(Ian Mader – AP)
China’s economic growth waned to a five-year low of 7.3% last quarter, raising concerns of a spillover effect on the global economy but falling roughly in line with Chinese leaders’ plans for a controlled slowdown.
The third quarter figures, released Tuesday, put China on course for annual growth somewhat lower than the 7.5% targeted by leaders, though they have indicated there is wiggle-room in their plan. The world’s No. 2 economy grew 7.5% from a year earlier in the previous quarter and 7.4% in the first quarter.
Communist leaders are trying to steer China toward growth based on domestic consumption instead of over-reliance on trade and investment. But the slowdown comes with the risk of politically dangerous job losses and policymakers bolstered growth in the second quarter with mini-stimulus measures. Read more here.
(Staffing Industry Analysts)
The leading economic index and the coincident economic index for Mexico suggest economic activity should continue to expand through the rest of the year, but an acceleration is unlikely, according to The Conference Board.
The organization reported its leading economic index for Mexico fell slightly in August and was flat in July, following sharp gains in the second quarter of this year The leading index edged down 0.2 in August and now stands at 125.4 (2004=100). The leading index remained unchanged in July and increased 1.8% in June, based on revised data. Read more here.
(Mike King – Lloyd’s Loading List)
Lines offering Asia to US services will further ramp up charges in the coming weeks by introducing new ‘intermodal door delivery charges’.
Most member lines of the Transpacific Stabilization Agreement will start charging customers US$100 per FEU and USD$90 per TEU on all cargo moving under ‘intermodal store-door delivery through rates’ from Asia to the US.
The new charges will be introduced individually by lines from around November 15 and by no later than the start of December. The TSA said the charges would help lines recover an increase in costs incurred on intermodal services. Read more here.
(Barrie McKenna – Globe & Mail)
Canada is looking at slapping duties on iconic U.S. products ranging from California wine to ketchup after the World Trade Organization (WTO) found the country’s meat-labelling laws offside for a third time in five years.
A WTO appeal panel ruled that a U.S. law requiring grocery stores to list the country of origin on meat products discriminates against Canadian and Mexican livestock, in a decision made public Monday.
The Conservative government warned that it will strike back with punitive duties unless the U.S. ends the “blatantly protectionist” regulations, which it says are costing the North American cattle and hog industry more than $1-billion a year. Read more here.
U.S. Customs and Border Protection (CBP) has posted an updated version of the “ACE Development and Deployment Schedule” to CBP.gov/ACE. The “ACE Development and Deployment Schedule” provides details on when upcoming ACE capabilities will be developed and deployed. An updates page is also included, which lists what has changed since the last version, version 6.3, was published in August. A table of Entry Code Descriptions is also included for reference.
To access the updated “ACE Development and Deployment Schedule,” please visit the “ACE and Automated Systems” page of CBP.gov/ACE. To download the document directly, please click here.
As had been widely expected after months of speculation following a preliminary decision this summer, the World Trade Organization (WTO) today confirmed that Canada has won another important trade victory in the long-running battle with the U.S. government over meat labelling regulations that have caused significant economic harm to the cross-border beef and pork industries. Click here to read more.
(David Falchek – Citizen’s Voice)
As production cost in Asia increase and American firms emerge from the recession smarter and more efficient, more companies are looking back at the U.S. for goods or parts.
The economic forces at play challenge the entrenched notion that Asia is the lowest cost option for goods or equipment.
The Northeastern Pennsylvania Industrial Resource Center, in cooperation with other economic development groups is hosting a series of “reshoring” seminars starting Nov. 5 at the Holiday Inn in Wilkes-Barre where they will make the case that after all costs are considered, it makes more business sense to source on shore from U.S. firms. Read more here.
(Will Waters – Lloyd’s Loading List)
The Port of Long Beach will add an extra three days to the time that overseas import containers can remain on the docks without charge, in order to grant some relief to cargo owners as the supply chain works to eliminate cargo delivery delays.
Starting Saturday 18 October and continuing through to Friday 31 October, the “free” time has been extended from four to seven business days. Cargo owners typically work to have their imported cargo containers picked up within free time or face “demurrage” or storage fees, the port said, adding that it would not waive demurrage retroactively. Read more here.
(Finbarr Bermingham – IB Times)
The European Trade Commissioner Karel De Gucht has warned that there will be no free trade agreement between the EU and US without the controversial investor-state dispute settlement (ISDS) clause.
Speaking to Reuters in Rome, De Gucht – who is to leave his position shortly – said, in reference to the clause’s biggest European objector, Germany: “They should realise there will be no TTIP without an ISDS,” adding that neither side would be able to insist on investor protection clauses in other agreements if they didn’t include it in the Transatlantic Trade and Investor Partnership (TTIP).” Read more here.
The impact of the Ebola outbreak on shipping continues to grow as more ports around the world take precautionary action against ships that have visited West Africa.
TradeWinds reported how some vessels are now asking for a premium to call at some high-risk ports in the region. This week, the UK said it would monitor Automatic Identification System (AIS) data to identify vessels calling at countries affected by Ebola. That follows a move by Singapore to impose an automatic quarantine on ships if they have visited an affected area within the last 60 days.
Malta has already refused entry to the 32,000-dwt Western Copenhagen (built 2013) because of concerns that one of the crew had contracted the disease. Read more here.
(Melissa Leong – Financial Post)
Canada could generate up to $32-billion more in exports over the next 10 years if it creates a yuan trading hub to do business in the world’s fastest growing currency, the Canadian Chamber of Commerce said in a new report.
In advance of Prime Minister Stephen Harper’s trip to Beijing for the APEC summit in November, the Chamber of Commerce joined the call of some of Canada’s largest banks and financial institutions to promote Canada as a centre for renminbi (yuan) trading.
“In a competitive global environment, every advantage counts,” Perrin Beatty, the chamber’s president and CEO, said in a statement. “Now is the time for Canada to take this important step in positioning ourselves and our companies with the world’s fastest growing economy.” Read more here.
(Bertrand Marotte – Globe & Mail)
Canadian Pacific Railway Ltd. says talks with potential takeover target CSX Corp. have broken off.
Calgary-based CP said on Monday that “exploratory conversations held with CSX Corp. about a possible business combination have ended. No further talks are planned.”
The Canadian rail giant did not provide reasons for the talks’ end.
Previously, neither CP nor Jacksonville, Fla.-based CSX chose to comment on reports that Florida-based company had rejected a takeover offer from CP. Read more here.
Another chapter in a long running trade dispute between Canada and the United States plays out today.
The World Trade Organization will issue a decision about U.S. Country of Origin Labelling legislation – also known as COOL.
The Wall Street Journal reported last month Canada won the case and federal agriculture minister Gerry Ritz pretty much confirmed that to reporters last Friday. Read more here.
Hoping to push India into supporting a World Trade Organization (WTO) global trade deal struck last year or risk being left out of a proposed agreement to ease worldwide customs rules, Italy’s deputy industry minister Carlo Calenda, the chairman of EU trade ministers, set a deadline of next Tuesday for the country to re-consider its position. Click here to read more.
(Mike King – Lloyd’s Loading List)
The diminishing power of the forces that have driven globalization and east-west trade growth are rapidly being supplanted by thriving regional trade and localized supply chain demands, according to leading executives speaking this week at Transport Intelligence’s Emerging Markets Logistics conference in Singapore.
The near-sourcing of manufacturing, increasing protectionism, the ability of ‘fracking’ to reduce energy costs, along with supply chain risk and inventory reduction strategies are all factors in the move towards more regionalization, delegates heard.
Chris Price, Asia Pacific CEO at Agility Logistics, said the Asia Pacific market was opening up and maturing simultaneously. While this would mean that East-West trades would continue to grow, regional trades would grow faster. “Agility’s big focus is on intra-Asia. It’s a huge and dynamic market,” he said. Read more here.
(IndustryWeek – AFP)
The U.S. Treasury said Wednesday that China does not manipulate its currency, but pushed Beijing to do more to focus on domestic demand – not exports – to drive economic growth.
In a twice-yearly report to Congress, which would set sanctions on any country officially branded a “manipulator,” the Treasury said the yuan, or renminbi (RMB), had “partially recovered” from a sharp plunge earlier in the year and had appreciated by 1.9% since late April.
However, the yuan remained “significantly undervalued,” the Treasury said, reiterating the description it has long used in pressing China to allow its currency to move toward a market-determined exchange rate. Read more here.
(STR Trade Report)
A World Trade Organization dispute settlement panel has ruled against a ban India imposed in 2007 on imports of various U.S. agricultural products, including poultry meat, eggs and live pigs. The Office of the U.S. Trade Representative notes that if India responds to the panel decision by lifting its ban, U.S. exports to India of poultry meat alone could exceed $300 million a year “and are likely to grow substantially in the future as India’s demand for high quality protein increases.”
India said its ban was meant to protect against avian influenza, but USTR points out that the U.S. has not had an outbreak of high pathogenic avian influenza since 2004, during which time India had over 90 HPAI outbreaks. According to a USTR press release, the WTO panel concluded that the ban breached India’s obligations under the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. Read more here.
(Don Pittis – CBC News)
The oil industry should have seen it coming.
Prices are falling, and if history repeats itself, there is no reason they can’t fall much further yet. If that actually happens, the impact on your life will be much more significant than saving a few dollars filling up your gas tank.
About a year ago, I read a report forecasting this would happen. It wasn’t exactly top secret, and hardly from a subversive group. Titled, The future of oil: Yesterday’s fuel, it was published in the right-of-centre Economist magazine. Read more here.
Uniform Regulations – Chapter Five of the Canada-Honduras Free Trade Agreement (CHFTA)
This memorandum contains the Memorandum of Understanding between the Government of Canada and the Government of the Republic of Honduras concerning Uniform Regulations of Chapter Five of the CHFTA. Complete details are available here.