(Jeremy Torobin — Globe & Mail)
Industry Minister Tony Clement says government is concerned Obama’s new jobs bill may bring about measures similar to Buy American legislation
The Canadian government is concerned the new jobs bill that President Barack Obama has asked Congress for may be used by U.S. lawmakers to push through more protectionist measures similar to the hated Buy American legislation.
“Whenever anything goes to Congress there is always the threat of new protectionist measures,” Industry Minister Tony Clement told reporters in Ottawa. “We’re going to have to continue to work, because we know that Congress is a place where things can pop up at the last moment and be tacked onto pieces of legislation.”
While the minister offered no concrete update on Canadian efforts to be granted an exemption from the Buy American provisions in last year’s stimulus bill, he said negotiations are ongoing and said he is “quite hopeful” they’ll yield a positive result. Read more here.
Friday, February 5, 2010
Locke Says Enforcement Will Help U.S. Double Exports
(Reuters – Doug Palmer)
The United States will insist other countries honor commitments to open their markets as it strives to meet President Barack Obama’s goal of doubling exports during the next five years, U.S. Commerce Secretary Gary Locke said on Thursday.
“Free trade only works in a system of rules where all parties live up to their obligations,” Locke said in the prepared text of a speech he was to give detailing Obama’s National Export Initiative, or NEI. “The United States is committed to a rules-based trading system where the American people and the Congress can feel confident that when we sign an agreement that gives foreign countries the privilege of free and fair access to our domestic market, we are treated the same.”
Locke did not direct his comments at China or any country by name. But Obama made clear on Wednesday the United States planned to keep up pressure on Beijing. “The approach that we’re taking is trying to get much tougher about enforcement of existing rules, putting constant pressure on China and other countries to open up their markets in reciprocal ways,” he told Democratic senators. Read more here.
The United States will insist other countries honor commitments to open their markets as it strives to meet President Barack Obama’s goal of doubling exports during the next five years, U.S. Commerce Secretary Gary Locke said on Thursday.
“Free trade only works in a system of rules where all parties live up to their obligations,” Locke said in the prepared text of a speech he was to give detailing Obama’s National Export Initiative, or NEI. “The United States is committed to a rules-based trading system where the American people and the Congress can feel confident that when we sign an agreement that gives foreign countries the privilege of free and fair access to our domestic market, we are treated the same.”
Locke did not direct his comments at China or any country by name. But Obama made clear on Wednesday the United States planned to keep up pressure on Beijing. “The approach that we’re taking is trying to get much tougher about enforcement of existing rules, putting constant pressure on China and other countries to open up their markets in reciprocal ways,” he told Democratic senators. Read more here.
Deal Easing Buy American Policy Comes at a Price
(Les Whittington — Toronto Star)
The Conservative government today announced a tentative Canada-United States procurement deal intended to help Canadian companies get around the protectionist wall thrown up by recession-battered Americans.
But in exchange, Canada is giving American firms access to billions of dollars in contracts by provincial governments and, in some cases, municipalities, federal government officials said.
The long-sought compromise is an agreement in principle but Trade Minister Peter Van Loan said Ottawa fully expects the provinces to approve the deal and the U.S. government is committed to implementing its part of the agreement, which will not require approval from the U.S. Congress. Read more here.
Related:
• Joint Statement on Canada-U.S. Agreement on Government Procurement (DFAIT)
• U.S., Canada make it official on Buy American (CTV News – Video)
• Ottawa hails Buy American deal (Globe & Mail)
• Protectionism ‘breakthrough’ reached (National Post)
• ‘Too little, too late’ on trade: Ignatieff (Globe & Mail)
The Conservative government today announced a tentative Canada-United States procurement deal intended to help Canadian companies get around the protectionist wall thrown up by recession-battered Americans.
But in exchange, Canada is giving American firms access to billions of dollars in contracts by provincial governments and, in some cases, municipalities, federal government officials said.
The long-sought compromise is an agreement in principle but Trade Minister Peter Van Loan said Ottawa fully expects the provinces to approve the deal and the U.S. government is committed to implementing its part of the agreement, which will not require approval from the U.S. Congress. Read more here.
Related:
• Joint Statement on Canada-U.S. Agreement on Government Procurement (DFAIT)
• U.S., Canada make it official on Buy American (CTV News – Video)
• Ottawa hails Buy American deal (Globe & Mail)
• Protectionism ‘breakthrough’ reached (National Post)
• ‘Too little, too late’ on trade: Ignatieff (Globe & Mail)
Thursday, February 4, 2010
CBP: HSU 1001 – Changes to the 2010 Harmonized Tariff Schedule
(CBP)
Harmonized System Update (HSU) 1001 was created on February 2, 2010 and contains 5,359 ABI records and 712 harmonized tariff records.
This update contains changes made as a result of the Committee for Statistical Annotation of Tariff Schedules, the 484(F) Committee.
Background:
CBP programmed in ABI the changes to the HTS that were approved by the 484(f) Committee and went into effect on 01/01/10. Among the changes approved by the 484(f) Committee was a request by the USDA (United States Department of Agriculture) to report milk solids content of dairy products in the kilogram unit of measure. Dairy related tariff numbers were modified to include an additional reporting unit of measure indicating ‘CKG’ (Content in Kilograms). The ‘CKG’ indication referred to the weight in kilograms associated with the milk solids content.
On January 27, 2010, the 484(f) Committee met once again and per their request, CBP removed these units of quantities from the affected records. The unit of quantity change is effective March 1, 2010, and the newly amended records are included in this update.
In addition, tariff changes associated with Annex II of the Jordan Free Trade Agreement, that included additional tariff numbers eligible for the Jordan Free Trade Agreement were made, effective January 1, 2010.
Finally, this update contains changes required by the verification of the 2010 Harmonized Tariff Schedule (HTS).
The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at Jennifer.Keeling@dhs.gov.
Harmonized System Update (HSU) 1001 was created on February 2, 2010 and contains 5,359 ABI records and 712 harmonized tariff records.
This update contains changes made as a result of the Committee for Statistical Annotation of Tariff Schedules, the 484(F) Committee.
Background:
CBP programmed in ABI the changes to the HTS that were approved by the 484(f) Committee and went into effect on 01/01/10. Among the changes approved by the 484(f) Committee was a request by the USDA (United States Department of Agriculture) to report milk solids content of dairy products in the kilogram unit of measure. Dairy related tariff numbers were modified to include an additional reporting unit of measure indicating ‘CKG’ (Content in Kilograms). The ‘CKG’ indication referred to the weight in kilograms associated with the milk solids content.
On January 27, 2010, the 484(f) Committee met once again and per their request, CBP removed these units of quantities from the affected records. The unit of quantity change is effective March 1, 2010, and the newly amended records are included in this update.
In addition, tariff changes associated with Annex II of the Jordan Free Trade Agreement, that included additional tariff numbers eligible for the Jordan Free Trade Agreement were made, effective January 1, 2010.
Finally, this update contains changes required by the verification of the 2010 Harmonized Tariff Schedule (HTS).
The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. For further information about this process, please contact your client representative. For all other questions regarding this message, please contact Jennifer Keeling via email at Jennifer.Keeling@dhs.gov.
Sustainable Surge in U.S. Growth?
(Export Development Canada – Peter G. Hall)
The U.S. economy surprised everyone in the closing months of 2009. Preliminary figures show the economy churned out impressive 5.7% annualized growth. As the U.S. led the world into recession, it is expected to lead us out. Does the fourth-quarter, 2009 surge herald the beginning of recovery?
Although unusual, quarterly growth at this pace has been seen before, sometimes in the middle or close to the peak of an economic cycle. But in past U.S. experience, rapid quarterly gains often occur just after a period of recession – the recovery phase of the cycle – and have been known to last for 3-5 consecutive quarters. The timing seems to be right; is this burst of growth sustainable?
A quick scan of the sources of growth shows a varied picture. Inventory stabilization played a huge role, accounting for 60% of quarterly growth. This is a strong signal, indicating that the U.S. economy is returning to balance. However, consumer spending, a key engine of global demand, produced a lukewarm 2% gain, weaker than third-quarter growth and a sign that Americans are still moving forward with caution. In contrast, red-hot export growth added more to bottom-line GDP than all of consumer spending, although exports are just one-sixth the size of the US consumer sector. Read the complete article and/or watch the video here.
The U.S. economy surprised everyone in the closing months of 2009. Preliminary figures show the economy churned out impressive 5.7% annualized growth. As the U.S. led the world into recession, it is expected to lead us out. Does the fourth-quarter, 2009 surge herald the beginning of recovery?
Although unusual, quarterly growth at this pace has been seen before, sometimes in the middle or close to the peak of an economic cycle. But in past U.S. experience, rapid quarterly gains often occur just after a period of recession – the recovery phase of the cycle – and have been known to last for 3-5 consecutive quarters. The timing seems to be right; is this burst of growth sustainable?
A quick scan of the sources of growth shows a varied picture. Inventory stabilization played a huge role, accounting for 60% of quarterly growth. This is a strong signal, indicating that the U.S. economy is returning to balance. However, consumer spending, a key engine of global demand, produced a lukewarm 2% gain, weaker than third-quarter growth and a sign that Americans are still moving forward with caution. In contrast, red-hot export growth added more to bottom-line GDP than all of consumer spending, although exports are just one-sixth the size of the US consumer sector. Read the complete article and/or watch the video here.
Drewry Publishes Carriers’ Financial Stress Index
(eyefortransport)
A new report from Drewry Shipping Consultants reveals that only two of the carriers tracked in the financial stress index are operating above the “distress zone”. Drewry Shipping Consultants’ new Freight Shipper Insight provides up-to-date market information on demand trends, freight rate developments and macro-economic indicators specific to the ocean, air, rail and road freight sectors.
Read more here.
A new report from Drewry Shipping Consultants reveals that only two of the carriers tracked in the financial stress index are operating above the “distress zone”. Drewry Shipping Consultants’ new Freight Shipper Insight provides up-to-date market information on demand trends, freight rate developments and macro-economic indicators specific to the ocean, air, rail and road freight sectors.
Read more here.
WTO: Interactive Service Gives Tariff Research New Sophistication
(WTO)
A new service was added to the WTO’s set of tools for finding out information on customs tariffs on 3 February 2010. The latest addition, “Tariff Analysis Online”, is the WTO’s most versatile so far. It includes the greatest available level of detail on the tariffs that WTO members have legally bound and the rates they are actually charging, summary import statistics, and the ability to analyse these interactively.
Tariff Analysis Online draws on two WTO databases: the Integrated Database (IDB) of tariff and import data, and the Consolidated Tariff Schedules, which contains WTO members’ commitments on tariffs and agricultural subsidies.
It provides users with flexible search criteria and produces a range of analytical reports – the results of the searches – covering both tariffs and imports, in detail and summary levels. Users can manipulate the analysis online and download and print the resulting reports.
The development of the new service is in line with the Market Access Committee’s decision of 13 July 2009 to make detailed information on tariffs available to the public.
The existing Tariff Download Facility is simpler and would be the service of choice for users looking for more basic information. It provides standardized statistical information on bound, applied and preferential tariffs on products defined in slightly less detail, by Harmonized System (HS) six-digit codes, with the ability to compare between countries swiftly.
A third service, the World Tariff Profiles, provides similar information to that of the Tariff Download Facility but for broader product categories.
A new service was added to the WTO’s set of tools for finding out information on customs tariffs on 3 February 2010. The latest addition, “Tariff Analysis Online”, is the WTO’s most versatile so far. It includes the greatest available level of detail on the tariffs that WTO members have legally bound and the rates they are actually charging, summary import statistics, and the ability to analyse these interactively.
Tariff Analysis Online draws on two WTO databases: the Integrated Database (IDB) of tariff and import data, and the Consolidated Tariff Schedules, which contains WTO members’ commitments on tariffs and agricultural subsidies.
It provides users with flexible search criteria and produces a range of analytical reports – the results of the searches – covering both tariffs and imports, in detail and summary levels. Users can manipulate the analysis online and download and print the resulting reports.
The development of the new service is in line with the Market Access Committee’s decision of 13 July 2009 to make detailed information on tariffs available to the public.
The existing Tariff Download Facility is simpler and would be the service of choice for users looking for more basic information. It provides standardized statistical information on bound, applied and preferential tariffs on products defined in slightly less detail, by Harmonized System (HS) six-digit codes, with the ability to compare between countries swiftly.
A third service, the World Tariff Profiles, provides similar information to that of the Tariff Download Facility but for broader product categories.
Wednesday, February 3, 2010
USDA Instructions on Label Verification for Imported Meat and Poultry
(World Trade Interactive)
The Department of Agriculture’s Food Safety and Inspection Service issued Feb. 2 a directive providing instructions to its import inspection personnel on performing label verification procedures when reinspecting imported meat and poultry products. LVPs are conducted to ensure that foreign establishments exporting these products to the U.S. adhere to the labeling requirements in the federal meat and poultry regulations.
Among the instructions provided by this directive are the following.
• Labels must be in English and mechanically printed, stenciled or stamped directly on the shipping container or on a self-adhesive label affixed to the shipping container.
• Shipping containers (e.g., boxes, bags, barrels, crates or other receptacles or coverings that contain fully labeled immediate containers) must be labeled with the name of the country of origin (preceded by “product of”), the establishment number assigned by the foreign meat inspection system and certified to FSIS, a unique shipping mark used to link the product to the foreign health certificate, and any applicable special handling statements. In addition, there must be sufficient space on the main and end panel for the U.S. mark of inspection. (This requirement is not applicable to product from Canada since the U.S. mark of inspection is applied to the health certificate and import application.)
• If shipping containers hold product packaged in immediate containers, those immediate containers must bear all of the mandatory label features, which include the name or a descriptive designation of the product, an ingredients statement (if needed), the foreign establishment number, any needed handling statements, the net quantity of the contents (if needed), the manufacturer’s or distributor’s name and address, any required nutrition labeling, the name of the country of origin (preceded by the words “product of”), and safe handling instructions for raw and partially cooked meat and poultry products that have not undergone further processing that would render them ready-to-eat and are destined for the consuming public.
Read more here.
The Department of Agriculture’s Food Safety and Inspection Service issued Feb. 2 a directive providing instructions to its import inspection personnel on performing label verification procedures when reinspecting imported meat and poultry products. LVPs are conducted to ensure that foreign establishments exporting these products to the U.S. adhere to the labeling requirements in the federal meat and poultry regulations.
Among the instructions provided by this directive are the following.
• Labels must be in English and mechanically printed, stenciled or stamped directly on the shipping container or on a self-adhesive label affixed to the shipping container.
• Shipping containers (e.g., boxes, bags, barrels, crates or other receptacles or coverings that contain fully labeled immediate containers) must be labeled with the name of the country of origin (preceded by “product of”), the establishment number assigned by the foreign meat inspection system and certified to FSIS, a unique shipping mark used to link the product to the foreign health certificate, and any applicable special handling statements. In addition, there must be sufficient space on the main and end panel for the U.S. mark of inspection. (This requirement is not applicable to product from Canada since the U.S. mark of inspection is applied to the health certificate and import application.)
• If shipping containers hold product packaged in immediate containers, those immediate containers must bear all of the mandatory label features, which include the name or a descriptive designation of the product, an ingredients statement (if needed), the foreign establishment number, any needed handling statements, the net quantity of the contents (if needed), the manufacturer’s or distributor’s name and address, any required nutrition labeling, the name of the country of origin (preceded by the words “product of”), and safe handling instructions for raw and partially cooked meat and poultry products that have not undergone further processing that would render them ready-to-eat and are destined for the consuming public.
Read more here.
Tuesday, February 2, 2010
Updated ISF 10+2 FAQs
(CBP)
An updated version of the 10+2 FAQs have been posted to our website. The most recent changes have been highlighted for your convenience.
This version of the FAQs can be found on the Security Filing 10+2 page here.
An updated version of the 10+2 FAQs have been posted to our website. The most recent changes have been highlighted for your convenience.
This version of the FAQs can be found on the Security Filing 10+2 page here.
Governor Granholm Calls For International Trade Enforcement
(WHTC Online)
Michigan Governor Jennifer Granholm is pushing to have international trade agreements properly enforced. The Democratic lawmaker told CNN’s “State of the Union” things have improved on that front since President Obama took office, saying it’s, quote, “overdue like a million jobs in Michigan overdue.”
She added other countries have been able to “beat the pants off us in this trade war.” Granholm called it “crazy” that the U.S. would have trade agreements that aren’t enforced and then enter into new ones that give advantages to other countries.
Will ‘Buy American’ Rear Its Head in Several New Pieces of U.S. Legislation?
(Lee-Anne Goodman — The Canadian Press)
In his proposed US$3.8-trillion annual budget submitted to Congress on Monday, President Barack Obama is once again stressing job creation as a form of life support for the seriously ailing U.S. economy. […]
The seeming escalation of Buy American looms as negotiators from the U.S. and Canada are ensconced in 11th-hour talks revolving around a possible Canadian exemption from the protectionist provisions in the American Recovery and Reinvestment Act.
Rumours of an imminent deal have been swirling in D.C. in recent weeks, with whispers that Obama would use his executive power to deem that portions of the Canadian economy could be considered American since supply chains in both countries are so intrinsically entwined.
Yet it's unclear if a last-minute exemption from the recovery act would apply to any future Buy American provisions that could confront Canadian manufacturers in various pieces of legislation in the weeks and months ahead. Read more here.
Related: Canada braces for fallout as Barack Obama unveils budget (Toronto Star)
In his proposed US$3.8-trillion annual budget submitted to Congress on Monday, President Barack Obama is once again stressing job creation as a form of life support for the seriously ailing U.S. economy. […]
The seeming escalation of Buy American looms as negotiators from the U.S. and Canada are ensconced in 11th-hour talks revolving around a possible Canadian exemption from the protectionist provisions in the American Recovery and Reinvestment Act.
Rumours of an imminent deal have been swirling in D.C. in recent weeks, with whispers that Obama would use his executive power to deem that portions of the Canadian economy could be considered American since supply chains in both countries are so intrinsically entwined.
Yet it's unclear if a last-minute exemption from the recovery act would apply to any future Buy American provisions that could confront Canadian manufacturers in various pieces of legislation in the weeks and months ahead. Read more here.
Related: Canada braces for fallout as Barack Obama unveils budget (Toronto Star)
China Says US Protectionism Endangers Trade Ties
(AFP)
China accused the United States of protectionism that has “seriously affected” their trade ties, state media reported late Monday, amid a worsening spat between the two countries.
Ministry of Commerce spokesman Yao Jian made the comments on the ministry’s web site in response to US moves to impose anti-dumping duties on electric blankets and wire trays from China, news agency Xinhua said.
“Since the outbreak of the financial crisis, the US trade protectionism has been apparently on the rise, and China has become the biggest victim of US abuse of trade relief measures,” Yao said, according to Xinhua. Read more here.
Related: Five Political Risks to Watch in China (Reuters)
China accused the United States of protectionism that has “seriously affected” their trade ties, state media reported late Monday, amid a worsening spat between the two countries.
Ministry of Commerce spokesman Yao Jian made the comments on the ministry’s web site in response to US moves to impose anti-dumping duties on electric blankets and wire trays from China, news agency Xinhua said.
“Since the outbreak of the financial crisis, the US trade protectionism has been apparently on the rise, and China has become the biggest victim of US abuse of trade relief measures,” Yao said, according to Xinhua. Read more here.
Related: Five Political Risks to Watch in China (Reuters)
Monday, February 1, 2010
NEXUS Goes Overtime to Assist Hockey Fans at the Canadian Border
(NHL/Buffalo Sabres)
The Buffalo Sabres today announced a new partnership with the Peace Bridge Authority (PBA) to create more public awareness of the NEXUS program. To make this program more user friendly for hockey fans, the NEXUS lanes entering Canada have now had their hours extended by the Canadian Border Services Agency (CBSA) following all Sabres home games, and will continue to do so during the 2011 World Junior Championship in Buffalo.
“An efficient, smooth flowing border is critical to the prosperity of the binational region and organizations like the Buffalo Sabres that add so much to the quality of life in this area,” said Anthony Annunziata, Chairman of the Peace Bridge Authority. “The CBSA is to be commended for their commitment to improve the functionality of the border, and to ensure that not only Sabres games but also major events like the World Junior Championship can be attended and enjoyed without the border being an impediment.” Read more here.
Related: Sale of 10 acres set to extend Customs (Watertown Daily Times)
U.S. Manufacturers Report Compelling Evidence of Evasion of Antidumping Duties on Imported Steel Wire Products
(PR Newswire)
$84 million annual loss to U.S. Treasury, negative impact on jobs documented
A coalition of U.S. manufacturers has compiled compelling evidence that certain companies subject to antidumping orders are costing the U.S. Treasury at least $84 million annually due to their deliberate evasion of the antidumping duties. In addition, more than 275 jobs have been lost in the innerspring and hanger industries alone, and additional jobs are threatened by these ongoing schemes to avoid antidumping duties. The information is being presented to Members of Congress, the U.S. Department of Commerce, and U.S. Customs and Border Protection to seek stronger enforcement of existing antidumping orders that are designed to maintain a level playing field for U.S. manufacturers and their workers.
The Coalition for Enforcement of Antidumping and Countervailing Duty Orders consists of several U.S. manufacturers of steel wire products, including steel nails, uncovered innerspring units, steel wire garment hangers, and carbon steel threaded rod, each of which separately petitioned the U.S. Government for relief from unfairly traded imports. Each of these industries, after nearly two years of proceedings before the International Trade Commission and the Department of Commerce, established that foreign companies were selling these products in the U.S. at less than fair value and that these sales were materially injuring U.S. industries; subsequently, Commerce issued antidumping duty orders that levied import duties on these items, in some cases up to 234%, as a way to remedy the injury caused by dumped imports. Read more here.
$84 million annual loss to U.S. Treasury, negative impact on jobs documented
A coalition of U.S. manufacturers has compiled compelling evidence that certain companies subject to antidumping orders are costing the U.S. Treasury at least $84 million annually due to their deliberate evasion of the antidumping duties. In addition, more than 275 jobs have been lost in the innerspring and hanger industries alone, and additional jobs are threatened by these ongoing schemes to avoid antidumping duties. The information is being presented to Members of Congress, the U.S. Department of Commerce, and U.S. Customs and Border Protection to seek stronger enforcement of existing antidumping orders that are designed to maintain a level playing field for U.S. manufacturers and their workers.
The Coalition for Enforcement of Antidumping and Countervailing Duty Orders consists of several U.S. manufacturers of steel wire products, including steel nails, uncovered innerspring units, steel wire garment hangers, and carbon steel threaded rod, each of which separately petitioned the U.S. Government for relief from unfairly traded imports. Each of these industries, after nearly two years of proceedings before the International Trade Commission and the Department of Commerce, established that foreign companies were selling these products in the U.S. at less than fair value and that these sales were materially injuring U.S. industries; subsequently, Commerce issued antidumping duty orders that levied import duties on these items, in some cases up to 234%, as a way to remedy the injury caused by dumped imports. Read more here.
U.S. Transportation, Security Budgets Flat for 2011
(R.G. Edmonson — Journal of Commerce)
President’s budget proposal adds 2.3 percent for both departments
Initial figures for fiscal 2011 indicate that the departments of Transportation and Homeland Security will be marking time financially in fiscal 2011, in keeping with President Obama’s promise last week to freeze the budget as a deficit-reduction measure.
The bottom-line numbers published Monday for both departments show a 2.3 percent increase over fiscal 2010, which barely keeps up with inflation. According to the Bureau of Labor Statistics, the Consumer Price Index grew 2.7 percent in 2009; the Producer Price Index grew 4.4 percent. Read more here.
President’s budget proposal adds 2.3 percent for both departments
Initial figures for fiscal 2011 indicate that the departments of Transportation and Homeland Security will be marking time financially in fiscal 2011, in keeping with President Obama’s promise last week to freeze the budget as a deficit-reduction measure.
The bottom-line numbers published Monday for both departments show a 2.3 percent increase over fiscal 2010, which barely keeps up with inflation. According to the Bureau of Labor Statistics, the Consumer Price Index grew 2.7 percent in 2009; the Producer Price Index grew 4.4 percent. Read more here.
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