GHY Tradelines

(The Hill – Vicki Needham)

U.S. trade officials are expecting to cut a wide swath through a broad trade agenda this year, all probably before Congress leaves town in August.

U.S. Trade Representative Ron Kirk has three major issues on his agenda — implementing the three free-trade agreements passed last fall, opening up the Russian market to U.S. goods and services and wrapping up negotiations on the Trans-Pacific Partnership.

Russia’s ascension to the World Trade Organization (WTO) is topping the agenda for the Obama administration and business groups.  “It’s our top trade legislative priority for the year,” Chris Wenk, senior director for International Policy for the U.S. Chamber of Commerce, told The Hill on Friday.  The Coalition for U.S.-Russia Trade — a group of businesses pushing for the changes needed to move forward — is “starting an aggressive ramp up reaching out to the Hill,” he said. Read more here.
 

(Journal of Commerce Online – R.G.Edmonson)

Support hurt, however, by $6 million negative advertising campaign

Public support for a new bridge between Canada and the U.S. at Detroit is growing, but a $6 million negative advertising campaign against the New International Trade Crossing has taken its toll, according to published reports.

The poll, sponsored by the Detroit Free Press and a local television station, found that opponents had a 9 point advantage, but only a few months ago opponents outnumbered supporters 2-1. Support for the new bridge is strongest in the three counties that comprise the Detroit metropolitan area. Read more here.
 

(The Globe and Mail – Bertrand Marotte)

Despite significant challenges, Canadian manufacturers have managed to make some impressive gains over the past decade.

The soaring value of the Canadian dollar against its U.S. counterpart has significantly eroded the relative cost-competitiveness of the industry, and international competition is fiercer than ever, Adrienne Warren of Bank of Nova Scotia points out in a recent report.   “Yet against these formidable headwinds, a number of manufacturing industries have excelled, reporting strong gains in production, employment and exports,” she writes.

Two major factors underlie their success, she says: a single-minded focus on specialized, high-value-added products, and the targeting of high-growth markets both at home and abroad.  Anecdotal evidence indicates a growing cluster of successful “niche” manufacturers, even in hard-hit sectors like clothing, she says. Read more here.
 

(Digital Journal – Canada Newswire)

In a report released last week, the Canadian Chamber of Commerce argues that Canada-China ties are quickly becoming one of Canada’s most important external relationships. Today, more than ever, what happens in China represents both a challenge and an opportunity for Canadian businesses.

“There is a clear need for more and better Canada-China trade,” said Perrin Beatty, President and CEO of the Canadian Chamber of Commerce. “Of course, there are barriers in both countries that must be removed in order to open access to the tremendous opportunities ahead and build a partnership of shared growth and prosperity, but we cannot let these stop us from realizing the full benefits of the relationship.”

In the report entitled: Advancing Our Economic Ties With China: Three priorities for Canadian business, the Chamber presents three elements to making Canada’s relationship with China more profitable: implementing a strategy of political engagement with China; removing barriers and irritants to more trade and better trade with China; and, improving the investment relationship with China.

There are opportunities for Canadian businesses to provide China with the goods and services it requires to sustain its own development. These include energy, raw materials, food, financial and engineering services, aerospace and transportation, and higher education. There are also opportunities to plug into value chains – to provide expertise and business services to multinationals involved in trade and investment between China and the United States, China and India, China and Brazil, and so forth. Then, there are untapped opportunities to broaden Canada’s investment relationship with China by loosening certain restrictions on capital flows.

If Canadian businesses improve their productivity and innovation, if governments continue removing barriers to competitiveness in Canada and if the global competitive playing field is better levelled, Canada will prosper in its exchanges with China and the rest of Asia. The full report can be found here
 

An updated list of recently published government memorandums, notices, regulations and decisions for the week ending January 27, 2011 is now available on our website here.
 

(Andrea Sachs – Washington Post)

Reentering the United States after a trip overseas can be quick, painless and drama-free — if you know the rules before you go. Here are some tips gleaned from the experts at U.S. Customs and Border Protection, the Department of Agriculture, and the Fish and Wildlife Service. Read more here.
 

(Winnipeg Free Press)

Two new border access points are open between Manitoba and North Dakota.

The entry ports, refurbished ports on the U.S . side, are located in Gretna and Winkler. The Gretna port adjoins the North Dakota township of Neche, while Winkler is paired up with Walhalla, N.D.

Both ports have operational hours from 9 a.m. to 10 p.m. daily.

According to U.S. Customs and Border Protection, the two new ports on the American end have been upgraded to provide increased security measures and better transport flow between the two countries.
 

(CBSA via Marketwire)

Vic Toews, Minister of Public Safety, took time to celebrate the 2012 International Customs Day and recognize the efforts of the Canada Border Services Agency (CBSA). This year’s theme – Borders Divide, Customs Connects – recognizes the importance of co-operative border management in the global context, where strength is derived from partnership and joint innovation. The day comes under the auspices of the World Customs Organization (WCO) in which Canada has been an active member since 1971.

“The CBSA has had the opportunity, through the WCO, to engage its international partners on matters of mutual interest”, said Minister Toews. “This dialogue has led to collaborative action on a range of issues, promoting harmonization of customs procedures and supply chain security, with the end result of better service for travellers and commercial clients, worldwide.”

The WCO ( www.wcoomd.org ) is an independent intergovernmental body whose mission is to enhance the effectiveness and efficiency of customs administrations. With 177 member governments, it is the only intergovernmental worldwide organization competent in customs matters.

“For 60 years, the WCO has encouraged its member organizations to come together in pursuit of solutions to the challenges of international security and global economic stability,” said Luc Portelance, President of the CBSA. “It’s a history that should inspire everyone in the greater customs community, and a legacy that helps define the vital work we do at the CBSA.”

In 2011, the CBSA handled more than 13.5 million commercial releases, helping keep cross-border trade strong and robust. On the enforcement side, the CBSA made over 10,000 drug seizures, taking almost $1.7 billion worth of illegal drugs off our streets. The CBSA accomplished all of this and more while processing over 96 million travellers. The Agency effected over 15,000 removals from Canada. The CBSA also launched the successful “Most Wanted” by the CBSA list resulting in the apprehension of eight individuals and the removal of six from Canada. These actions highlight the role of the CBSA in keeping Canada’s borders safe and secure.

The day may be marked in different ways throughout the CBSA, but the message stays the same. CBSA employees do valuable work, perform an important public service and their dedication is truly appreciated.
 

(Journal of Commerce Online – R.G.Edmonson)

Latest development in battle between MDOT, bridge owner

The Michigan Department of Transportation said it will build an off-ramp connecting the Ambassador Bridge, the busiest U.S.-Canada crossing, to two interstate highways within the next few months.

MDOT received the federal go-ahead after Detroit International Bridge Co., the owner of the bridge, deeded the property to the department. MDOT and DIBC have battled over who should have to build the bridge for two years, with the fight most recently leading to the brief jailing of bridge owner, Manuel “Matty” Moroun. Read more here.
 

(Transport Intelligence – John Manners-Bell)

At the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, the issue of supply chain risk took a high profile, with senior government figures and industry leaders seeking to develop ways in which economic damage caused by disrupted supply chains could be mitigated.

As part of the initiative, a new report was launched at the event. The report, New Models for Addressing Supply Chain and Transport Risks produced in collaboration with Accenture, highlighted the urgent need to review risk management practices. Read more here.
 

(GovExec.com – Charles S. Clark)

President Obama used his Tuesday State of the Union address to call for a government and financial system for “Americans who work hard and play by the rules,” defending his administration’s use of regulations and pushing the plan he announced earlier to streamline the federal bureaucracy.

“The executive branch . . . needs to change,” he said. “Too often, it’s inefficient, outdated and remote. That’s why I’ve asked this Congress to grant me the authority to consolidate the federal bureaucracy so that our government is leaner, quicker and more responsive to the needs of the American people.”

Much of Obama’s address was crafted around a detailed defense of government’s role in regulating the financial, energy, agriculture and health care industries. “There is no question that some regulations are outdated, unnecessary, or too costly,” he said. “In fact, I’ve approved fewer regulations in the first three years of my presidency than my Republican predecessor did in his. I’ve ordered every federal agency to eliminate rules that don’t make sense.” Read more here.
 

(AirCargoInsights.com)

Agencies and government leaders around the world are starting to get it – security and efficiency are mutually dependent and effectively addressing risk requires a focus on both. The White House released today its  National Strategy for Global Supply Chain Security, which presents the international supply chain as critical to America’s national security. It aims at realizing a secure and efficient supply chain and also speaks to resilience and harmonization – which is in line with the current efforts of the joint CBP/TSA Air Cargo Advanced Screening (ACAS) initiative. Having one of the most powerful organizations in the world include efficiency and coordination in its national strategy speaks volumes about the direction we are heading in cargo security. Read more here.
 

(Sneh Duggal – Embassy Magazine)

No date for the summit yet: EU official; partnership agreement also in works.

Relatively few issues remain within the Canada-European free trade talks, and officials expect the deal to be completed by the summer, European representatives say.

“The negotiations are still going on, but they are really getting down to details that need to be solved, and simply going on with a very good dynamic,” said Tomás Dupla del Moral, director for the Americas for the European External Action Service, during a visit to Ottawa last week.

There has been widespread speculation on when the deal will be completed, with some reports saying that it could be finished by February or March.

“There is a joint [will], together with the Canadians, to wrap this up this year, ideally before the summer break, but not weeks,” said Matthias Brinkmann, ambassador of the EU to Canada. Read more here.
 

(Barrie McKenna – Globe and Mail)

Canada’s bid to join the Trans Pacific Partnership free trade talks is getting a big thumbs-up in the United States, according Federal Trade Minister Ed Fast.

Speaking to reporters in Washington Monday, Mr. Fast said “well over” 90 per cent of submissions to the Obama administration from private-sector groups favour Canada’s entry into the TPP. The U.S. comment period recently ended. Read more here.
 

(Peter Clark – iPolitics)

The Harper Government’s free trade express has left the station and is picking up speed. Korea has lifted its ban on imports of Canadian beef derived from cattle 30 months old or less. This has removed a major stumbling block to finalizing the long delayed Canada-Korea Free Trade Agreement.

Prime Minister Harper is confident Korea’s decision will also help create a favourable climate to lead to a deeper bilateral trade relationship. South Korea is Canada’s seventh largest merchandise trading partner and its third largest in Asia. The Prime Minister has correctly identified Korea as a priority market for Canada.

And in a recent speech, Korean Ambassador to Canada, Nam Joo-hong, referred to the desire to expand two-way trade by $3 billion and to complete the stalled FTA negotiations. Read more here.
 

(Net News Ledger)

The Ontario Forest Industries Association (OFIA) and the Council of the Quebec Forest Industry (QFIC) are satisfied with the two-year extension of the Canada-US softwood lumber Agreement (SLA), announced today by Federal Minister of Foreign Affairs and International Trade (DFAIT), the Honorable Ed Fast. Furthermore, we are pleased that issues raised by Central Canada‘s forest sector with DFAIT are reflected in the extension announced today

“This endorsement of the extension by the Central Canada Industries is based on current economic conditions which have, even without the competitive constraints of the SLA, shuttered much production and reduced substantially Central Canada’s export capacity”, said Jamie Lim, President and CEO of the Ontario Forest Industries Association (OFIA). Read more here.

(CBC News – The Canadian Press)

Negotiating position from October suggests exemptions for agriculture, telecommunications

Leaked documents suggest Canada is seeking to carve out telecommunications and agriculture from any new trade agreement with the European Union.  But there is no exemption for water services, a sore point with critics of the negotiations with the world’s richest market.

Trade Minister Ed Fast has called a European trade, services and investment pact one of the Conservative government’s top priorities, arguing it will spur about $12 billion in additional economic activity.  The government has said it wants to reach a deal this year with the 27 nations of the EU, and negotiations are set to resume again later this month.

But little is known about what has gone on behind closed doors since talks began in 2009. Read more here.
 

(Export Development Canada – Peter G. Hall)

Data is normally the analyst’s best friend. Add a dollop of volatility, and it can fast become a foe. Data’s wacky wanderings of late have foiled many a forecast and contributed to an exaggerated, widespread sense of unease. International trade data were no exception, volatile right through the end of 2011. Do they give any hints of where global trade activity is headed this year?

Price movements are part of the turbulence. Although they matter deeply, prices can distort the real flows of goods and services that are occurring. Net of price fluctuations, the latest trade activity compared with the same point last year is still generally robust worldwide, with the exception of Europe. Cumulative numbers for 2011 compared with 2010 are far more impressive, up 6.2% with Central and Eastern Europe, Asia and the US leading the charge. So far, so good.

Given this picture, what do we make of scary press reports and the global fear-factor? Recent worries are in part a reaction to recent figures. Data toward year-end soured considerably, down 3.8% at annual rates in the final quarter, with one month of data pending. This is a significant setback, and has all but snuffed out export momentum heading into the New Year. Built-in growth heading in to 2012 is just 0.3%, compared with 3.9% at the same time last year. Troubling indeed. Read more here.
 

According to the U.S. National Institute of Standards and Technology, the user fee for inspections of fresh fruits and vegetables proposed by the Canadian government has been identified as a restrictive measure that could negatively affect U.S exports.

(Heather Scoffield – The Canadian Press)

Stephen Harper’s discussions with global economists, world leaders and thinkers at Davos, Switzerland this week will be partly intended for domestic ears.

The prime minister will address the need for Europe to take control of its financial crisis and for Canada to diversify its international trade. But sources say he will also use the mountain retreat to set the tone for this spring’s belt-tightening budget.[...]

In the wake of the U.S. rejection of the Keystone XL oil pipeline through the United States, Harper will also emphasize that Canada aims to increase energy exports to emerging markets and broaden trade ties with other countries… Read more here.