GHY Tradelines

span style=”font-size:85%;”(The Canadian Press – Lee-Anne Goodman)br //spanbr /Amid increasing U.S. trade protectionism, Canada’s premiers will get a moment in the spotlight at the influential National Governors’ Association winter meeting, a gathering that often serves as a guiding policy light for both Congress and the White House.br /br /Saskatchewan Premier Brad Wall is co-hosting an event during the meeting entitled Common Border, Common Ground, focusing on touchy Canada-U.S. issues that include trade, border security and energy. It’s the first-ever meeting between the association and its Canadian counterpart, the Council of the Federation.br /br /“This historic meeting between NGA and COF is an opportunity to build lasting relationships,” reads the invitation from Wall and Jim Douglas, governor of Vermont and chairman of the association. It goes on to “strongly encourage” all governors to attend the February 20 event. Read more a href=”http://www.google.com/hostednews/canadianpress/article/ALeqM5jY5W3lgJ6lRkdmqfSUlzjeTOg8ug”here/a.

pspan style=”font-size:85%;”(World Trade Interactive)br //spanbr /As this year’s session of Congress draws to a close, lawmakers missed an opportunity to approve a miscellaneous trade bill that would have extended tariff breaks on hundreds of imported goods. There was still time, however, to approve legislation extending the Generalized System of Preferences and the Andean Trade Preference Act.br /br /strongTrade Preferences/strongbr /The House of Representatives approved Dec. 14 a one-year extension of the Generalized System of Preferences and the Andean Trade Preferences Act, which are both currently slated to expire Dec. 31. This bill does not include an extension of trade preferences to apparel imported from Cambodia, as some lawmakers had been pushing for. It also does not include new trade preferences for goods imported from designated reconstruction opportunity zones in Afghanistan and Pakistan, which President Obama supports.br /br /Sen. Jeff Sessions, R-Ala., had put a hold on Senate consideration of this bill because he wants to terminate GSP eligibility for sleeping bags from Bangladesh. Sessions lifted his hold after U.S. Trade Representative Ron Kirk agreed to review a petition seeking this change as part of the annual GSP review. Sen. Olympia Snowe, R-Maine, had also posed a potential obstacle by pushing for Senate action on her bill to create a new assistant U.S. trade representative position for small business issues (see related item, below). However, Snowe never placed a formal hold on the bill, and at press time it appeared her concerns had been resolved, although no further details were available.br /br /strongMTB/strongbr /A miscellaneous trade bill was introduced in the House Dec. 16, but the House adjourned for the year before passing it. This bill would have suspended or reduced for three years duties on over 600 imported goods, most of which are inputs or components for products manufactured in the U.S. Many of the bill’s provisions would have renewed existing duty suspensions or reductions, which are now expected to expire Dec. 31. There were reports that the MTB stalled due to concerns raised by Sen. Debbie Stabenow, D-Mich., about lowering tariffs on imported goods amid declining domestic manufacturing employment.br /br /Inside US Trade reports that Congress may act in early 2010 to approve the tariff suspensions and reductions that have already been reviewed by the International Trade Commission, which include new measures as well as the renewal of existing duty breaks. A second bill with additional provisions could then see action later in the year. The article cited unnamed sources as noting that when MTB provisions have expired in the past before being reinstated, there were no refunds of duties paid by affected importers. /ppRead the complete summary a href=”http://www.strtrade.com/wti/wti.asp?pub=0amp;story=33548amp;date=amp;company”here/a./p

span style=”font-size:85%;”(Industry Week – Rob Lever, Agence France-Presse)/spanbr /br /On December 21 the U.S. announced that China will end a series of “famous brand” subsidies for a range of goods that Washington challenged as illegal at the World Trade Organization. The office of the U.S. Trade Representative said the countries signed an agreement to settle a complaint filed last December with the WTO challenging an array of programs viewed as improper export subsidies.br /br /“Export subsidies are illegal under WTO rules,” the USTR said. “The termination of the subsidies will level the playing field for American workers in a wide range of manufacturing and export sectors, including household electronic appliances, textiles and apparel, light manufacturing industries, agricultural and food products, metal and chemical products, medicines and health products.”br /br /The case centers on China’s “Famous Export Brand” program and the “China World Top Brand” program under which the government set out criteria for export aid. Enterprises involved in the programs had been entitled to various government aid, including what Washington said appeared to be financial support tied to exports. Read more a href=”http://www.google.com/hostednews/afp/article/ALeqM5gmJ4lRlqHPpQo4Bo3lakzQsNE88Q”here/a.

span style=”font-size:85%;”(Mondaq – Roy Millen and Michael Steinbach, Blake Cassels amp; Graydon LLP)/spanbr /br /Producers and importers of Chinese and Vietnamese goods, and their competitors, take note: the analysis of whether the goods are being dumped in Canada may take on a whole new complexion following the decision of the Federal Court of Appeal inem Tianjin Pipe (Group) Corporation v. TenarisAlgomaTubes Inc.br //embr /International and domestic law prohibits injury caused by the “dumping” of goods, which occurs when imported goods are sold at less than “normal” value. Under Canada’s Special Import Measures Act (SIMA), the Canada Border Services Agency (CBSA) usually determines normal value by assessing the fair costs of production of the actual goods in question, with reference to other producers in the same country.br /br /However, section 20 of the SIMA provides that where goods are imported directly from a prescribed country (currently only China and Vietnam), if in the CBSA’s opinion the price of the goods is “substantially determined” by the government of that country, then normal value is determined by reference to goods produced in another country, other than Canada.br /br /The significance of this section is apparent. Under the default regime, normal value may be quite low if the goods are produced in a country where macroeconomic conditions have a significant downward effect on the costs of production, such as inexpensive labour and limited government regulation. Under the alternative analysis prescribed by section 20 of the SIMA, the normal value of the goods may not reflect those macroeconomic conditions. Thus, Chinese and Vietnamese goods stand to lose significant price advantages if the CBSA is of the opinion that the price of the goods is “substantially determined” by the government. Read more a href=”http://www.mondaq.com/article.asp?articleid=91200″here/a.