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| Business Leaders Push Obama Advisers For New Bridge | 
During a joint meeting of President Barack Obama's export council and Canadian business and trade officials in Windsor on June 28th, representatives of the Canadian auto, food and petroleum industries all called for an end to political wrangling and an immediate commitment to build the new crossing, despite the growing lobbying efforts of Ambassador Bridge owner Matty Moroun. "We have heard throughout today's meetings that the key issues are the physical barriers at the border," said Stephanie Burns, chair-person of Dow Corning Corporation and a member of the council. "The consensus all day has been 'just get it done'- we will take that message back to Washington."
John Manley, president of the Canadian Council of Chief Executives which hosted the Windsor portion of the meeting, said if the export council wants to meet its goal of doubling its exports in the next five years, it needs to concentrate on its largest export partner. "And that means improving the infrastructure at this border crossing," said Manley. | |
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| U.S. Export Strategy to Track Progress in Implementing National Export Initiative | 
Commerce Secretary Gary Locke released June 28 the 2011 National Export Strategy, which will be used to track and measure the federal government's progress in implementing President Obama's National Export Initiative. The Obama administration announced Tuesday a set of measurements to determine progress toward its plan to double exports by 2015.
The metrics -- covering a range of issues from overall export levels to the amount of credit going to support small businesses -- have long been demanded by lawmakers seeking to hold the administration accountable for its agency-wide effort to improve the competitiveness of U.S. companies seeking business overseas.
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| eManifest Update |  | |
To help carriers and shippers prepare for eManifest requirements of the Advance Customs Information (ACI) program, the Canada Border Services Agency is offering a new online presentation to help explain to transporters what is expected from them.
ACI requires trade partners in all modes to electronically transmit cargo, conveyance, crew/passenger, house bill / supplementary cargo and importer data to the CBSA prior to arrival at the border.
For traders, the CBSA states that "eManifest will provide an improved commercial process that rewards compliance with predictable and expedited processing at the border."
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| Canadian Exporters Face Headwinds, New Minister Says |  | |
Canada's new trade minister cautioned that the strong currency and growing competition from emerging economies could stall the country's export growth.
In his inaugural speech, Ed Fast promised quick action on the Conservative government's trade agenda, including signing free trade agreements with the European Union and India, deepening ties with the USA and penetrating new markets in Asia.
But he added that a number of "competitiveness challenges" remain. "If we're not careful those competitive challenges will become our Achilles' Heel," he said.
Fast, a lawyer and MP for Abbotsford, B.C., was appointed trade minister after the Conservatives won a majority in the last election.
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| Korea to Lift 8-Year Import Ban on Canadian Beef |  | |
Korea has agreed to import Canadian beef products with the first shipment expected late this year. In return, Canada is set to drop its complaint with the World Trade Organization (WTO).
The Ministry for Food, Agriculture, Forestry and Fisheries said that Asia's No. 4 economy will resume imports of Canadian beef, ending an eight-year ban generated by mad-cow disease outbreaks in Canada in 2003.
Canada filed the WTO complaint against Korea in early 2009 as the latter did not lift an import ban on its beef products even after it earned a positive controlled-risk status over BSE in 2007 from the World Organization for Animal Health.
Should Seoul resume imports within the next 12 months the WTO action has to be dropped.
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| Border Agents Don't Like Name Tags |  | |
Canadian Customs agents don't want you to be able to "say their name."
The Canada Border Services Agency wants border agents to wear name tags, believing this will allow them to give better service; but the officers don't agree, citing safety concerns when it comes to dealing with upset travellers or even smugglers.
Customs agents contend name-tags will make it easier for them to be found by people who are upset at their border crossing experience.
A number of officers say they've already received death threats. Another agent had her photo posted online after she refused to let a couple of American rappers into Canada because of their criminal record.
Canadian border guards currently have a numbered I.D. tag that can be noted if someone wishes to file a complaint. U.S. customs and border agents have been wearing name tags for a number of years.
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| US and EU Seal Supply Chain Accord |  | |
The European Union and the United States have signed a collaboration agreement that aims to improve the security of global supply chains.
The statement calls for the implementation of mutual recognition of EU and U.S. trade partnership programs and sharing risk information, as well as recognition wherever possible of each other's transport security controls.
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| GHY E-Newsletter #18 June-July 2011 |
Improved Border Regulations Must be Top Priority, CME Tells President Obama's Export Council
 Border inefficiencies and duplicative regulations are placing American as well as Canadian companies at a major competitive disadvantage, according to Canadian Manufacturers & Exporters (CME).
In a recent meeting with President Barack Obama's Export Council and representatives from the Canadian Council of Chief Executives, CME President & CEO Jayson Myers emphasized the importance of making real and rapid progress in implementing a new action plan to improve perimeter security and enhance border efficiency.
CME has highlighted six priorities the association believes should be addressed as part of the new border vision outlined by the President and Prime Minister Harper last February.
CME's recommendations include strengthening trusted trader programs, harmonizing information requirements and reporting processes across government departments, and expediting entry procedures for business travellers.
"The US is not just Canada's largest trading partner; it is the nucleus of a highly integrated supply chain," Myers explains. "Goods travel across the border several times before a finished product can be sold, which adds compliance costs for job creators in both Canada and the United States, increases costs for governments, and ultimately raises prices for consumers."
CME, in conjunction with the Businesses for Better Borders (B3) coalition, is taking a leading role in coordinating industrial support in both Canada and the United States for action on a new border plan. A formal announcement introducing a joint strategy is expected later this summer.
"These are very timely discussions for American and Canadian manufacturers alike, and will shape the economic cooperation agenda between our two countries," says Myers. "We must work closely with government and do everything we can to remove barriers to export growth and ensure the continued stability of the economic recovery."
Learn more about the six recommendations set out by CME members and the B3 coalition here. The plan is also backed by more than 40 industry associations comprising the Canadian Manufacturing Coalition.
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New Blue Water Bridge Complex Unveiled
Steven Fletcher, Canada's Minister of State for Transport, attended a gala opening of the new Blue Water Bridge corporate centre on June 27th, calling it a boon to border crossing efficiency.
The $70-million centre in Point Edward is the new home for bridge personnel, the Canada Border Services Agency, customs brokers, and Canadian Food Inspection Agency.
 "Simply put, this bridge is super-duper important," Fletcher said. "That's not what it says in my notes, but it's the current lingo. Our government saw the potential and knew more could be done to reduce border congestion," he added.
The five-story building has state-of-the-art technology and provides much more space for border services to do its job, said Rick Comerford, regional director general for Canada Border Services Agency.
Improvements to the Canadian Plaza are the result of a joint effort by the Government of Canada and Blue Water Bridge Canada, each of which has contributed up to $10 million to this major project. The work involved widening the plaza to accommodate the widening of Highway 402. It also included constructing new Canada Border Services Agency inspection booths and installing a dynamic messaging system to provide real-time information to commercial and passenger traffic.
The Canadian half of the Blue Water Bridge is owned and operated by Blue Water Bridge Canada, a federal Crown corporation. With approximately 5,000 commercial vehicles crossing the bridge daily, it is Canada's second-busiest international commercial crossing for trucks and is the third busiest for total vehicles. This crossing is a key component of the Ontario-Quebec Continental Gateway and Trade Corridor.
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Lacey Act Import Declaration for Plant Products Could See Changes
The U.S. Department of Agriculture's Animal and Plant Health Inspection Service is inviting public comments by Aug. 29 on regulatory options that could address certain issues that have arisen with the implementation of the declaration required for imports of certain plants and plant products under the Lacey Act amendments of 2008. This declaration must contain the scientific name of the plant, the value of the importation, the quantity of the plant and the name of the country from which the plant was harvested.
Specifically, APHIS is seeking input on the following issues:
De Minimis Exception
Whether an exception from the declaration requirement for products containing minimal amounts of plant material could be developed that would be less burdensome while still carrying out the intent of the Lacey Act amendments, as well as the threshold (e.g., 2%, 5% or 10%) for such an exception in terms of the volume, weight and/or value of plant material in each item being imported. This exception would not apply to products containing plant material from species of conservation concern that are listed in an appendix to the Convention on International Trade in Endangered Species of Wild Fauna and Flora, as an endangered or threatened species under the Endangered Species Act of 1973 or pursuant to any state law that provides for the conservation of species that are indigenous to the state and are threatened with extinction.
 Composite Products
How importers may comply with the declaration requirement when importing composite plant products when the genus, species and country of harvest of some or all of the plant material may be extremely difficult or prohibitively expensive to determine. One approach APHIS is considering is to define the term "composite plant materials" and then formally recognize a de minimis exception from the declaration requirement for products containing such materials. Using this approach, "composite plant materials" might be defined as plant products and plant-based components of products where the original plant material is mechanically or chemically broken down and subsequently re-composed or used as an extract in a manufacturing process.
Comments are also sought on two possible approaches to incorporating such a definition into a de minimis exception from the declaration requirement for composite plant materials. In the first approach, importers would have to identify the genus, species and country of harvest of no less than a given percentage of the composite plant material content, measured on the basis of either weight or volume. In the second approach, the declaration would have to contain the average percent composite plant content, measured on the basis of either weight or volume, without regard for the species or country of harvest of the plant, in addition to information as to genus, species and country of harvest for any non-composite plant content.
Dated Products
How to accommodate products made of re-used plant materials or plant materials harvested or manufactured prior to the Lacey Act amendments and for which identifying the country of harvest, and possibly species, would be difficult if not impossible.
Declaration Revision
Whether to revise the import declaration to substitute a new term, "harvest location," for the term "country of harvest," which experience has indicated is so similar to the customs term "country of origin" as to be confusing.
Shorthand for Common Species
Whether groups of species commonly used in commercial production could be given a separate name that could be entered on the declaration form as a type of shorthand identification of genus and species, such as the currently recognized SPF acronym for spruce, pine and fir.
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Coming To A Shipping Invoice Near You: "Load Protection Fees"
Maersk tries changing no-show/overbooking behavior
Shipping giant Maersk Line will begin implementing a global system to start charging shippers who book container space but then never send the actual cargo.
John Nielsen, Maersk Line's senior director for charge management, network and product, said the program is not designed to be a revenue-earner for the line.
"We're calling this loading protection, because we wanted to signal that this was not another fee we slammed on customers," he said. "The idea is to offer a two-way street, a quid pro quo with customers. We compensate them if we mess up their plans."
The issue, Nielsen said, is severe, with a global average of 20 percent no-shows, or downfalls as they're more often called in the industry. On some trades, downfall rates reach as high as 35 to 40 percent.
"The intent is not to punish, it's to change behavior," Nielsen said. "It seems to be a standard practice in the industry for there to be downfalls. On the other side of the coin, if we ask for compensation for customers, it's only fair that we compensate customers if their cargo is held."
The no-show fee will be $100 per dry container and $500 per reefer if the booking is not canceled seven days prior to sailing. "We wanted a fee that is not punitive but one that is noticeable," Nielsen said. "It's a fee you would like to avoid," said Neilsen. "Again, it's about trying to change behavior. Everybody agrees there is a massive problem. If this is a problem, let's do something about it. But we will step forward slowly and carefully."
The program will be rolled out trade-by-trade from the third quarter, with Maersk concentrating initially on trades where downfall rates are high and demand is strong (to minimize the effect of customers leaving to use other carriers).
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Canadians Support EU Trade Deal, But Not At All Costs
Canadian public support for free trade with the European Union is high, but a new poll says many oppose opening up government purchasing to European competition and other key provisions of a deal currently being negotiated with the EU.
Seventy-one per cent of Canadians support a free trade agreement with the EU, according to a poll conducted by Environics Research Group for the Canadian Union of Public Employees. The poll, however, also shows many oppose key provisions of the Comprehensive Economic Trade Agreement (CETA) currently being negotiated by Canada and the EU. "Canadians recognize the importance of international trade, but they want trade agreements to be responsible and in the best interests of their communities," says Paul Moist, national president of CUPE. Sixty per cent of Canadians oppose opening up government purchasing to competition to European companies. The EU wants CETA to include provisions which would ban Canadian governments at all levels, including municipal, from having procurement policies favour local, regional or Canadian sources. Canadians also oppose CETA provisions that would hike the cost of prescription drugs. A recent study says the extension of patent protections being proposed in CETA could add $2.8 billion a year to prescription drug costs. A significant majority of Canadians, 67 per cent, say they would oppose a trade deal with the EU that increases prices on brand-name pharmaceutical drugs.
"The more Canadians learn about CETA, the more they oppose key issues being discussed at the negotiations table," says Moist. "There clearly needs to be more scrutiny on what the Canadian federal government is willing to concede on this deal."
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Federal Budget: Trade Issues
Measures first announced in the March budget were reintroduced in the post-election Budget 2011 tabled by Finance Minister Jim Flaherty on June 6th.
 Included in the Conservative government's revised budget is a proposal to streamline trade and reduce the processing burden for Canadian business through the overhaul of the Customs Tariff Legislation. To that end, three generic HS classifications will be introduced with duty rates of 0%, 8% or 20%, depending on the description of the goods. These generic items can be used when goods are:
* non-commercial and arriving by courier or post; * valued at less than $500; and * not relieved from any GST/HST provisions.
Other budget items affecting the Customs Tariff are:
*a reduction in the number of tariff items to facilitate the classification of imported goods and eliminate "end-use" provisions;
*making the Customs Tariff more user-friendly, including restructuring the List of Countries and Applicable Tariff Treatments to make the various tariff treatments more transparent; and
*revoking obsolete provisions such as those under Part 2, Division 4 (Special Measures, Emergency Measures and Safeguards) which can no longer be used.
The budget also extends temporary powers of Export Development Canada to provide financing to Canadian exporters in the domestic market.
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U.S. Trade Groups Urge TPP Apparel Rules
A coalition of five U.S. apparel trade groups is urging negotiators in the Trans-Pacific Partnership to focus on improvements that will benefit regions in the partnership more evenly. The American Apparel & Footwear Association, National Retail Federation, Outdoor Industry Association, Retail Industry Leaders Association and U.S. Association of Importers of Textile and Apparel have called on the TPP to adopt "rules of origin, meaningful market access, and regulatory harmonization that reflect and accommodate today's global value chains."
 The TPP is an Asia-Pacific regional trade agreement currently being negotiated between the United States and eight other partners, including Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, and Vietnam. The seventh round of TPP negotiations was held in Ho Chi Minh City, Vietnam during the last week of June.
"It is clear that the apparel rules of origin are a key element in the overall success of the Trans-Pacific Partnership," the five organizations, dubbed the TPP Apparel Coalition, said in a statement. "Without a solid agreement on apparel that generates new trade and investment opportunities, U.S. workers, businesses, and families will not be able to realize the full potential of the TPP."
The coalition has specific priorities in the negotiations related to apparel, including:
* Integrate textile and apparel products into the market access negotiations similar to any other product, with no separate chapter or separate provisions.
* Liberalize and simplify origin rules so that any restrictions are applied only to individual products when data shows it's necessary and appropriate.
* Harmonize the origin rules among all TPP countries to accept this new approach, including those that currently have free trade agreements with the United States.
* Implement immediate and reciprocal duty-free treatment for all qualifying products.
* Harmonize and streamline customs procedures among all TPP countries and incorporate account-based processing to facilitate the flow of goods among parties to the agreement.
* Harmonize the rules and regulations, such as product safety and labeling, among all TPP countries, including those that currently have FTAs with the United States.
* Strengthen intellectual property rights protections among all TPP countries to better enable American apparel brands, manufacturers and retailers to protect their brands from counterfeiters and trademark violators. |
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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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