Friday, March 30, 2012

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
Canada Revenue Agency
  • Form B270 Excise duty return - Non-Licensee.
Department of Foreign Affairs and International Trade
Health Canada
Canadian International Trade Tribunal
United States

Canada-Japan free trade agreement negotiations have begun


The launch of negotiations towards a free trade agreement between Canada and Japan was announced during Prime Minister Harper's visit to Tokyo last weekend.

imageA joint study published at the beginning of this month concludes that an agreement would deliver substantial gains for both countries, including increased economic output, GDP growth and consumer welfare, along with strengthened bilateral trade opportunities for energy, other natural resources and food products.

Canada will notably seek the elimination of Japan's tariffs across a broad range of sectors, including on agriculture, fish and seafood, forestry and industrial goods.

Canada and Japan are also considering ways that an agreement should reflect their mutual commitment to environmental protection and labour practices.

Japan is an important market for Canada. In 2011, bilateral merchandise trade between Canada and Japan totalled $23.7 billion.

Thursday, March 29, 2012

Container volume up 7% on Canadian railroads in January


Statistics Canada announced that Canadian railways carried 24.9 million tonnes of freight in January, up 7.3% from January 2011.

imageOn the domestic front, non-intermodal and intermodal loadings saw their combined volume rise 5.2% to 21.9 million tonnes over the same 12-month period.

Non-intermodal cargo loadings, which are typically carried in bulk or loaded in box cars, advanced 4.9% to 19.6 million tonnes. The commodity groups with the largest increases in tonnage were coal, wheat and colza seeds.

Intermodal freight loadings of containers and trailers loaded onto flat cars also grew but the increase occurred solely on the strength of containerized cargo shipments as trailers loaded onto flat cars declined. Railways carried 264,872 TEUs in January this year, compared to 247,377 TEUs for the same month last year, an increase of 7%.

Internationally, total rail freight traffic received from the United States experienced a 25.4% gain to 3.0 million tonnes.

Wednesday, March 28, 2012

Tribunal to review expiry of anti-dumping duties on bicycles from China and Taiwan


The Canadian International Trade Tribunal announced that it initiated an expiry review of its order concerning the dumping of certain bicycles from Taiwan and China.

imageIn early February the Tribunal had informed interested persons and governments of the impending expiry of the order and solicited information on whether the order should be left to expire, or if a review for its continuation was warranted. On the basis of the information filed, the Tribunal is of the opinion that an expiry review of the order is warranted.

The Canada Border Services Agency (CBSA) will now determine, by July 26, 2012, if there is a likelihood of resumed or continued dumping.

If the CBSA determines that the expiry of the order in respect of any goods is likely to result in the continuation or resumption of dumping, the Tribunal will conduct an expiry review to determine if the continued or resumed dumping is likely to result in injury or retardation to Canadian industry. The Tribunal will issue its order no later than December 7, 2012, and its statement of reasons no later than December 21, 2012.

The original decision by the Trade Tribunal goes back to 1992 and has been amended and prolonged several times, the last time on December 10, 2007.

Link: CITT Expiry Review No. RR-2011-002 Bicycles from Taiwan and China

Tuesday, March 27, 2012

Exploratory talks to begin on a Canada-Thailand free trade agreement


Canada and Thailand announced that they will pursue exploratory talks to examine the potential economic benefits of a free trade agreement. The announcement was made on March 23rd, during Prime Minister Harper's official visit to Thailand.

Prime Minister Stephen Harper and Yingluck Shinawatra, Prime Minister of ThailandThe exploratory talks will examine the potential economic benefits of a free trade agreement and how such an agreement would enhance the existing relationship between the two countries.

Thailand is Canada's largest bilateral merchandise trading partner within the 10-member Association of Southeast Asian Nations (ASEAN).

It has a population of almost 66 million and an economy that experienced significant economic growth in 2010, expanding by 7.8 percent. Thailand's geographic position at the centre of ASEAN, its strong transport infrastructure, and its focus on foreign investment have made it a regional manufacturing hub and home to a significant petrochemical industry.

In 2011, the year that marked 50 years of diplomatic relations between the two countries, Canada's bilateral merchandise trade with Thailand totalled nearly $3.5 billion, an increase of 14.8 percent over 2010.

Monday, March 26, 2012

U.S. appeals WTO decision that declared its meat labelling rules illegal


The United States Government notified the World Trade Organization's (WTO) Dispute Settlement Body of its decision to appeal the November 2011 panel reports which determined that the U.S. country of origin labeling rules (COOL) for meat violate global trade rules.

The WTO dispute settlement panel had been 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.

imageAccording 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 WTO panel decision recognized the integrated nature of the North American supply chain and marked a clear win for our industry," Canadian Agriculture Minister Gerry Ritz said in a statement expressing disappointment with the U.S. appeal.

Parties to a WTO dispute can appeal a panel's ruling. Appeals have to be based on points of law, such as legal interpretation - they cannot re-open factual findings made by the panel. Each appeal is heard by three members of a permanent seven-member Appellate Body comprising persons of recognized authority and unaffiliated with any government.

Generally, the Appellate Body has up to 3 months to conclude its report.

Friday, March 23, 2012

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
Canadian International Trade Tribunal
United States

More food additives and ingredients will soon require EDI import notification to CFIA


The Canadian Food Inspection Agency (CFIA) is continuing to implement changes to import notification requirements for commodities that fall under its jurisdiction.

The changes are implemented in about 10 phases over two years and affect approximately 1500 commodities.

Phase 9 will come into effect on June 25, 2012 and will require notification of importation by Electronic Data Interchange (EDI) for certain commodities under HS Chapters 3, 29, 32 and 33. The goods are described in Annex 1 of the CFIA Notice announcing the changes.

EDI reporting at the time of importation is the only additional requirements for these commodities. The purpose of the initiative is mostly to improve the availability of information the CFIA can use to identify and track food products when food safety issues occur.

We normally perform this type of reporting at time of importation for our clients. Do not hesitate to contact us, should you require additional information.

Link: Changes to Import Notification Requirements for products in the Non-Federally Registered Food Sector: Ninth Phase.

Thursday, March 22, 2012

St. Lawrence Seaway opens its 54th navigation season


The St. Lawrence Seaway Management Corporation marked the official opening of its 54th navigation season today at Lock 3 of the Welland Canal, in St. Catharines, Ontario.

imageThe Corporation predicts that cargo shipments will rise by about three per cent in 2012 to 38.6 million tonnes. Exports of coal are expected to be a bright spot, as producers in Montana route their product by rail to Great Lakes ports, where the cargo is loaded onto lakers and brought to the Port of Quebec via the Seaway. The coal is subsequently trans-shipped to ocean vessels destined for Europe, avoiding congested coastal ports.

A tug / barge transporting aluminum ingots from Sept-Iles (Quebec) served as Lock 3's season opening vessel.

Canadian and international carriers are in the process of building new vessels specifically designed to navigate the Seaway, with some scheduled to begin transiting Seaway waters in 2012.

Collister Johnson Jr., Administrator of the U.S. Saint Lawrence Seaway Development Corporation, noted that with carriers investing hundreds of millions of dollars in fleet renewal, the Seaway system's future is bright. "Marine transportation is already the most energy efficient means of moving cargo, and these new vessels will increase energy efficiency by up to 40% in addition to offering leading edge emissions performance," said Johnson.

Wednesday, March 21, 2012

Exploratory meetings on Canada-Mercosur free trade agreement


Canada's Minister of International Trade, Ed Fast, paid a two-day trade visit to Argentina this week, where he met with political and business leaders to advocate more trade and partnerships between Canada and Argentina, Brazil, Paraguay and Uruguay, the countries that make up the Mercosur customs union.

image"Canada-Mercosur exploratory trade talks are seeking to identify areas of mutual interest toward the potential negotiations of an agreement that would be mutually beneficial," said Minister Fast.

Exploratory discussions about potential negotiations have been productive. Two exploratory meetings between Canadian and Mercosur officials have already been held, with a third meeting expected to take place in Ottawa in May.

Mercosur, also known as the Southern Cone Common Market, is a customs union established by Argentina, Brazil, Paraguay and Uruguay in 1991. This regional bloc represents a significant economic presence in Latin America. In 2010, the four members of Mercosur had a combined GDP of $2.6 trillion and a population of about 243.5 million.

The Federal Government's consultation of Canadian businesses and citizens about a free trade agreement with Mercosur closed on March 19th.

Tuesday, March 20, 2012

International organizations changing the way world trade is measured


As more and more companies from around the world are producing goods and services through supply chains spanning different countries, traditional trade statistics are not showing a complete picture of international trade trade.

imageThe international fragmentation of production is blurring the concept of country of origin. It also calls into question the interpretation of traditional statistics that measure gross flows of goods and services every time they cross borders. Current indicators do not identify the contribution of each country to the total value of any good or service in the supply chain.

The Organisation for Economic Co-operation and Development (OECD) and World Trade Organisation (WTO) have thus launched a joint initiative to measure trade in the value that is added by a country - through labour compensation, taxes and profits - in the production of any good or service that is exported.

To better understand the dynamics of global supply-chains and the importance of trade to economic growth and employment, the two organisations will develop a new statistical model leading to the production of a public database of trade flows estimated in value-added terms.
Provisional results will be published in May-June 2012 with more detailed statistics expected by the end of the year.

Friday, March 16, 2012

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
  • Directive D-11-04 February 17, 2012 (Original) Canadian Compliance Program for Grain Screening Pellets (GSP) to meet the phytosanitary import requirements of the United States.
  • Meat Hygiene Directives: Korea, United States, Australia, Canada
United States

End of individual import permit requirement for carbon and specialty steel


With the publication of two ministerial orders, the Department of Foreign Affairs and International Trade announced the end, on April 1, 2012, of the import permit requirement for individual imports of carbon steel and specialty steel products.

imageThe orders amend "General Import Permit No. 80 - Carbon Steel" and "General Import Permit No. 81 - Specialty Steel Products" to exempt all steel imports from the need of a transaction-based import permit.

The creation by the Canada Border Services Agency of a new information-sharing system called "Pathfinder" will now enable the Department of Foreign Affairs and International Trade to access import data that would otherwise only be available through the issuance of individual import permits.

Import monitoring of steel products began on September 1, 1986, when carbon steel products were added to the Import Control List, with the purpose of monitoring when steel was being traded in circumstances of surplus supply and depressed prices.

Thursday, March 15, 2012

Weaker exports reduced Canada's January trade surplus


Statistics Canada announced that merchandise exports declined 2.3% in January and imports edged down 0.6%. As a result, Canada's trade surplus narrowed from $2.9 billion in December 2011 to $2.1 billion in January 2012. This was nevertheless the third consecutive monthly trade surplus.

imageExports decreased to $41.4 billion in January, as lower exports of precious metals and alloys as well as aircraft, engines and parts largely contributed to the decline in value. Higher exports of crude petroleum partially offset the decrease in exports.

Imports decreased to $39.3 billion in January. Six out of seven sectors posted declines, with industrial goods and materials, followed by energy products, contributing the most to the decrease.

Canada's trade surplus with the United States increased from $5.9 billion in December to $6.1 billion in January as south bound exports edged up 0.3% to $30.6 billion in January, largely on the strength of crude petroleum. Imports from the United States declined 0.3% to $24.5 billion. Consequently, .

Exports to countries other than the United States fell 9.0% to $10.8 billion in January, mainly the result of lower exports to the European Union and Japan. Imports from countries other than the United States decreased 0.9% to $14.8 billion. Canada's trade deficit with countries other than the United States increased from $3.0 billion in December to $4.0 billion in January.

Wednesday, March 14, 2012

CBSA determines that pup joints from China are dumped and subsidized


The Canada Border Services Agency (CBSA) announced, on Monday the 12th, its final determinations of dumping and subsidizing in respect of oil country tubular goods pup joints from China.

imageThe goods in question are more precisely described as oil country tubular goods pup joints, made of carbon or alloy steel, welded or seamless, heat-treated or not heat-treated, regardless of end finish, having an outside diameter from 2 3/8 inches to 4 1/2 inches (60.3 mm to 114.3 mm), in all grades, in lengths from 2 feet to 12 feet (61 cm to 366 cm).

Provisional duties are currently applied to these goods, following preliminary determinations by the CBSA and the Canadian International Trade Tribunal.

The Tribunal is continuing its inquiry into the question of injury to the domestic industry and will make an order or finding by April 10, 2012.

Formal anti-dumping and countervailing duties will apply if the Tribunal finds that the dumping and/or subsidizing is injuring Canadian producers. The margins of dumping and amounts of subsidy are published in the CBSA's final determination.

Tuesday, March 13, 2012

A few interesting facts about the Canada-U.S. trade relation


The Department of Foreign Affairs and International Trade published a few interesting facts about the Canada-United States trade relationship this week.

"Canada and the United States enjoy the largest commercial relationship in the world, with trade in goods and services totalling $708 billion in 2011. Some $1.9-billion worth of goods and services crosses the Canada-United States border every day.

Approximately 8 million jobs in the United States depend on trade with Canada, while 2.4 million or about one in seven in Canada are generated by trade with the United States. Canadian-owned companies in 17,000 locations across the United States employ more than 619,000 Americans.

Canada and the United States are each other's largest export market. In fact, Canada is the number one foreign market for goods for 35 of the 50 states.

In 2011, Canada's exports of goods and services to the United States were valued at $370.3 billion. Canada's main export products were mineral fuels and oils, motor vehicles and machinery.

Canadian imports of U.S. goods and services for the same year were valued at $337.8 billion and consisted principally of motor vehicles, machinery, and electrical and electronic equipment. Canada buys almost three times more from the United States than from China - more than China, Japan and the United Kingdom combined."

Friday, March 9, 2012

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
Canadian International Trade Tribunal
World Customs Organization
United States

Study recommends going ahead with Canada-Japan free trade negotiations


The Department of Foreign Affairs and International Trade published this week the Report of the Joint Study on the Possibility of a Canada-Japan Economic Partnership Agreement (EPA).

The Joint Study found sufficient common ground to launch the negotiation of a comprehensive and high-level EPA, leading to additional trade flows and economic gains for both Canada and Japan.

imageAccording to the study, such an EPA should not only be WTO-consistent but, wherever possible, should strive to reach WTO-plus provisions. In addition, a possible EPA should be negotiated as a 'single undertaking' to achieve a balanced outcome.

In the course of the study, simulations using the Global Trade Analysis Project (GTAP) model and database were carried out by both Canada and Japan. 

Though the simulations rely on a set of assumptions, estimates of gross domestic product gains under an EPA would be between US$4.4 billion and US$4.9 billion for Japan, and between US$3.8 billion and US$9.0 billion for Canada. The results also showed that gains from the bilateral trade between Canada and Japan would increase significantly as a result of a possible EPA.

Both Canada and Japan conducted stakeholder consultations. Representatives and experts from various sectors were invited to express their views on the existing measures in the two countries that may hinder the full potential of trade and investment, as well as to provide suggestions to enhance the existing economic relationship between the two countries.

The responses received by the Government of Canada were generally positive in nature and urged the Government of Canada to pursue possible EPA negotiations with Japan. A high proportion of respondents expressed the view that, despite the robustness of the existing trade and investment relationship between Canada and Japan, there were still many obstacles and much potential to improve the bilateral economic relationship.

The Joint Study recognizes that a comprehensive and WTO-consistent EPA would bring about significant benefits to Canada and Japan. Notwithstanding the significant benefits of an EPA, Canada and Japan note that there are sensitivities on both sides that will be considered in a balanced and mutually beneficial manner.

Thursday, March 8, 2012

Dumping of potassium silicate from Pakistan found injurious to Canadian production


The Canadian International Trade Tribunal conducted a preliminary injury inquiry into whether there is a reasonable indication that dumping and subsidizing of potassium silicate originating in or exported from Pakistan, have caused injury or retardation or are threatening to cause injury to Canadian production.

imageThe goods subject to the inquiry include potassium silicate (also known as silicic acid, potassium salt; potassium water glass; potash water glass; potassium silicate glass), of all grades and ratios in a soluble solid including chunks, flakes or powder forms.

The Tribunal announced on March 6 that it had determined that the evidence does not disclose a reasonable indication that the dumping and subsidizing of the above-mentioned goods have caused retardation.

However, 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 are threatening to cause injury.

The next step is expected by April 5, 2012, when the Canada Border Services Agency will issue a preliminary decision on whether the imports are indeed being dumped and/or subsidized.

Wednesday, March 7, 2012

Thermoelectric coolers and warmers from China assigned new values


The Canada Border Services Agency (CBSA) announced om March 1st the conclusion of a re-investigation of the normal values, export prices and amounts of subsidy of certain thermoelectric coolers and warmers originating in or exported from China.

The re-investigation was initiated on October 3, 2011, as part of the ongoing enforcement of the Canadian International Trade Tribunal's December 2008 findings of material injury.

The subject goods are described as certain thermoelectric containers that provide cooling and/or warming with the use of a passive heat sink and a thermoelectric module, excluding liquid dispensers, originating in or exported from the People's Republic of China.

The changes to the normal values, export prices and amounts of subsidy, as well as the dates of enforcement, are detailed in the CBSA's Notice of conclusion of re-investigation.

In its Notice the CBSA reminded importers that it is their responsibility to calculate and declare their anti-dumping 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.

Tuesday, March 6, 2012

International trade fell in most major economies at the end of 2011


According to the Organisation for Economic Co-operation and Development (OECD) merchandise trade contracted in most major economies in the fourth quarter of 2011.

imageTotal imports of G7 and BRICS countries shrank by 0.2%, following the 0.7% fall recorded in the previous quarter. Total exports fell 1.2% compared to a 0.9% increase in the previous quarter.

Merchandise trade fell sharply in all major euro zone economies, with both exports and imports back to levels seen around the beginning of 2011. Exports and imports fell in Germany (by 4.0% and 5.9% respectively), France (down 3.9% and 4.1%) and Italy (down 3.1% and 6.9%). Merchandise trade also slowed in the United Kingdom, with imports falling by 1.9% and exports rising only marginally by 0.3%.

Imports rose by 1.8% in the United States and by 4.7% in China but exports contracted in both economies for the first time since the second quarter of 2009. Imports grew marginally in Canada but exports also contracted.

In Japan, exports fell 5.0% compared with the 7.8% growth seen in the previous quarter which had been partly due to a technical rebound after the earthquake. Import growth slowed to 1.2%. Imports and exports also fell in India and South Africa but grew in Russia and Brazil.
(Source: OECD)

Friday, March 2, 2012

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
European Union
United States