The Canada Border Services Agency has advised trade organizations and commercial stakeholders that due to "late approval of the regulations" involved, the informed compliance period regarding the third phase of the Advance Commercial Information (ACI) eManifest highway mode that was to have ended May 2013 is now being extended until the fall of 2013.

The CBSA will provide 60 days notice of the new mandatory date.

Even though the informed compliance period has been extended, all carriers are nevertheless encouraged to transition to the eManifest system thereby enabling them to transmit shipment information to the CBSA prior to arrival. Utilizing eManifest helps improve border security while reducing border wait times.

Click here to find out more about GHY's eManifest solution.   

U.S. country-of-origin meat-labeling rules have directly cost Canada's hog and pork industry more than $2 billion, according to a report that could help determine retaliation against U.S. exports if Washington does not change its requirements.

The United States must bring the labeling rules, known by the acronym COOL, into compliance with a World Trade Organization ruling by May 23, 2013, according to a WTO decision released last month.

But citing no apparent movement by the U.S. Congress since the original WTO ruling in mid-2012, the Canadian Pork Council has called on Ottawa to impose retaliatory tariffs on imports from the United States if there is no change by the WTO deadline.   

The transportation and energy networks are the lifelines of the U.S. economy, powering factories, enabling the delivery of goods and materials, and sustaining quality of life. But investment in our nation's infrastructure has fallen perilously low, and the economic repercussions could be disastrous.

Infrastructure investment is vital. The American Society of Civil Engineers (ASCE) recently warned that unless the U.S. devotes an additional $1.57 billion per year on infrastructure through 2020, the country will lose $3.1 trillion in gross national product (GNP) and $1.1 trillion in trade. On an individual level, the average American will lose $3,100 each year in personal disposable income, resulting in $2.4 trillion in lost consumer spending in the next seven years and the subsequent elimination of 3.1 million jobs.   

U.S. CBP and Mexico's Tax Administration Service (SAT) signed a Joint Work Plan recently that lays out the path to mutual recognition of the two countries' Authorized Economic Operator programs: CBP's Customs-Trade Partnership Against Terrorism (C-TPAT) and SAT's New Certified Companies Scheme.

The plan, expected to be implemented in two years, would allow for companies enrolled in one country's program to receive reciprocal benefits from the other with the result of both further securing the international supply chain and facilitating trade between the U.S. and Mexico.

President Obama Announces Launch of EU-US Trade Agreement  

GHY International wishes to thank our clients, associates, and coaches for their contribution to our re-qualification for the fifth consecutive year as one of Canada's Best Managed Companies - continuing our Gold Standard Level certified provider of exclusive customs brokerage services in North America.   

Canadian and European officials have been trying to hammer out a comprehensive economic trade agreement (CETA) since 2009 with the predicted date for a conclusion to the negotiations changing repeatedly over the talks' duration. Having failed to wrap up a deal last year as it had pledged, the Harper government now says there is currently no precise end date.   

"I have not committed to a firm time line. We're not going to be rushed into a deal that doesn't serve Canadians," Canada's Trade Minister Ed Fast said recently. "There is a small basket of issues left and as in any negotiations, they are the toughest ones to resolve," adding that he is "certainly committed to negotiating around or through those."

Sensitive issues that remain outstanding include access for agricultural goods, opening up government procurement markets, the extension of pharmaceutical patents, and oversight of financial institutions.

While Ottawa would prefer not to be rushed, various outside factors are threatening to close Canada's window of opportunity for reaching a deal if it doesn't. The key such factor is the emergence of the United States as another free trade dance partner for the EU. Since the American market represents a far bigger economic prize than Canada, this development effectively serves to compromise the Canadian negotiating position.

Impending elections in the European Parliament is another factor creating a sense of urgency in Canada-EU trade negotiations. If an agreement isn't reached and ratified before 2014 elections, then substantial delays can be expected in the ratification process.   

Chinese Economy, not the Canadian Loonie, Explains Canada's Shifting Tradewinds    

The "lost decade" of essentially no growth in Canadian exports is due less to the strong dollar and more to the rise of China and other emerging economies. A Conference Board of Canada report for the Global Commerce Centre explains how Canada's trade has shifted this "two-gear" trade model in which the United States is relatively less important and emerging markets offer the greatest opportunity for growth.
 
Canada's overall export volumes (both goods and services) changed little in the 2000s. Exports to the United States have been flat since the since the turn of the century, while exports to emerging markets grew by 80%.
 
The strong loonie alone does not explain this trend. While Canadian exports to the U.S. stagnated, Canadian imports from the U.S. should have risen with the higher dollar, and they have not. Yet, over the same period, the Canadian dollar also rose against many other currencies, such as the euro, the British pound, the Chinese yuan, and the Mexican peso. And in each case, Canada's bilateral trade increased.  

Since the dawn of the 2000s, what Canada trades has changed. A decade ago, five key products - transportation equipment, pulp and paper, electronic products, plastics and wood products - accounted for almost half of Canadian exports. Today, the top five consists of oil and gas, mineral products, chemicals, primary metals and food products. Other areas of trade strength in recent years include professional and financial services.

The emergence of China on the world stage has led to a realignment of North American trading patterns. A new trade equilibrium is developing among China, Canada and the United States. Canada is losing market share in the U.S. to China, and Chinese imports are capturing market share in Canada from the United States. However, the Chinese market provides massive opportunities for Canadian firms.

The report Walking the Silk Road: Understanding Canada's Changing Trade Patterns is published by the Conference Board's Global Commerce Centre. The Centre provides evidence-based tools to help companies and governments respond successfully to the trends reshaping the global business environment.

 Amendments to the GPT Tariff     

The current legislation for the GPT (General Preferential Tariff) as contained in the Customs Tariff is set to expire on June 30, 2014. The GPT legislation is based on a 10-year cycle and has previously been renewed three times since its implementation in 1974. Most developed economies have established a preferential tariff regime for developing countries, but these vary considerably in regard to the countries and products that they cover. Canada currently extends the GPT coverage to 175 beneficiary countries which covers more than 80% of the tariff items and to which either a duty free rate or a preferential rate applies, but does not include most apparel, footwear and certain agricultural products.

Under the Economic Action Plan 2012 the government has undertaken a comprehensive review of the GPT. Over time, since the introduction of the GPT in 1974, significant shifts in the income level and trade competitiveness of certain developing countries have taken place. This has necessitated a review of the original policy intent of the GPT which was to encourage imports from developing countries in order to promote their economic growth and export earnings. Certain countries during this period have become among the world's largest and most influential economies of the 21st century. Among these are the so-called BRICS countries which include Brazil, Russia, India, China and South Africa. All of these countries are currently entitled to the GPT tariff in Canada.

The government proposes to modify the list of beneficiary countries that are currently entitled to the GPT based on a countries income or its share of world exports according to latest World Bank and World Trade Organization statistics. Under these proposals, 72 countries which currently enjoy the benefits of the GPT, are tentatively scheduled to have their GPT eligibility withdrawn effective July 1, 2014. Notably among these countries, in addition to the previous BRIC countries mentioned, are Hong Kong, Indonesia, Malaysia, Singapore, South Korea, and Thailand. The GPT benefit, under this proposal, would continue to apply to 103 countries after June 30, 2014. These countries, to mention a few, include Bangladesh, Cambodia, Egypt, Laos, Pakistan, Philippines, Sri Lanka, and Vietnam.

U.S. Informal Entry and Canadian Low Value Shipment (LVS) Thresholds Raised