GHY Tradelines

(Canadian Press)

The federal government is breathing a sigh of relief after a U.S. Senate committee rejected a proposal to collect fees at land border crossings.

Government House Leader Peter Van Loan says he’s pleased the potential fees have been quashed.

He says they would have damaged the Canadian and U.S. economies.

The U.S. Department of Homeland Security had wanted Congress to authorize the study of a fee that could be collected from everyone entering the U.S. from Canada and Mexico.

But yesterday, the Senate judiciary committee voted to amend the Immigration Reform Bill to ban such a fee. Read more here.
 

(Government of Canada)

The Honourable Vic Toews, Minister of Public Safety, and the Honourable Steven Fletcher, Minister of State (Transport), spoke today at the Canadian/American Border Trade Alliance Ottawa Conference on the benefits of and the progress made to date under the Beyond the Border Action Plan.

“Our government continues to make the implementation of the Beyond the Border Action Plan a key priority, and we have made significant progress to date,” said Minister Toews. “We are making the border more efficient by strengthening our security and facilitating trade. This will benefit both travellers and businesses.” Read more here.
 

(Fibre2Fashion)

The Government of Canada is planning to extend the no-tariff provision for another 10 years to the Least Developed Countries (LDC) identified by the United Nations, which includes leading textile and garment manufacturing countries such as Bangladesh, Nepal, Cambodia and Myanmar.

A decade ago, Canadian Government dropped the then existing duty on textiles and clothing made in LDCs. The Government had also removed restrictions on the volume of goods that can be imported from these countries.

Subsequently, as part of the 2010 Federal Budget, the Canadian Government announced the elimination of duties on imported raw materials, which includes substantial reductions in duties on textiles, from the Least-Developed-Countries. Read more here.
 

(Laura Payton – CBC News)

The NDP is asking a House committee to study the impact of tariff increases included in this year’s budget, including what’s come to be known as the iPod tax. Consumer affairs critic Glenn Thibeault, who sits on the industry committee, sent a letter today to committee chair David Sweet calling for the study.

The study would look at “the increased taxation of hundreds of consumer goods detailed in Budget 2013, including the 5% tax increase on iPods and MP3 players, the possibility that TVs and other goods may have been taxed retroactively, and the impact of these tax changes for consumers, retailers, and industry, and that the committee reports its finding back to the House.” The motion is expected to be discussed Thursday, but isn’t likely to pass, with government MPs outnumbering opposition MPs. […]

The Conservative government vehemently denies its tariff increases will apply to iPods, pointing to an exemption for devices that are in continuous use with computers. But it’s not clear that exemption applies, both because importers need to present end-user certificates, presumably from the consumer who eventually buys the device, and because MP3 players like iPods are meant to be used away from the computer. Read more here.
 

(MM&D)

The federal government is investing $800,000 in a project that will allow the province of New Brunswick determine the risks to the provincial supply chain.

Word of the investment came as part of a $20 million smorgasbord of funding announcements made by Defence Research and Development Canada, an agency of Canada’s department of national defence. The money is earmarked for 26 individual projects that fall under the Canadian Safety and Security Program.

The New Brunswick supply chain project is being headed by the province’s department of public safety. The Conference Board of Canada, Dalhousie University and Deep Logic Solutions Inc are all partners on the project. Read more here.
 

(James Fitz-Morris – CBC Newa)

Canadian and European negotiators close to sweeping trade deal 

Negotiators from the federal and provincial governments are spending a second week in Brussels for intensive negotiations toward a Canada-European Union Free Trade Agreement.

The Canada-EU talks were originally supposed to wrap up by the end of 2011. That timeline was extended by a year as negotiators on both sides said talks were progressing, albeit more slowly than hoped. In the last few months of 2012, Prime Minister Stephen Harper has repeatedly said he hoped to see talks conclude before the end of the year.

The impetus to conclude the talks for the EU is to show the Americans they are willing to make reasonable compromises in future talks when it comes to agriculture.

For Canada, beyond boosting international trade by as much as 20% and diversifying its economy away from reliance on the U.S., Harper wants to show critics and other trading partners that Canada can negotiate a comprehensive trade agreement while leaving intact Canada’s supply management system for dairy, poultry and eggs.

Despite the delays, sources familiar with the negotiations say they believe a deal is within reach in the coming weeks, but at the outset of the latest talks, six key points remained unresolved… Read more here.
 

(Mike Blanchfield – The Canadian Press)

Canada will be watching closely to see whether a massive scheduled budget cut in the U.S. this week will affect the Beyond the Border pact between the two countries, Foreign Affairs Minister John Baird said Wednesday.

Unless polarized U.S. lawmakers can come together, about US$85 billion in cuts are set to hit U.S. federal programs starting Friday.

Homeland Security Secretary Janet Napolitano said earlier this week there would be pain for the Canada-U.S. border because her department would have to cut 5,000 border-patrol agents if the cuts go through.

Baird said the deal is key to the prosperity of both countries.

“We’re going to continue to be very, very focused on it,” he said Wednesday.

“After March 1, we’ll see what challenges arise. Obviously, this is not the way Canada would prefer to make these types of budgetary decisions. But it is what it is.”

Prime Minister Stephen Harper and U.S. President Barack Obama signed the vaunted border deal 14 months ago. Read more here.
 

(James Menzies – CTL)

Federal Environment Minister Peter Kent visited Bison Transport’s Mississauga terminal [Tuesday], to announce that Canada will adopt the US greenhouse gas emissions standards for model years 2014-2018 heavy trucks.

Kent said “With these tough new measures, GHG emissions from 2018 model year heavy-duty vehicles will be reduced by up to 23%. The regulations will also lead to improved efficiency. For example, a semi-truck operator driving a 2018 model year vehicle will save up to $8,000 per year in fuel.”

The regulations, which will apply to vehicle manufacturers and importers, will require them to attain fuel economy – or GHG emissions – benchmarks on a significant portion of their overall build. Read more here.
 

(Jordan Press – The Gazette)

Governments should move to now to secure private networks in the name of national security – possibly even forcing standards upon the industry, two top experts in cyber-security said Thursday.

The end of that road could require Canada and other governments to legislate cyber-security standards, according to the former chief of Canada’s ultra-secretive cyber-spy agency, because voluntary standards can be ignored while legal requirements cannot.

About 90% of critical infrastructure in Canada is owned and operated by the private sector.

The Obama administration treaded lightly on this in a recent executive order, announcing only voluntary security standards for companies that run critical infrastructure in the United States. “It’s a foray, but I’m not sure how successful it’s going to be. First of all, it’s voluntary and secondly there’s always conditions. The private sector, some will play and some won’t and if one’s weak, they’re all weak,” John Adams, the former chief of the Communications Security Establishment Canada (CSEC), told reporters Thursday at a security conference in Ottawa.

“Pass a law,” Adams said. “Make it obligatory.” Read more here
 

(Carl Meyer – Embassy)

Jacobson, Kerry talk climate compromises.

The United States is looking to Canada to “take the lead” in environmental initiatives to boost its reputation as a climate do-gooder and consequently make it “easier” to export its energy, said U.S. Ambassador to Canada David Jacobson. “It is important that Canada take the lead in some of these things, that Canada be perceived as not just doing what they’re forced to do, but really taking the lead,” he said in a speech at the Rideau Club on Feb. 7. “The more that Canada does in that regard, I think, in my mind, the easier it will be for Canada to find markets for its energy.”

The two countries should also have similar, if not identical, carbon pricing regimes, said Mr. Jacobson: if they were out of sync, it would lead to companies deciding “where you can pollute the cheapest.” Mr. Jacobson’s comments come amid speculation that U.S. President Barack Obama is considering moving forward again on economic initiatives that would address greenhouse gas emissions. Read more here.
 

(Brian McKenna – Globe and Mail)

Behold your government at work.

Nearly two years after Finance Minister Jim Flaherty urged the Senate to get to the bottom of the often-vast gap between what Canadians and Americans pay for the same consumer products, the official answer is that it’s a conundrum.

And don’t grab for an Aspirin to ease your headache. A bottle of pain reliever could cost you twice as much as in the U.S., as last week’s much-anticipated report by the Senate committee on national finance pointed out.

Maybe you want to get away from it all in a Canadian-made Chevy Camaro? The list price on that is nearly $5,000 more on this side of the border than in the U.S.

Across all products, the average Canadian retail price premium was 11% when the committee began its work in 2011, according to a Bank of Canada estimate.

“There is no one answer” acknowledged committee chairman Joseph Day as he released the report last week. “The government doesn’t determine prices. The marketplace determines prices.” Read more here.
 

(Canadian Senate)

The Government of Canada should conduct a comprehensive review of Canadian tariffs, with the aim of reducing price discrepancies for certain products between Canada and the United States, a report by the Standing Senate Committee on National Finance recommends.

Titled The CANADA-U.S.A Price Gap, the committee’s report sheds light on why large price gaps remain even when the Canadian dollar is at or above par. Even some automobiles made in Canada are priced significantly higher here than in the U.S.

“The study showed that there are many variables that contribute to the price of products. There is no one definitive explanation for the price discrepancies for products between Canada and the United States,” said Senator Joseph A. Day, the committee chair. “However, in spite of the complexity of the issue, the committee made four recommendations to narrow these price gaps.”

“Canadian consumers are feeling ripped off,” added Senator Larry Smith, the deputy chair. “When the Canadian dollar is at parity with the U.S. dollar, Canadian consumers notice that prices here are typically higher than in the United States. We hope this report will help Canadians understand the causes of these price discrepancies”.

The committee heard from 53 witnesses, including government officials, consumer groups, retailers, manufacturers, importers, exporters, experts from the academic sector, accountants and independent economists during public hearings that took place over eight months, starting in the fall of 2011.

The committee hopes the report’s recommendations will be given strong consideration, acknowledging that any policy changes must consider the impact on domestic manufacturing.

To read the committee’s report and recommendations, or to learn more about the Standing Senate Committee on National Finance, go here.
 

(Government of Canada)

The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, and the Honourable Vic Toews, Minister of Public Safety, today announced that the Government of Canada is seeking bids for informatics professional services in order to advance economic prosperity and enhance security between Canada and the United States of America under the Beyond the Border Action Plan.

“The Government of Canada is committed to speeding up legitimate Canadian-American trade and travel, making our shared border more efficient,” said Minister Ambrose. “We are inviting information technology suppliers to submit proposals to support the implementation of critical components of the Beyond the Border Action Plan.”

“The Canada Border Services Agency has a lead role in implementing initiatives under the Action Plan to keep the border open to legitimate trade and travel,” said Minister Toews. “Through this procurement process, our Government is demonstrating a border management approach that reflects our mutual efforts to facilitate the flow of low-risk people and goods across our shared border. This process will also ensure that our procurement activities are done in a fair and focused manner that respects taxpayers’ dollars.”

Public Works and Government Services Canada, on behalf of the Canada Border Services Agency, today issued a Request for Proposals for the informatics professional services required to support a wide range of initiatives identified in the Action Plan. These services, covering seven different streams, include business process re-engineering, application development and project management services.

The technical services provided by the successful contractors will be essential to delivering functionalities that will improve commercial and traveller crossings, including efforts to align internal financial systems, enabling the capacity to accept payments and to more quickly facilitate border crossing and trade.

The Beyond the Border Action Plan, announced by the Prime Minister of Canada and the President of the United States in 2011, is designed to increase North American security and, at the same time, revitalize cooperation, trade, and North American competitiveness.

Public Works and Government Services Canada is committed to a fair, open and transparent tendering process and has issued a Request for Proposals on the Government Electronic Tendering System at www.merx.com.
 

(actionplan.gc.ca)

The Canada-United States Regulatory Cooperation Council (RCC) was created to promote economic growth and job creation through increased regulatory alignment and coordination between our two countries.

The RCC progress report was released on December 14, 2012. It outlines progress that has been made on advancing overall regulatory cooperation with the United States, and also on individual Joint Action Plan items.

The work we are doing with the United States is wide-ranging, and includes pilot projects, scientific and technical collaborations, harmonized testing procedures, joint standard development, and common approaches to compliance and enforcement.

Some specific regulatory issues can be addressed in the short term and systemic solutions are being considered on how best to achieve alignment in the future. Meaningful change requires time and sustained effort. The RCC signals a new direction for an enhanced regulatory relationship between Canada and the United States has been initiated.

Read or download the Progress Report to Leaders.
 

Yesterday, the Canada Border Services Agency (CBSA) issued a news release announcing that effective January 8, 2013, Canada and United States have increased and harmonized their low-value shipment (LVS) threshold for expedited customs clearance to $2,500 in each of their respective currencies.

Also coming into effect yesterday, Canada increased to CDN $2,500 the low-value threshold for exemption from the North American Free Trade Agreement (NAFTA) Certificate of Origin requirements.

These changes were part of commitments by both countries under the Beyond the Border Action Plan to harmonize low-value shipment processes to expedite customs clearance administration with resulting economic benefits to both countries.

Further to the news release, the CBSA also posted the following Customs Notices on their website regarding details of the implementation of the LVS threshold increase:

CN13-001 Increase to the Value Threshold for Exemption From the North American Free Trade Agreement (NAFTA) Certificate of Origin Requirements for Commercial Goods for Which Preferential Treatment Under NAFTA is Claimed

CN13-002 Proposed Regulatory Amendment Related to the Increase to the Value Threshold for Exemption From the NAFTA Certificate of Origin Requirements for Commercial Goods for Which Preferential Tariff Treatment Under NAFTA is Claimed

CN13-003 Increase to the Low Value Shipment (LVS) Threshold for Shipments Imported Into Canada

“We are proud to deliver on another Beyond the Border Action Plan commitment,” said CBP Deputy Commissioner David V. Aguilar. “By working together, we are improving processes that will have a direct and immediate impact on both our nations’ economies.”

“Canadian and U.S. businesses are the true beneficiaries of the Beyond the Border Action Plan and the change implemented,” said Mike Tierney, president, UPS Canada. “Each day, more than $1.6 billion worth of goods cross our common border bringing the annual value of traded goods to more than $580 billion. Yet, every year $16 billion in trade activity has been lost due to border delays. This change will allow for swifter movement of goods for importers and exporters of all sizes.”

The CBSA advise the actual amendments to the regulations will likely take another 18 to 24 months to be made. As well, timing is yet undetermined for any necessary changes to the wording of D-Memoranda affected by the LVS threshold increase.
 

(CBC News)

The Canadian Food Inspection Agency is reorganizing its delivery of expert advice to producers and consumers.

Federal Agriculture Minister Gerry Ritz announced the changes Monday at a CFIA lab in Saskatoon, noting the government will create 16 information hubs for farmers, fishers and foresters needing advice on growing and selling their products.

Ritz explained that people in the various sectors want a more co-ordinated source of information, especially when it comes to trade rules and food safety. “What this does is gives industry and even consumers an opportunity to call in and ask questions from the experts in certain fields,” Ritz said. Read more here.
 

First annual progress reports issued on the Beyond the Border and Regulatory Cooperation Council Action Plans

Prime Minister Stephen Harper and Barack Obama, President of the United States, today welcomed the release of the first annual Beyond the Border Action Plan Implementation Report and the Canada-United States Regulatory Cooperation Council (RCC) Joint Action Plan Progress Report, which demonstrate progress made by Canada and the United States on perimeter security and economic competitiveness.

“Today’s reports demonstrate real and substantive progress on improving the management of our shared border and improving regulatory cooperation, both of which will improve the flow of people and goods between our countries,” said the Prime Minister. “The Beyond the Border and the Regulatory Cooperation Council Action Plans are laying the foundation for more jobs and growth in Canada and the United States by making it easier for firms in both countries to do business.”

The Beyond the Border and RCC Action Plans, announced by both leaders on December 7, 2011, set out ambitious milestones designed to advance economic opportunity, improve regulatory cooperation and enhance security between our two countries. Since then, significant progress has been made, including modernizing our joint border management, the development of the first joint Border Infrastructure Investment Plan, the release of a joint Cybersecurity Action Plan, improvements to the NEXUS trusted traveller program, mutual recognition of our air cargo security programs, and the development of joint standards and greater alignment of regulatory systems.

As the action plans continue to be implemented, the Government of Canada will keep Canadians informed of progress, including through the issuing of progress reports.

Both reports are available here.
 

(Jim Bronskill — The Canadian Press)

Legal snags have delayed – but not halted – plans by Canada and the United States to deepen co-operation on cross-border law enforcement.

In a one-year progress report on the highly touted binational perimeter security deal, the two countries said Friday they’ve made significant progress but realize there’s still much work to do.

The deal – being phased in over several years – aims to smooth the passage of goods and people across the 49th parallel while bolstering defences along the continental border.

One outstanding project is the next generation of cross-border law enforcement, which will see police and security officials work even more closely than they do now.

It would build on joint border-policing efforts by creating integrated teams in areas such as intelligence and criminal investigations.

Two pilot projects were supposed to be up and running by last summer, but the progress report says officials are still evaluating the “operational and legal requirements” involved. Read more here.

Related: FCPSA press release.
 

(Konrad Yakabuski — Globe and Mail)

Almost two years after Barack Obama and Stephen Harper formally launched the Canada-U.S. Beyond the Border initiative, our two countries’ effort to adopt a common approach to security and business regulations has produced few tangible results.

Proponents of the so-called BTB project are hoping all that will change with the release, as early as this week, of a progress report on a series of pilot projects aimed at harmonizing regulatory processes under the initiative launched by the two leaders at a February, 2011 White House summit.

“You need to have some success … so that all the parties involved maintain faith in the process,” Michael Fitzpatrick, General Electric’s senior counsel for government and regulatory affairs, told a Wednesday conference at the Wilson Center’s Canada Institute. Read more here.
 

(CBC News)

Proposal 6 voted down in U.S. election, paving way for new international crossing

Canadian Transport Minister Denis Lebel said the path is now clear for a new bridge to be constructed between Windsor, Ont., and Detroit, after Michigan voters were asked to weigh in on whether they should have a say in such a project.

During U.S. elections Tuesday, Michigan voters defeated Proposal 6, which would have called for a statewide vote on plans for any new international crossing, including the proposed new bridge over the Detroit River. Slightly more than 60 per cent of voters turned down the proposal, which would have been entrenched in the state’s constitution.

Proposal 6 was one of the final hurdles that needed to be cleared for the building of a new bridge to proceed, and provide competition for the 83-year-old Ambassador Bridge, Canada’s busiest border crossing, owned by billionaire Matty Moroun.

Lebel said the bridge will now be built “as soon as possible.” Read more here.