November 18, 2011
News from Thompson Ahern: Weekly Updates
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending November 18, 2011 is now available on our website here.
The Logistics Advantages North of the U.S. Border
(Area Development Online – Christopher Steele, CWS Consulting Group)
National borders mean very little when making location decisions. The logistics community in particular has consistently lived with the reality of the global economy — it is the nature of the business after all! And yet, even we in the location strategy business sometimes forget about the logistics powerhouse we have to the North. The strength of the Canadian dollar, the stable regulatory environment, and the nation’s logistic network all indicate strong development opportunities for companies and investors. Canada has already embraced globalization and international trade, has developed solutions to address fuel and environmental issues, and has built a logistics industry which puts it in enviable stead for attracting business.
Canada has certain natural strengths that commend the nation as an ideal conduit for North American logistics. Canada already has key channels in the North American supply chain with unique development opportunities along the line. Halifax and Prince Rupert have seen increased traffic in both bulk and container volumes, and much of this traffic flows southward into the United States for further production and consumption. The ports of Nova Scotia, Newfoundland, and British Columbia are closer via great circle route (the straight line route around the globe) to their European and Asian trading partners than any American counterpart. The St. Lawrence Seaway also provides an all-water route from Europe to Chicago’s doorstep.
Canada has a true integrated rail network running coast to coast, which is run by two national railroads, allowing for the seamless movement of goods across the country without switching carriers. Canadian National’s acquisition of the Illinois Central railroad back in 1998 resulted in the only truly continental railroad — one that stretches from Halifax in the east to Prince Rupert in the West and from New Orleans in the South to Canada’s Northwest Territories.
Read the complete article here.
National borders mean very little when making location decisions. The logistics community in particular has consistently lived with the reality of the global economy — it is the nature of the business after all! And yet, even we in the location strategy business sometimes forget about the logistics powerhouse we have to the North. The strength of the Canadian dollar, the stable regulatory environment, and the nation’s logistic network all indicate strong development opportunities for companies and investors. Canada has already embraced globalization and international trade, has developed solutions to address fuel and environmental issues, and has built a logistics industry which puts it in enviable stead for attracting business.
Canada has certain natural strengths that commend the nation as an ideal conduit for North American logistics. Canada already has key channels in the North American supply chain with unique development opportunities along the line. Halifax and Prince Rupert have seen increased traffic in both bulk and container volumes, and much of this traffic flows southward into the United States for further production and consumption. The ports of Nova Scotia, Newfoundland, and British Columbia are closer via great circle route (the straight line route around the globe) to their European and Asian trading partners than any American counterpart. The St. Lawrence Seaway also provides an all-water route from Europe to Chicago’s doorstep.
Canada has a true integrated rail network running coast to coast, which is run by two national railroads, allowing for the seamless movement of goods across the country without switching carriers. Canadian National’s acquisition of the Illinois Central railroad back in 1998 resulted in the only truly continental railroad — one that stretches from Halifax in the east to Prince Rupert in the West and from New Orleans in the South to Canada’s Northwest Territories.
Read the complete article here.
WTO Ruling on U.S. Meat Law to Benefit Canada: Source
(Reuters – Rod Nickel)
Canada can expect “significant positive news” on Friday from a World Trade Organization ruling about a U.S. meat labeling law, Canadian government sources said on Thursday.
The law currently requires U.S. packers to label meat with the name of country it is from, raising their costs and discouraging imports of cattle and hogs.
Canada’s agriculture and trade ministers will hold a news conference on Friday at an Alberta ranch. A government advisory said they will announce “significant positive news” for livestock producers.
Canada can expect “significant positive news” on Friday from a World Trade Organization ruling about a U.S. meat labeling law, Canadian government sources said on Thursday.
The law currently requires U.S. packers to label meat with the name of country it is from, raising their costs and discouraging imports of cattle and hogs.
Canada’s agriculture and trade ministers will hold a news conference on Friday at an Alberta ranch. A government advisory said they will announce “significant positive news” for livestock producers.
A senior government source said the announcement will be the WTO’s final ruling on the labeling law. A spokeswoman for the U.S. Trade Representative’s office was not immediately available for comment. Read more here.
Thai Floods Ripple Through Global Supply Chain
(AFP – David Watkins and Yuka Ito)
Thailand’s worst floods in decades may gradually be subsiding but ripples will be felt by companies and consumers for months to come, analysts say, underlining the fragility of the global supply chain. Severe flooding since October, which has left hundreds of people dead, has also hurt a wide range of industries in the production hub, particularly the automotive and computer hard-disk drive (HDD) sectors. The consequences have been global, hitting companies such as personal computer maker Dell, HDD makers Toshiba and Western Digital, and auto giants Toyota and Ford.
As with supply chain woes after Japan’s March earthquake, analysts say the Thai disaster raises questions as to how well companies understand their supply networks for essential parts, and whether risks could be better managed. However, “companies are limited in what they can do because possessing extra inventory pressures corporate earnings and can heighten risk,” said Masaki Nakamura, analyst at MM Research Institute in Tokyo.
In particular, the “just-in-time” delivery system pioneered in Japan, and often used in the technology and car sectors to deliver components and raw materials only when needed, is vulnerable to such shocks. “While the basic concept behind ‘just-in-time’ will remain unchanged, firms will now further reduce production risks” by establishing facilities elsewhere after the floods, said Toru Nishihama, senior economist at Dai-Ichi Life Research Institute. Read more here.
Thailand’s worst floods in decades may gradually be subsiding but ripples will be felt by companies and consumers for months to come, analysts say, underlining the fragility of the global supply chain. Severe flooding since October, which has left hundreds of people dead, has also hurt a wide range of industries in the production hub, particularly the automotive and computer hard-disk drive (HDD) sectors. The consequences have been global, hitting companies such as personal computer maker Dell, HDD makers Toshiba and Western Digital, and auto giants Toyota and Ford.
As with supply chain woes after Japan’s March earthquake, analysts say the Thai disaster raises questions as to how well companies understand their supply networks for essential parts, and whether risks could be better managed. However, “companies are limited in what they can do because possessing extra inventory pressures corporate earnings and can heighten risk,” said Masaki Nakamura, analyst at MM Research Institute in Tokyo.
In particular, the “just-in-time” delivery system pioneered in Japan, and often used in the technology and car sectors to deliver components and raw materials only when needed, is vulnerable to such shocks. “While the basic concept behind ‘just-in-time’ will remain unchanged, firms will now further reduce production risks” by establishing facilities elsewhere after the floods, said Toru Nishihama, senior economist at Dai-Ichi Life Research Institute. Read more here.
November 17, 2011
Box Rate Volatility Raises Supply Chain Costs, Executive Says
(Journal of Commerce Online – Mike King)
DHL’s Goldberg says operation costs rise even when shipping rates fall
Ocean freight rate volatility is ratcheting up global supply chain costs even when rates head downward, said a DHL Global Forwarding executive.
The “roller coaster” of slot supply and demand on mainline routes in recent years had “caused havoc” to supply chains, said David Goldberg, DHL’s senior vice president for ocean freight in the North Asia Pacific. Continual boom-bust doesn’t benefit lines or the buyers of their services who would prefer stability to allow better planning. “The amount of management time and effort involved by DHL together with our customers does increase significantly for something which we don’t see bringing much benefit to the supply chain,” he said. Read more here.
DHL’s Goldberg says operation costs rise even when shipping rates fall
Ocean freight rate volatility is ratcheting up global supply chain costs even when rates head downward, said a DHL Global Forwarding executive.
The “roller coaster” of slot supply and demand on mainline routes in recent years had “caused havoc” to supply chains, said David Goldberg, DHL’s senior vice president for ocean freight in the North Asia Pacific. Continual boom-bust doesn’t benefit lines or the buyers of their services who would prefer stability to allow better planning. “The amount of management time and effort involved by DHL together with our customers does increase significantly for something which we don’t see bringing much benefit to the supply chain,” he said. Read more here.
Analysts Praise ‘Decisive Shift’ to TPP
(Embassy – Sneh Duggal)
After years of downplaying its interest in the Trans-Pacific Partnership trade talks, Canada recently said it wants to join the club, a move being seen by analysts as a watershed moment in the Harper government’s approach to Asian markets.
Prime Minister Stephen Harper announced the government’s interest in the TPP on Nov. 13 while in Hawaii for the Asia-Pacific Economic Co-operation forum. “We are indicating today our formal intention, we’re expressing formally our willingness to join the Trans-Pacific Partnership,” Mr. Harper was reported as saying. “We will make an application and I am optimistic we will participate in the future.”
This came one day after leaders whose countries are already part of the TPP talks announced that they had achieved broad outlines of an agreement that aims to “promote innovation, economic growth and development, and support the creation and retention of jobs.” The countries currently at the table include the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. As well, Japan and Mexico have expressed interest in joining.
“It is a decisive shift in policy, reflecting a clear understanding of the central part that the [Asia-Pacific] region can play on the future of Canada,” wrote Joseph Caron, who formerly served as Canada’s representative to India, China and Japan, in an email to Embassy. Mr. Caron said that while the outcome cannot be predicted, the decision places Canada in a regional dynamic where Canada can pursue its trade and political interests and shape developments in its national interest. Read more here.
After years of downplaying its interest in the Trans-Pacific Partnership trade talks, Canada recently said it wants to join the club, a move being seen by analysts as a watershed moment in the Harper government’s approach to Asian markets.
Prime Minister Stephen Harper announced the government’s interest in the TPP on Nov. 13 while in Hawaii for the Asia-Pacific Economic Co-operation forum. “We are indicating today our formal intention, we’re expressing formally our willingness to join the Trans-Pacific Partnership,” Mr. Harper was reported as saying. “We will make an application and I am optimistic we will participate in the future.”
This came one day after leaders whose countries are already part of the TPP talks announced that they had achieved broad outlines of an agreement that aims to “promote innovation, economic growth and development, and support the creation and retention of jobs.” The countries currently at the table include the United States, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. As well, Japan and Mexico have expressed interest in joining.
“It is a decisive shift in policy, reflecting a clear understanding of the central part that the [Asia-Pacific] region can play on the future of Canada,” wrote Joseph Caron, who formerly served as Canada’s representative to India, China and Japan, in an email to Embassy. Mr. Caron said that while the outcome cannot be predicted, the decision places Canada in a regional dynamic where Canada can pursue its trade and political interests and shape developments in its national interest. Read more here.
North American Freight Index Rises by 39%
(International Freighting Weekly)
October was highest same-month volume since the aftermath of Hurricane Katrina
TransCore has announced that its North American Freight Index climbed 39% last month compared to October 2010. The company said yesterday this was the highest same-month volume since the aftermath of Hurricane Katrina that drove spot market demand to record levels in 2005. Compared to September, spot market freight volume slipped 3.7%, reflecting normal seasonality.
TransCore’s monthly North American Freight Index reflects spot market freight availability on the company’s network of load boards providing the largest spot marketplace in the United States and Canada with over 60 million loads and trucks annually.
October was highest same-month volume since the aftermath of Hurricane Katrina
TransCore has announced that its North American Freight Index climbed 39% last month compared to October 2010. The company said yesterday this was the highest same-month volume since the aftermath of Hurricane Katrina that drove spot market demand to record levels in 2005. Compared to September, spot market freight volume slipped 3.7%, reflecting normal seasonality.
TransCore’s monthly North American Freight Index reflects spot market freight availability on the company’s network of load boards providing the largest spot marketplace in the United States and Canada with over 60 million loads and trucks annually.
Cost to Join TPP Raising Concerns
(Matthew Little — Epoch Times)
Prime Minister Stephen Harper has made free trade agreements a cornerstone of his economic policy, but most agreements passed to date have been relatively low-impact compared to the big game now being hunted.
This week’s about-face that saw the government change its stance from opting to stay out of the Trans-Pacific Partnership to instead looking for a seat at the table could come with a higher price than any previous agreements.
At stake are selected agricultural sectors under supply management regulations that put a quota system in place to stabilize and protect the hatching egg, chicken, dairy, egg, and turkey industries. The system limits producers and guarantees prices while sheltering those markets from imports by imposing stiff tariffs. But those tariffs could block Canada’s bid to join the TPP, raising concerns that supply management could be on the chopping block. Read more here.
Prime Minister Stephen Harper has made free trade agreements a cornerstone of his economic policy, but most agreements passed to date have been relatively low-impact compared to the big game now being hunted.
This week’s about-face that saw the government change its stance from opting to stay out of the Trans-Pacific Partnership to instead looking for a seat at the table could come with a higher price than any previous agreements.
At stake are selected agricultural sectors under supply management regulations that put a quota system in place to stabilize and protect the hatching egg, chicken, dairy, egg, and turkey industries. The system limits producers and guarantees prices while sheltering those markets from imports by imposing stiff tariffs. But those tariffs could block Canada’s bid to join the TPP, raising concerns that supply management could be on the chopping block. Read more here.
November 16, 2011
Analysis: Trans-Pacific Trade Deal about More Than Resource Exports
(CBC News – Don Pittis)
Asia-Pacific partnership could push us to innovate at home
Our prime minister says he’s signing us up for the Trans-Pacific Partnership trade talks, and it comes as no surprise — given Stephen Harper’s Alberta roots — that our ability “to access Asian markets for our energy products” is at the top of his list of priorities.
For Canadians, any move toward better trade with Asia and the Pacific Rim has a secondary goal: to reduce our dependence on our single biggest trading partner, the United States, a country that recently turned up its nose at a plan to build a pipeline that would pump raw bitumen from the Alberta oilsands deep into America’s industrial heartland, where it would be processed into high-value products. […]
“When you compare Canada and Asia, it’s a matter of complementarity,” says Tony Fang, a specialist in labour markets and immigration at York University. “We have oil, gas and raw materials while they have a huge population.” But when it comes to creating jobs, we can’t compete directly with Asian countries. ‘We can’t pay people $2 an hour to work in factories; we need to produce high-value goods.’
Our textiles industry has already collapsed, and the Canadian furniture industry is going the same way, says Michael Burt, economist with the Conference Board of Canada. Not only are we exporting resources; we are exporting jobs. On the bright side, says Burt, our goal of expanding trade outside the United States really is succeeding. On a percentage basis, trade with our southern neighbor is shrinking. Trade with Asia is growing.
But Burt says the types of goods we are selling remain the same. The huge majority of our exports to Asian markets are still raw materials. Burt insists we better get used to it. “Rather than trying to change our stripes, we should capitalize on our strengths,” Burt said. We are good at finding, extracting and shipping raw materials, he says. We are good at financing mines. We are masters at horizontal drilling. This is a place where we have a special advantage. Read more here.
Asia-Pacific partnership could push us to innovate at home
Our prime minister says he’s signing us up for the Trans-Pacific Partnership trade talks, and it comes as no surprise — given Stephen Harper’s Alberta roots — that our ability “to access Asian markets for our energy products” is at the top of his list of priorities.
For Canadians, any move toward better trade with Asia and the Pacific Rim has a secondary goal: to reduce our dependence on our single biggest trading partner, the United States, a country that recently turned up its nose at a plan to build a pipeline that would pump raw bitumen from the Alberta oilsands deep into America’s industrial heartland, where it would be processed into high-value products. […]
“When you compare Canada and Asia, it’s a matter of complementarity,” says Tony Fang, a specialist in labour markets and immigration at York University. “We have oil, gas and raw materials while they have a huge population.” But when it comes to creating jobs, we can’t compete directly with Asian countries. ‘We can’t pay people $2 an hour to work in factories; we need to produce high-value goods.’
Our textiles industry has already collapsed, and the Canadian furniture industry is going the same way, says Michael Burt, economist with the Conference Board of Canada. Not only are we exporting resources; we are exporting jobs. On the bright side, says Burt, our goal of expanding trade outside the United States really is succeeding. On a percentage basis, trade with our southern neighbor is shrinking. Trade with Asia is growing.
But Burt says the types of goods we are selling remain the same. The huge majority of our exports to Asian markets are still raw materials. Burt insists we better get used to it. “Rather than trying to change our stripes, we should capitalize on our strengths,” Burt said. We are good at finding, extracting and shipping raw materials, he says. We are good at financing mines. We are masters at horizontal drilling. This is a place where we have a special advantage. Read more here.
U.S. Truckload Rates to Rise 10% in 2012, FTR Says
(Journal of Commerce Online – William Cassidy)
Economist predicts pressure on shippers as capacity remains constrained
Shippers are likely to face steep increases in truckload rates in the next two years, followed by a recession in 2014 or 2015, a transportation economist warns. The expansion of U.S. manufacturing is buoying freight shipping in the U.S. this year despite weak imports, said Noel Perry, senior consultant with FTR Associates. Truckload volume should grow 2% to 3% year-over-year for the next two years, but won’t climb back to the level of the pre-recession peak, Perry said. Read more here.
Economist predicts pressure on shippers as capacity remains constrained
Shippers are likely to face steep increases in truckload rates in the next two years, followed by a recession in 2014 or 2015, a transportation economist warns. The expansion of U.S. manufacturing is buoying freight shipping in the U.S. this year despite weak imports, said Noel Perry, senior consultant with FTR Associates. Truckload volume should grow 2% to 3% year-over-year for the next two years, but won’t climb back to the level of the pre-recession peak, Perry said. Read more here.
Canadian Business Lagging in E-Commerce Adoption: Expert
(iPolitics)
Canadian businesses need to be better at adopting e-commerce technology, says a senior official at an economic think-tank. Michael Burt, associate director of economic trends at the Conference Board of Canada told iPolitics that Canada lags “behind many of our peer countries in terms of adoption of e-commerce.”
Burt was among a handful of witnesses who testified at the industry, science and technology committee Monday. Businesses are not putting their products for sale online for a few reasons, he said. These include Canada’s low mobile-phone penetration rates and an equal lag in broadband internet access.
“Canadian businesses, compared to many of their global peers, tend to be a little more conservative around their business practices,” Burt said. “They’re slower to adopt new business processes, new technologies, and so [e-commerce] is just an example of that.” Read more here.
Canadian businesses need to be better at adopting e-commerce technology, says a senior official at an economic think-tank. Michael Burt, associate director of economic trends at the Conference Board of Canada told iPolitics that Canada lags “behind many of our peer countries in terms of adoption of e-commerce.”
Burt was among a handful of witnesses who testified at the industry, science and technology committee Monday. Businesses are not putting their products for sale online for a few reasons, he said. These include Canada’s low mobile-phone penetration rates and an equal lag in broadband internet access.
“Canadian businesses, compared to many of their global peers, tend to be a little more conservative around their business practices,” Burt said. “They’re slower to adopt new business processes, new technologies, and so [e-commerce] is just an example of that.” Read more here.
Canada Introduces Legislation to Implement Free Trade Agreements with Jordan and Panama
(DFAIT)
Expanded opportunities in priority regions will benefit Canadian businesses and workers, Minister says
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today followed through on a commitment made in the June 2011 Speech from the Throne by introducing the Canada-Jordan Economic Growth and Prosperity Act and the Canada-Panama Economic Growth and Prosperity Act to implement free trade agreements with Jordan and Panama.
Minister Fast was joined by the Honourable Maxime Bernier, Minister of State (Small Business and Tourism), and key industry representatives, as well as by Basheer Fawwaz Zoubi, Jordan’s Ambassador to Canada, and Francisco Carlo Escobar Pedreschi, Panama’s Ambassador to Canada.
“Strengthening the financial security of Canadians, creating new jobs and promoting economic growth through deepened trade are my top priorities,” said Minister Fast. “Free trade agreements with Jordan and Panama are a key part of our government’s job-creating, pro-trade plan to protect and increase the prosperity of hard-working Canadians. Our government will continue to defend and promote our specific interests in every sector of our economy, including supply management.”
“Free trade agreements help fuel small businesses which are the motor of the Canadian economy,” said Minister Bernier. “In fact, small businesses are responsible for 43% of all Canadian exports. These free trade agreements will help small business exporters do what they do best: create jobs and wealth for this country.”
“Free trade agreements also bring real benefits to Canadian farmers and our entire agriculture industry,” said the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. “These trade agreements will open markets and create new opportunities for our farmers to boost their bottom lines.”
On implementation, the Canada-Jordan Economic Growth and Prosperity Act will eliminate tariffs on the vast majority of Canadian exports to Jordan, directly benefiting Canadian exporters and workers. Key sectors in Canada that will benefit from this immediate duty-free access to the Jordanian market include forestry and manufacturing, as well as agricultural products and agri-foods such as pulses, frozen potato products and beef.
“The economic possibilities for Canadian businesses engaged with Jordan should be dramatically increased,” said J. Hugh O’Donnell, Chairman of the Canadian-Arab Business Council. “In fact, this free trade agreement offers incredible potential for businesses to expand throughout the Arab peninsula with Jordan as the gateway.”
Implementation of the Canada-Panama Economic Growth and Prosperity Act will eliminate tariffs on over 99% of Canadian non-agriculture exports, again directly benefiting Canadian exporters and workers through duty-free access to Panama’s markets. Other benefits of the agreement include investment provisions, which will increase protection, transparency and security for Canadian investors in Panama. In addition, the agreement will secure access to the government procurement market, including the $5.4-billion expansion of the Panama Canal and other infrastructure projects.
“The implementation of these two agreements will improve access to two growth markets for Canadian goods, services and investment at a time when Canadian manufacturers and exporters are focusing on finding new customers and business opportunities around the world,” says Jayson Myers, President and CEO of Canadian Manufacturers and Exporters. “We urge Parliament to pass this legislation quickly. This is especially critical in a context where our main trading partner, the United States, implemented its trade agreement with Jordan last year and ratified its agreement with Panama last month.”
Free trade agreements with Jordan and Panama were signed in June 2009 and May 2010 respectively. Once passed by the House of Commons and the Senate, both pieces of legislation must receive Royal Assent from the Governor General in order to become law.
In less than six years, the Harper government has concluded free trade agreements with nine countries—Colombia, Honduras, Jordan, Panama, Peru and the European Free Trade Association states of Iceland, Liechtenstein, Norway and Switzerland.
Canada has also launched negotiations on a number of trade agreements, including with India and the European Union, two of the largest markets in the world. These negotiations are part of the government’s ambitious pro-trade plan to increase opportunities for Canadian businesses and workers.
Expanded opportunities in priority regions will benefit Canadian businesses and workers, Minister says
The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today followed through on a commitment made in the June 2011 Speech from the Throne by introducing the Canada-Jordan Economic Growth and Prosperity Act and the Canada-Panama Economic Growth and Prosperity Act to implement free trade agreements with Jordan and Panama.
Minister Fast was joined by the Honourable Maxime Bernier, Minister of State (Small Business and Tourism), and key industry representatives, as well as by Basheer Fawwaz Zoubi, Jordan’s Ambassador to Canada, and Francisco Carlo Escobar Pedreschi, Panama’s Ambassador to Canada.
“Strengthening the financial security of Canadians, creating new jobs and promoting economic growth through deepened trade are my top priorities,” said Minister Fast. “Free trade agreements with Jordan and Panama are a key part of our government’s job-creating, pro-trade plan to protect and increase the prosperity of hard-working Canadians. Our government will continue to defend and promote our specific interests in every sector of our economy, including supply management.”
“Free trade agreements help fuel small businesses which are the motor of the Canadian economy,” said Minister Bernier. “In fact, small businesses are responsible for 43% of all Canadian exports. These free trade agreements will help small business exporters do what they do best: create jobs and wealth for this country.”
“Free trade agreements also bring real benefits to Canadian farmers and our entire agriculture industry,” said the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. “These trade agreements will open markets and create new opportunities for our farmers to boost their bottom lines.”
On implementation, the Canada-Jordan Economic Growth and Prosperity Act will eliminate tariffs on the vast majority of Canadian exports to Jordan, directly benefiting Canadian exporters and workers. Key sectors in Canada that will benefit from this immediate duty-free access to the Jordanian market include forestry and manufacturing, as well as agricultural products and agri-foods such as pulses, frozen potato products and beef.
“The economic possibilities for Canadian businesses engaged with Jordan should be dramatically increased,” said J. Hugh O’Donnell, Chairman of the Canadian-Arab Business Council. “In fact, this free trade agreement offers incredible potential for businesses to expand throughout the Arab peninsula with Jordan as the gateway.”
Implementation of the Canada-Panama Economic Growth and Prosperity Act will eliminate tariffs on over 99% of Canadian non-agriculture exports, again directly benefiting Canadian exporters and workers through duty-free access to Panama’s markets. Other benefits of the agreement include investment provisions, which will increase protection, transparency and security for Canadian investors in Panama. In addition, the agreement will secure access to the government procurement market, including the $5.4-billion expansion of the Panama Canal and other infrastructure projects.
“The implementation of these two agreements will improve access to two growth markets for Canadian goods, services and investment at a time when Canadian manufacturers and exporters are focusing on finding new customers and business opportunities around the world,” says Jayson Myers, President and CEO of Canadian Manufacturers and Exporters. “We urge Parliament to pass this legislation quickly. This is especially critical in a context where our main trading partner, the United States, implemented its trade agreement with Jordan last year and ratified its agreement with Panama last month.”
Free trade agreements with Jordan and Panama were signed in June 2009 and May 2010 respectively. Once passed by the House of Commons and the Senate, both pieces of legislation must receive Royal Assent from the Governor General in order to become law.
In less than six years, the Harper government has concluded free trade agreements with nine countries—Colombia, Honduras, Jordan, Panama, Peru and the European Free Trade Association states of Iceland, Liechtenstein, Norway and Switzerland.
Canada has also launched negotiations on a number of trade agreements, including with India and the European Union, two of the largest markets in the world. These negotiations are part of the government’s ambitious pro-trade plan to increase opportunities for Canadian businesses and workers.
November 15, 2011
NAFTA is a Production Bloc, Not a Trading Bloc
Note: The following is an edited speech about NAFTA presented by Brian Lee Crowley, Managing Director, Macdonald-Laurier Institute, to the Council of State Governments Meeting in Seattle on Oct. 22, 2011
Let me begin with what binds us together in the context of NAFTA. Here is the key message I want to leave you with today. If you remember nothing else about what I say, please remember this one thing. WE ARE NOT A TRADING BLOCK AND NAFTA IS NOT ABOUT TRADE.
When you and I think about trade between countries, we think that each country has its own self-contained economy. In that economy, that country’s workers make goods and services. Those finished products are then sold to other countries, which make different goods and services in their little self-contained economy. Japan makes cars. France makes wine, and they trade wine for cars.
That is NOT what happens in North America, because what we have here is not three countries and three economies trading finished products with each other. What we have here is a single economy shared by two countries, Canada and the U.S.A (and increasingly a third, Mexico). So NAFTA is not (despite its name) about trade, it is about production. Canadians and Americans do not trade with each other. They make things together and then sell them to each other and the rest of the world. We are a production bloc, not a trading bloc. Read more here.
Let me begin with what binds us together in the context of NAFTA. Here is the key message I want to leave you with today. If you remember nothing else about what I say, please remember this one thing. WE ARE NOT A TRADING BLOCK AND NAFTA IS NOT ABOUT TRADE.
When you and I think about trade between countries, we think that each country has its own self-contained economy. In that economy, that country’s workers make goods and services. Those finished products are then sold to other countries, which make different goods and services in their little self-contained economy. Japan makes cars. France makes wine, and they trade wine for cars.
That is NOT what happens in North America, because what we have here is not three countries and three economies trading finished products with each other. What we have here is a single economy shared by two countries, Canada and the U.S.A (and increasingly a third, Mexico). So NAFTA is not (despite its name) about trade, it is about production. Canadians and Americans do not trade with each other. They make things together and then sell them to each other and the rest of the world. We are a production bloc, not a trading bloc. Read more here.
Canada to Strike New Trans-Pacific Free Trade Deal: Harper
(National Post – Jason Fekete)
Prime Minister Stephen Harper announced Sunday Canada will apply to join a new free trade agreement with the United States and the Asia-Pacific region, and suggested that Canada’s farm supply management systems could be on the table for negotiation. Mr. Harper also said Canada will look further into selling its oil and gas to Asian countries due to U.S. delays in approving the Keystone XL pipeline.
The prime minister held a key 25-minute tete-a-tete with U.S. President Barack Obama on Sunday over lunch, on the fringes of the Asia-Pacific Economic Cooperation summit in Honolulu, which wrapped up a few hours later. They’ve agreed to meet again in Washington in early December, when it’s believed the leaders might finally announce details of the Beyond the Border security and trade initiative, which Harper said is on the agenda.
A handful of countries in the TPP negotiations — including possibly New Zealand and the United States — have been resisting Canada’s entry into the group because of the Canadian supply management system that protects fewer than 20,000 dairy and poultry farmers behind a tariff wall and hands them production quotas. Read more here.
Prime Minister Stephen Harper announced Sunday Canada will apply to join a new free trade agreement with the United States and the Asia-Pacific region, and suggested that Canada’s farm supply management systems could be on the table for negotiation. Mr. Harper also said Canada will look further into selling its oil and gas to Asian countries due to U.S. delays in approving the Keystone XL pipeline.
The prime minister held a key 25-minute tete-a-tete with U.S. President Barack Obama on Sunday over lunch, on the fringes of the Asia-Pacific Economic Cooperation summit in Honolulu, which wrapped up a few hours later. They’ve agreed to meet again in Washington in early December, when it’s believed the leaders might finally announce details of the Beyond the Border security and trade initiative, which Harper said is on the agenda.
A handful of countries in the TPP negotiations — including possibly New Zealand and the United States — have been resisting Canada’s entry into the group because of the Canadian supply management system that protects fewer than 20,000 dairy and poultry farmers behind a tariff wall and hands them production quotas. Read more here.
APEC Leaders to Cut Taxes on Green Goods
(Agence France-Presse)
Asia-Pacific leaders representing more than half of the global economy have committed to cutting tariffs on environmental goods to no more than 5% and reducing energy intensity. In a joint statement after a summit in Hawaii, leaders of the APEC bloc – which includes the United States and China – said they would also eliminate non-tariff barriers that impede trade in green products.
“Taking these concrete actions will help our businesses and citizens access important environmental technologies at lower costs, which in turn will facilitate their use, contributing significantly to APEC's sustainable development goals,” the statement said. Read more here.
Asia-Pacific leaders representing more than half of the global economy have committed to cutting tariffs on environmental goods to no more than 5% and reducing energy intensity. In a joint statement after a summit in Hawaii, leaders of the APEC bloc – which includes the United States and China – said they would also eliminate non-tariff barriers that impede trade in green products.
“Taking these concrete actions will help our businesses and citizens access important environmental technologies at lower costs, which in turn will facilitate their use, contributing significantly to APEC's sustainable development goals,” the statement said. Read more here.
Mexico to Join Pacific Trade Pact Talks, Official Says
(Taiwan News)
Mexico is joining negotiations on a trans-Pacific free trade pact, a Mexican official said Sunday, giving a further boost to a fast-growing initiative being driven by U.S. President Barack Obama.
Mexico is joining negotiations on a trans-Pacific free trade pact, a Mexican official said Sunday, giving a further boost to a fast-growing initiative being driven by U.S. President Barack Obama.
“Yes we can confirm” we are entering negotiations on the Trans-Pacific Partnership, the official told AFP, after Japan and Canada also signed up for talks on joining what could become the world’s largest free trade zone.
Mexico already has a free trade agreement with the United States and Canada under the 1994 North American Free Trade Agreement, but Obama hopes that the Trans-Pacific Partnership will boost trade across the dynamic Pacific region. Read more here.
Mexico already has a free trade agreement with the United States and Canada under the 1994 North American Free Trade Agreement, but Obama hopes that the Trans-Pacific Partnership will boost trade across the dynamic Pacific region. Read more here.
Trans-Pacific Carriers Seek Post-Holiday Rate Hike
(Journal of Commerce Online – Bill Mongelluzzo)
TSA asks for $400 addition to rates on depressed eastbound prices
Trying again to stop the erosion of rates that has hit major east-west trade lanes this year, shipping lines in the eastbound Pacific intend to implement interim rate hikes on Jan. 1, 2012.
The Transpacific Stabilization Agreement, a discussion group of 15 carriers operating Asia to the U.S., said its member lines plan to individually raise all-inclusive freight rates and charges by a minimum of $400 per 40-foot container.
Although the rate increases will be too late for holiday-season imports, most of which have already entered the country, the carriers appear poised to take advantage of a cargo spike anticipated in January before factories in Asia close for the 2012 Chinese New Year celebrations. Read more here.
TSA asks for $400 addition to rates on depressed eastbound prices
Trying again to stop the erosion of rates that has hit major east-west trade lanes this year, shipping lines in the eastbound Pacific intend to implement interim rate hikes on Jan. 1, 2012.
The Transpacific Stabilization Agreement, a discussion group of 15 carriers operating Asia to the U.S., said its member lines plan to individually raise all-inclusive freight rates and charges by a minimum of $400 per 40-foot container.
Although the rate increases will be too late for holiday-season imports, most of which have already entered the country, the carriers appear poised to take advantage of a cargo spike anticipated in January before factories in Asia close for the 2012 Chinese New Year celebrations. Read more here.
November 14, 2011
Customs Notice 11-022: 2012 Authorizations Under the Textile and Apparel Remission Orders
(CBSA)
1. The purpose of this customs notice is to inform industry that the Canada Border Services Agency (CBSA) is now accepting applications for the 2012 calendar year for renewals of authorizations required pursuant to the following Remission Orders, subsequently amended most recently by P.C. 2008-1599, Order Amending Certain Textile and Apparel Remission Orders, 2008:
a. P.C. 1997-830 (Tailored Collar Shirts Remission Order, 1997)
2. These six Orders remain in effect and are currently scheduled to expire on December 31, 2012.
3. Eligible apparel manufacturers or fabric producers, as named in the Schedules to these Orders, that wish to avail themselves of the related provisions may do so by obtaining an annual authorization to import under that Order or by filing a drawback claim to recover duties paid on qualifying goods.
4. If an eligible manufacturer or producer intends to have duties remitted at the time of importation, that manufacturer or producer must submit, prior to or at the beginning of each calendar year, to the address noted below, an application by Letter of Intent, confirming that the company:
a. is a manufacturer or producer of (insert description of qualifying goods) in Canada;
5. Eligible manufacturers benefiting from the provisions of the Blouses, Shirts and Co-Ordinates Remission Order must specify whether they are a manufacturer of ladies' blouses and shirts or a manufacturer of ladies' co-ordinates, as that determines the nature of the goods that may be imported into Canada pursuant to the Order.
6. Authorized manufacturers and producers will continue to have the ability to recover any duties that have been paid on qualifying goods by filing a drawback claim at the address noted below.
7. An eligible manufacturer or producer claiming remission by way of drawback must meet the same requirements as an authorized manufacturer or producer claiming remission at the time of importation, although a Letter of Intent to obtain an authorization number is not required.
8. Letters of Intent requesting authorization for the 2012 calendar year under these Orders must be signed by a duly authorized officer of the eligible manufacturer or producer and the original document submitted directly to the following address:
Mr. Peter Rickard
Manager, Quality Assurance – Trade Incentives
Canada Border Services Agency
150 Isabella Street, 8th Floor
Ottawa, ON K1A 0L8
Note: Claims for drawback should be submitted to this same address.
9. For questions concerning this notice or for information relating to authorization renewals for 2012, please contact Mr. Rickard at Peter.Rickard@cbsa-asfc.gc.ca.
1. The purpose of this customs notice is to inform industry that the Canada Border Services Agency (CBSA) is now accepting applications for the 2012 calendar year for renewals of authorizations required pursuant to the following Remission Orders, subsequently amended most recently by P.C. 2008-1599, Order Amending Certain Textile and Apparel Remission Orders, 2008:
a. P.C. 1997-830 (Tailored Collar Shirts Remission Order, 1997)
b. P.C. 1997-2054 (Outerwear Greige Fabrics Remission Order, 1998)
c. P.C. 1997-2055 (Shirting Fabrics Remission Order, 1998)
d. P.C. 1997-2056 (Outerwear Apparel Remission Order, 1998)
e. P.C. 1997-2057 (Blouses, Shirts and Co-Ordinates Remission Order, 1998)
f. P.C. 1997-2058 (Outerwear Fabrics Remission Order, 1998).
2. These six Orders remain in effect and are currently scheduled to expire on December 31, 2012.
3. Eligible apparel manufacturers or fabric producers, as named in the Schedules to these Orders, that wish to avail themselves of the related provisions may do so by obtaining an annual authorization to import under that Order or by filing a drawback claim to recover duties paid on qualifying goods.
4. If an eligible manufacturer or producer intends to have duties remitted at the time of importation, that manufacturer or producer must submit, prior to or at the beginning of each calendar year, to the address noted below, an application by Letter of Intent, confirming that the company:
a. is a manufacturer or producer of (insert description of qualifying goods) in Canada;
b. is listed in the Schedule to the Order and has a 1995 duty entitlement of (insert 1995 allocation);
c. will not exceed the amount of duties that may be claimed for remission on imported goods;
d. has, if applicable, included:
i. the names and addresses of any other persons or companies that might be performing cutting or sewing operations in Canada on its behalf; or
ii. the names and addresses of any distributors that have purchased finished outerwear fabric or outerwear greige fabric to be sold to outerwear apparel manufacturers;
e. will maintain records that are satisfactory to the CBSA;
f. will meet all of the conditions set out in the Order; and
g. will provide the CBSA with any other information that may be requested to substantiate a claim for remission.
5. Eligible manufacturers benefiting from the provisions of the Blouses, Shirts and Co-Ordinates Remission Order must specify whether they are a manufacturer of ladies' blouses and shirts or a manufacturer of ladies' co-ordinates, as that determines the nature of the goods that may be imported into Canada pursuant to the Order.
6. Authorized manufacturers and producers will continue to have the ability to recover any duties that have been paid on qualifying goods by filing a drawback claim at the address noted below.
7. An eligible manufacturer or producer claiming remission by way of drawback must meet the same requirements as an authorized manufacturer or producer claiming remission at the time of importation, although a Letter of Intent to obtain an authorization number is not required.
8. Letters of Intent requesting authorization for the 2012 calendar year under these Orders must be signed by a duly authorized officer of the eligible manufacturer or producer and the original document submitted directly to the following address:
Mr. Peter Rickard
Manager, Quality Assurance – Trade Incentives
Canada Border Services Agency
150 Isabella Street, 8th Floor
Ottawa, ON K1A 0L8
Note: Claims for drawback should be submitted to this same address.
9. For questions concerning this notice or for information relating to authorization renewals for 2012, please contact Mr. Rickard at Peter.Rickard@cbsa-asfc.gc.ca.
November 13, 2011
New Initiative to Expand Exports Targets Experienced Foreign Buyers
(World Trade Interactive)
The Department of Commerce announced Nov. 10 a new effort to help increase exports by U.S. small and medium-sized businesses. The Global Buyers Initiative will help identify experienced foreign buyers and help to connect them to U.S. suppliers. A pilot program will be launched in Canada, France and Korea this year followed by Australia, Colombia, Japan, Mexico, Panama and Singapore, with several additional markets targeted soon thereafter.
According to DOC press release, the GBI will be piloted by FedEx, which will seek out experienced importers in National Export Initiative-focused markets and sectors that have traditionally not sourced products or services primarily from U.S. businesses. Once a specific buyer with a specific need is identified, DOC will help connect the buyer with a U.S. supplier and let the overseas importer know what DOC resources are available to help them.
The press release notes that FedEx, along with UPS, the U.S. Postal Service and the National Association of Manufacturers, is already a partner in DOC’s New Market Exporter Initiative, which has identified more than 1,400 small and medium-sized U.S. companies that already export to one foreign country but are looking to expand into additional markets.
The Department of Commerce announced Nov. 10 a new effort to help increase exports by U.S. small and medium-sized businesses. The Global Buyers Initiative will help identify experienced foreign buyers and help to connect them to U.S. suppliers. A pilot program will be launched in Canada, France and Korea this year followed by Australia, Colombia, Japan, Mexico, Panama and Singapore, with several additional markets targeted soon thereafter.
According to DOC press release, the GBI will be piloted by FedEx, which will seek out experienced importers in National Export Initiative-focused markets and sectors that have traditionally not sourced products or services primarily from U.S. businesses. Once a specific buyer with a specific need is identified, DOC will help connect the buyer with a U.S. supplier and let the overseas importer know what DOC resources are available to help them.
The press release notes that FedEx, along with UPS, the U.S. Postal Service and the National Association of Manufacturers, is already a partner in DOC’s New Market Exporter Initiative, which has identified more than 1,400 small and medium-sized U.S. companies that already export to one foreign country but are looking to expand into additional markets.
Canada Wants in to New Asia Pacific Trade Pact But Won’t Pre-negotiate: Minister
(Stephanie Levitz — The Canadian Press)
It’s a trade deal being heralded as a model for the economic future, but Canada won’t let go of its economic past to become a member.
Nine Pacific rim nations agreed Saturday to forge ahead with a new trade bloc that will fast-track trade between some of the most lucrative and potentially lucrative economies in the world.
“The (Trans Pacific Partnership) will boost our economies, lowering barriers to trade and investment, increasing exports, and creating more jobs for our people,” U.S. President Barack Obama said in announcing the new framework ahead of the start of the formal APEC leader summit in Hawaii on Saturday.
But that won’t be the case for Canada.
While Canada would like to be part of the TPP, it doesn’t agree with the cost of membership, particularly the suggestion that it needs to signal a willingness to abandon decades-old supply management policies, International Trade Minister Ed Fast said Saturday. Read more here.
It’s a trade deal being heralded as a model for the economic future, but Canada won’t let go of its economic past to become a member.
Nine Pacific rim nations agreed Saturday to forge ahead with a new trade bloc that will fast-track trade between some of the most lucrative and potentially lucrative economies in the world.
“The (Trans Pacific Partnership) will boost our economies, lowering barriers to trade and investment, increasing exports, and creating more jobs for our people,” U.S. President Barack Obama said in announcing the new framework ahead of the start of the formal APEC leader summit in Hawaii on Saturday.
But that won’t be the case for Canada.
While Canada would like to be part of the TPP, it doesn’t agree with the cost of membership, particularly the suggestion that it needs to signal a willingness to abandon decades-old supply management policies, International Trade Minister Ed Fast said Saturday. Read more here.
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