley home, recalls how the Abbotsford MP used honey rather than vinegar to lobby cabinet ministers. “Some guys would make it difficult for you in public whereas Ed would say ‘I want to influence your decision, but don’t want to cause you a problem,’” he recalls. “In the end, I and many other ministers did what [we] could to address Ed’s needs.”
Mr. Fast will have plenty of opportunities to exercise his diplomatic skills in the months ahead as the point man at International Trade. Read more here.
Ed Fast may be the first International Trade Minister in Canadian history who’s won an award for gospel music – but colleagues say the B.C. MP’s approach is more diplomat than preacher.
One of nine new ministers appointed to Stephen Harper’s majority government cabinet Wednesday, Mr. Fast developed a reputation during five years on the backbenches as a low-key, but effective tactician who uses quiet pressure rather than confrontation to get results.
Chuck Strahl, the recently-retired Harper minister who, like Mr. Fast, calls B.C.’s Fraser Valley home, recalls how the Abbotsford MP used honey rather than vinegar to lobby cabinet ministers. “Some guys would make it difficult for you in public whereas Ed would say ‘I want to influence your decision, but don’t want to cause you a problem,’” he recalls. “In the end, I and many other ministers did what [we] could to address Ed’s needs.”
Mr. Fast will have plenty of opportunities to exercise his diplomatic skills in the months ahead as the point man at International Trade. Read more here.
May 20, 2011
News from Thompson Ahern: Weekly Updates
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending May 20, 2011 is now available on our website here.
May 19, 2011
Memorial Weekend, Victoria Day Likely Will Cause Long Lines at Border
(Grand Forks Herald)
U.S. Customs and Border Protection is reminding all travelers planning trips across the border into the United States to make sure they have their proper documents.
Memorial Day weekend in the U.S. and Monday’s Victoria Day in Canada mark the unofficial start of summer for both countries. Border traffic volumes are expected to increased greatly during the holiday weekend, and U.S. Customs and Border Protection is reminding all travelers planning trips across the border into the United States to make sure they have their proper documents.
The Western Hemisphere Travel Initiative requires U.S. and Canadian citizens age 16 and older to present a valid, acceptable travel document that denotes both identity and citizenship when entering the U.S. That’s either a passport, Enhanced Driver’s License/Enhanced Identification Card or Trusted Traveler Program card.
Related: Guidance offered for crossing northern border (Wall Street Journal)
U.S. Customs and Border Protection is reminding all travelers planning trips across the border into the United States to make sure they have their proper documents.
Memorial Day weekend in the U.S. and Monday’s Victoria Day in Canada mark the unofficial start of summer for both countries. Border traffic volumes are expected to increased greatly during the holiday weekend, and U.S. Customs and Border Protection is reminding all travelers planning trips across the border into the United States to make sure they have their proper documents.
The Western Hemisphere Travel Initiative requires U.S. and Canadian citizens age 16 and older to present a valid, acceptable travel document that denotes both identity and citizenship when entering the U.S. That’s either a passport, Enhanced Driver’s License/Enhanced Identification Card or Trusted Traveler Program card.
Related: Guidance offered for crossing northern border (Wall Street Journal)
U.S. Plans to Preclear Some Cargo in Canada
(Buffalo News – Jerry Zremski)
Would ease traffic on two crossings
In hopes of reducing congestion on the Peace and Lewiston-Queenston bridges, the U.S. government will start a pilot project later this year to preclear some trucks and cargo in Canada before they reach the border.
Speaking at a House Judiciary subcommittee Tuesday, Alan Bersin, commissioner of Customs and Border Protection, said the project would be aimed at routine cargo that could be shipped safely into the U.S. without inspection at the border.
The program is intended both to speed truck traffic at the bridges and to better focus resources to make the border more secure, Bersin said at the hearing, which dealt with security issues along the Northern Border.
Would ease traffic on two crossings
In hopes of reducing congestion on the Peace and Lewiston-Queenston bridges, the U.S. government will start a pilot project later this year to preclear some trucks and cargo in Canada before they reach the border.
Speaking at a House Judiciary subcommittee Tuesday, Alan Bersin, commissioner of Customs and Border Protection, said the project would be aimed at routine cargo that could be shipped safely into the U.S. without inspection at the border.
The program is intended both to speed truck traffic at the bridges and to better focus resources to make the border more secure, Bersin said at the hearing, which dealt with security issues along the Northern Border.
Transcore Canadian Freight Index Softens in April
(Truck News)
Canada’s sizzling spot market cooled in April after record-breaking freight availability in March.
TransCores’s Canadian Freight Index saw load volumes for April register a 15% year-over-year increase, surpassing the previous record set in April 2008. However, volumes were down 12% from March.
Equipment postings were also down, reaching their lowest recorded levels since 2005, TransCore reported. Available capacity was down nearly 20% from April 2010.
“While capacity and loads both decreased from the prior month, surprisingly the ratio of available equipment to loads remained at the exact same level on a month-to-month basis,” TransCore reported.
Canada’s sizzling spot market cooled in April after record-breaking freight availability in March.
TransCores’s Canadian Freight Index saw load volumes for April register a 15% year-over-year increase, surpassing the previous record set in April 2008. However, volumes were down 12% from March.
Equipment postings were also down, reaching their lowest recorded levels since 2005, TransCore reported. Available capacity was down nearly 20% from April 2010.
“While capacity and loads both decreased from the prior month, surprisingly the ratio of available equipment to loads remained at the exact same level on a month-to-month basis,” TransCore reported.
Air Cargo Security Needs A Harmonised Approach
(International Freighting Weekly – Alex Lennane)
IATA calls for mutual recognition of processes in all countries
The air cargo industry is calling for a global, harmonised approach to security, in the run-up to the U.S. Transportation Security Administration’s (TSA) new 31 December deadline for 100% inbound air cargo screening.
Des Vertannes, Head of Cargo at the International Air Transport Association (IATA), told delegates at Air Cargo Europe in Munich last week that to implement secure supply chains “a series of principles should be put in place in countries where there are none”. He said: “The industry should have mutual recognition of all processes and airlines should be able to have one harmonised approach.”
The TSA brought forward rules for the inbound screening of cargo on passenger aircraft following October’s Yemeni bomb plot. But the plans came under fire for being beyond the U.S.’s authority and too complex to achieve in just a year.
IATA calls for mutual recognition of processes in all countries
The air cargo industry is calling for a global, harmonised approach to security, in the run-up to the U.S. Transportation Security Administration’s (TSA) new 31 December deadline for 100% inbound air cargo screening.
Des Vertannes, Head of Cargo at the International Air Transport Association (IATA), told delegates at Air Cargo Europe in Munich last week that to implement secure supply chains “a series of principles should be put in place in countries where there are none”. He said: “The industry should have mutual recognition of all processes and airlines should be able to have one harmonised approach.”
The TSA brought forward rules for the inbound screening of cargo on passenger aircraft following October’s Yemeni bomb plot. But the plans came under fire for being beyond the U.S.’s authority and too complex to achieve in just a year.
Manufacturing Industries Poised for Continuing Recovery in Production and Profitability in 2011
(Canada NewsWire)
Despite a strong dollar, manufacturing industries covered in the Spring 2011 edition of the Canadian Industrial Profile – such as electrical equipment, fabricated metals, and machinery – can expect continued growth in production and profits this year.
Published by The Conference Board of Canada in association with Business Development Bank of Canada, the Canadian Industrial service provides a five-year (2011-2015) production, revenue, cost and profitability forecast. In addition to Electrical Equipment, Fabricated Metal Products, and Machinery Manufacturing, the Spring 2011 outlook has forecasts for Oil and Gas Support Activities, Professional Services and Textiles and Apparel Manufacturing.
“The reasons for optimism in these industries include a rebound in demand in the construction and broader manufacturing sectors, as well as a revival in American, European and Asian export markets,” said Michael Burt, Associate Director, Industrial Economic Trends. “On the downside, the strong dollar poses a threat to industries that depend on exports for growth. This is especially true in some of the manufacturing industries covered in the Spring 2011 outlook, which are largely composed of smaller firms that need to continually invest to compete.”
“Corporate profits are also rising and this signals an increased willingness by businesses to spend on professional services,” said Jérôme Nycz, Senior Vice President, Strategy and Corporate development. “The strongest performing segment of this industry is likely to be architectural and engineering services, as the pace of non-residential construction activity accelerates and high commodity prices drive investments. Information like this should help businesses with their planning.”
Electrical Equipment
The electrical equipment manufacturing industry – which produces products ranging from lighting equipment to electric motors and batteries – can expect profits to more than quadruple this year, to $223 million. Rising non-residential construction activity and strong telecom investments, which support demand for wiring are supporting the industry’s recovery. However, despite this rebound, profits will remain well below their pre-recession peak of $577 million in 2007.
Fabricated Metals
The industry is currently experiencing double digit growth in sales, with improving vehicle production and rising investment in the oil patch being key contributors to the growth. However, a more modest 6.9% increase in profitability is forecast, bringing profit levels to $1.4 billion in 2011. Surging metal prices are challenging the industry’s bottom line.
Machinery Manufacturing
The ongoing global economic recovery will boost export demand and benefit domestic sales of machinery and equipment. Higher commodity prices will increase demand for machinery in the resources sector and create incentives for the industry’s customers to invest in fuel-efficient equipment. At the same time, the strong dollar will affect the price of Canadian products in global markets, especially in an industry with fierce international competitors. Nevertheless, the industry is expected to see almost a 40% increase in profits this year, to $920 million – up from just $261 million three years ago.
Oil and Gas Support Activity
Industry activity is highly dependent on energy prices, and although weak gas prices are detracting from growth, high oil prices are encouraging new drilling activity. As well, the unconventional drilling techniques that are increasingly in use are more intensive users of industry services. The net result is that the industry is experiencing strong growth, and industry profits are forecast to increase – from a low of $45 million in 2009 – to $225 million in 2011.
Professional Services
The industry covers a wide range of services, from legal and accounting, to waste management. The architectural and engineering segment of the industry is expected to perform particularly well in the short term, thanks to increasing construction and mining activity. The industry posted a 13% increase in profitability last year and profits are forecast to slip by a modest four per cent this year to $8.4 billion
Textiles and Apparel
After two years of losses, the textiles and apparel industry is expected to post a modest profit of $13 million in 2011. Production, which grew last year for the first time since 2000, will increase again in 2011. Canadian demand has been rising since 2009, and exports are expected to increase for the second consecutive year.
The Canadian Industrial Profile Service is part of The Conference Board of Canada’s Industrial Economic Trends research. In all, outlooks for 23 industries are completed each year. The publications are available at www.e-library.ca.
Despite a strong dollar, manufacturing industries covered in the Spring 2011 edition of the Canadian Industrial Profile – such as electrical equipment, fabricated metals, and machinery – can expect continued growth in production and profits this year.
Published by The Conference Board of Canada in association with Business Development Bank of Canada, the Canadian Industrial service provides a five-year (2011-2015) production, revenue, cost and profitability forecast. In addition to Electrical Equipment, Fabricated Metal Products, and Machinery Manufacturing, the Spring 2011 outlook has forecasts for Oil and Gas Support Activities, Professional Services and Textiles and Apparel Manufacturing.
“The reasons for optimism in these industries include a rebound in demand in the construction and broader manufacturing sectors, as well as a revival in American, European and Asian export markets,” said Michael Burt, Associate Director, Industrial Economic Trends. “On the downside, the strong dollar poses a threat to industries that depend on exports for growth. This is especially true in some of the manufacturing industries covered in the Spring 2011 outlook, which are largely composed of smaller firms that need to continually invest to compete.”
“Corporate profits are also rising and this signals an increased willingness by businesses to spend on professional services,” said Jérôme Nycz, Senior Vice President, Strategy and Corporate development. “The strongest performing segment of this industry is likely to be architectural and engineering services, as the pace of non-residential construction activity accelerates and high commodity prices drive investments. Information like this should help businesses with their planning.”
Electrical Equipment
The electrical equipment manufacturing industry – which produces products ranging from lighting equipment to electric motors and batteries – can expect profits to more than quadruple this year, to $223 million. Rising non-residential construction activity and strong telecom investments, which support demand for wiring are supporting the industry’s recovery. However, despite this rebound, profits will remain well below their pre-recession peak of $577 million in 2007.
Fabricated Metals
The industry is currently experiencing double digit growth in sales, with improving vehicle production and rising investment in the oil patch being key contributors to the growth. However, a more modest 6.9% increase in profitability is forecast, bringing profit levels to $1.4 billion in 2011. Surging metal prices are challenging the industry’s bottom line.
Machinery Manufacturing
The ongoing global economic recovery will boost export demand and benefit domestic sales of machinery and equipment. Higher commodity prices will increase demand for machinery in the resources sector and create incentives for the industry’s customers to invest in fuel-efficient equipment. At the same time, the strong dollar will affect the price of Canadian products in global markets, especially in an industry with fierce international competitors. Nevertheless, the industry is expected to see almost a 40% increase in profits this year, to $920 million – up from just $261 million three years ago.
Oil and Gas Support Activity
Industry activity is highly dependent on energy prices, and although weak gas prices are detracting from growth, high oil prices are encouraging new drilling activity. As well, the unconventional drilling techniques that are increasingly in use are more intensive users of industry services. The net result is that the industry is experiencing strong growth, and industry profits are forecast to increase – from a low of $45 million in 2009 – to $225 million in 2011.
Professional Services
The industry covers a wide range of services, from legal and accounting, to waste management. The architectural and engineering segment of the industry is expected to perform particularly well in the short term, thanks to increasing construction and mining activity. The industry posted a 13% increase in profitability last year and profits are forecast to slip by a modest four per cent this year to $8.4 billion
Textiles and Apparel
After two years of losses, the textiles and apparel industry is expected to post a modest profit of $13 million in 2011. Production, which grew last year for the first time since 2000, will increase again in 2011. Canadian demand has been rising since 2009, and exports are expected to increase for the second consecutive year.
The Canadian Industrial Profile Service is part of The Conference Board of Canada’s Industrial Economic Trends research. In all, outlooks for 23 industries are completed each year. The publications are available at www.e-library.ca.
Fast Named New Trade Minister
(Rochelle Baker — The Abbotsford Times)
“I’m excited to do the job the prime minister has offered me. It’s a brand new challenge and I’m looking forward to undertaking it,” said Fast.
The position means Fast is also responsible for the federal Asia Pacific Gateway initiative.
“It’s huge for the West Coast and for providing the infrastructure and resources to get our goods [overseas] more efficiently as well as bringing them into Canada,” said Fast. Read more here.
Among a small handful of B.C. MPs picked for cabinet
Abbotsford MP Ed Fast was appointed International Trade Minister when Prime Minister Stephen Harper unveiled his new cabinet at Rideau Hall in Ottawa Wednesday morning.
Abbotsford MP Ed Fast was appointed International Trade Minister when Prime Minister Stephen Harper unveiled his new cabinet at Rideau Hall in Ottawa Wednesday morning.
“I’m excited to do the job the prime minister has offered me. It’s a brand new challenge and I’m looking forward to undertaking it,” said Fast.
The position means Fast is also responsible for the federal Asia Pacific Gateway initiative.
“It’s huge for the West Coast and for providing the infrastructure and resources to get our goods [overseas] more efficiently as well as bringing them into Canada,” said Fast. Read more here.
U.S. Border Chief Says Terror Threat Greater From Canada Than Mexico
(Colin Freeze — Globe & Mail)
When it comes to the threat of terrorism, the Canadian border is a bigger problem than the Mexican one, a U.S. security official says.
Customs and Border Protection Commissioner Alan Bersin said he is concerned that potential terrorists are exploiting Canadian loopholes to gain entry to the United States.
“We have had more cases where people who are suspected of alliances with terrorist organizations, or have had a terrorist suspicion in their background – we see more people crossing over from Canada than we have from Mexico,” he said during in his testimony to the U.S. Senate this week.
The remarks will grate on Ottawa officials, who frequently try to persuade U.S. counterparts that the terrorist threat emanating from north of the border is not that bad. Read more here.
Related: U.S.-Canada Border Not Secure: U.S. Official (Toronto Sun)
When it comes to the threat of terrorism, the Canadian border is a bigger problem than the Mexican one, a U.S. security official says.
Customs and Border Protection Commissioner Alan Bersin said he is concerned that potential terrorists are exploiting Canadian loopholes to gain entry to the United States.
“We have had more cases where people who are suspected of alliances with terrorist organizations, or have had a terrorist suspicion in their background – we see more people crossing over from Canada than we have from Mexico,” he said during in his testimony to the U.S. Senate this week.
The remarks will grate on Ottawa officials, who frequently try to persuade U.S. counterparts that the terrorist threat emanating from north of the border is not that bad. Read more here.
Related: U.S.-Canada Border Not Secure: U.S. Official (Toronto Sun)
Canadian Border Guards Now Required to Wear Name Tags
(Douglas Quan — National Post)
The Canada Border Services Agency says it is moving forward with a new policy requiring its 6,000 uniformed officers to wear name tags, despite concerns that the policy could put officers’ safety at risk.
Officers fear the name-tag policy could make it easier for disgruntled travellers who have been denied entry at the border or who were the subject of an intense search to seek retribution.
“It’s the impulsive ones we’re concerned with,” said Jason McMichael, national vice president of the Customs and Immigration Union. “Who knows what people are capable of.”
But Natalie Glister, a CBSA spokeswoman, said the agency has no plans to back down and believes that name tags on uniforms will enhance customer service. Read more here.
The Canada Border Services Agency says it is moving forward with a new policy requiring its 6,000 uniformed officers to wear name tags, despite concerns that the policy could put officers’ safety at risk.
Officers fear the name-tag policy could make it easier for disgruntled travellers who have been denied entry at the border or who were the subject of an intense search to seek retribution.
“It’s the impulsive ones we’re concerned with,” said Jason McMichael, national vice president of the Customs and Immigration Union. “Who knows what people are capable of.”
But Natalie Glister, a CBSA spokeswoman, said the agency has no plans to back down and believes that name tags on uniforms will enhance customer service. Read more here.
May 18, 2011
Manufacturing Lifts Canada April Leading Indicator
(Reuters – Louise Egan and Howaida Sorour)
Canada’s composite leading indicator rose 0.8% in April, beating expectations as stronger export demand boosted the manufacturing sector, according to Statistics Canada data on Wednesday. Analysts surveyed by Reuters had forecast, on average, a 0.6% gain. The index climbed 0.6% in March, Statscan said, revised from 0.8% previously. Read more here.
Summary statistics and a link to the data file are on the Statistics Canada website at here.
Canada’s composite leading indicator rose 0.8% in April, beating expectations as stronger export demand boosted the manufacturing sector, according to Statistics Canada data on Wednesday. Analysts surveyed by Reuters had forecast, on average, a 0.6% gain. The index climbed 0.6% in March, Statscan said, revised from 0.8% previously. Read more here.
Summary statistics and a link to the data file are on the Statistics Canada website at here.
Container Supplies to Remain Tight, WSC Says
(Journal of Commerce Online – Joseph Bonney)
Report says industry still hasn’t recovered from disruption of 2009
Shippers and carriers can expect container supplies to remain tight this year as the industry tries to catch up from box manufacturers’ lost year of 2009, the World Shipping Council said.
In an analysis of container supply, the WSC said the shortages will force shippers and cargo interests to plan and forecast carefully to ensure they have containers when and where they’re needed. The report looks at global trends, not individual trade lanes.
The report notes that supply and demand were thrown off kilter by the recession, which in 2009 produced the first-ever annual decline in global container shipping volume. Production of new containers, which had averaged 3 million 20-foot-equivalent units a year, virtually ceased. Read more here.
Report says industry still hasn’t recovered from disruption of 2009
Shippers and carriers can expect container supplies to remain tight this year as the industry tries to catch up from box manufacturers’ lost year of 2009, the World Shipping Council said.
In an analysis of container supply, the WSC said the shortages will force shippers and cargo interests to plan and forecast carefully to ensure they have containers when and where they’re needed. The report looks at global trends, not individual trade lanes.
The report notes that supply and demand were thrown off kilter by the recession, which in 2009 produced the first-ever annual decline in global container shipping volume. Production of new containers, which had averaged 3 million 20-foot-equivalent units a year, virtually ceased. Read more here.
May 17, 2011
Manufacturing Sales Grow in March as U.S. Demands More Built-in-Canada Autos
(Mary Gazze — The Canadian Press)
Manufacturing sales in Canada grew in March as the country's automotive industry became healthier, driven by a resurgence in vehicle sales south of the border, Statistics Canada reported Monday.
The federal agency said auto sales grew 4.1 per cent in March, the eighth advance for the sector in the last 12 months, which helped total manufacturing sales inch closer to levels seen before the economic downturn.
Francis Fong, an economist at TD Economics, said the higher auto sales were due to demand in the United States growing back to pre-recession levels and those vehicles are either built in Canada or their parts are made or assembled north of the border.
About 85 per cent of auto industry products made in Canada are exported to the United States, according to the Canadian Auto Workers union. Read more here.
Manufacturing sales in Canada grew in March as the country's automotive industry became healthier, driven by a resurgence in vehicle sales south of the border, Statistics Canada reported Monday.
The federal agency said auto sales grew 4.1 per cent in March, the eighth advance for the sector in the last 12 months, which helped total manufacturing sales inch closer to levels seen before the economic downturn.
Francis Fong, an economist at TD Economics, said the higher auto sales were due to demand in the United States growing back to pre-recession levels and those vehicles are either built in Canada or their parts are made or assembled north of the border.
About 85 per cent of auto industry products made in Canada are exported to the United States, according to the Canadian Auto Workers union. Read more here.
NY Sen. Schumer Chairing Hearing Focusing on Northern Border Security and Commerce Issues
(AP-Washington Post)
Sen. Charles Schumer is convening a Senate committee hearing to press for updates on security initiatives along the northern border.
The New York Democrat is on the subcommittee on Immigration, Refugees and Border Security. Tuesday’s hearing in Washington will include testimony from Immigration and Customs Enforcement Director John Morton, as well as Customs and Border Patrol Commissioner Alan Bersin. Read more here.
Sen. Charles Schumer is convening a Senate committee hearing to press for updates on security initiatives along the northern border.
The New York Democrat is on the subcommittee on Immigration, Refugees and Border Security. Tuesday’s hearing in Washington will include testimony from Immigration and Customs Enforcement Director John Morton, as well as Customs and Border Patrol Commissioner Alan Bersin. Read more here.
Banished at the Border
(Neal Hall — Vancouver Sun)
Travelling from Canada to the U.S. used to be easy. That's not always the case any more, with an increasing number of Canadians ensnared in customs hassles after 9/11
Wayne Liptrot has fond memories of crossing the U.S. border in the 1970s at Point Roberts, where he had a bank account because he owned two condos in Hawaii.
“‘Hi, Wayne, where you going today?’” he recalled the friendly customs officer asking. “He'd just wave me through.”
Back then, he lived in Tsawwassen, a block from the border at Point Roberts.
But the border is not friendly any more for Liptrot and an increasing number of Canadians. Read more here.
Travelling from Canada to the U.S. used to be easy. That's not always the case any more, with an increasing number of Canadians ensnared in customs hassles after 9/11
Wayne Liptrot has fond memories of crossing the U.S. border in the 1970s at Point Roberts, where he had a bank account because he owned two condos in Hawaii.
“‘Hi, Wayne, where you going today?’” he recalled the friendly customs officer asking. “He'd just wave me through.”
Back then, he lived in Tsawwassen, a block from the border at Point Roberts.
But the border is not friendly any more for Liptrot and an increasing number of Canadians. Read more here.
Podcast: Three Ways to Manufacture in Mexico
(CanadExport)
Looking to manufacture abroad? If so, you have options. For Canadians, one option is Mexico. The latest CanadExport podcast looks at three ways companies can set up a presence there and do it right.
Looking to manufacture abroad? If so, you have options. For Canadians, one option is Mexico. The latest CanadExport podcast looks at three ways companies can set up a presence there and do it right.
Japan Report Claims Unfair Trade Practices
(Journal of Commerce Online – Hisane Masaki)
Annual report names U.S., China as top offenders in ‘preferential measures’
A new Japanese government report is charging the country suffers from unfair practices by its trading partners, including 38 policies and measures taken by the United States.
Although the Ministry of Economy, Trade and Industry report notes “the spread of protectionism after the global economic crisis is suppressed,” it raises concerns about “the increase of preferential measures to domestic production or products for temporarily securing employment and promoting strategic industry.”
The METI report names China as second behind the United States in unfair trade practices and points to the dispute last year over rare earth minerals, key ingredients in electronics manufacturing. Japanese officials said China suspended exports of rare earths to Japan last year during a dispute over jurisdiction over an area of the East China Sea. Read more here.
Annual report names U.S., China as top offenders in ‘preferential measures’
A new Japanese government report is charging the country suffers from unfair practices by its trading partners, including 38 policies and measures taken by the United States.
Although the Ministry of Economy, Trade and Industry report notes “the spread of protectionism after the global economic crisis is suppressed,” it raises concerns about “the increase of preferential measures to domestic production or products for temporarily securing employment and promoting strategic industry.”
The METI report names China as second behind the United States in unfair trade practices and points to the dispute last year over rare earth minerals, key ingredients in electronics manufacturing. Japanese officials said China suspended exports of rare earths to Japan last year during a dispute over jurisdiction over an area of the East China Sea. Read more here.
What to Ask About Recall or Product Contamination Insurance Coverage
(Kenneth Odza — Food Liability Law Blog - Stoel Rives LLP)
If they don’t already have it, I advise my clients to talk with their insurance broker about purchasing recall insurance (otherwise known as product contamination insurance) . For clients who have recall insurance, I advise them to make sure the policy provides the coverage they expect. Recall insurance is a different animal than other policies like Commercial General Liability or Products Liability coverage. Food companies purchasing recall polices should consider the cost-benefit carefully and consider asking the underwriter to amend the policy where necessary.
The facts of a recall are often fluid and every company’s business is different. The facts known on the day a recall, a market withdrawal or another event involving product contamination occurs may be different than the facts known in the days, weeks or months that follow. In the event of a claim, the insurer is more likely to contest coverage under a recall policy than with other types of coverage.
So what should a food company should look at when purchasing, negotiating or renewing a recall or product contamination policy? The answer depends at least in part on the nature of the business and the exposure and expenditures that the business expects in the event of a recall or product contamination event. Read more here.
If they don’t already have it, I advise my clients to talk with their insurance broker about purchasing recall insurance (otherwise known as product contamination insurance) . For clients who have recall insurance, I advise them to make sure the policy provides the coverage they expect. Recall insurance is a different animal than other policies like Commercial General Liability or Products Liability coverage. Food companies purchasing recall polices should consider the cost-benefit carefully and consider asking the underwriter to amend the policy where necessary.
The facts of a recall are often fluid and every company’s business is different. The facts known on the day a recall, a market withdrawal or another event involving product contamination occurs may be different than the facts known in the days, weeks or months that follow. In the event of a claim, the insurer is more likely to contest coverage under a recall policy than with other types of coverage.
So what should a food company should look at when purchasing, negotiating or renewing a recall or product contamination policy? The answer depends at least in part on the nature of the business and the exposure and expenditures that the business expects in the event of a recall or product contamination event. Read more here.
Foreign-Focused Companies Outperform: CIBC
(CBC News)
Canadian companies that derive a large portion of their business from overseas tend to outperform those that focus more on Canada, a new report from CIBC found Friday.
Benjamin Tal, one of the bank’s economists, published a report Friday that looked at 100 TSX-listed firms on which information was easily available.
“Since 2006 the TSX firms (in our sample) that had more than 50% of sales outside Canada have seen, on average, their stock price gain more than 70% – miles above the 25% advance for more domestically oriented companies,” Tal wrote. Read more here.
Canadian companies that derive a large portion of their business from overseas tend to outperform those that focus more on Canada, a new report from CIBC found Friday.
Benjamin Tal, one of the bank’s economists, published a report Friday that looked at 100 TSX-listed firms on which information was easily available.
“Since 2006 the TSX firms (in our sample) that had more than 50% of sales outside Canada have seen, on average, their stock price gain more than 70% – miles above the 25% advance for more domestically oriented companies,” Tal wrote. Read more here.
May 15, 2011
Extension of Public Consultation Period on Shared Vision for Canada-U.S. Perimeter Security and Economic Competitiveness
(Minister of International Trade)
The Honourable Peter Van Loan, Minister of International Trade, today announced that the Government of Canada is resuming public consultations on the Canada-United States shared vision for perimeter security and economic competitiveness. The public consultation period has been extended until June 3, 2011.
The shared vision was announced February 4, 2011, in a joint declaration by Prime Minister Stephen Harper and U.S. President Barack Obama.
As stated in the declaration, the Government of Canada will engage with all levels of government and with communities, non-governmental organizations, the private sector and Canadian citizens on innovative approaches to security and competitiveness. These consultations will inform the development of a joint Canada-United States action plan that will set out a range of initiatives in four key areas of cooperation aimed at promoting security and supporting trade and economic growth.
For more information on the public consultations or to submit comments online, consult the government’s government’s border action plan. A report summarizing the findings of the consultations will be published later in the year.
The Honourable Peter Van Loan, Minister of International Trade, today announced that the Government of Canada is resuming public consultations on the Canada-United States shared vision for perimeter security and economic competitiveness. The public consultation period has been extended until June 3, 2011.
The shared vision was announced February 4, 2011, in a joint declaration by Prime Minister Stephen Harper and U.S. President Barack Obama.
As stated in the declaration, the Government of Canada will engage with all levels of government and with communities, non-governmental organizations, the private sector and Canadian citizens on innovative approaches to security and competitiveness. These consultations will inform the development of a joint Canada-United States action plan that will set out a range of initiatives in four key areas of cooperation aimed at promoting security and supporting trade and economic growth.
For more information on the public consultations or to submit comments online, consult the government’s government’s border action plan. A report summarizing the findings of the consultations will be published later in the year.
Let Us Handle Border, U.S. Says
(Montreal Gazette – Randy Boswell, Postmedia News)
Would use remote technology for Quebec-N.Y. crossing
U.S. officials are urging Canada to outsource border security to U.S. patrol officers at a remote crossing on the boundary between Quebec and New York after the Canadian government shut down this country’s checkpoint – halting all northbound traffic – as a cost-cutting measure.
Congressman Bill Owens, who represents a northern New York district in the U.S. House of Representatives, is pressing Canada to allow border guards on the U.S. side to vet both south-and northbound travellers – with assistance from off-site Canadian border officials using “remote processing technology” – to maintain the traditional twoway flow of residents across the international boundary. Read more here.
Would use remote technology for Quebec-N.Y. crossing
U.S. officials are urging Canada to outsource border security to U.S. patrol officers at a remote crossing on the boundary between Quebec and New York after the Canadian government shut down this country’s checkpoint – halting all northbound traffic – as a cost-cutting measure.
Congressman Bill Owens, who represents a northern New York district in the U.S. House of Representatives, is pressing Canada to allow border guards on the U.S. side to vet both south-and northbound travellers – with assistance from off-site Canadian border officials using “remote processing technology” – to maintain the traditional twoway flow of residents across the international boundary. Read more here.
Mexico to Accept “Merchandise Passports” for Temporary Imports
(WCO via MarketWire)
Business travelers to Mexico can soon take advantage of a new tool to expedite and reduce the cost of taking goods temporarily into the country. Starting May 16, the country begins accepting ATA Carnets, the “merchandise passports” honored in some 80 countries and customs territories, according to the United States Council for International Business (USCIB), which issues and guarantees the internationally recognized customs documents in the U.S.
Mexico will accept Carnets for professional equipment, demonstration samples and goods for trade shows. A single Carnet can be used to take goods to any accepting country for up to one year, duty-free and tax-free, so long as the goods are not sold and leave the country in the same condition in which they were brought in. More information is available here.
“For years, Carnet users have told us that the biggest gap in the system was Mexico,” said Cynthia Duncan, USCIB’s senior vice president for Carnet services. “Now, that gap has been filled. It should mean a big boost for business travel and sales in the country and throughout Latin America.”
Mexico is the United States’ second-largest export market and third-largest trading partner overall. Top U.S. exports to Mexico include electrical machinery, vehicles, auto parts, plastics, aircrafts and airplane parts.
Until recently, Mexico and other Latin American countries were outliers in the international Carnet system, which had its origins in Europe a half-century ago. But Chile’s decision a few years ago to accept Carnets, coupled with Mexico’s move, opens the region to this innovative and valuable service.
Worldwide, more than 160,000 Carnets are issued every year, accounting for hundreds of thousands of customs declarations and covering goods with a total value of over $20 billion (U.S.). The Carnet system is overseen by the International Chamber of Commerce and the World Customs Organization.
Business travelers to Mexico can soon take advantage of a new tool to expedite and reduce the cost of taking goods temporarily into the country. Starting May 16, the country begins accepting ATA Carnets, the “merchandise passports” honored in some 80 countries and customs territories, according to the United States Council for International Business (USCIB), which issues and guarantees the internationally recognized customs documents in the U.S.
Mexico will accept Carnets for professional equipment, demonstration samples and goods for trade shows. A single Carnet can be used to take goods to any accepting country for up to one year, duty-free and tax-free, so long as the goods are not sold and leave the country in the same condition in which they were brought in. More information is available here.
“For years, Carnet users have told us that the biggest gap in the system was Mexico,” said Cynthia Duncan, USCIB’s senior vice president for Carnet services. “Now, that gap has been filled. It should mean a big boost for business travel and sales in the country and throughout Latin America.”
Mexico is the United States’ second-largest export market and third-largest trading partner overall. Top U.S. exports to Mexico include electrical machinery, vehicles, auto parts, plastics, aircrafts and airplane parts.
Until recently, Mexico and other Latin American countries were outliers in the international Carnet system, which had its origins in Europe a half-century ago. But Chile’s decision a few years ago to accept Carnets, coupled with Mexico’s move, opens the region to this innovative and valuable service.
Worldwide, more than 160,000 Carnets are issued every year, accounting for hundreds of thousands of customs declarations and covering goods with a total value of over $20 billion (U.S.). The Carnet system is overseen by the International Chamber of Commerce and the World Customs Organization.
Mexico to Accept “Merchandise Passports” for Temporary Imports
(World Trade Interactive)
The Department of Agriculture’s Animal and Plant Health Inspection Service recently issued a notice concerning the use of special use codes on the import declaration for plants and plant products (form PPQ 505) required under the Lacey Act amendments. APHIS states that comments received from the public have raised issues regarding the efficient and accurate completion of this form that fall into three categories: the possible use of shorthand for common trade groupings of species; the possible difficulties involved in identifying composite, recycled, reused or reclaimed materials to the genus and/or species level; and the difficulty in identifying the genus and species for certain articles manufactured prior to the passage of the Lacey Act amendments.
APHIS has established a number of special codes to address these situations, as detailed below. Provided that these codes are properly (truthfully, accurately, completely and appropriately, pursuant to this guidance) used in an import declaration that is otherwise in compliance with the requirements of the Lacey Act, APHIS will not refer for prosecution or take any other enforcement action as to such a declaration filed while this guidance is in effect based on any failure to provide genus, species or country of harvest information. Read more here.
The Department of Agriculture’s Animal and Plant Health Inspection Service recently issued a notice concerning the use of special use codes on the import declaration for plants and plant products (form PPQ 505) required under the Lacey Act amendments. APHIS states that comments received from the public have raised issues regarding the efficient and accurate completion of this form that fall into three categories: the possible use of shorthand for common trade groupings of species; the possible difficulties involved in identifying composite, recycled, reused or reclaimed materials to the genus and/or species level; and the difficulty in identifying the genus and species for certain articles manufactured prior to the passage of the Lacey Act amendments.
APHIS has established a number of special codes to address these situations, as detailed below. Provided that these codes are properly (truthfully, accurately, completely and appropriately, pursuant to this guidance) used in an import declaration that is otherwise in compliance with the requirements of the Lacey Act, APHIS will not refer for prosecution or take any other enforcement action as to such a declaration filed while this guidance is in effect based on any failure to provide genus, species or country of harvest information. Read more here.
Information Sessions on New Canada Consumer Product Safety Act
(Health Canada)
Health Canada has released the schedule for information sessions that will be held across Canada on the new Canada Consumer Product Safety Act, which will come into force on June 20, 2011.
Registration is available in English or French.
Invitation from Health Canada - Information Session for Industry on the Canada Consumer Product Safety Act.
You are invited to attend a FREE half-day information session to learn about this new legislation, which is coming into force on June 20th, 2011. There are new requirements you need to know about including:
• Mandatory Reporting of an Incident
• Preparing and Maintaining Documents
Please see below a list of dates and cities nearest you. You may register now or visit our web site for further information. In order to secure your participation, please note that you are required to register online at least 7 days before the session you would like to attend.
Wednesday, May 25, 2011 Vancouver, BC 9:00 a.m. to 11:30
Thursday, May 26, 2011 Vancouver, BC 9:00 a.m. to 11:30
Friday, May 27, 2011 Calgary, AB 9:00 a.m. to 11:30
Tuesday, May 31, 2011 Regina, SK 1:00 p.m. to 3:30
Wednesday, June 1, 2011 Winnipeg, MB 9:00 a.m. to 11:30
Thursday, June 2, 2011 Toronto, ON 9:00 a.m. to 11:30 & 1:00 p.m. to 3:30
Friday, June 3, 2011 Burlington, ON 9:00 a.m. to 11:30
Tuesday, June 7, 2011 Montréal, QC 9:00 a.m. to 11:30 (French) , 1:00 p.m. to 3:30 (English)
Wednesday, June 8, 2011 Québec, QC ? 9:00 a.m. to 11:30 (French)
Thursday, June 9, 2011 Moncton, NB 9:00 a.m. to 11:30 (French) , 1:00 p.m. to 3:30 (English)
Tuesday, June 14, 2011 Charlottetown, PEI 9:00 a.m. to 11:30
Wednesday, June 15, 2011 Halifax, NS 9:00 a.m. to 11:30
Thursday, June 16, 2011 St. John’s, NL 9:00 a.m. to 11:30
More information is available here.
Health Canada has released the schedule for information sessions that will be held across Canada on the new Canada Consumer Product Safety Act, which will come into force on June 20, 2011.
Registration is available in English or French.
Invitation from Health Canada - Information Session for Industry on the Canada Consumer Product Safety Act.
You are invited to attend a FREE half-day information session to learn about this new legislation, which is coming into force on June 20th, 2011. There are new requirements you need to know about including:
• Mandatory Reporting of an Incident
• Preparing and Maintaining Documents
Please see below a list of dates and cities nearest you. You may register now or visit our web site for further information. In order to secure your participation, please note that you are required to register online at least 7 days before the session you would like to attend.
Wednesday, May 25, 2011 Vancouver, BC 9:00 a.m. to 11:30
Thursday, May 26, 2011 Vancouver, BC 9:00 a.m. to 11:30
Friday, May 27, 2011 Calgary, AB 9:00 a.m. to 11:30
Tuesday, May 31, 2011 Regina, SK 1:00 p.m. to 3:30
Wednesday, June 1, 2011 Winnipeg, MB 9:00 a.m. to 11:30
Thursday, June 2, 2011 Toronto, ON 9:00 a.m. to 11:30 & 1:00 p.m. to 3:30
Friday, June 3, 2011 Burlington, ON 9:00 a.m. to 11:30
Tuesday, June 7, 2011 Montréal, QC 9:00 a.m. to 11:30 (French) , 1:00 p.m. to 3:30 (English)
Wednesday, June 8, 2011 Québec, QC ? 9:00 a.m. to 11:30 (French)
Thursday, June 9, 2011 Moncton, NB 9:00 a.m. to 11:30 (French) , 1:00 p.m. to 3:30 (English)
Tuesday, June 14, 2011 Charlottetown, PEI 9:00 a.m. to 11:30
Wednesday, June 15, 2011 Halifax, NS 9:00 a.m. to 11:30
Thursday, June 16, 2011 St. John’s, NL 9:00 a.m. to 11:30
More information is available here.
Canadian Pavilion Announced for China Fisheries and Seafood Expo – November
Agriculture and Agri-Food Canada is inviting Canadian businesses to showcase their products at the Canadian Pavilion of the China Fisheries and Seafood Expo 2011, which will be held November 1-3, 2011 in Qingdao, China. In 2010, there were 743 exhibiting companies from 35 countries and more than 19,000 qualified buyers in attendance from China and over 70 other countries. For more information, contact angela.ierullo@agr.gc.ca or sarah.akhtar@agr.gc.ca.
India’s Tariff Authority Orders Port Rate Reduction
(Journal of Commerce Online)
Ruling comes after Chennai Container Terminal requested 14% rate hike
India’s Tariff Authority for Major Ports ordered a 35-percent reduction in the scale of rates currently applied by Chennai Container Terminal, a DP World-managed facility.
The ruling comes after the company filed an application with the port regulator for a near 14-percent hike in rates, citing huge deficits.
The revised scale of rates notified May 5 will take effect after 15 days and remain in force until March 31, 2013. Read more here.
Ruling comes after Chennai Container Terminal requested 14% rate hike
India’s Tariff Authority for Major Ports ordered a 35-percent reduction in the scale of rates currently applied by Chennai Container Terminal, a DP World-managed facility.
The ruling comes after the company filed an application with the port regulator for a near 14-percent hike in rates, citing huge deficits.
The revised scale of rates notified May 5 will take effect after 15 days and remain in force until March 31, 2013. Read more here.
Warning for Canada in China’s Trade Numbers
(Andy Hoffman — The Globe and Mail)
China’s surprise trade surplus is certainly adding to pressures on Beijing to allow the yuan to appreciate faster – but the numbers also carry a more stark and dire warning for Canada.
China’s economy and its crucial demand for commodities produced in Canada and by Canadian companies is weakening. The unexpected trade surplus was driven by weaker than expected imports, particularly commodities.
Beijing says China’s imports rose 21.8% year-over-year in April, well short of an expected 28.9% increase. According to Capital Economics in London, this was equivalent to a 4.1% month-over-month seasonally adjusted decline and the largest drop since January of 2010.
While the earthquake and tsunami disaster in Japan and the subsequent fall in Japanese exports to China account for about one-third of the decrease, a striking decline in commodity import volumes, particularly copper, are critical to understanding the data. Read more here.
China’s surprise trade surplus is certainly adding to pressures on Beijing to allow the yuan to appreciate faster – but the numbers also carry a more stark and dire warning for Canada.
China’s economy and its crucial demand for commodities produced in Canada and by Canadian companies is weakening. The unexpected trade surplus was driven by weaker than expected imports, particularly commodities.
Beijing says China’s imports rose 21.8% year-over-year in April, well short of an expected 28.9% increase. According to Capital Economics in London, this was equivalent to a 4.1% month-over-month seasonally adjusted decline and the largest drop since January of 2010.
While the earthquake and tsunami disaster in Japan and the subsequent fall in Japanese exports to China account for about one-third of the decrease, a striking decline in commodity import volumes, particularly copper, are critical to understanding the data. Read more here.
New IDs Aren’t Keeping Ports Secure, GAO Says
(GovExec.com – Joseph Marks)
Despite nine years of fine-tuning and more than $400 million in funding, a government-issued picture ID card used at U.S. ports provides less security than the average state-issued driver’s license, a federal auditor told lawmakers Tuesday.
Government Accountability Office investigators were able to make counterfeit versions of the Transportation Worker Identity Credential card, which they used to bluff their way through security at major U.S. ports, according to a GAO report released Tuesday during a Senate Commerce Committee hearing. Once they were inside the ports, the investigators were able to drive a vehicle with a “simulated explosive” into a secure area.
In other cases, the investigators, using phony names and backgrounds, applied for and received real TWIC cards, the report said.
The investigators were not able to bluff their way into ports that required a separate port-specific ID, the report said.
“In our report today we reference a 2008 Coast Guard assessment that states very clearly al Qaeda considers U.S. ports and facilities to be legitimate targets,” Stephen Lord, GAO’s director of homeland security and justice issues, told committee members. “To us that’s why this issue is important.” Read more here.
Despite nine years of fine-tuning and more than $400 million in funding, a government-issued picture ID card used at U.S. ports provides less security than the average state-issued driver’s license, a federal auditor told lawmakers Tuesday.
Government Accountability Office investigators were able to make counterfeit versions of the Transportation Worker Identity Credential card, which they used to bluff their way through security at major U.S. ports, according to a GAO report released Tuesday during a Senate Commerce Committee hearing. Once they were inside the ports, the investigators were able to drive a vehicle with a “simulated explosive” into a secure area.
In other cases, the investigators, using phony names and backgrounds, applied for and received real TWIC cards, the report said.
The investigators were not able to bluff their way into ports that required a separate port-specific ID, the report said.
“In our report today we reference a 2008 Coast Guard assessment that states very clearly al Qaeda considers U.S. ports and facilities to be legitimate targets,” Stephen Lord, GAO’s director of homeland security and justice issues, told committee members. “To us that’s why this issue is important.” Read more here.
Subscribe to:
Posts (Atom)