October 28, 2011
News from Thompson Ahern: Weekly Updates
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending October 28, 2011 is now available on our website here.
CBP Proposing to Increase Informal Entry Limit from $2,000 to $2,500
(World Trade Interactive)
U.S. Customs and Border Protection is proposing to increase the informal entry limit from $2,000 to its maximum statutory limit of $2,500. CBP also proposes to remove regulatory language requiring the use of a formal entry for certain shipments of textile or apparel products, which is no longer needed due to the elimination of quotas formerly established under the Agreement on Textiles and Clothing. Comments on this proposed rule are due no later than Dec. 27.
All merchandise imported into the customs territory of the United States is subject to entry and clearance procedures. Formal entry generally involves the completion and filing of one or more forms (such as CBP Form 7501, Entry/Entry Summary, which contains detailed information regarding the import transaction) or their electronic equivalent as well as the filing of commercial documents pertaining to the transaction. However, CBP regulations exempt from formal entry imported merchandise whose aggregate value does not exceed a specified amount.
The informal entry limit has remained at $2,000 since 1998. CBP believes that increasing this limit by $500 will reduce the overall administrative burden on importers and other entry filers by expanding the availability of the simplified informal entry procedures. CBP has also determined that this increase will save the trade community approximately $11 million in merchandise processing fees annually (a figure that could rise considering that the MPF was recently increased from 0.21% to 0.3464%).
U.S. Customs and Border Protection is proposing to increase the informal entry limit from $2,000 to its maximum statutory limit of $2,500. CBP also proposes to remove regulatory language requiring the use of a formal entry for certain shipments of textile or apparel products, which is no longer needed due to the elimination of quotas formerly established under the Agreement on Textiles and Clothing. Comments on this proposed rule are due no later than Dec. 27.
All merchandise imported into the customs territory of the United States is subject to entry and clearance procedures. Formal entry generally involves the completion and filing of one or more forms (such as CBP Form 7501, Entry/Entry Summary, which contains detailed information regarding the import transaction) or their electronic equivalent as well as the filing of commercial documents pertaining to the transaction. However, CBP regulations exempt from formal entry imported merchandise whose aggregate value does not exceed a specified amount.
The informal entry limit has remained at $2,000 since 1998. CBP believes that increasing this limit by $500 will reduce the overall administrative burden on importers and other entry filers by expanding the availability of the simplified informal entry procedures. CBP has also determined that this increase will save the trade community approximately $11 million in merchandise processing fees annually (a figure that could rise considering that the MPF was recently increased from 0.21% to 0.3464%).
CBSA Investigates the Dumping and Subsidizing of Certain Stainless Steel Sinks
(CBSA)
The Canada Border Services Agency (CBSA) announced today that it is initiating investigations into the alleged injurious dumping and subsidizing of certain stainless steel sinks originating in or exported from the People’s Republic of China.
The investigations follow a complaint filed by Novanni Stainless Inc., of Coldwater, Ontario, and Franke Kindred Canada Limited, of Midland, Ontario. The complainants allege that the dumping and subsidizing of these goods are harming Canadian production by causing the following: loss of market share, loss of sales, price erosion, declining capacity utilization, reduction in employment and declining revenues, margins and profits.
Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter’s domestic market or at unprofitable prices. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.
If the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA’s decision and that the retroactive application of anti dumping or countervailing duty is therefore justified, duty could be levied on the goods brought into Canada as of today.
The Statement of Reasons, which provides more details about these investigations, will be available on the CBSA’s website within 15 days. More information on the CBSA’s Anti-dumping and Countervailing Directorate or the Special Import Measures Act can also be found on this site.
The Canada Border Services Agency (CBSA) announced today that it is initiating investigations into the alleged injurious dumping and subsidizing of certain stainless steel sinks originating in or exported from the People’s Republic of China.
The investigations follow a complaint filed by Novanni Stainless Inc., of Coldwater, Ontario, and Franke Kindred Canada Limited, of Midland, Ontario. The complainants allege that the dumping and subsidizing of these goods are harming Canadian production by causing the following: loss of market share, loss of sales, price erosion, declining capacity utilization, reduction in employment and declining revenues, margins and profits.
Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter’s domestic market or at unprofitable prices. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade.
The Canadian International Trade Tribunal will now begin a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by December 28, 2011. While the Tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and/or subsidized, and will make a decision by January 25, 2012.
If the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA’s decision and that the retroactive application of anti dumping or countervailing duty is therefore justified, duty could be levied on the goods brought into Canada as of today.
The Statement of Reasons, which provides more details about these investigations, will be available on the CBSA’s website within 15 days. More information on the CBSA’s Anti-dumping and Countervailing Directorate or the Special Import Measures Act can also be found on this site.
October 27, 2011
Feds Intensify Lobbying against EU Fuel Label
(Embassy – Sneh Duggal)
The Harper government is defending its vigorous pushback against a European Union plan to classify oil sands crude as particularly dirty amid protests and criticism from environmentalists.
The EU was set to vote on how to implement its 2008 “fuel quality directive,” which aims to categorize fuel according to greenhouse gas intensity, on Oct. 25. Instead it held off and moved the vote to December.
The implementation plan, if passed, would see crude from Canada’s oil sands assigned a greenhouse gas intensity level larger than conventional crude – 107 grams of carbon dioxide per megajoule of energy produced, versus 87.5 grams. While little oil from the oil sands actually goes to Europe, the government has fretted that such a regulation, if left alone, would trigger similar legislation around the world. Read more here.
The Harper government is defending its vigorous pushback against a European Union plan to classify oil sands crude as particularly dirty amid protests and criticism from environmentalists.
The EU was set to vote on how to implement its 2008 “fuel quality directive,” which aims to categorize fuel according to greenhouse gas intensity, on Oct. 25. Instead it held off and moved the vote to December.
The implementation plan, if passed, would see crude from Canada’s oil sands assigned a greenhouse gas intensity level larger than conventional crude – 107 grams of carbon dioxide per megajoule of energy produced, versus 87.5 grams. While little oil from the oil sands actually goes to Europe, the government has fretted that such a regulation, if left alone, would trigger similar legislation around the world. Read more here.
Tax Benefits Extended to Maquiladoras and Other Mexican Export Manufacturers
(Adrián B Vázquez et al., Vázquez Bravo)
On October 11 2011 the president signed the Maquiladora Tax Decree, which was published in the Official Gazette. The decree provides for an extension of the fixed-rate corporate tax stimulus that was originally scheduled to expire in 2011.
The decision is welcome, as the ability to apply the relevant fixed-rate corporate tax benefit in fiscal years 2012 and 2013 provides greater certainty for foreign investors while the continued existence of the tax itself is debated. Maquiladora companies or companies subject to the Decree for the Promotion of Manufacturing, Maquiladora and Exporters will not be required to pay more than a 17.5% tax rate on profits derived from Mexico during the extension period, provided that they comply with the requirements set out in the many tax and customs provisions that apply to them.
The decree is partly the result of the lobbying efforts of the National Council for the Maquiladora and Export Manufacturing Industry, which has worked towards its adoption for the past year.
On October 11 2011 the president signed the Maquiladora Tax Decree, which was published in the Official Gazette. The decree provides for an extension of the fixed-rate corporate tax stimulus that was originally scheduled to expire in 2011.
The decision is welcome, as the ability to apply the relevant fixed-rate corporate tax benefit in fiscal years 2012 and 2013 provides greater certainty for foreign investors while the continued existence of the tax itself is debated. Maquiladora companies or companies subject to the Decree for the Promotion of Manufacturing, Maquiladora and Exporters will not be required to pay more than a 17.5% tax rate on profits derived from Mexico during the extension period, provided that they comply with the requirements set out in the many tax and customs provisions that apply to them.
The decree is partly the result of the lobbying efforts of the National Council for the Maquiladora and Export Manufacturing Industry, which has worked towards its adoption for the past year.
Brazil Asks WTO to Study “Currency ‘Misalignments” and Global Trade
(MercoPress)
Brazilian government has proposed further study at the World Trade Organization on the effects that exchange rate fluctuations have on international trade, the foreign ministry said this week.
Brazil has complained repeatedly that some countries are manipulating their currencies to give them an unfair trade advantage, and wants the WTO to consider measures that could be taken to deal with currency “misalignments.” Read more here.
Brazilian government has proposed further study at the World Trade Organization on the effects that exchange rate fluctuations have on international trade, the foreign ministry said this week.
Brazil has complained repeatedly that some countries are manipulating their currencies to give them an unfair trade advantage, and wants the WTO to consider measures that could be taken to deal with currency “misalignments.” Read more here.
WTO G-20 Report: Weak Growth and Imbalances “Testing” Government Resolve Against Protectionism
(WTO)
The WTO’s report on G-20 trade measures, issued on 26 October 2011, said that “disappointingly weak growth in some G-20 countries and continuing macroeconomic imbalances globally are testing the political resolve of many governments to abide by the G-20 commitment to resist protectionism”. It said that “the situation is not yet alarming, but it is clearly adding to the downside risks to the global economy”.
G-20 Leaders reaffirmed, at their last Summit meeting in Seoul on 11-12 November 2010, their unwavering commitment to resist all forms of protectionism. Furthermore, recognizing the importance of free trade and investment for global recovery, they committed to keep markets open and liberalize trade and investment as a means to promote economic progress for all and narrow the development gap. Read more here.
The WTO’s report on G-20 trade measures, issued on 26 October 2011, said that “disappointingly weak growth in some G-20 countries and continuing macroeconomic imbalances globally are testing the political resolve of many governments to abide by the G-20 commitment to resist protectionism”. It said that “the situation is not yet alarming, but it is clearly adding to the downside risks to the global economy”.
G-20 Leaders reaffirmed, at their last Summit meeting in Seoul on 11-12 November 2010, their unwavering commitment to resist all forms of protectionism. Furthermore, recognizing the importance of free trade and investment for global recovery, they committed to keep markets open and liberalize trade and investment as a means to promote economic progress for all and narrow the development gap. Read more here.
Congressman Who Pushed Buy American Defends Move
(Embassy – Carl Meyer)
The American lawmaker who may have stoked the fire of a potential Canada-U.S. trade war is defending his efforts in the wake of a fresh crop of cross-border disputes.
Democrat Chris Murphy, who represents Connecticut’s 5th congressional district, originally wrote to United States President Barack Obama on Sept. 7 urging him to insert a Buy American provision in his administration’s $447-billion American Jobs Act that would shut out foreign firms.
The inclusion of that provision led to fresh questions in Ottawa whether the Harper government’s efforts to sew up the Buy American issue in 2009-10 had any lasting effect – especially after U.S. Ambassador David Jacobson called on Canadians on Oct. 18 to ignore the provision. Canada-U.S. expert Chris Sands has called the new provision an “embarrassing defeat for Canadian diplomacy.”
The American lawmaker who may have stoked the fire of a potential Canada-U.S. trade war is defending his efforts in the wake of a fresh crop of cross-border disputes.
Democrat Chris Murphy, who represents Connecticut’s 5th congressional district, originally wrote to United States President Barack Obama on Sept. 7 urging him to insert a Buy American provision in his administration’s $447-billion American Jobs Act that would shut out foreign firms.
The inclusion of that provision led to fresh questions in Ottawa whether the Harper government’s efforts to sew up the Buy American issue in 2009-10 had any lasting effect – especially after U.S. Ambassador David Jacobson called on Canadians on Oct. 18 to ignore the provision. Canada-U.S. expert Chris Sands has called the new provision an “embarrassing defeat for Canadian diplomacy.”
In an exclusive interview with Embassy, Mr. Murphy said it wasn’t lost on him that pushing for the provision would irritate the country’s biggest trading partner. But he said his obligation was to protect jobs in his state. Read more here.
Railway Carloadings Up in August
(Statistics Canada)
Total freight traffic carried by Canadian railways rose 10.8% from August 2010 to 27.8 million tonnes in August. The gain was the result of increases in both domestic and international cargo loadings.
Non-intermodal freight loadings, which are typically carried in bulk or loaded in box cars, rose 9.1% from August 2010 to 22.0 million tonnes. The gain was the result of increased traffic in more than half of the commodity classifications carried by the railways. The commodity groups with the largest increases in tonnage were coal, lumber and wood pulp.
Several commodity groups registered decreases in August. Iron ores and concentrates, colza seeds (canola) and other cereal grains posted the largest drops in tonnage.
Intermodal freight loadings edged up 0.1% from a year earlier to 2.4 million tonnes in August. The increase occurred solely on the strength of containerized cargo shipments.
Internationally, traffic received from the United States destined for or passing through Canada rose 34.8% from August 2010 to 3.4 million tonnes, driven primarily by increased loadings of non-intermodal freight.
From a geographic perspective, 56.7% of the freight traffic originating in Canada was in the Western Division of Canada, with the remainder loaded in the Eastern Division. For statistical purposes, the Eastern and Western Divisions are separated by an imaginary line running from Thunder Bay to Armstrong, Ontario. Freight loaded at Thunder Bay is included in the Western Division while loadings at Armstrong are reported in the Eastern Division.
Total freight traffic carried by Canadian railways rose 10.8% from August 2010 to 27.8 million tonnes in August. The gain was the result of increases in both domestic and international cargo loadings.
The industry’s core domestic transportation systems, non-intermodal and intermodal, saw their combined freight loadings rise 8.1% to 24.4 million tonnes in August compared with the same month a year earlier.
Non-intermodal freight loadings, which are typically carried in bulk or loaded in box cars, rose 9.1% from August 2010 to 22.0 million tonnes. The gain was the result of increased traffic in more than half of the commodity classifications carried by the railways. The commodity groups with the largest increases in tonnage were coal, lumber and wood pulp.
Several commodity groups registered decreases in August. Iron ores and concentrates, colza seeds (canola) and other cereal grains posted the largest drops in tonnage.
Intermodal freight loadings edged up 0.1% from a year earlier to 2.4 million tonnes in August. The increase occurred solely on the strength of containerized cargo shipments.
Internationally, traffic received from the United States destined for or passing through Canada rose 34.8% from August 2010 to 3.4 million tonnes, driven primarily by increased loadings of non-intermodal freight.
From a geographic perspective, 56.7% of the freight traffic originating in Canada was in the Western Division of Canada, with the remainder loaded in the Eastern Division. For statistical purposes, the Eastern and Western Divisions are separated by an imaginary line running from Thunder Bay to Armstrong, Ontario. Freight loaded at Thunder Bay is included in the Western Division while loadings at Armstrong are reported in the Eastern Division.
October 26, 2011
European Commission’s Report on Trade
(Euroalert)
According to a monitoring report released by the European Commission, G20 members still have to increase efforts in order to avoid protectionists behaviours in their trade relations. In its report, the Commission warns about the harmful effects of the introduction of new trade barriers and restrictive measures.
The Eighth Report on Potentially Trade Restrictive Measures provides the latest state of play regarding trade activities of the EU’s trade partners between October 2010 and 1 September 2011. The report shows that economic recovery in many countries has not led to the reversal of protectionist policies, and highlights that only 17% of all measures introduced since the beginning of the crisis so far have lapsed.
The report counts no less than 424 restrictive measures to open trade since the start of the Commission’s monitoring in October 2008 and, over the last year, 130 new trade restrictive measures have been introduced by EU’s trading partners, meaning an increase of 30%. Furthermore, some of these measures which were deemed to be temporary are still applicable and the roll-back of potentially trade-restrictive measures remains insufficient and slow.
The tendency towards industrialisation policies among emerging economies such as Argentina, Brazil, Russia, India and China, has combine industrial support and trade-restrictive measures. These policies have raised concerns about open trade and investment, as they are often based on import substitution, local content requirements and restrictions in public procurement. In emerging countries, a lot of trade restrictive measures have been locked in as part of national industrialisation plans.
The report, as already done by the first Trade and Investment Barriers report put forward by the Commission in march 2011, also underlines EU’s strong commitment to support efforts to reduce trade barriers and protectionism either at the G20, the World Trade Organization (WTO) and other international organisations, so that the global trading system does not fall victim to a deteriorating economic situation and European companies can benefit from fair access to global markets.
According to a monitoring report released by the European Commission, G20 members still have to increase efforts in order to avoid protectionists behaviours in their trade relations. In its report, the Commission warns about the harmful effects of the introduction of new trade barriers and restrictive measures.
The Eighth Report on Potentially Trade Restrictive Measures provides the latest state of play regarding trade activities of the EU’s trade partners between October 2010 and 1 September 2011. The report shows that economic recovery in many countries has not led to the reversal of protectionist policies, and highlights that only 17% of all measures introduced since the beginning of the crisis so far have lapsed.
The report counts no less than 424 restrictive measures to open trade since the start of the Commission’s monitoring in October 2008 and, over the last year, 130 new trade restrictive measures have been introduced by EU’s trading partners, meaning an increase of 30%. Furthermore, some of these measures which were deemed to be temporary are still applicable and the roll-back of potentially trade-restrictive measures remains insufficient and slow.
The tendency towards industrialisation policies among emerging economies such as Argentina, Brazil, Russia, India and China, has combine industrial support and trade-restrictive measures. These policies have raised concerns about open trade and investment, as they are often based on import substitution, local content requirements and restrictions in public procurement. In emerging countries, a lot of trade restrictive measures have been locked in as part of national industrialisation plans.
The report, as already done by the first Trade and Investment Barriers report put forward by the Commission in march 2011, also underlines EU’s strong commitment to support efforts to reduce trade barriers and protectionism either at the G20, the World Trade Organization (WTO) and other international organisations, so that the global trading system does not fall victim to a deteriorating economic situation and European companies can benefit from fair access to global markets.
October 25, 2011
U.S. Confirms No FMC Tax on Cargo from Canada
(International Freighting Weekly – Pete Goldin)
Ambassador attempts to play down claims of plan for levy on shipments from over the border
The U.S. Ambassador to Canada, David Jacobson, has confirmed that the Federal Maritime Commission (FMC) has no plans to tax cargo coming into the country from Canadian ports.
Jacobson made the statement this week to the Canadian Club, in response to a controversy sparked by comments from FMC Chairman Richard Lidinsky in Montreal a few weeks ago. Lidinsky implied that U.S. would have to take action to “level the playing field” between west coast Canadian and U.S. ports. Read more here.
Ambassador attempts to play down claims of plan for levy on shipments from over the border
The U.S. Ambassador to Canada, David Jacobson, has confirmed that the Federal Maritime Commission (FMC) has no plans to tax cargo coming into the country from Canadian ports.
Jacobson made the statement this week to the Canadian Club, in response to a controversy sparked by comments from FMC Chairman Richard Lidinsky in Montreal a few weeks ago. Lidinsky implied that U.S. would have to take action to “level the playing field” between west coast Canadian and U.S. ports. Read more here.
Meat Sector Urges Ottawa to Ink South Korea Free-Trade Deal, Millions at Stake
(John Cotter — The Canadian Press)
Canada’s meat industry says it stands to lose hundreds of millions of dollars a year unless Ottawa moves more quickly to sign a free-trade agreement with South Korea.
Earlier this month, the United States signed such a trade deal, which means its beef and pork producers will face much lower tariffs than their Canadian counterparts. The Canadian Pork Council warns that without a similar deal, Canada could lose $300 million a year in business, as well as farm and meat processing jobs.
“With the recent ratification of the Korean free-trade agreement by the U.S. Congress, the Canadian red meat industry is very concerned that further delay in concluding Canadian free-trade talks with South Korea will seriously undermine the competitiveness of the pork and beef sectors,” said council chairman Jurgen Preugschas. “It would put more of our producers out of business.” South Korea is Canada’s third-largest pork market and was once Canada’s fourth-largest beef market. Read more here.
Canada’s meat industry says it stands to lose hundreds of millions of dollars a year unless Ottawa moves more quickly to sign a free-trade agreement with South Korea.
Earlier this month, the United States signed such a trade deal, which means its beef and pork producers will face much lower tariffs than their Canadian counterparts. The Canadian Pork Council warns that without a similar deal, Canada could lose $300 million a year in business, as well as farm and meat processing jobs.
“With the recent ratification of the Korean free-trade agreement by the U.S. Congress, the Canadian red meat industry is very concerned that further delay in concluding Canadian free-trade talks with South Korea will seriously undermine the competitiveness of the pork and beef sectors,” said council chairman Jurgen Preugschas. “It would put more of our producers out of business.” South Korea is Canada’s third-largest pork market and was once Canada’s fourth-largest beef market. Read more here.
Changes in the Regulation of Energy Drinks in Canada
(Eileen McMahon at al. — Torys LLP)
Energy drinks reclassified as foods
On October 6, 2011, Health Canada announced its decision to begin regulating most energy drinks as foods. This decision, which followed a comprehensive review of the classification of these products, means that most energy drinks will cease to be regulated as natural health products (NHPs) under the Natural Health Products Regulations, and will be subject to the Food and Drug Regulations, as they apply to foods. One significant consequence of this regulatory change is that energy drinks will be subject to the nutrition, ingredient and allergen labelling requirements applicable to all foods. Read more here (PDF).
Energy drinks reclassified as foods
On October 6, 2011, Health Canada announced its decision to begin regulating most energy drinks as foods. This decision, which followed a comprehensive review of the classification of these products, means that most energy drinks will cease to be regulated as natural health products (NHPs) under the Natural Health Products Regulations, and will be subject to the Food and Drug Regulations, as they apply to foods. One significant consequence of this regulatory change is that energy drinks will be subject to the nutrition, ingredient and allergen labelling requirements applicable to all foods. Read more here (PDF).
Border Deal Could Save Businesses $30B a Year: Fast
(CTV News – Kevin Scanlon)
Clearing up restrictions that clog the Canada-U.S. border could save businesses in both countries as much as $30 billion a year, according to Canada’s minister of international trade.
That’s the key to the first phase of a Canada-U.S. perimeter security deal now being negotiated, Ed Fast said during an appearance on CTV’s Question Period Sunday morning.
“We would like to see something passed quickly,” Fast said. “The cost to Canadians and Americans alike of current barriers across our border are estimated at $15-to-30-billion a year.”
Speaking from Vancouver, the minister said he couldn’t discuss negotiations until an announcement is made but admitted, “We’ve made excellent progress.”
Easing trade restrictions was one element of the so-called Beyond the Border action plan that was announced eight months ago but Fast said negotiators have “narrowed the scope” of the talks from a wide-ranging border security agreement. Read more here.
Clearing up restrictions that clog the Canada-U.S. border could save businesses in both countries as much as $30 billion a year, according to Canada’s minister of international trade.
That’s the key to the first phase of a Canada-U.S. perimeter security deal now being negotiated, Ed Fast said during an appearance on CTV’s Question Period Sunday morning.
“We would like to see something passed quickly,” Fast said. “The cost to Canadians and Americans alike of current barriers across our border are estimated at $15-to-30-billion a year.”
Speaking from Vancouver, the minister said he couldn’t discuss negotiations until an announcement is made but admitted, “We’ve made excellent progress.”
Easing trade restrictions was one element of the so-called Beyond the Border action plan that was announced eight months ago but Fast said negotiators have “narrowed the scope” of the talks from a wide-ranging border security agreement. Read more here.
Border Pact to Include Cargo Pre-Screening, U.S. Homeland Chief Says
(Jim Bronskill — The Canadian Press)
More early inspection of cargo heading to the United States through northern border crossings will be a feature of the new continental security deal, says the U.S. homeland security secretary.
Janet Napolitano told the U.S. Senate judiciary committee this week the Canada-U.S. perimeter security pact would help ease congestion by pre-screening trucks on the Canadian side of the border at the Peace Bridge and other major crossings. “We really are very interested in how we can expedite the free flow of goods on both borders, northern and southern, and looking at ways where we can do pre-inspections, if not actual pre-clearance, on the Canadian side,” she added.
Napolitano was responding to questions from U.S. Sen. Charles Schumer of New York, who has been among those pushing for measures to unclog traffic at the Peace Bridge linking Buffalo, N.Y., and Fort Erie, Ont. Read more here.
More early inspection of cargo heading to the United States through northern border crossings will be a feature of the new continental security deal, says the U.S. homeland security secretary.
Janet Napolitano told the U.S. Senate judiciary committee this week the Canada-U.S. perimeter security pact would help ease congestion by pre-screening trucks on the Canadian side of the border at the Peace Bridge and other major crossings. “We really are very interested in how we can expedite the free flow of goods on both borders, northern and southern, and looking at ways where we can do pre-inspections, if not actual pre-clearance, on the Canadian side,” she added.
Napolitano was responding to questions from U.S. Sen. Charles Schumer of New York, who has been among those pushing for measures to unclog traffic at the Peace Bridge linking Buffalo, N.Y., and Fort Erie, Ont. Read more here.
Feds Assail Michigan Bridge Vote
(The Windsor Star – Dave Battagello)
Snyder to discuss next steps in Ottawa
Canada’s federal government expressed dismay Friday over the rejection to construct the proposed $1-billion government-backed Windsor-Detroit bridge, by a handful of politicians who serve on a committee in the Michigan senate.
“We are extremely disappointed the Michigan Senate Economic Development Committee failed to approve a bill to authorize construction of the new crossing,” said Mark Butler, spokesman for Transport Canada.
Ottawa has offered up to $550 million to pay the state’s share of costs for the Detroit River International Crossing bridge, but that wasn’t enough to overcome intense political lobbying and hefty donations of Ambassador Bridge owner Matty Moroun. He now indefinitely retains his dominance of toll revenues and duty free sales at North America’s busiest border crossing.
Federal transportation minister Denis Lebel has already spoken with Michigan’s Gov. Rick Snyder and confirmed the bridge project remains a top priority for the state’s leader despite the setback, Butler said. “The minister will be meeting with Gov. Snyder in Ottawa in the near future to discuss next steps for the project,” Butler said. Read more here.
Snyder to discuss next steps in Ottawa
Canada’s federal government expressed dismay Friday over the rejection to construct the proposed $1-billion government-backed Windsor-Detroit bridge, by a handful of politicians who serve on a committee in the Michigan senate.
“We are extremely disappointed the Michigan Senate Economic Development Committee failed to approve a bill to authorize construction of the new crossing,” said Mark Butler, spokesman for Transport Canada.
Ottawa has offered up to $550 million to pay the state’s share of costs for the Detroit River International Crossing bridge, but that wasn’t enough to overcome intense political lobbying and hefty donations of Ambassador Bridge owner Matty Moroun. He now indefinitely retains his dominance of toll revenues and duty free sales at North America’s busiest border crossing.
The committee voted 3-2 against the bridge, with two members abstaining.
Federal transportation minister Denis Lebel has already spoken with Michigan’s Gov. Rick Snyder and confirmed the bridge project remains a top priority for the state’s leader despite the setback, Butler said. “The minister will be meeting with Gov. Snyder in Ottawa in the near future to discuss next steps for the project,” Butler said. Read more here.
EU Amends Textile Labeling Regulations
(World Trade Interactive)
As expected, the European Commission (EC) has published in the Official Journal of the European Union a regulation that amends the EU textile labeling regulations to require labels to include certain additional information of special interest to European consumers. While the European Parliament favored a more ambitious proposal that would have required textile labels to include the country of origin of the merchandise, it eventually reached a compromise with the EC on more modest regulation that will require labels to disclose, among other things, any animal-derived materials including fur and leather. Specifically, the presence of non-textile parts of animal origin in textile products will have to be indicated by using the phrase “Contains non-textile parts of animal origin” on the labeling or marking of the product. Such labeling or marking must not be misleading and must be carried out in such a way that the consumer can easily understand.
The new regulations also provide for an exemption from the mandatory labeling requirements for customized textile products made up by self-employed tailors and make a number of technical changes and clarifications to the current labeling requirements. Read more here.
As expected, the European Commission (EC) has published in the Official Journal of the European Union a regulation that amends the EU textile labeling regulations to require labels to include certain additional information of special interest to European consumers. While the European Parliament favored a more ambitious proposal that would have required textile labels to include the country of origin of the merchandise, it eventually reached a compromise with the EC on more modest regulation that will require labels to disclose, among other things, any animal-derived materials including fur and leather. Specifically, the presence of non-textile parts of animal origin in textile products will have to be indicated by using the phrase “Contains non-textile parts of animal origin” on the labeling or marking of the product. Such labeling or marking must not be misleading and must be carried out in such a way that the consumer can easily understand.
The new regulations also provide for an exemption from the mandatory labeling requirements for customized textile products made up by self-employed tailors and make a number of technical changes and clarifications to the current labeling requirements. Read more here.
Russia May Become WTO Member in Weeks’
(RT.com – Sophie Shevardnadze)
Even with Georgia still opposed to Russia’s WTO accession, it may still become a member through a vote sooner than many expect, the head of Russia’s WTO delegation, Maksim Medvedkov, has told RT.
Russia is the only major economy still outside the WTO and has been attempting to join for almost two decades now (since 1994). But according to Russia’s chief WTO negotiator, the wait is all but over.
“We have concluded almost everything we were supposed to negotiate, but a few technical questions which are still outstanding, and we need not even a few months, but a few weeks or even days,” Medvedkov said. “The timetable we currently have at our working party – a part of our negotiation body – is extremely tight. We will complete have four more discussions by October 27, and another four are to take place somewhere in mid-November. So we have a schedule and as soon as we implement it, we will be closer to the WTO than we were ever before,” he added. Read more here.
Even with Georgia still opposed to Russia’s WTO accession, it may still become a member through a vote sooner than many expect, the head of Russia’s WTO delegation, Maksim Medvedkov, has told RT.
Russia is the only major economy still outside the WTO and has been attempting to join for almost two decades now (since 1994). But according to Russia’s chief WTO negotiator, the wait is all but over.
“We have concluded almost everything we were supposed to negotiate, but a few technical questions which are still outstanding, and we need not even a few months, but a few weeks or even days,” Medvedkov said. “The timetable we currently have at our working party – a part of our negotiation body – is extremely tight. We will complete have four more discussions by October 27, and another four are to take place somewhere in mid-November. So we have a schedule and as soon as we implement it, we will be closer to the WTO than we were ever before,” he added. Read more here.
World’s Largest Producer of Rare Earths Halts Output as Prices Fall
(Agence France-Presse)
The move marks the second time in as many months that Baotou has sought to boost rare earth prices
China state-linked Baotou, the world’s largest rare earth producer, said it has halted output for a month from Oct. 20 as the country seeks to boost prices of the sought-after commodities.
An official at Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-tech Co. Ltd (Baotou) called the production stoppage temporary. Baotou operates the world’s largest production base for rare earths. “Production should resume in a month as it is just a provisional measure,” said the official. He added the company called a similar month-long halt in May 2008. Read more here.
The move marks the second time in as many months that Baotou has sought to boost rare earth prices
China state-linked Baotou, the world’s largest rare earth producer, said it has halted output for a month from Oct. 20 as the country seeks to boost prices of the sought-after commodities.
China produces more than 95% of the world’s rare earths – 17 elements critical to manufacturing everything from iPods to low-emission cars – and its moves to dictate production and exports have caused an outcry from major trading partners.
An official at Inner Mongolia Baotou Steel Rare-Earth (Group) Hi-tech Co. Ltd (Baotou) called the production stoppage temporary. Baotou operates the world’s largest production base for rare earths. “Production should resume in a month as it is just a provisional measure,” said the official. He added the company called a similar month-long halt in May 2008. Read more here.
October 24, 2011
EU, Canadian Officials Keep Details of Trade Deal’s 9th Round Secret
(Embassy – Sneh Duggal)
With the ninth round of talks for the Canada-EU free trade deal wrapping up this week, it was only expected that the government would provide an update on how the negotiations were progressing. That opportunity popped up on Oct. 20 for journalists.
A media advisory from the Department of Foreign Affairs and International Trade stated that International Trade Minister Ed Fast would make an announcement on the progress of the negotiations on Thursday. Following the minister’s announcement, European and Canadian officials (the department gave journalists their names and titles) “will provide a background briefing to media. The background briefing will not be for attribution.”
It is common for the government to hold technical briefings for journalists with departmental officials on various issues, often with journalists only being allowed to attribute comments to “officials.”
With the ninth round of talks for the Canada-EU free trade deal wrapping up this week, it was only expected that the government would provide an update on how the negotiations were progressing. That opportunity popped up on Oct. 20 for journalists.
A media advisory from the Department of Foreign Affairs and International Trade stated that International Trade Minister Ed Fast would make an announcement on the progress of the negotiations on Thursday. Following the minister’s announcement, European and Canadian officials (the department gave journalists their names and titles) “will provide a background briefing to media. The background briefing will not be for attribution.”
It is common for the government to hold technical briefings for journalists with departmental officials on various issues, often with journalists only being allowed to attribute comments to “officials.”
As it turns out, this briefing would have a twist. Read more here.
Canada-U.S. Trade: Inside Ottawa’s Efforts To Fight ‘Buy American’
(Huffington Post)
As Washington continues to defend the contentious Buy American provisions outlined in the U.S. jobs bill, it has become abundantly clear that, for policymakers south of the border, Canada is not top of mind.
But according to a former Canadian diplomat who has been on the inside of major trade policy negotiations with the U.S., this reality, however harsh, simply reinforces a stubborn fact of life: No matter how friendly relations with our biggest trading partner may seem, Canadians must wage a permanent campaign to protect our interests south of the border.
“For the U.S., we’re not a problem, and therefore we’re not on the immediate agenda,” Colin Robertson told The Huffington Post. “We Canadians have to constantly be making the case to our American market, reminding them ... that we’re also their biggest market.”
It’s an effort that Robertson – who helped negotiate and implement the North American Free Trade Agreement (NAFTA) – says is comprehensive, despite the fact that it may not always seem that way. “Are we talking to all the various parties? We are, but stuff happens, and will continue to happen,” he says. “It’s like Whac-A-Mole. You’ve got to constantly be on guard, because [these kinds of protectionist provisions] are popping up in all kinds of places.” Read more here.
As Washington continues to defend the contentious Buy American provisions outlined in the U.S. jobs bill, it has become abundantly clear that, for policymakers south of the border, Canada is not top of mind.
But according to a former Canadian diplomat who has been on the inside of major trade policy negotiations with the U.S., this reality, however harsh, simply reinforces a stubborn fact of life: No matter how friendly relations with our biggest trading partner may seem, Canadians must wage a permanent campaign to protect our interests south of the border.
“For the U.S., we’re not a problem, and therefore we’re not on the immediate agenda,” Colin Robertson told The Huffington Post. “We Canadians have to constantly be making the case to our American market, reminding them ... that we’re also their biggest market.”
It’s an effort that Robertson – who helped negotiate and implement the North American Free Trade Agreement (NAFTA) – says is comprehensive, despite the fact that it may not always seem that way. “Are we talking to all the various parties? We are, but stuff happens, and will continue to happen,” he says. “It’s like Whac-A-Mole. You’ve got to constantly be on guard, because [these kinds of protectionist provisions] are popping up in all kinds of places.” Read more here.
Seeking Border Harmony: Questions & Answers
(Vancouver Sun – The Financial Post)
The U.S. and Canadian governments are expected to unveil a new border initiative in the coming weeks that aims to ease the flow of goods across the border and improve security. The so-called Beyond the Border program was launched this February, and a 30-point action plan is expected to be released soon that will set a precise timeline for implementing measures to better harmonize the efforts of the Canada Border Services Agency [CBSA] and the U.S. Customs and Border Protection agency [CBP]. Alan Bresin, the U.S. CBP commissioner, spoke with the Financial Post’s Scott Deveau this week about what the action plan aspires to achieve.
Read the complete article here.
The U.S. and Canadian governments are expected to unveil a new border initiative in the coming weeks that aims to ease the flow of goods across the border and improve security. The so-called Beyond the Border program was launched this February, and a 30-point action plan is expected to be released soon that will set a precise timeline for implementing measures to better harmonize the efforts of the Canada Border Services Agency [CBSA] and the U.S. Customs and Border Protection agency [CBP]. Alan Bresin, the U.S. CBP commissioner, spoke with the Financial Post’s Scott Deveau this week about what the action plan aspires to achieve.
Read the complete article here.
Finish Line “Clearly in Sight” for WTO Govt Procurement Deal: Chair
(Bridges Weekly)
Forty-two countries are close to finalising a deal that would liberalise access to billions of dollars worth of public procurement contracts, the chair of the WTO committee on government procurement said yesterday. Delegations are being urged to finish negotiations by the global trade body’s December ministerial.
Senior Swiss trade diplomat Nicholas Niggli, who chairs the committee, stressed to delegates at the end of the 17-18 October informal committee meeting that participating countries should aim to conclude the talks by the WTO’s December gathering. He cautioned that, should members fail to meet the deadline, the talks could “crumble” entirely.
A Geneva-based trade official told Bridges that, while not guaranteed, the “prospects [for finishing by December] are very good.”
With the global trade body’s Doha Round of trade talks struggling to make headway, the pressure is on to achieve concrete outcomes in other areas – including, potentially, a finalised version of the new Government Procurement Agreement (GPA) at the December WTO gathering. The GPA aims to tackle cronyism and corruption in government contracts. The agreement commits members to certain core disciplines regarding transparency, competition, and good governance, covering the procurement of goods, services, and capital infrastructure by public authorities. Read more here.
Forty-two countries are close to finalising a deal that would liberalise access to billions of dollars worth of public procurement contracts, the chair of the WTO committee on government procurement said yesterday. Delegations are being urged to finish negotiations by the global trade body’s December ministerial.
Senior Swiss trade diplomat Nicholas Niggli, who chairs the committee, stressed to delegates at the end of the 17-18 October informal committee meeting that participating countries should aim to conclude the talks by the WTO’s December gathering. He cautioned that, should members fail to meet the deadline, the talks could “crumble” entirely.
A Geneva-based trade official told Bridges that, while not guaranteed, the “prospects [for finishing by December] are very good.”
With the global trade body’s Doha Round of trade talks struggling to make headway, the pressure is on to achieve concrete outcomes in other areas – including, potentially, a finalised version of the new Government Procurement Agreement (GPA) at the December WTO gathering. The GPA aims to tackle cronyism and corruption in government contracts. The agreement commits members to certain core disciplines regarding transparency, competition, and good governance, covering the procurement of goods, services, and capital infrastructure by public authorities. Read more here.
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