GHY Tradelines

(New York Times – Keith Bradsher)

The Canton Fair, China’s biggest marketplace for exporters and buyers, announced at the weekend an unexpected decline in contracts signed over the past month at the fair’s spring session. The weak result was the latest sign that exporters across China are struggling to maintain their global competitiveness.

Falling export orders are also a warning for the Chinese economy because they coincide with steeply rising wages and higher rents for factory space, pushing many export factories to the brink of insolvency. Difficulties in the export sector coincide with broader weakness in the economy since last year, although there were hints of a slight recovery in March. The government has deliberately popped the real estate bubble over the past year and is pushing apartment prices down sharply in an effort to make housing more affordable. Read more here.
 

(Merco-Press)

European Trade Commissioner Karel de Gucht expressed concern Monday over what he called a “growing tendency towards protectionism across Latin America” and warned Europe is preparing retaliation measures against Argentina after YPF expropriation.

“We will soon be moving forward with a response to Argentina’s action in the Repsol case,” the official said during a speech at the EU-Brazil Conference, in Brussels. The EC is already planning to file a complaint with the World Trade Organisation (WTO) in the next four weeks over Argentina’s alleged use of protectionist measures which harm European businesses – such as the use of non-automatic import licensing or pre-registration of imports. Read more here.
 

(Colombia Reports)

Canada accused Colombia of failing to implement a duty free system agreed upon between the two countries. According to a report by Colombian financial newspaper Portafolio, Canadian trade officials complained that their Colombian counterparts failed to issue duty-free-licenses to Canadian exporters for 2011. As a result more than 14,000 tons of imported Canadian beef, pork, and beans were subject to tariffs in the last year. The licenses were part of the Free Trade Agreement (FTA) between the two countries, which went into effect last year.

Canadian officials found fault with the Colombian Customs Office and said 2011’s un-issued duty-free-licenses should be added to the 2012 licenses. Former Colombian trade official Ricardo Duarte said rolling over the licenses was not possible. According to Duarte, FTA rules prohibit license accumulation to avoid hurting domestic economies. Read more here.
 

(National Retail Federation)

The National Retail Federation today urged Congress to review and revise controversial rules on the importation of wood products and plant material that retailers fear could lead to unfair government seizure of merchandise ranging from furniture to musical instruments. “Retailers recognize the need for environmental conservation but the current law leaves them guessing on which products are legal and which aren’t,” NRF President and CEO Matthew Shay said. “Congress needs to carefully review the Lacey Act to ensure that the goal of eliminating illegal logging is its primary objective, not penalizing businesses that are doing their best to comply with an unworkable law.”

Shay commented as a subcommittee of the House Natural Resources Committee prepares to hold a hearing this afternoon on legislation that would reform portions of the law. Laurie Everill, regional customs compliance and operations manager for NRF member IKEA-North America, is scheduled to testify to the Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs on the challenges facing companies seeking to comply with the law, and changes sought by NRF to address those challenges, improve enforcement and compliance with the law, and support its goal to end illegal logging. Read more here.
 

(Vancouver Sun – Gordon Hamilton)

Led by British Columbia, Canada emerged as the largest exporter of lumber in the world to China in 2011, surpassing Russia as the Middle Kingdom’s No. 1 source for lumber. “We are king of the hill,” Gerry Van Leeuwen, of the Vancouver consultants International Wood Markets Group, said Tuesday. “We are No. 1 in total lumber imports into China.”

The trend has continued in 2012, Van Leeuwen said. According to the latest statistics from China Customs, Canada supplied 1.45 million cubic metres (about 900 million board feet) of softwood lumber during the first quarter of 2012, corralling 47% of the market share for softwood lumber in China. Russia is second at 35%.

Softwood lumber, lumber made from coniferous species like spruce, pine and fir, is the dominant wood product manufactured by British Columbia sawmills. B.C. softwood lumber accounts for about 95% of all Canadian softwood shipments to China, making this province China’s largest global supplier, surpassing Russia, which exports both hardwood and softwood lumber, for the first time. Read more here.
 

(CBSA Media Room)

The Canada Border Services Agency (CBSA) and the U.S. Customs and Border Protection (CBP) announced today they are delivering on key commitments under the U.S.-Canada Beyond the Border Action Plan for Perimeter Security and Economic Competitiveness-increasing benefits to NEXUS members, streamlining the NEXUS membership renewal process and launching a plan to increase NEXUS membership.

“Our Government’s top priority is creating jobs, growth and long-term prosperity,” said Minister Toews, Minister of Public Safety. “The Border Action Plan is designed to speed up legitimate trade and travel, and improve security in North America by aligning the entry of people and goods at the perimeter while streamlining processes at the Canada-U.S. border. With these commitments to retain and increase NEXUS membership, Canada and the United States will increase efficiency to better focus their resources and examination efforts on travellers of high or unknown risk.”

“CBP and the CBSA are working together to expand NEXUS membership and enhance its benefits, to ensure more pre-screened travellers enjoy expedited processing at the border,” said CBP Commissioner David Aguilar. “This is just one of a number of initiatives the United States and Canada are undertaking as part of the Beyond the Border Action Plan that will help facilitate lawful trade and travel while enhancing security.

The NEXUS program allows pre-screened travellers expedited processing by Canadian and United States officials across the Canada-U.S. border at designated air, land and marine locations. Delivering on their commitment to streamline the membership renewal process for the NEXUS program, the CBSA and CBP will waive the interview for members who have not had changes to their information and have maintained their low-risk status. Canada and the United States also announced that they have begun enrolment blitzes to expedite the processing of NEXUS applications and have launched an outreach and awareness plan to increase membership in NEXUS.

As part of our work refining the NEXUS program, earlier this year, additional benefits were announced including a new trusted traveller kiosk at Billy Bishop Toronto City Airport to expedite passage for members flying into Canada; and a NEXUS lane at the Queenston/Lewiston Bridge. Enhancements to the NEXUS program are critical to facilitating the lawful flow of pre-approved, low-risk travellers while enabling a focus on people about whom we know the least. Increased membership further encourages cross-border travel, supporting both Canadian and American economies.

On February 4, 2011, Prime Minister Harper and President Obama released the Beyond the Border Declaration, articulating a shared vision in which our countries work together to address threats at the earliest point possible while facilitating the legitimate movement of people, goods and services across our shared border. The Action Plan, released on December 2011, outlines the specific steps our countries intend to take to achieve the security and economic competitiveness goals outlined in the Beyond the Border Declaration.

For more information on the Action Plan on Perimeter Security and Economic Competitiveness, please visit the Web sitewww.borderactionplan.gc.ca.

For more information on NEXUS, go to www.nexus.gc.ca. Follow the Canada Border Services Agency (@CanBorder) on Twitter and Public Safety Canada (@Safety_Canada).