March 30, 2012
News from Thompson Ahern: Weekly Updates
An updated list of recently published government memorandums, notices, regulations and decisions for the week ending March 30, 2011 is now available on our website here.
EU Cartel Case Sheds Light on Darker Corners of Forwarding
(Transport Intelligence – Thomas Cullen)
The case of the anti-cartel fines levied by the European Union (EU) on a string of freight forwarders is a useful insight for any shipper looking to understand how they are charged by forwarders and how forwarders manage their margins.
No less than four different processes were deemed anti-competitive by the EU Competition Commissioners according to a statement on Wednesday. The first ‘cartel’ was that relating to the British customs “new export system” introduced in 2003. Here, forwarders were found to have illegally agreed to establish a surcharge on customers for operating this customs reporting service and to fix its amount according to the size of the customer’s consignment.
The next issue was concerning the American “advanced manifest system”, which the forwarders agreed a common surcharge for the transmission of data to the U.S. customs and agreed amongst themselves not to use the charge as a “tool for competition”. Read more here.
The case of the anti-cartel fines levied by the European Union (EU) on a string of freight forwarders is a useful insight for any shipper looking to understand how they are charged by forwarders and how forwarders manage their margins.
No less than four different processes were deemed anti-competitive by the EU Competition Commissioners according to a statement on Wednesday. The first ‘cartel’ was that relating to the British customs “new export system” introduced in 2003. Here, forwarders were found to have illegally agreed to establish a surcharge on customers for operating this customs reporting service and to fix its amount according to the size of the customer’s consignment.
The next issue was concerning the American “advanced manifest system”, which the forwarders agreed a common surcharge for the transmission of data to the U.S. customs and agreed amongst themselves not to use the charge as a “tool for competition”. Read more here.
Definition of the Exporter a Moving Target
(Export Development Canada – Peter G. Hall)
Blinding. That’s the speed at which international trade has been transforming over the past two decades. It is re-casting models of cross-border commerce, and in the process has led to a lot of confusion about traditional definitions of international trade. In the midst of all this change, is it possible to get a handle on what an exporter really is these days? A tough task, but let’s give it a try.
We’ll start with old definitions, when things were a lot simpler. Trade used to be largely about shipping raw and finished goods. Raw goods would come from source to factory loading docks, be produced into a final good, and shipped to the end user in a foreign country. These simpler times gave rise to a stream of thinking we still struggle to shed: that exports are good, imports are bad, and that large trade surpluses are the goal. That’s the essence of mercantilism, and today’s trade probably has no greater enemy. Thankfully, trade’s transformation is increasingly helping it to gain the upper hand.
Technology is really the game-changer. Transportation has undergone a multi-generational overhaul that sees us able to whisk people about at far lower cost, at great frequency and at higher speed and efficiency. The same is true for goods, where multi-modal movements of goods to and from anywhere on the planet has been honed to a fine art, increasing the speed of movement, optimization to lower costs and reliable, just-in-time delivery. Advances in communication are growing exponentially, enabling us to buy, sell and produce on planet-wide platforms that are humming somewhere, 24-7, and make payments effortlessly. It’s complex and a bit daunting, but it opens up great possibilities. Read more here.
Blinding. That’s the speed at which international trade has been transforming over the past two decades. It is re-casting models of cross-border commerce, and in the process has led to a lot of confusion about traditional definitions of international trade. In the midst of all this change, is it possible to get a handle on what an exporter really is these days? A tough task, but let’s give it a try.
We’ll start with old definitions, when things were a lot simpler. Trade used to be largely about shipping raw and finished goods. Raw goods would come from source to factory loading docks, be produced into a final good, and shipped to the end user in a foreign country. These simpler times gave rise to a stream of thinking we still struggle to shed: that exports are good, imports are bad, and that large trade surpluses are the goal. That’s the essence of mercantilism, and today’s trade probably has no greater enemy. Thankfully, trade’s transformation is increasingly helping it to gain the upper hand.
Technology is really the game-changer. Transportation has undergone a multi-generational overhaul that sees us able to whisk people about at far lower cost, at great frequency and at higher speed and efficiency. The same is true for goods, where multi-modal movements of goods to and from anywhere on the planet has been honed to a fine art, increasing the speed of movement, optimization to lower costs and reliable, just-in-time delivery. Advances in communication are growing exponentially, enabling us to buy, sell and produce on planet-wide platforms that are humming somewhere, 24-7, and make payments effortlessly. It’s complex and a bit daunting, but it opens up great possibilities. Read more here.
WTO Panel Hearing: Canada Defends Feed-in Tariff as Necessary Govt Procurement
(Bridges Trade Weekly)
The legality of government support for renewable energy initiatives took centre stage in Geneva this week, with a landmark case against Canada being heard at the WTO. A three person dispute panel heard opening arguments in cases launched by Japan and the EU – DS412 and DS426, respectively – over the Canadian province of Ontario’s local content requirements in its feed-in tariff (FIT) scheme. […]
The Ontario programme in question aims at increasing the share of renewable energy in the province’s electricity mix by insulating green energy producers from risks, and facilitating investments that would otherwise be costly. While Ottawa maintains that the programme is necessary to incentivise clean energy generation, Brussels and Tokyo are concerned over the programme’s subsidising effect.
The main thrust of both complaints is that Ontario’s renewable energy feed-in tariff programme unfairly discriminates against foreign renewable energy products through its “domestic content” clause. Read more here.
The legality of government support for renewable energy initiatives took centre stage in Geneva this week, with a landmark case against Canada being heard at the WTO. A three person dispute panel heard opening arguments in cases launched by Japan and the EU – DS412 and DS426, respectively – over the Canadian province of Ontario’s local content requirements in its feed-in tariff (FIT) scheme. […]
The Ontario programme in question aims at increasing the share of renewable energy in the province’s electricity mix by insulating green energy producers from risks, and facilitating investments that would otherwise be costly. While Ottawa maintains that the programme is necessary to incentivise clean energy generation, Brussels and Tokyo are concerned over the programme’s subsidising effect.
The main thrust of both complaints is that Ontario’s renewable energy feed-in tariff programme unfairly discriminates against foreign renewable energy products through its “domestic content” clause. Read more here.
Canadian Truck Traffic, Freight Rates Increase
(Journal of Commerce Online – William B. Cassidy)
Indexes show shipping costs, spot freight volume edging up in Canada
The Canadian spot market for truckload freight hits its second highest point in 11 years in February, according to TransCore’s Canadian Freight Index. At the same time, transportation costs are climbing for Canadian shippers, according to the Canadian General Freight Index sponsored by Nulogx.
Indexes show shipping costs, spot freight volume edging up in Canada
The Canadian spot market for truckload freight hits its second highest point in 11 years in February, according to TransCore’s Canadian Freight Index. At the same time, transportation costs are climbing for Canadian shippers, according to the Canadian General Freight Index sponsored by Nulogx.
The TransCore spot market-based index climbed 1% last month from January, with equipment listings on Loadlink climbing 16% year-over-year. TransCore’s index is based on its Loadlink freight-matching database, which the company says matches more than 13 million Canadian shipments and trucks a year. Read more here.
CME Notebook: 2012 Federal Budget Highlights
(Derek Lothian — CME)
The Canadian Manufacturers & Exporters trade group has prepared a summary of highlights from the 2012 Federal Budget with potential impact on its members. The following measures are included in the “International Trade” section:
• Extended domestic financing powers for EDC (one year)
• Refresh the global commerce strategy - consultations with industry in 2012
• Implement the Canada-U.S. Border and Regulatory Action Plans
• Trade measures to support energy industry: duty-free status of imported fuels used in manufacturing (current duty of 5% on certain items)
• Consolidation of Canada’s trade remedy investigation functions into one organization, under the Canadian International Trade Tribunal
The complete summary of Budget highlights can be viewed here.
Highlights from the 2012 Federal Budget
(Canadian Society of Customs Brokers)
The CSCB has completed a high-level review of the 2012 Federal Budget.
The following items may be of interest to members:
- As part of the Action Plan on Perimeter Security, pilot projects will be held at Prince Rupert and Montreal where goods are screened once and accepted by both Canada and the U.S. In addition to these pilot projects, the Government will take other measures to implement action plan commitments and other border improvements over the next two years;
- Certain imported fuels used as manufacturing inputs that became dutiable as a result of a CBSA ruling will be restored to their duty-free status;
- A comprehensive review of the General Preferential tariff regime will take place;
-Legislation will be introduced to consolidate Canada’s trade remedy investigation functions into one organization, under the CITT (currently handled by both CBSA and CITT);
- Travellers’ exemptions will be increased to $200 and $800, for Canadian residents returning from abroad after 24-hour and 48-hour absences, respectively;
- With respect to the Red Tape Reduction Commission, the Treasury Board will develop an Action Plan to address the Commission’s Recommendations Report to deliver better regulations in order to reduce frustration and lower costs for Canadian business;
- The Canadian Food Inspection Agency (CFIA) will change how they monitor and enforce non-health and non-safety food labelling regulations which will help the agency cut $56.1 million from its overall budget by the next fiscal year;
- Canada Border Services Agency will streamline internal services and low-performing processes;
- Canada will change the vehicle fuel consumption testing requirements to better align with those in the United States; this will affect the Green Levy Tax and amendments will made to the Excise Tax Act; and
- Tax relief will be put in place for foreign-based rental vehicles temporarily Imported by Canadian residents.
Details will be provided as they become available.
The CSCB has completed a high-level review of the 2012 Federal Budget.
The following items may be of interest to members:
- As part of the Action Plan on Perimeter Security, pilot projects will be held at Prince Rupert and Montreal where goods are screened once and accepted by both Canada and the U.S. In addition to these pilot projects, the Government will take other measures to implement action plan commitments and other border improvements over the next two years;
- Certain imported fuels used as manufacturing inputs that became dutiable as a result of a CBSA ruling will be restored to their duty-free status;
- A comprehensive review of the General Preferential tariff regime will take place;
-Legislation will be introduced to consolidate Canada’s trade remedy investigation functions into one organization, under the CITT (currently handled by both CBSA and CITT);
- Travellers’ exemptions will be increased to $200 and $800, for Canadian residents returning from abroad after 24-hour and 48-hour absences, respectively;
- With respect to the Red Tape Reduction Commission, the Treasury Board will develop an Action Plan to address the Commission’s Recommendations Report to deliver better regulations in order to reduce frustration and lower costs for Canadian business;
- The Canadian Food Inspection Agency (CFIA) will change how they monitor and enforce non-health and non-safety food labelling regulations which will help the agency cut $56.1 million from its overall budget by the next fiscal year;
- Canada Border Services Agency will streamline internal services and low-performing processes;
- Canada will change the vehicle fuel consumption testing requirements to better align with those in the United States; this will affect the Green Levy Tax and amendments will made to the Excise Tax Act; and
- Tax relief will be put in place for foreign-based rental vehicles temporarily Imported by Canadian residents.
Details will be provided as they become available.
The budget, in its entirety, can be seen here.
Ottawa’s Budget Gives Cross-Border Shoppers a Break
(The Globe & Mail)
Canadian shoppers will have more freedom to take advantage of lower prices across the border, as Ottawa quadruples the limit on how much they can buy on a one-day U.S. trip without having to pay duties or taxes.
Thursday’s budget raises the limit to $200 from $50 for residents who been out of the country for 24 hours. The exemptions for longer trips are going up as well – doubling to $800 for those who have been away for 48 hours. Retailers anticipate a surge in cross-border shopping starting in June, when new rules are slated to take effect, a move they say will squeeze them hard unless the government also drops import taxes imposed on merchants. Read more here.
Being a Spoke in American Trade Isn’t Enough for Canada
(John Ibbitson – The Globe and Mail)
Canada is launching free-trade talks with Thailand and Japan in case Plan B must turn into Plan A, because Plan A is in trouble, thanks to what is being described as American bullying.
Plan A is the Trans Pacific Partnership, a set of trade talks currently involving the United States and eight other Pacific nations that Canada badly wants to join. Negotiators from the two countries are attempting to secure a pre-agreement so that the Americans will support Canada’s accession to the talks.
But the Americans are being particularly bloody-minded, from the Canadian perspective. Supply management is the biggest issue. This is the system of quotas and tariffs that protect the Canadian dairy and poultry industry from competition. Read more here.
Canada is launching free-trade talks with Thailand and Japan in case Plan B must turn into Plan A, because Plan A is in trouble, thanks to what is being described as American bullying.
Plan A is the Trans Pacific Partnership, a set of trade talks currently involving the United States and eight other Pacific nations that Canada badly wants to join. Negotiators from the two countries are attempting to secure a pre-agreement so that the Americans will support Canada’s accession to the talks.
But the Americans are being particularly bloody-minded, from the Canadian perspective. Supply management is the biggest issue. This is the system of quotas and tariffs that protect the Canadian dairy and poultry industry from competition. Read more here.
Rising Chinese Wages a Headache for U.S. Firms
(Industry Week | Agence France-Presse)
After decades of U.S. caterwauling about the crippling impact of China’s low labor costs on domestic manufacturing, firms state-side now fret about the impact of rising Chinese wages.
First came anger, then depression and then acceptance. In the three decades since Deng Xiaoping began opening China’s economy, U.S. manufacturers have gone through something resembling Elisabeth Kuebler-Ross’s five stages of grief. Industry cried foul, then groped around for solutions, before accepting the rules of the game had changed – deciding to make a buck by offshoring some of their own production to China.
To be sure, there are still frequent spasms of anger over China’s ability to produce goods at “unfair” prices, notably in election years. But the bitter pain of jobs lost and factories closed has been sweetened just slightly over the years. Using cheap Chinese laborers has resulted in $499 iPads, bumper corporate profits and – in turn – fatter pensions for those who have stock-based plans.
After decades of U.S. caterwauling about the crippling impact of China’s low labor costs on domestic manufacturing, firms state-side now fret about the impact of rising Chinese wages.
First came anger, then depression and then acceptance. In the three decades since Deng Xiaoping began opening China’s economy, U.S. manufacturers have gone through something resembling Elisabeth Kuebler-Ross’s five stages of grief. Industry cried foul, then groped around for solutions, before accepting the rules of the game had changed – deciding to make a buck by offshoring some of their own production to China.
To be sure, there are still frequent spasms of anger over China’s ability to produce goods at “unfair” prices, notably in election years. But the bitter pain of jobs lost and factories closed has been sweetened just slightly over the years. Using cheap Chinese laborers has resulted in $499 iPads, bumper corporate profits and – in turn – fatter pensions for those who have stock-based plans.
But there are already signs that this low-cost, high-reward Chinese paradigm is coming to an end. Read more here.
March 27, 2012
Canada, Japan Enter Negotiations on Free Trade
(CP24 – The Canadian Press)
Canada and Japan have agreed to enter free trade talks.
Prime Minister Stephen Harper and his Japanese counterpart made the announcement following a bilateral meeting in Tokyo on Sunday. “These are important steps forward; historic steps forward,” Harper said before the bilateral meeting.
Harper said a deal would strengthen the Canadian economy by generating billions of additional dollars in commerce with Japan. He estimated Canadian exports to the island nation could increase by two-thirds.
After being shut out Trans-Pacific Partnership talks, both countries embarked on a joint study on economic co-operation, which Canadian government officials say found complimentary areas. Read more here.
Canada and Japan have agreed to enter free trade talks.
Prime Minister Stephen Harper and his Japanese counterpart made the announcement following a bilateral meeting in Tokyo on Sunday. “These are important steps forward; historic steps forward,” Harper said before the bilateral meeting.
Harper said a deal would strengthen the Canadian economy by generating billions of additional dollars in commerce with Japan. He estimated Canadian exports to the island nation could increase by two-thirds.
After being shut out Trans-Pacific Partnership talks, both countries embarked on a joint study on economic co-operation, which Canadian government officials say found complimentary areas. Read more here.
Customs Notice 12-008: Steel and Steel Products – Elimination of Individual Permits
(CBSA)
Foreign Affairs and International Trade Canada (FAITC) announced in Canada Gazette Vol. 146, No. 6 – March 14, 2012, that the implementation of a new import permit system for steel and steel products will come into effect on April 1, 2012.
Importers of steel and steel products will no longer be required to obtain individual permits but will, instead, be provided by FAITC with general import permits (GIP) for all steel covered by the Import Control List of the Export and Import Permits Act.
The new import permit system will eliminate a need for importers of steel and steel products to provide to the Canada Border Services Agency (CBSA) the individual permit information (electronic transaction record or paper copy of the transaction record) with the release request.
Please note that General Import Permit No. 80 – Carbon Steel (GIP 80), and General Import Permit No. 81 – Specialty Steel Products (GIP 81) must be quoted on the release documentation (e.g. description of goods field on the invoice) or in the description free text field, when release requests are transmitted to the CBSA using Electronic Data Interchange (EDI).
For details on import requirements and permit procedures for the importation of goods listed in the Import Control List under the Export and Import Permits Act, please refer to the Memorandum D19-10-2, Export and Import Permits Act (Importation).
Foreign Affairs and International Trade Canada (FAITC) announced in Canada Gazette Vol. 146, No. 6 – March 14, 2012, that the implementation of a new import permit system for steel and steel products will come into effect on April 1, 2012.
Importers of steel and steel products will no longer be required to obtain individual permits but will, instead, be provided by FAITC with general import permits (GIP) for all steel covered by the Import Control List of the Export and Import Permits Act.
The new import permit system will eliminate a need for importers of steel and steel products to provide to the Canada Border Services Agency (CBSA) the individual permit information (electronic transaction record or paper copy of the transaction record) with the release request.
Please note that General Import Permit No. 80 – Carbon Steel (GIP 80), and General Import Permit No. 81 – Specialty Steel Products (GIP 81) must be quoted on the release documentation (e.g. description of goods field on the invoice) or in the description free text field, when release requests are transmitted to the CBSA using Electronic Data Interchange (EDI).
For details on import requirements and permit procedures for the importation of goods listed in the Import Control List under the Export and Import Permits Act, please refer to the Memorandum D19-10-2, Export and Import Permits Act (Importation).
U.S. to Appeal WTO Ruling Against Meat Labels
(Reuters)
The United States said on Friday it would appeal a World Trade Organization ruling against a law requiring country-of-origin labels on all meat sold in grocery stores, a move that disappointed Canada and Mexico, both of which want the law changed.
The meat labels became mandatory in March 2009 after years of debate. U.S. consumer and mainline farm groups supported the requirement, saying consumers should have information to distinguish between U.S. and foreign products. Big meat processors opposed the provision, which they said would unnecessarily boost costs and disrupt trade.
A WTO panel ruled in November that the country-of-origin labeling, or COOL, provision violated WTO rules on technical barriers to trade. The case was brought by Canada and Mexico, which have sizeable cattle and hog trade with the United States. Read more here.
The United States said on Friday it would appeal a World Trade Organization ruling against a law requiring country-of-origin labels on all meat sold in grocery stores, a move that disappointed Canada and Mexico, both of which want the law changed.
The meat labels became mandatory in March 2009 after years of debate. U.S. consumer and mainline farm groups supported the requirement, saying consumers should have information to distinguish between U.S. and foreign products. Big meat processors opposed the provision, which they said would unnecessarily boost costs and disrupt trade.
A WTO panel ruled in November that the country-of-origin labeling, or COOL, provision violated WTO rules on technical barriers to trade. The case was brought by Canada and Mexico, which have sizeable cattle and hog trade with the United States. Read more here.
Annual Surface Trade with Canada and Mexico Up 14.3% in 2011
Annual surface transportation trade between the U.S. and its NAFTA partners Canada and Mexico reached $904 billion in 2011, the Bureau of Transportation Statistics reports, a 14.3% jump that was the third-largest increase since NAFTA took effect in 1994. U.S. imports from Canada and Mexico via truck, rail and pipeline were up 13.8% while exports rose 14.8%. Total U.S.-NAFTA trade is up by 42% since 2009, when it fell to a recent low due to an economic recession.
U.S. surface transportation trade with Canada totaled $537 billion in 2011, up 14% from a year before. Imports carried by truck rose 10% by value while exports gained 12.4%. The top commodity category transported between the U.S. and Canada via surface modes was vehicles and vehicle parts, which accounted for $96.1 billion in trade and was roughly split between exports and imports.
Total surface transportation trade between the U.S. and Mexico reached $367.1 billion, up 14.6% from 2010. The value of imports by truck saw a 12.4% gain while exports climbed 14.9%. The top commodity transported between the two countries via surface modes was electrical machinery at $80.5 billion.
U.S. surface transportation trade with Canada totaled $537 billion in 2011, up 14% from a year before. Imports carried by truck rose 10% by value while exports gained 12.4%. The top commodity category transported between the U.S. and Canada via surface modes was vehicles and vehicle parts, which accounted for $96.1 billion in trade and was roughly split between exports and imports.
Total surface transportation trade between the U.S. and Mexico reached $367.1 billion, up 14.6% from 2010. The value of imports by truck saw a 12.4% gain while exports climbed 14.9%. The top commodity transported between the two countries via surface modes was electrical machinery at $80.5 billion.
Unfree Trade
(The Economist)
The European Commission is flirting dangerously with protectionism
“Free trade, yes. Disloyal competition, no. Europe that opens all its public-procurement markets when others do not open them at all – it’s no.” Thus Nicolas Sarkozy, the French president, in a markedly protectionist campaign speech earlier this month. Less than a fortnight later, the European Commission has snapped its heels. It has issued a proposal to let the EU close its public-procurement markets to firms from countries that exclude European competitors from their public contracts. Like Mr Sarkozy, Eurocrats insist that this is not protectionism. It is, rather, creating a lever to prise open closed markets. The proposal has been a long time coming; if the commission had to postpone every initiative because of an election, it could never do anything. Yet many still see this as a campaign gift to Mr Sarkozy.
France’s Socialists will not denounce it. But liberals, especially Britain and other north Europeans, are aghast. Everybody knows that Mr Sarkozy dislikes free trade. What dismays them is that the commission should abandon its role as a force for open markets. Germany, usually careful to stay close to France, said in a scathing private paper that “the proposal is unacceptable and should be rejected.” It notes that Europe can hardly argue against “buy American” restrictions while adopting “buy European” ones. Read more here.
The European Commission is flirting dangerously with protectionism
“Free trade, yes. Disloyal competition, no. Europe that opens all its public-procurement markets when others do not open them at all – it’s no.” Thus Nicolas Sarkozy, the French president, in a markedly protectionist campaign speech earlier this month. Less than a fortnight later, the European Commission has snapped its heels. It has issued a proposal to let the EU close its public-procurement markets to firms from countries that exclude European competitors from their public contracts. Like Mr Sarkozy, Eurocrats insist that this is not protectionism. It is, rather, creating a lever to prise open closed markets. The proposal has been a long time coming; if the commission had to postpone every initiative because of an election, it could never do anything. Yet many still see this as a campaign gift to Mr Sarkozy.
France’s Socialists will not denounce it. But liberals, especially Britain and other north Europeans, are aghast. Everybody knows that Mr Sarkozy dislikes free trade. What dismays them is that the commission should abandon its role as a force for open markets. Germany, usually careful to stay close to France, said in a scathing private paper that “the proposal is unacceptable and should be rejected.” It notes that Europe can hardly argue against “buy American” restrictions while adopting “buy European” ones. Read more here.
March 26, 2012
Input Sought for Work Plan of U.S.-Canada Group on Dangerous Goods Transport
The Department of Transportation is inviting through April 25 comments and suggestions relative to the draft work plan of the Transportation–Dangerous Goods Working Group of the U.S.-Canada Regulatory Cooperation Council. When available, this work plan will be posted here.
DOT is particularly interested in the following issues: the development of ongoing cooperation frameworks and alignment mechanisms in the work plan, technical input relevant to issues identified in the work plan or otherwise in relation to the transportation of hazardous materials between the U.S. and Canada, the preferred method and frequency of stakeholder engagement for the working group, and overall U.S-Canada regulatory cooperation and the RCC process with respect to the transportation of hazardous materials.
New Canadian Strategy for Americas Expected
(The Canadian Press)
Harper to attend Summit of Americas next month
Prime Minister Stephen Harper is poised to unveil a reinvigoration of his government’s muddled Americas strategy when he meets with hemispheric leaders next month.
The Canadian Press has learned that cabinet discussed a renewal of the foreign-policy directive last week. Harper is expected to discuss details of how Canada will re-engage with Latin America and the Caribbean during the Summit of the Americas in Cartagena, Colombia, April 14-15.
The previous Americas strategy, first signalled in 2007, had three pillars: security, prosperity and democratic governance. But the Foreign Affairs Department’s own internal evaluation last year suggested the strategy was mostly talk and little action, citing a lack of resources and poor understanding of the policy.
Since then, Foreign Affairs has consulted widely on how to rewrite the strategy, holding internal forums last fall and taking in submissions. Read more here.
March 25, 2012
Harper, Thai PM Hail Launch of Free-Trade Study
(Lee Berthiaume — Postmedia News)
The giant red sign in front of Bangkok’s palatial Government House was impossible to miss Friday, offering Prime Minister Stephen Harper a “warm welcome” during his first visit to Thailand.
It’s a reception the prime minister is hoping to receive throughout the booming Asia-Pacific region, where Canada has been lagging behind its competitors.
Since coming to power in 2006, the Harper government has completed free-trade talks with nine countries. However, none of them is in Asia, which the federal government sees as key to Canada’s future prosperity.
Negotiations with Singapore were launched in 2001 but have gone nowhere. Discussions with South Korea have also been stalled for several years, while Canada has had a difficult time breaking into the Trans-Pacific Partnership, a major trading bloc that includes the U.S. and a number of other important economies on both sides of the ocean. Read more here.
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