GHY Tradelines

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending December 16, 2011 is now available on our website here.
 

(Homeland Security Policy Institute – David Olive)

In just over two weeks, barring an unanticipated miracle, CBP Commissioner Alan Bersin’s recess appointment will run out. There are many positive things that can be said for how Bersin handled his tenure at CBP, not the least of which is the excellent job he did in reaching out to private sector stakeholders. […] Nevertheless, since it does not appear that Bersin’s nomination is going to be approved by the Senate, reportedly due to the objection of Senator Max Baucus (D-MT) who is Chairman of the Senate Finance Committee, one would have thought DHS or the White House would have announced by now the plan for filling the position once Bersin leaves.

Until DHS or the White House make their plans for Bersin’s replacement, even on an acting basis, clear and unequivocal, one wonders whether they even care about who leads this vital organization. If they do care, their silence is sending a disturbing message to CBP’s employees, partners and stakeholders. Read more here.
 

(Reuters – Lucy Hornby)

China has fired a warning shot with its decision to impose tariffs on imports of sport-utility vehicles (SUV) and other large cars from the United States as both countries gear up for increased trade friction next year. The tariffs, announced on Wednesday and ranging from 2 percent to 22 percent, are unlikely to inflict much pain on American carmakers, who generally only import a small fraction of what they sell in China.

But by hitting a powerful industry that has benefited from a U.S. government bailout, China can signal a tough stance in the face of rising pressure over its trade practices while at the same time pressuring American companies into lobbying on its behalf.

“It’s a threat to companies, to say that you’d better lobby your government not to impose more tariffs because that could lead to a trade war and that’s going to hurt you here,” said Usha Haley, professor of international business at Massey University in New Zealand, who studies the Chinese auto sector. ”It’s an extremely effective way of working.” Read more here.
 

(The Globe and Mail – Steven Chase)

The Canadian government will be on the hook if a multibillion-dollar bridge project between Detroit and Windsor fails to attract sufficient traffic, briefing notes show – a guarantee that demonstrates how desperate Ottawa is to speed commerce through this vital trade link.

Documents prepared for Transport Minister Denis Lebel acknowledge Ottawa could end up footing the bill for more than just its share of building the bridge if toll revenue from the planned New International Trade Crossing falls short.   The Canadian government is so keen to get the link built it’s already offered to pay Michigan’s $550-million portion of the new bridge, which would later be repaid from toll revenue.

Political approval for the crossing from the state of Michigan is the last big hurdle for the project, the most important border infrastructure project in the works for Canada. About 25% of the annual merchandise trade between this country and the United States crosses between Windsor and Detroit. Read more here.
 

(Embassy – Sneh Duggal)

Canada is headed towards a fundamental re-shaping of its foreign policy, say observers.

In 2011, after Prime Minister Stephen Harper’s party solidified its control over Canadian political institutions by achieving a majority in both the House and Senate, he began to establish what many felt were the beginnings of a shift in longstanding Canadian policy. [...]

Trade

This past year, the international community was roiled by the European debt crisis. Last week, most countries in the region agreed for a majority of EU countries to move towards fiscal integration, but not without significant wailing and gnashing of teeth. The pain could hit Canada too, say observers.

Canada’s growth declined 0.4% during the second quarter, and while third quarter growth picked up to 3.5%, many analysts expect fourth quarter results to be more subdued.

John Curtis, former chief economist in DFAIT, said countries are going to be focused on getting their economies rolling again, and while it will likely be “below the radar,” Canada has an interest in the outcome.  “It could slow our growth down, whatever growth we have,” Mr. Curtis said.  “If Europe really goes through short term austerity and has no growth, especially countries we trade most with—Great Britain, Germany and France—that’s going to affect our export sector for the next year or so.” Read more here.
 

(CBSA)

This memorandum explains the administrative policy of the Canada Border Services Agency regarding the tariff classification of textile shells used in the manufacture of articles of subheading 9404.90 (Articles Of Bedding And Similar Furnishings).
 

(John Heilprin — The AP)

The United States, the European Union, Japan and other countries have agreed after 14 years of talks to give foreign companies greater ability to compete for each others’ government procurement contracts, officials said Thursday.

The World Trade Organization estimates that the agreement could add between $80 billion and $100 billion to global trade each year. Government supply contracts typically come to about 15 to 20% of a nation’s gross domestic product.

Officials said the pact was reached after the 27-nation EU and Japan ironed out remaining differences early Thursday. As part of the 42-nation deal, Japan will allow foreign firms to bid for contracts to rebuild areas hit by this year’s tsunami. Read more here.
 

(AFP)

Canada announced the start on Wednesday of a third round of free trade negotiations with India, while eyeing deeper trade ties with Japan in a major push to boost exports to Asia.  “Our two countries (Canada and India) are committed to an ambitious schedule for negotiations,” Trade Minister Ed Fast said in a statement from Geneva, where he is attending a World Trade Organization conference.

Trade negotiations started in November 2010 and aim conclude in 2013, Fast said. Read more here.
 

(CBC News – Evan Dyer)

Other border crossings could become unmanned ‘remote’ ports of entry

Canada and the U.S. have been negotiating to do away with some small border crossings and merge others as part of the far-reaching perimeter security deal recently announced between the two countries.

A leaked internal presentation of the bi-national Small Port Working Group reveals details of the negotiations over the fate of so-called “small ports of entry,” rural or small-town crossings stretching from St. Stephen, N.B., to Chopaka, B.C.

The document discusses four options being considered by officials with the Canada Border Services Agency (CBSA) and U.S. Customs and Border Protection (CBP) for each of the 52 land crossings. The options are sharing facilities, mirroring working hours, using a “remote-technology solution,” or closing the posts altogether. Read more here.

Related: Border Crossings Up for Review (Morden Times)
 

(World Trade Interactive)

U.S. Customs and Border Protection announced recently that it expects to fully transition rail and sea manifests from the Automated Commercial System to the Automated Commercial Environment by late 2012.

CBP began conducting a pilot test of rail and sea manifests in ACE on Nov. 28. According to CBP, this test includes the filing of all rail and sea manifests and relevant Automated Broker Interface applications in ACE for parties who have completed trade testing, the ability of customs brokers to create rail entry banks, conveyance data loaded and available for carriers, an in-bond authorization edit, and multi-modal manifest report data in ACE for importer, broker and carrier accounts. Read more here.