Wednesday, November 30, 2011

New pre-clearance procedure for importers of seed


The Canadian Food Inspection Agency (CFIA) is implementing a new pre-clearance procedure for imported seed. The CFIA will now be able to confirm that seed meets Canadian import requirements before it arrives at the border.

imagePreviously, only industry personnel accredited under the CFIA's Authorized Importer program could get seed pre-cleared prior to import. Seed from other importers had to be held separate and intact in the original packages after it was imported while the CFIA completed the import conformity assessment (ICA) process.

With this new procedure, all imported seed that requires an ICA can be pre-cleared. The CFIA can complete the ICA process and issue the Notice of Import Conformity in advance. When the shipment arrives at the border, the associated documentation will be verified and the seed can move directly to destination without further delay.

Find out more details about this new process on the CFIA's website.

Friday, November 25, 2011

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
  • Memorandum D9-1-3 Coin, Base or Counterfeit. Updated to reflect changes in organizational structure of the CBSA. A legislative reference section has been updated to show the relevant sections of the Customs Tariff and the Customs Act.
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Canadian International Trade Tribunal
  • Appeal No. AP-2010-069 Canadian Tire Corporation Ltd. Tariff classification of quick-set camouflage hunting blinds.
  • Appeal No. AP-2010-060 Outdoor Gear Canada. Classification of assembled bicycle rims, spokes and hubs, with no tubes, valves, nipples or tires.
  • Appeal No. AP-2010-063 Toyota Tsusho America, Inc Whether certain steel plates are exempted from anti-dumping duties.
United States

WTO concludes U.S. meat labelling rules are an illegal barrier to trade


In a decision published last Friday the World Trade Organization (WTO) has determined that the United States' country of origin labeling rules (COOL) for meat violate global trade rules.

imageA WTO dispute settlement panel was established in November 2009 to hear Canada and Mexico's challenge to the U.S. legislation imposing mandatory country-of-origin labelling for beef, pork, lamb, chicken and goat meat, and certain perishable commodities sold at retail outlets in the U.S.

According to the U.S. rules, in order for meat to be labelled as a product of the U.S., all production activities (birth, rearing and slaughtering) have to occur in the U.S. For meat derived from animals of different national origins, the label must indicate the country or countries involved at each step, from the animal's birth to the final retail wrapping of meat cuts.

In contesting the U.S. rules Canada claimed that, in the context of the integrated North American beef and pork supply chains, U.S. COOL has resulted in additional and unnecessary costs being imposed on Canadian cattle and hog exports. Under the rules U.S. processors, for instance, have to segregate Canadian animals and the meat from these animals at their facilities, which generates additional costs. Because of these additional costs, some processors no longer buy Canadian animals, buy them only on certain days, or buy them at a discounted price. Thirteen WTO country members have joined as third parties in the dispute.

The U.S. will now be required to bring its measures into conformity with its WTO obligations. However, if the WTO decision is appealed, it could delay the outcome.

Thursday, November 24, 2011

Quebec exports expected to grow by 7 per cent next year


After an estimated 4 per cent gain in 2011, Quebec's international exports are forecast to grow by another 7 per cent in 2012, according to Export Development Canada's (EDC) Global Export Forecast.

image"The Canadian trend of diversifying into emerging markets is evident in Quebec with China expected to replace the U.K. this year as the province's number two export destination behind the U.S.," said Peter Hall., Chief Economist at EDC.

"In 2012, the aerospace sector will be the star performer, offsetting reduced growth from industrial products as the price effect begins to wear off. The beleaguered forestry sector will get a 9 per cent boost in 2012 thanks to rising momentum in U.S. homebuilding. The extraordinary financial and monetary conditions that are supporting record high prices for gold and other base metals will persist through next year, another boon to Quebec's 2012 export receipts"

The province's exports of industrial goods are forecast to rise by 6 per cent in 2012, on the heels of a 7 per cent increase in 2011, and the machinery and equipment export sector is forecast to grow by 5 per cent in 2012, after a 5 per cent gain in 2011.

EDC's forecast calls for Quebec's forestry sector exports to grow by 9 per cent in 2012 after two years of zero gains.

The transportation sector is forecast to grow 23 per cent in 2012 after a slight decline of 1 per cent in 2011.

Wednesday, November 23, 2011

Canadian air traffic decreased slightly in October


According to Statistics Canada, aircraft take-offs and landings at the 93 Canadian airports with NAV CANADA air traffic control towers and flight service stations decreased 2.8% in October 2011 from October 2010. These airports reported 488,078 movements compared with 502,224 movements in October 2010. Year-over-year decreases were reported by 50 airports.

imageThere were 347,208 itinerant movements (flights from one airport to another) reported in October 2011 compared with 347,168 itinerant movements in the same month the previous year.

Year-over-year variations ranged from an increase of 1,770 movements (+30.0%) at Toronto/Billy Bishop Toronto City, Ontario to a drop of 1,791 movements (-36.2%) at Pitt Meadows, British Columbia. Forty-three airports reported year-over-year increases in the number of itinerant aircraft movements in October 2011.

Eighty-three Canadian airports recorded a total of 42,091 transborder itinerant movements (between Canada and the United States) in October 2011. Toronto/Lester B. Pearson International, Ontario (15,345 movements) reported the greatest number of transborder itinerant movements. However, this represents a decrease of 3.8% (-600 movements) compared with the previous year.

Thirty-four airports reported 9,379 other international itinerant movements. Toronto/Lester B. Pearson International, Ontario, recorded 4,433 other international itinerant movements. This represents 47.3% of the total other international itinerant movements reported.

Tuesday, November 22, 2011

eManifest Portal for highway carriers: find out how it works!


The Canada Border Services Agency (CBSA) keeps adding dates for its live eManifest highway carrier presentations. Each presentation is hosted by a CBSA representative and followed by a question and answer period.

The following presentations are currently available:

• Attention Highway Carriers: eManifest may apply to you
• eManifest Portal Demonstration

To find out more about the dates and to register follow this link to the CBSA website.

Friday, November 18, 2011

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Department of Finance
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Canadian International Trade Tribunal
  • Preliminary Injury Inquiry No. PI-2011-001 Pup joints from China. Tribunal determines the is a reasonable indication that the dumping and subsidizing have caused injury or retardation or are threatening to cause injury.
  • Appeal No. AP-2008-012R P.L. Light Systems Canada Inc. Classification of aluminum reflectors attached to lighting fixtures used to provide supplementary lighting for integrated greenhouse systems.
  • Appeal No. AP-2010-057 Rlogistics Limited Partnership. Classification of armband cases for portable electronic devices.
European Union
United States

Government tables bills to implement free trade agreements with Jordan and Panama


On November 15, 2011, the Minister of International Trade, Ed Fast,, introduced two bills in the House of Commons to implement the Canada-Panama Free Trade Agreement (FTA) and the Canada-Jordan Free Trade Agreement.

imageIf the announcement of the two bills seems familiar it is because they have been introduced several times before. The bill concerning the Canada-Panama FTA was first introduced in September 2010 but died following the call for elections in the spring of this year.

As for the Canada-Jordan implementation bill, it met similar fates twice, having been introduced first in November of 2009, then in March 2010.

Canada and Panama launched free trade negotiations in October 2008 and, following several rounds of talks Prime Minister Stephen Harper and Panama's President Ricardo Martinelli marked the conclusion of negotiations on August 11, 2009. On May 14, 2010, Canada's then international trade minister Peter Van Loan, along with Panama's Minister of Commerce and Industry, Roberto Henríquez, signed the Canada-Panama Free Trade Agreement as well as the parallel agreements on labour cooperation and the environment.

imageCanada and Jordan began exploratory discussions in Amman, in November 2007. The two countries concluded free trade negotiations, as well as negotiations for an Agreement on the Environment and a Labour Cooperation Agreement on August 26, 2008. On June 28, 2009, Stockwell Day, then minister of international trade, signed the Canada-Jordan Free Trade Agreement.

There is no foreseen impediment to the adoption of the two bills this time around. Once passed by the House of Commons and the Senate, both pieces of legislation will receive Royal Assent from the Governor General in order to become law.

Thursday, November 17, 2011

Tribunal finds evidence that dumped pup joints from China hurt Canadian industry


Following the September start of the investigation by the Canada Border Services Agency (CBSA), into the alleged injurious dumping and subsidizing of oil country tubular goods pup joints from China, the Canadian International Trade Tribunal has rendered a preliminary decision concerning possible consequential injury to Canadian industry.

The Tribunal found that "there is evidence that discloses a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused injury or retardation or are threatening to cause injury."

The CBSA is continuing its preliminary investigation to determine if there is actual dumping and subsidizing, and to determine in which amount so as to establish provisional anti-dumping and countervailing duties. The CBSA is expected to make a decision by December 12, 2011.

Additional information about the investigations can be found on the websites of the CBSA and of the Tribunal.

Wednesday, November 16, 2011

Alberta's exports to grow slightly in 2012 while B.C.'s will surge


According to a Global Export Forecast by Export Development Canada (EDC), British Columbia's exports are forecast to grow 13 per cent in 2012, the highest rate of growth among all provinces.

"Continued strong demand from China and rapidly-growing Asian economies will benefit British Columbia's export sector, which will expand at double-digit pace again in 2012," said Peter Hall, Chief Economist for EDC. "Exports to Asia now represent over 40% of the province's exports, and are expanding in excess of 25% this year."

imageHigher shipments of coal, copper and wood products will spur the province's three main export industries. Lumber shipments will benefit from a reawakening of U.S. homebuilding. British Columbia's forestry exports are forecast to grow by an impressive 26 per cent in 2012.

The province's international exports are led by three key industries: forestry, accounting for 20 per cent of the province's total exports, energy, accounting for 20 per cent; and industrial goods, accounting for 16 per cent.

The EDC forecast predicts that Alberta's international exports will grow by another 2 per cent in 2012 following 2011's estimated 18 per cent surge

"While Alberta counts on crude oil and natural gas for the bulk of its exports, other industries will generate all of the growth in international sales during 2012," said Mr. Hall. "Next year, the province's export growth will be buoyed by the forestry and industrial goods sectors as declining prices put downward pressure on Alberta's oil exports."

The province's international export picture is led by three key sectors: energy, accounting for 72 per cent of the province's total exports, industrial goods, accounting for 11 per cent, and agri-food, accounting for 8.4 per cent.

"After a hefty 21 per cent increase in energy exports in 2011, performance will plateau in 2012 as slight gains in natural gas and electricity offset price declines for oil and coal." A critical element of this forecast is EDC's outlook for world oil prices, with the cost of WTI crude expected to fall from an average of USD 94/bbl in 2011 to USD 85/bbl in 2012.

Tuesday, November 15, 2011

List of CBSA Holidays and maintenance outages for the next year


The Canada Border Services Agency (CBSA) published the list of official Holidays for the next year. The holidays mentioned below apply to all provinces except where indicated otherwise:

• Monday, December 26, 2011
• Tuesday, December 27, 2011
• Monday, January 2, 2012
• Friday, April 6
• Monday, April 9
• Monday, May 21
• Monday, June 25 (Quebec only)
• Monday, July 2
• Monday, July 9 (Nunavut Civic Holiday)
• Monday, August 6 (All provinces/territories except Quebec and Nunavut)
• Monday, September 3
• Monday, October 8
• Monday, November 12
• Tuesday, December 25
• Wednesday, December 26
• Tuesday, January 1, 2013

The Agency also published the list of scheduled maintenance outages for its computers and networks for 2012. They will occur on the following weekends, generally in the early morning:

• January 21-22
• February 11-12
• March 17-18
• April 21-22
• May 12-13
• June 16-17
• July 21-22
• August 18-19
• September 15-16
• October 20-21
• November 17-18
• December 15-16

CBSA says additional outages are to be expected for the migrations of systems releases, but the exact date/time has not yet been determined.

The dates of the outages are subject to change. Updated and more detailed information will be communicated by bulletin in advance of the outage.

Friday, November 11, 2011

Russia's WTO membership will be approved at mid-December meeting


Russia's accession to the World Trade Organization (WTO) cleared a major hurdle when the WTO Working Party on its accession approved, on November 10, 2011, the package spelling out Russia's terms of entry to the organization.

imageThe Working Party will now send its accession recommendation to the Ministerial Conference, scheduled for December 15-17, where Ministers are expected to approve the documents and accept Russia as a WTO Member.
The Russian Federation will have until June 15, 2012 to ratify its accession package. Thirty days after the notification to the WTO of the ratification, the Russian Federation will become a fully-fledged member.

"It has been a long journey, but today Russia has taken a big step towards its destination of membership in the WTO," said Director-General Pascal Lamy.

As part of the accession accord, Russia has agreed to undertake a series of important commitments to further open its trade regime and accelerate its integration in the world economy. The deal offers a transparent and predictable environment for trade and foreign investment.

From the date of accession, the Russian Federation has committed to fully apply all WTO provisions, with recourse to very few transitional periods.

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Department of Finance
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Industry Canada
World Customs Organization
European Union
United States

Thursday, November 10, 2011

Export growth turns Canada's trade deficit into surplus in September


According to the latest data published by Statistics Canada the country's merchandise exports grew 4.2% in September, while imports declined 0.3%. As a result, Canada's trade balance with the world went from a deficit of $487 million in August to a surplus of $1.2 billion in September. It was the first trade surplus since January 2011.

imageExports rose to $39.7 billion, the highest value since October 2008, as exports of energy products rose 11.3% to $9.6 billion. Exports of petroleum and coal products rose 36.4% to $2.0 billion. Exports of industrial goods and of agricultural and fishing products also increased in September.

Imports decreased to $38.5 billion. The decline was led by lower imports of machinery and equipment as well as automotive products. Partly offsetting the decrease in imports were gains in two sectors: energy products, and industrial goods and materials.

Exports to the United States increased 5.0% to $28.2 billion, the highest value since January 2011. Imports from the United States decreased 1.0% to $23.8 billion. As a result, Canada's trade surplus with the United States rose from $2.8 billion in August to $4.4 billion in September.

Exports to countries other than the United States rose 2.3% to $11.5 billion, the fifth consecutive monthly increase. Imports from countries other than the United States rose 0.7% to $14.7 billion. Consequently, the trade deficit with countries other than the United States fell from $3.3 billion in August to $3.1 billion in September, the lowest level so far this year.

Wednesday, November 9, 2011

Canada and Costa Rica launch talks to expand free trade agreement


International Trade Minister Ed Fast announced the start this week in Ottawa of the first round of negotiations to modernize the Canada-Costa Rica Free Trade Agreement. This negotiating round was to wrap up on November 10, 2011.

imageThe Canada-Costa Rica Free Trade Agreement, which entered into force in 2002, focuses mainly on trade in goods. An expanded free trade agreement will deepen market access in services and government procurement. It will also cover e-commerce, telecommunications, investment and technical barriers to trade.

"An improved free trade agreement with Costa Rica will create new opportunities for Canadian businesses in many sectors, including agriculture, construction, financial services, government procurement, manufacturing and telecommunications," said Minister Fast.

Costa Rica is Canada's largest trading partner in Central America, accounting for 31% of Canada's two-way merchandise trade with the region in 2010.

Tuesday, November 8, 2011

Changes to countervailing, anti-dumping duties on steel casing and oil country goods from China


The Canada Border Services Agency (CBSA) announced the conclusion of a re-investigation to update the amounts of subsidy in respect of certain seamless steel casing and certain oil country tubular goods originating in or exported from China.

imageThe re-investigation was initiated on June 9, 2011, as part of the ongoing enforcement of the Canadian International Trade Tribunal's findings of material injury to Canadian producers.

The goods in question are described as:

• certain seamless carbon or alloy steel oil and gas well casing originating in or exported from China; and
• certain oil country tubular goods (OCTG) originating in or exported from China.

All amounts of subsidy previously in place expired on November 7, 2011.

Although the CBSA did not initiate a re-investigation of the normal values, it should be noted that certain exporters qualify for normal values, for exports of subject goods from the CBSA on or after November 7, 2011.

In its announcement the CBSA reminded importers that it is their responsibility to calculate and declare their anti-dumping and countervailing duty liability. When importers are using the services of a customs broker to clear importations, the brokerage firm should be advised that the goods are subject to anti-dumping measures and be provided with sufficient information necessary to clear the shipments.

For additional information please see the CBSA's notice of Conclusion of Reinvestigation.

Friday, November 4, 2011

Technical documents


Government memorandums, notices and decisions.

This page lists newly published government memorandums, notices, regulations and decisions. Clicking on a title will open the document (in a new window) as published by the relevant department or agency on its own Web site.

Canada Border Services Agency
Department of Foreign Affairs and International Trade
Canadian Food Inspection Agency
Supreme Court of Canada
  • Case 34311  C.B. Powell Ltd. v. President of the Canada Border Services Agency. Tariff treatment of  jars of bacon bits from the United States.
Canadian International Trade Tribunal
World Customs Organization
  • Draft Agenda for the 42nd Session of the Harmonized System Review Sub-Committee (Courtesy of CBSA)
European Union
United States

Ottawa investigates dumping and subsidizing of stainless steel sinks from China


Following a complaint filed by two Ontario manufacturers the Canada Border Services Agency (CBSA) initiated investigations into the alleged injurious dumping and subsidizing of certain stainless steel sinks originating in or exported from the People's Republic of China.

imageThe complainants allege that the dumping and subsidizing of these goods are harming Canadian production by causing a loss of market share, loss of sales, price erosion, declining capacity utilization, reduction in employment and declining revenues, margins and profits.

Dumping occurs when goods are sold to importers in Canada at prices that are less than their selling prices in the exporter's domestic market or at unprofitable prices. Subsidizing occurs when goods imported into Canada benefit from foreign government financial assistance. The Special Import Measures Act protects Canadian producers from the damaging effects of such unfair trade if the CBSA can establish that goods are indeed dumped and/or subsidized, and if the Canadian International Trade Tribunal can determine that the dumping or subsidizing harm Canadian producers.

The Tribunal began a preliminary inquiry to determine whether the imports are harming Canadian producers and will issue a decision by December 28, 2011.

While the Tribunal is examining the question of injury, the CBSA will investigate whether the imports are being dumped and/or subsidized, and will make a decision by January 25, 2012.
If the Tribunal determines that an unusually large increase in harmful imports has occurred prior to the CBSA's decision and that the retroactive application of anti-dumping or countervailing duty is therefore justified, duty could be levied on the goods brought into Canada as of October 27.

Additional information about the investigations can be found on the websites of the CBSA and of the Tribunal.

Thursday, November 3, 2011

Consultations on expanding the Canada-Israel free trade agreement


The Government of Canada announced a public consultation on the scope of potential negotiations for the expansion of the existing free trade agreement between Canada and Israel.

imageExploratory discussions to expand the goods-only Canada-Israel Free Trade Agreement (CIFTA) were announced on October 10, 2010, when the Trade Ministers of both countries agreed that officials would examine options to expand the application of the CIFTA to include other areas that typically form a comprehensive free trade agreement (e.g. services, investment, government procurement).

The CIFTA entered into force on January 1, 1997, eliminating tariffs on all industrial products manufactured in Canada and Israel as well as a limited number of agricultural and fisheries products.

Between 1999 and 2003, Canada and Israel successfully negotiated additional tariff preferences on agricultural, agri-food and fish goods, that were excluded from the Agreement, as well as further improvements to existing preferential duties applied to certain agricultural goods whose tariffs were only reduced in the original agreement. This included preferences for some of Canada's top agricultural and agri-food exports to Israel.

This public consultation process will allow interested stakeholders an early opportunity to provide comments and advice on the scope of the negotiations to expand the CIFTA.
Link: Consultations on negotiations to expand the existing Free Trade Agreement with the State of Israel.

Wednesday, November 2, 2011

Canadian exporters to do quite well in 2012


According to the Fall 2011 Global Export Forecast by Export Development Canada (EDC) Canadian exports, with their growing market diversification trend, are expected to perform well, with projected 7 per cent growth next year adding to a healthy 11 per cent gain in 2011. EDC predicts that mixed performance through the year will yield Canadian GDP growth of 2.3 per cent in 2011, while U.S. momentum counters domestic weakness to lift the economy by 2.4 per cent in 2012.

image"Canadian exports have been remarkably resilient. The recession wiped out one-quarter of our trade, but by mid-2012, we will have recovered all of the momentum lost in the global downturn" said Peter Hall, EDC's Chief Economist.

"The U.S. economy is forecast to take the lead, with a good contribution from Japan as reconstruction boosts 2012 growth. Austerity will confine Western Europe to the back seat. Emerging markets will continue to outperform, and will ride the increase in OECD growth to rack up back-to-back gains of 5.9 per cent this year and next. Consequently, global growth is forecast to accelerate from 3.7 per cent in 2011 to 4.3 per cent in 2012. Impressive performance, all things considered."

The forecast by sector notes that softer commodity prices will dampen the double-digit growth in primary metals exports to just 3 per cent in 2012, while the energy sector will be flat. Advanced technology and consumer goods' exports will remain weak. Leading the charge is the aerospace sector, with red-hot 22 per cent growth in 2012. Close behind is the auto sector, with growth pegged at 19 per cent. Fertilizer shipments will remain robust, adding 15 per cent growth, and after a long relapse, forestry exports are forecast to see a 17 per cent rise.

EDC's semi-annual Global Export Forecast addresses the latest global export conditions including perspectives on interest rates, exchange rates as well as export strategies to help Canadian companies minimize risk. It also analyzes a range of risks for which exporters should be prepared. The forecast is available on EDC's website at: http://www.edc.ca/gef.

Tuesday, November 1, 2011

Canada signs maritime convention on compensation for damages from hazmats


Canada took part in a ceremony last week to sign a protocol that will establish a global liability regime to protect against certain risks of marine transport.

The Protocol of 2010 to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996 was signed at the International Maritime Organization (IMO) in London, United Kingdom. 

Canada was one of the states that led the development of this important protocol at the IMO.
imageThe Convention aims to ensure adequate, prompt and effective compensation for damages to persons and property, costs of clean up and reinstatement measures and economic losses resulting from the maritime transport of hazardous and noxious substances (HNS).

Damages will be covered by compulsory insurance taken out by shipowners, who would be able to limit their liability. In those cases where the insurance does not cover an incident, or is insufficient to satisfy the claim, a second tier of compensation will be paid from a Fund, made up of contributions from the receivers of HNS.

The protocol will be tabled in Parliament this fall, and subsequently amendments to the Marine Liability Act will be introduced to implement the protocol by ensuring that compensation is available for victims of marine pollution and that polluters are held responsible. Following its ratification, Canada will be able to implement the protocol.

"Canada is a trading nation that depends to a large degree on marine transport for its exports and imports, and it is vital that we have strong rules to protect our environment," said the Honourable Denis Lebel, Minister of Transport, Infrastructure and Communities. 

"These amendments will provide increased levels of compensation to those affected by pollution from hazardous and noxious substances that is caused by ships and also ensure that polluters pay for any damage resulting from such incidents."