(New York Times – Serwell Chan)
The United States and Brazil have reached an agreement aimed at settling a long-standing trade dispute over American subsidies to cotton growers, officials in both countries said Tuesday.
The announcement came one day before Brazil was to begin imposing up to $830 million in sanctions with authorization from the World Trade Organization. The trade body had ruled last August that American subsidies to cotton growers had violated global trade rules.
Under the preliminary deal, Brazil would hold off on retaliation in exchange for American concessions that include the modification of an export loan program and the establishment of a temporary assistance fund for the Brazilian cotton industry. The broader issues in contention would be deferred until Congress takes up the next farm bill, most likely in 2012.
The Brazilian sanctions were to include $591 million in higher tariffs on a wide array of goods, including autos, pharmaceuticals, medical equipment, electronics, textiles and wheat. Read more here.
Wednesday, April 7, 2010
Tuesday, April 6, 2010
AHPA Adopts New Extract Labeling Trade Requirement, Guidance
(Food Ingredients First)
In October 2008 the American Herbal Products Association (AHPA) adopted a trade requirement on how the word “extract” may be used in labeling of herbal ingredients, and established at that time a restriction against the use of the word extract to describe dehydrated plant materials that have not been subject to additional processing other than size reduction, such as cutting or milling. This initial policy was adopted in response to reports of dehydrated but otherwise unprocessed herbs, such as hoodia stem (Hoodia gordonii), being marketed for example as “Hoodia gordonii extract 20:1.”
The AHPA Board of Trustees voted March 11 to revise this original trade requirement to also address the use of extract ratios (such as “20:1” in the above example). The new policy therefore also prohibits the use of such ratios on herbal ingredients that are not processed by one or another extraction process. Click here to read the new rules recommended by the APHA.
In October 2008 the American Herbal Products Association (AHPA) adopted a trade requirement on how the word “extract” may be used in labeling of herbal ingredients, and established at that time a restriction against the use of the word extract to describe dehydrated plant materials that have not been subject to additional processing other than size reduction, such as cutting or milling. This initial policy was adopted in response to reports of dehydrated but otherwise unprocessed herbs, such as hoodia stem (Hoodia gordonii), being marketed for example as “Hoodia gordonii extract 20:1.”
The AHPA Board of Trustees voted March 11 to revise this original trade requirement to also address the use of extract ratios (such as “20:1” in the above example). The new policy therefore also prohibits the use of such ratios on herbal ingredients that are not processed by one or another extraction process. Click here to read the new rules recommended by the APHA.
BIS Eliminates Many Paper Documents
(World Trade Interactive)
The Bureau of Industry and Security has issued a final rule that, effective May 5, will enable it to eliminate the paper versions of most export and re-export licenses, notices of denial of license applications, notices of return of a license application without action, notices of results of classification requests, license exception AGR notification results, and encryption review request results. This rule also changes certain recordkeeping requirements associated with the elimination of paper documents.
The Bureau of Industry and Security has issued a final rule that, effective May 5, will enable it to eliminate the paper versions of most export and re-export licenses, notices of denial of license applications, notices of return of a license application without action, notices of results of classification requests, license exception AGR notification results, and encryption review request results. This rule also changes certain recordkeeping requirements associated with the elimination of paper documents.
Export Restrictions on Strategic Raw Materials and Their Impact on Trade and Global Supply
(WTO – Frank van Tongeren et al., OECD)
This paper examines the presence and impact on trade and global supply of export restrictions applied to selected metals and minerals. The strategic metals and minerals selected for this study have a number of shared characteristics which in turn determine their impact. Their exploitable mineral reserves are generally found in one or a few geographical regions of the world implying that their potential mining and export are concentrated in a few countries. For most of these strategic raw materials, the top three producing countries account for over half of world production. In some cases, production is so concentrated that over half of world production occurs in a single country. This in turn leads to a dependence on such imports by countries that consume these materials or the finished goods produced from them. It also suggests that countries producing these raw materials may influence their prices and quantities made available on world markets.
The metals and minerals in this study are generally used as inputs into high-technology or strategic sectors. Although often needed only in small quantities, these metals are increasingly essential to the development of technologically sophisticated products. They play a critical role in the development of innovative “environmental technologies” to boost energy efficiency and reduce greenhouse gas emissions. Hydrogen-fuel based cars, for example, require platinum-based catalysts; electric-hybrid cars need lithium batteries; and rhenium super alloys are an indispensable input for modern aircraft production. In addition, there are few substitutes available in the short-term for these raw materials. Read more here.
This paper examines the presence and impact on trade and global supply of export restrictions applied to selected metals and minerals. The strategic metals and minerals selected for this study have a number of shared characteristics which in turn determine their impact. Their exploitable mineral reserves are generally found in one or a few geographical regions of the world implying that their potential mining and export are concentrated in a few countries. For most of these strategic raw materials, the top three producing countries account for over half of world production. In some cases, production is so concentrated that over half of world production occurs in a single country. This in turn leads to a dependence on such imports by countries that consume these materials or the finished goods produced from them. It also suggests that countries producing these raw materials may influence their prices and quantities made available on world markets.
The metals and minerals in this study are generally used as inputs into high-technology or strategic sectors. Although often needed only in small quantities, these metals are increasingly essential to the development of technologically sophisticated products. They play a critical role in the development of innovative “environmental technologies” to boost energy efficiency and reduce greenhouse gas emissions. Hydrogen-fuel based cars, for example, require platinum-based catalysts; electric-hybrid cars need lithium batteries; and rhenium super alloys are an indispensable input for modern aircraft production. In addition, there are few substitutes available in the short-term for these raw materials. Read more here.
India-U.S. Financial and Economic Partnership Launched
(RTT News)
India and the United States have launched a bilateral economic and financial partnership that largely focuses on micro-finance, infrastructure and financial sector reforms. The partnership, launched by visiting U.S. Treasury Secretary Timothy Geithner and his Indian counterpart Pranab Mukherjee in New Delhi on Tuesday, aims at increasing trade and investment and create more job opportunities in both countries.
India asked U.S. investors to participate in its $600 billion infrastructure program in the next five years, while America sought greater financial cooperation with India for bringing about global economic stability.
U.S. argues that more open Indian markets would help make it easier and cheaper for India to access capital, which in turn could help finance the country’s growing infrastructure needs. Read more here.
India and the United States have launched a bilateral economic and financial partnership that largely focuses on micro-finance, infrastructure and financial sector reforms. The partnership, launched by visiting U.S. Treasury Secretary Timothy Geithner and his Indian counterpart Pranab Mukherjee in New Delhi on Tuesday, aims at increasing trade and investment and create more job opportunities in both countries.
India asked U.S. investors to participate in its $600 billion infrastructure program in the next five years, while America sought greater financial cooperation with India for bringing about global economic stability.
U.S. argues that more open Indian markets would help make it easier and cheaper for India to access capital, which in turn could help finance the country’s growing infrastructure needs. Read more here.
U.S. Import Boom Will Continue into Summer
(International Freighting Weekly – Mike King)
Retailers stock up as consumer spending gets back on course
U.S. retailers will continue to import containers at significantly higher volume levels than last year until at least late summer, according to leading forecasters. One Asia-based analyst said: “U.S. retail stocks are growing, which is a good indicator for container markets. U.S. retail spending is clearly increasing and we’re expecting 14-16% year-on-year growth into the US this quarter.”
February was the third successive month to show year-on-year volume gains at U.S. container ports, following 28 months of continuous decline, according to the monthly Global Port Tracker report produced for the U.S. National Retail Federation (NRF) by consultancy Hackett Associates. Jonathan Gold, NRF VP for supply chain and customs policy, said: “We expect these numbers to continue to climb as merchants and their customers move away from recession and back toward normal shopping habits.”
Member shipping lines of the Transpacific Stabilisation Agreement are understood to have been successful in introducing general rate increases in both directions on lanes between Asia and the U.S. Read more here.
Retailers stock up as consumer spending gets back on course
U.S. retailers will continue to import containers at significantly higher volume levels than last year until at least late summer, according to leading forecasters. One Asia-based analyst said: “U.S. retail stocks are growing, which is a good indicator for container markets. U.S. retail spending is clearly increasing and we’re expecting 14-16% year-on-year growth into the US this quarter.”
February was the third successive month to show year-on-year volume gains at U.S. container ports, following 28 months of continuous decline, according to the monthly Global Port Tracker report produced for the U.S. National Retail Federation (NRF) by consultancy Hackett Associates. Jonathan Gold, NRF VP for supply chain and customs policy, said: “We expect these numbers to continue to climb as merchants and their customers move away from recession and back toward normal shopping habits.”
Member shipping lines of the Transpacific Stabilisation Agreement are understood to have been successful in introducing general rate increases in both directions on lanes between Asia and the U.S. Read more here.
Anti Dumping Cases Increase as the Technique Becomes More Widely Adopted
(Metal Miner)
Fine words were espoused from all quarters during the economic crisis that countries would not adopt protectionist measures, but one year on and we can see that few have held to that line. The U.S. and Canadian authorities’ action over steel tubes and fasteners from China is one that naturally hit the headlines but to be fair the North Americans are far from alone.
Of course countries do not even have to apply a duty, just the threat of a case being under investigation is enough to choke off imports as the supply chain does not want to be caught holding material if a levy is applied. So when the
Russian government extended its year-long anti-dumping investigation into imports of nickel-bearing flat stainless steel products from China, Korea, Brazil and South Africa they were in effect extending a protectionist move without needing to actually apply a rate. The investigation, which commenced on 27 March 2009, will go on for another three months, the Russian ministry of industry and trade said. Meanwhile the €840/metric ton (US$1180/metric ton) import duty on stainless with nickel content of 2.5% or higher from the European Union expired on 20 March and although there is currently no sign of a new investigation into European stainless, “… producers will have to make some effort in order to reinstate their presence on Russian market,” Steel Business Briefing reported a Russian special steel association spokesman as ominously saying. […]
China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved…
Good work for the lawyers. Will all this legal wrangling ease as markets come out of recession and gradually return to strong growth, probably not. Whatever lawmakers say, anti-dumping and similar trade disputes have become a course of action favored as first resort by domestic metals producers and unions the world over. A sophisticated network of agencies has grown up on the back of it, lawyers, analysts and lobbyists, which can be swung into action if a case looks sufficiently promising. We are not saying many of the cases are not justified; currency manipulation is clearly a major cause of the problems with China; for example, if the Yuan was free floating the U.S. and Europe would have a lot less to complain about. But there are also a large number of cases where the process is used as blatant protectionism. Read more here.
Fine words were espoused from all quarters during the economic crisis that countries would not adopt protectionist measures, but one year on and we can see that few have held to that line. The U.S. and Canadian authorities’ action over steel tubes and fasteners from China is one that naturally hit the headlines but to be fair the North Americans are far from alone.
Of course countries do not even have to apply a duty, just the threat of a case being under investigation is enough to choke off imports as the supply chain does not want to be caught holding material if a levy is applied. So when the
Russian government extended its year-long anti-dumping investigation into imports of nickel-bearing flat stainless steel products from China, Korea, Brazil and South Africa they were in effect extending a protectionist move without needing to actually apply a rate. The investigation, which commenced on 27 March 2009, will go on for another three months, the Russian ministry of industry and trade said. Meanwhile the €840/metric ton (US$1180/metric ton) import duty on stainless with nickel content of 2.5% or higher from the European Union expired on 20 March and although there is currently no sign of a new investigation into European stainless, “… producers will have to make some effort in order to reinstate their presence on Russian market,” Steel Business Briefing reported a Russian special steel association spokesman as ominously saying. […]
China was targeted in 116 anti-dumping and anti-subsidy cases last year, with more than US$12 billion involved…
Good work for the lawyers. Will all this legal wrangling ease as markets come out of recession and gradually return to strong growth, probably not. Whatever lawmakers say, anti-dumping and similar trade disputes have become a course of action favored as first resort by domestic metals producers and unions the world over. A sophisticated network of agencies has grown up on the back of it, lawyers, analysts and lobbyists, which can be swung into action if a case looks sufficiently promising. We are not saying many of the cases are not justified; currency manipulation is clearly a major cause of the problems with China; for example, if the Yuan was free floating the U.S. and Europe would have a lot less to complain about. But there are also a large number of cases where the process is used as blatant protectionism. Read more here.
Monday, April 5, 2010
Work on U.S. Customs Starts April 12
(Dave Battagello — Windsor Star)
Customs plaza improvements on the U.S. side of the Detroit-Windsor Tunnel are scheduled to begin April 12.
The multimillion-dollar construction work will last several months and includes two phases -- the first to add another inspection booth, plus modifications to lanes 1 and 2. That work should be completed by June. A second phase will see creation of a bus processing area, expansion of the secondary inspection plaza and improvements to the U.S. customs office space. Read more here.
Customs plaza improvements on the U.S. side of the Detroit-Windsor Tunnel are scheduled to begin April 12.
The multimillion-dollar construction work will last several months and includes two phases -- the first to add another inspection booth, plus modifications to lanes 1 and 2. That work should be completed by June. A second phase will see creation of a bus processing area, expansion of the secondary inspection plaza and improvements to the U.S. customs office space. Read more here.
Canadian Dollar Inches Closer to Parity
(Paul Vieira — Financial Post)
The Canadian dollar inched ever closer to parity Monday morning, as traders rushed back into the markets on strong U.S. jobs data released Good Friday. And according to currency analysts, it is only a matter of days, maybe hours, before the loonie crosses the US$1 mark.
“All the stars have aligned for the Canadian dollar. Almost every single factor we look at is in favour of a Canadian dollar that is at or beyond parity on a sustainable basis,” said Camilla Sutton, Scotia Capital’s director of foreign exchange, suggesting parity could come at any moment. “We are not far now.”
As of 11 a.m. ET, the Canadian dollar was trading at the 99.70 US cents range, up from Thursday’s finish of 99.17 US cents and the highest level since July 2008. Read more here.
The Canadian dollar inched ever closer to parity Monday morning, as traders rushed back into the markets on strong U.S. jobs data released Good Friday. And according to currency analysts, it is only a matter of days, maybe hours, before the loonie crosses the US$1 mark.
“All the stars have aligned for the Canadian dollar. Almost every single factor we look at is in favour of a Canadian dollar that is at or beyond parity on a sustainable basis,” said Camilla Sutton, Scotia Capital’s director of foreign exchange, suggesting parity could come at any moment. “We are not far now.”
As of 11 a.m. ET, the Canadian dollar was trading at the 99.70 US cents range, up from Thursday’s finish of 99.17 US cents and the highest level since July 2008. Read more here.
Friday, April 2, 2010
News from TAHOCO
An updated list of recently published US government memorandums, notices, regulations and decisions for the week ending April 2, 2010 is now available on our website here.
Europe’s Biodiesel Producers Seek EU Anti-Fraud Probe of Canadian Shipments
(Juliane Von Reppet-Bismark — Globe & Mail)
The seizure by Italian customs officials of a shipload of Canadian biodiesel highlights the global battle for a slice of the growing renewable energy market.
A regional judge in Italy on Wednesday approved the seizure of 10,000 tonnes of biodiesel labelled as coming from Quebec and bound for the ports of Venice and Trieste. Italian customs officials blocked the cargo last month after receiving a tip that the material originally came from the United States.
Last May, the European Commission imposed duties on U.S. biodiesel for a five-year period, in response to what it said were illegal U.S. subsidies and export pricing practices. The duties have sent U.S. exports to Europe plummeting, to less than 400,000 tonnes in 2009 from 1.5 million tonnes in 2008.
The European Biodiesel Board (EBB), which represents European producers, believes the duties are being circumvented by the shipment of U.S. biodiesel through other countries, including Canada. The European producers claim the U.S. fuel is being labelled as coming from Canada, or that it is being mixed into Canadian biodiesel, for sale at a lower price than EU biodiesel of comparable quality. Read more here.
The seizure by Italian customs officials of a shipload of Canadian biodiesel highlights the global battle for a slice of the growing renewable energy market.
A regional judge in Italy on Wednesday approved the seizure of 10,000 tonnes of biodiesel labelled as coming from Quebec and bound for the ports of Venice and Trieste. Italian customs officials blocked the cargo last month after receiving a tip that the material originally came from the United States.
Last May, the European Commission imposed duties on U.S. biodiesel for a five-year period, in response to what it said were illegal U.S. subsidies and export pricing practices. The duties have sent U.S. exports to Europe plummeting, to less than 400,000 tonnes in 2009 from 1.5 million tonnes in 2008.
The European Biodiesel Board (EBB), which represents European producers, believes the duties are being circumvented by the shipment of U.S. biodiesel through other countries, including Canada. The European producers claim the U.S. fuel is being labelled as coming from Canada, or that it is being mixed into Canadian biodiesel, for sale at a lower price than EU biodiesel of comparable quality. Read more here.
Thursday, April 1, 2010
U.S. Trade Office Targets China’s Procurement Policy
(Jeff Plungis — Bloomberg)
The U.S. trade office rapped the Chinese government in a report... for imposing procurement and import restrictions that harm American companies, while steering clear of the debate over currency policy. China’s proposal to buy only software and equipment made in that nation discriminates against foreign competitors, the Trade Representative’s office said in an annual report on barriers to U.S. goods and services worldwide. The Obama administration is examining the Asian nation’s regulations and tax policies.
The report doesn’t mention China’s policies on valuing its currency, the renminbi, as one of the impediments to U.S. exports. China, which has held the renminbi, or yuan, at about 6.83 per dollar for the past 20 months to aid exporters, has been criticized by U.S. lawmakers who are looking for the trade office to pursue retaliatory action through import tariffs.
The trade office instead focused on other complaints by U.S. businesses including the proposal to limit government purchases of computer and other technology equipment containing what China has labeled “indigenous innovation.”
“The Obama administration is following through on its commitment to call out and break down barriers to American exports worldwide,” U.S. Trade Representative Ron Kirk said in a statement. Read more here.
The U.S. trade office rapped the Chinese government in a report... for imposing procurement and import restrictions that harm American companies, while steering clear of the debate over currency policy. China’s proposal to buy only software and equipment made in that nation discriminates against foreign competitors, the Trade Representative’s office said in an annual report on barriers to U.S. goods and services worldwide. The Obama administration is examining the Asian nation’s regulations and tax policies.
The report doesn’t mention China’s policies on valuing its currency, the renminbi, as one of the impediments to U.S. exports. China, which has held the renminbi, or yuan, at about 6.83 per dollar for the past 20 months to aid exporters, has been criticized by U.S. lawmakers who are looking for the trade office to pursue retaliatory action through import tariffs.
The trade office instead focused on other complaints by U.S. businesses including the proposal to limit government purchases of computer and other technology equipment containing what China has labeled “indigenous innovation.”
“The Obama administration is following through on its commitment to call out and break down barriers to American exports worldwide,” U.S. Trade Representative Ron Kirk said in a statement. Read more here.
Factories Crank Up Output as Demand Rises
(Reuters – Steven C. Johnson and Jonathan Cable)
Factories in the United States, Europe and Asia cranked up production last month, suggesting recovery from a deep recession was taking root in economies around the globe.
The U.S. manufacturing sector grew at its fastest pace in more than five years last month and activity in Europe bounced higher, with a cheaper euro helping stimulate exports. UK manufacturing expanded at its fastest pace since 1994, while China’s vast industrial sector also grew in March.
U.S. stock indexes rose along with equity markets across Europe and Asia as the data bolstered hopes the worst global downturn in generations was ending. Read more here.
Factories in the United States, Europe and Asia cranked up production last month, suggesting recovery from a deep recession was taking root in economies around the globe.
The U.S. manufacturing sector grew at its fastest pace in more than five years last month and activity in Europe bounced higher, with a cheaper euro helping stimulate exports. UK manufacturing expanded at its fastest pace since 1994, while China’s vast industrial sector also grew in March.
U.S. stock indexes rose along with equity markets across Europe and Asia as the data bolstered hopes the worst global downturn in generations was ending. Read more here.
Containers Pile Up as Lines Skip India on Way to Europe
(International Freighting Weekly – Gavin van Marle, Lloyd’s List)
Shippers suffer as box carriers seek higher returns from Asia
Indian exporters and western apparel retailers are facing a congestion nightmare as containers pile up at India’s ports and container shipping lines operating out of Asia give the country a wide berth en route to Europe.
Grant Liddell, key account director at leading UK logistics provider Uniserve, said trade out of India was prone to severe delays. “It is exactly like the situation was out of China in November, when it was really difficult to get space on vessels to Europe and air freight was also suffering massive congestion,” he said. “Once again we are seeing congestion of the two combining, following the reduction of capacity by both shipping lines and airlines.”
Western India Shippers’ Association vice-president K Venkatesh said the situation was likely to get worse before it gets better. “At a conservative estimate, there are between 20,000 and 35,000 boxes lying around India at the moment, especially in the arc between Nhava Sheva and Tuticorin, and the lines have not so far been able to clear this backlog,” Read more here.
Shippers suffer as box carriers seek higher returns from Asia
Indian exporters and western apparel retailers are facing a congestion nightmare as containers pile up at India’s ports and container shipping lines operating out of Asia give the country a wide berth en route to Europe.
Grant Liddell, key account director at leading UK logistics provider Uniserve, said trade out of India was prone to severe delays. “It is exactly like the situation was out of China in November, when it was really difficult to get space on vessels to Europe and air freight was also suffering massive congestion,” he said. “Once again we are seeing congestion of the two combining, following the reduction of capacity by both shipping lines and airlines.”
Western India Shippers’ Association vice-president K Venkatesh said the situation was likely to get worse before it gets better. “At a conservative estimate, there are between 20,000 and 35,000 boxes lying around India at the moment, especially in the arc between Nhava Sheva and Tuticorin, and the lines have not so far been able to clear this backlog,” Read more here.
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