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Re-Energizing Canada's International Trade: Strategies for Post-Recession Success
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The latest report by the Conference Board of Canada examines why Canada's international trade future cannot be taken for granted.
The global recession has had a devastating impact on Canada's international trade. As economies rebound and demand resumes, trade will pick up again. But does this mean Canada can look forward to a healthy trade outlook? This report suggests not.
Canada' trade profile going into the recession was discouraging. Well before the recession struck, value chains and other aspects of the ascending international business model were revolutionizing global production and the way the world does business. A tough business at the best of times, trade is likely to get a lot tougher still as firms compete for recovering markets and capital flows.
As this report explains, the challenge is not simply how to survive the recession - it is how Canada can emerge from the recession better positioned for success in the global economy than it is now. The author, Anne Park Shannon focuses on such 'tools' as a more competitive use of foreign direct investment, trade diversification outside of the U.S., a look at imports and regional and global value chains. Three shifts in policy direction are explored.
The complete report can be downloaded from our website here.
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U.S. China Trade Spats Cause for Concern
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A recent spate of new countervailing duties and retaliatory penalties together with allegations of dumping and illegal subsidies on various goods between China and the U.S. could be a worrisome trend that spells trouble for the open world trade that Canada depends so heavily on.
Speaking at a meeting with Democratic Party senators in Washington last month, U.S. President Barack Obama says his administration is putting increased pressure on China to open up its domestic market further to reciprocal trade.
Obama said that if the United States can increase its trade with Asia by even one percentage point that will create thousands, maybe millions, of new U.S. jobs. The important thing, he said, is to get Beijing to live up to existing trade rules.
Reaction from China to the suggestion it wasn't adequately living up to its trade commitments was swift, with government officials angrily accusing the United States of protectionism that has "seriously affected" their trade ties, according to state media.
"Since the outbreak of the financial crisis, the US trade protectionism has been apparently on the rise, and China has become the biggest victim of US abuse of trade relief measures," said Ministry of Commerce spokesman Yao Jian.
The acceleration of trade disputes between China and the U.S. marks a further worsening in relations already strained by economic and financial issues and U.S. arms sales to Taiwan.
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Health Canada Seeks Public Input on Changing Regulations for Food Colouring
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Health Canada is seeking input on proposed changes to improve labelling requirements for colouring agents in food products that would eliminate the option of using the general term "colour" and require that individual colours be identified on food ingredient labels.
Health Canada said it will update progress on the issue once the consultation period has ended on May 4, 2010. Additional information about the proposed changes and means of providing input can be found on the Health Canada website here.
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Wal-Mart Sets New Sustainability Mandates
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Wal-Mart announced an "aggressive" new environmental initiative across its supply chain last week, saying it will call on suppliers of its products to eliminate a total of 20 million metric tons of greenhouse gas emissions over the next five years.
Wal-Mart said the effort would run from sourcing of goods to transportation and packaging, adding new mandates to sustainability plans the world's largest retailer has already launched across its sprawling distribution channels.
Mike Duke, Wal-Mart's president and CEO said the "aggressive new goal" follows the efforts to make the company's truck fleet more efficient and to measure the actions of its suppliers through a "sustainable product index."
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GHY E-Newsletter Issue #6 March ยท 2010
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eManifest Destiny
Basic Overview:
eManifest is the final phase of the multimodal Advance Commercial Information (ACI) initiative, and will require highway and rail carriers, freight forwarders, and importers with their own fleet to electronically provide the Canada Border Services Agency (CBSA) with cargo, conveyance, crew/passenger, secondary and importer trade data within specified time frames before shipments reach Canada.
By getting the right information at the right time, eManifest will:
* Modernize the processing of commercial goods coming into Canada;
* improve the CBSA's ability to detect shipments that pose a high risk before they arrive in Canada; and
* expedite the movement of low-risk shipments.
To help the trade community comply with eManifest requirements, the CBSA is developing an eManifest Web portal for submitting advance information free of charge. Trade partners will have the option to report through the eManifest Web portal or by using existing electronic data interchange (EDI) systems.
For each phase there will be a 12-month period for trade partners to incorporate eManifest requirements into their business processes. This will be followed by a 6-month grace period during which administrative monetary penalties will not be applied for non-compliance with eManifest regulations.
eManifest will be implemented in phases over a number of years.
Key Implementation Dates:
* Spring 2010 - The eManifest EDI function to begin transmission of cargo and conveyance data will be available in the highway mode. The eManifest Web portal will be available for highway carriers in fall 2010.
* Fall 2010 - The eManifest EDI function to begin transmission of cargo and conveyance data will be available in the rail mode.
* Summer 2011 - The function for freight forwarders to begin transmission of eManifest information (secondary cargo/house bill data) will be available.
* Spring 2012 - The function for importers to begin transmission of advance trade data will be available.
* Spring 2014 - eManifest fully implemented.
How GHY Can Help:
Based
on our experience providing similar electronic applications within the
U.S. CBP's Automated Commercial Environment (ACE), GHY is well
positioned to deliver solutions that address the needs of eManifest
filers. One Border - One Solution!
GHY's e-Manifest Solution:
GHY's
e-Manifest software is a fast, easy way to comply with the CBP & CBSA mandates set
for carriers crossing the border north and south bound. By using our e-Manifest
solution you will benefit in the following ways:
* 24/7 support
* View current status your entries/releases at any time.
* Rapid data entry (Usually < 2 minutes from start to finish.)
* EDI capabilities and seamless integration.
* Free upgrades and unlimited users.
Find out more and sign up for our e-Manifest solution by visiting our website here.
Contacts:
Alan Dewar, VP Canadian Operations (dewar@ghy.com)
Vicki Deluca, VP USA Operations (vicki@ghy.com)
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ACI Highway eManifest Preparation & Compliance Workshop
Trans-Canada Series: March 29 - April 9
Locations: Moncton, Montreal, Markham, Cambridge, Winnipeg, Edmonton, Vancouver
Partnering with I.E.Canada, the Canadian Trucking Alliance and provincial trucking associations, GHY International is sponsoring an e-Manifest workshop in Winnipeg on April 7, 2010. Led by Oryst Dydynsky of The Descartes Systems Group Inc., an industry leader and Co-Chair of I.E.Canada's Customs and Legislation Committee, and Jason Proceviat of CBSA, this hands-on workshop will include an overview of the eManifest highway initiative and the new requirements, as well as an interactive walk-through exercise to highlight the process changes that will be required of carriers, freight forwarders, importers and their brokers.
For further details and registration please download this brochure from our website. |
New and Updated Sections of the
CBP's ACE User Guides
U.S. CBP has posted new and updated sections of the Automated Commercial Environment (ACE) User Guides reflecting detailed instructions for the trade community on using capabilities that were delivered as part of the Entry Summary, Accounts and Revenue (ESAR) A2.2 (delivered April 12, 2009) and A2.3.1a deployment (delivered February 14, 2010).
The new section is titled, "AD/CVD Cases and Management" and provides instructions on searching and printing information related to AD/CVD cases and messages. To access this new section, go to CBP.gov under under ACE Modernization/Training & Reference Guides/ ACE Portal Accounts Management.
The updated sections are as follows:
* Blanket Declaration Records- provides instructions on creating, searching and printing declaration records for portal and non-portal accounts. To access this updated section, go to CBP.gov under ACE Modernization/Training and Reference Guides
* Running ACE Reports for Importers, Brokers and Sureties- provides information on basic functionality of the ACE Reports Tool and outlines detailed instructions on how to access available reports (including standard, modified, customized and automated data extract (ADE) report) . To access this updated section, go to CBP.gov under ACE Modernization/Training and Reference Guides
* ACE 101- provides an overview of the ACE Secure Data Portal as well as current and future ACE features. To access this updated section, go to CBP.gov under ACE Modernization/What is ACE.
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U.S. and Canada Sign Government Procurement Agreement
Last month, Canada and the US signed a government procurement agreement with the hopes of ending Canada's problem with the "Buy America" clause in the US Economic Recovery and Reinvestment Act of 2009. The agreement comes after a months-long dispute has simmered between Ottawa and Washington since the U.S. Congress put the protectionist measures into the U.S. stimulus package last year. Canada had long argued that the "Buy America" provisions were hurting businesses on both sides of the border. The U.S. Chamber of Commerce and several blue-chip American corporations also opposed the provisions.
 The agreement (complete text of which can be viewed here) gives US firms permanent access to Canadian provincial and territorial procurement contracts consistent with the WTO's Government and Procurement Agreement (GPA).
American companies will also be able to compete for Canadian construction contracts not covered under the GPA through September 2011. In turn, the US will provide reciprocal access for Canadian companies to 37 US states already covered by the GPA, but will only give access to "a limited number of Recovery Act programs," according to a statement from the US Trade Representative's office.
Reactions to the agreement within the Canadian trade community was mostly positive, if somewhat qualified. "This sets an important precedent for Canada that recognizes the integrated nature of our two economies," said Jayson Myers, President of Canadian Manufacturers and Exporters But "it doesn't solve all the problems Canadian corporations are experiencing with Buy American and must not end our efforts to fight restrictions in our major export market."
International Trade Minister Peter Van Loan said Ottawa will keep vigorously pushing for a permanent exemption from any further Buy American provisions and for establishing a fast-track process to deal with any future trade irritants. "With this agreement, we are sending a clear message: the best way to create and keep jobs is by opening economic opportunities, not by closing them," Van Loan told a news conference in Ottawa.
In a promising sign of future cooperation resulting in part from the agreement, Canada's premiers met for the first time with the National Governors Association at their Winter Meeting in Washington at the end of February. In a joint statement they agreed to explore ways that states, provinces and territories could work together, either through bilateral or regional agreements or cooperative actions, to strengthen the U.S.-Canada economic relationship, ensure the integrity of our borders, and reduce greenhouse gas emissions.
Additionally, they called on President Barack Obama and Prime Minister Stephen Harper to assist them in enhancing American and Canadian competitiveness by supporting and promoting policy innovation by states, provinces and territories; and to collaborate with them when developing national strategies that directly affect commerce, security, energy and environmental issues.
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U.S. Court Upholds COOL - Implications for Canada's & Mexico's WTO Complaints
In a memorandum sent last week to the Office of the U.S. Trade Representative (USTR), the national cattle producer organization R-CALF USA explained that the decision by U.S. Court for the Eastern District of Washington addresses what it believes is a principal argument contained in the complaints filed at the World Trade Organization (WTO) against the U.S. country-of-origin labeling (COOL) law by Canada and Mexico. The decision stems from the lawsuit that Easterday Ranches Inc. (Easterday) filed against the U.S. Department of Agriculture (USDA) regarding the U.S. COOL law.
In that litigation, Easterday argued that the U.S. Department of the Treasury's marking rules, established to implement the North American Free Trade Agreement (NAFTA), provide that beef derived  from the slaughter of imported cattle in the U.S. market is entitled to be designated as a product of the USA. Easterday further argued that as a result of these preexisting marking rules (NAFTA marking rules), the COOL law improperly requires beef from such imported cattle to be labeled as a product of both countries - Canada and the United States.
The Court disagreed. In its Feb. 5, 2010, order the Court found that the COOL law can coexist with, and does not repeal, the preexisting NAFTA marking rules because these rules are for purposes of tariff designation in a customs setting, while the COOL law applies to retail products, and because the COOL statute neither covers the whole subject matter of the NAFTA marking rules nor does the COOL law present an irreconcilable conflict with those rules.
"We believe this U.S. Court decision will help in the defense of our COOL law against Canada's and Mexico's attack at the WTO," said R-CALF USA COOL Committee Chair Mike Schultz.
"Much like the Easterday complaint filed in the U.S., both Canada's and Mexico's complaints filed at the WTO are seeking the same protection," he continued. "And like Easterday, Canada and Mexico want to continue hiding the true origins of their foreign beef in the U.S. marketplace."
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Finding time to follow the latest international trade
developments and programs of Customs agencies on both sides of the border
relevant to your business can be challenging, so we hope you find this
issue of our Tradelines e-newsletter to be a helpful resource in this respect. As
always, we'd greatly appreciate any opinions, comments and suggestions you may
have to help us improve this information resource, so please don't hesitate to
let us know what you think.
If you haven't already, we'd like to take this opportunity to invite you to
check out our Tradelines E-News weblog where you can
find current stories updated daily about business events and developments that
are important to Canadian importers and exporters. Sign up for our RSS feed and
get automatic updates to your favourite reader as soon as they're posted. As well, you can now follow GHY on Twitter for the latest information, updates and links to articles of interest.
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