Today's Headlines | Wednesday, February 25, 2009
I.E.Canada News
April
20-22, 2009 – Emerging Issues in Customs and Trade
Conference Highlight – ACI/eManifest Update
Every
day until the "Emerging Issues
in Customs and Trade" Conference, I.E.Canada will
feature a conference highlight in I.E.Today.
Tuesday April 21, 2009
8:40 am to 9:45 am
CBSA Update - ACI/eManifest
In 2008, the eManifest External Stakeholder Partnership Network (eSPN) met
in Ottawa to receive an update on the progress of eManifest – the third
phase of the Advance Commercial Information initiative. Under eManifest highway
carriers will have to transmit crew, conveyance and cargo data electronically
to CBSA pre-arrival, and importers/brokers will have to transmit admissibility
data. The End State/Design Working Group continues to consult with CBSA on
draft data sets, the proposed deployment plan and critical issues such as First
Point of Arrival. Find out about the latest developments and how eManifest
will impact business processes for carriers and importers. You will receive
the latest update on implementation of CBSA’s EDI strategy, a critical
step in preparation for eManifest.
Moderator: Tracey Speares,
Chair, I.E.Canada’s Customs Committee
Mike Leahy, Project Manager, eManifest Development, CBSA (invited)
Larry Hahn, Director, Regulatory Affairs, Livingston International Inc.
Colin Worley, Director, Customs Compliance, Loblaw’s Inc.
I.E.Canada’s 18th Annual Conference and Trade show, themed "Emerging
Issues in Customs and Trade," will be held from April 20-22, 2009 at the
Hilton Toronto Airport Hotel located at 5875 Airport Road by the Toronto airport.
One-day, two-day and three-day packages are available. For a copy of the brochure and the latest information on the conference, including the agenda, speaker and sponsor listings, trade show opportunities, registration options, and I.E.Canada contacts, please visit http://www.iecanada.com/events.html#18th_annual .
We to look forward to seeing you, April 20-22, 2009.
Top
Advocacy: We Need Your Input
CFIA:
Wood Packaging Materials Survey
CFIA is currently assessing the economic impact of removing the
International Standard for Phytosanitary Measures (ISPM #15) exemption
for Wood Packaging Material (WPM) moving between Canada and the U.S.
In order to do so, we developed this survey to be completed by, wood pallet and wood packaging users, as well as manufacturers, and processors. Although portions of the survey may not be relevant to your particular group/business, it is important to complete those sections of interest to your group/business.
Please, fill out the attached questionnaire and send it back to CFIA at your convenience. Do not hesitate to contact CFIA for more info if need be.
Please send completed survey directly to CFIA by March 6, 2009
Mr. Albekaye Samake
Economist,
Regulatory, Legislative and Economics Analysis Division Canadian Food Inspection
Agency
1400 Merivale Road, Tower 02, Ottawa, ON, K1A OY9
Tel: (613) 773-5897 Fax: (613) 773-5960
albekaye.samake@inspection.gc.ca
Health
Canada: Lead Content Limits Survey
HDR|Decision Economics,
a private consulting company, is conducting surveys on behalf of Health
Canada to determine the potential economic costs associated with proposed
Regulations to reduce the lead content limit for Group 2 products to 90mg/kg
total lead. Group 2 products include children’s equipment, furniture,
toys, clothing and accessories and other items intended for use by a child
in learning or play.
Attached are the instructions [http://www.iecanada.com/ietoday/feb_09/Lead_Instructions.doc] and surveys, one for manufacturers [http://www.iecanada.com/ietoday/feb_09/Lead_Manufacturer_Survey.doc] and one for retailers/importers/distributors [http://www.iecanada.com/ietoday/feb_09/Lead_Importer_Survey.doc]. The survey deadline is March 6.
If you have any questions or concerns, please contact:
David Dawson
Economist
HDR
1545 Carling Ave. Suite 410, Ottawa, ON, K1Z 8P9
Phone: 613.234.1586, Fax: 613.238.6096
News of the Day
Private
and Public Investment 2009 (Intentions)
(Statistics Canada)
Investments in non-residential construction and machinery and equipment are expected
to total $237.5 billion in 2009, down 6.6% from 2008. While public sector capital
spending is expected to increase 9.5%, private sector investment is anticipated
to fall by 13.1%, mainly due to the mining and oil and gas extraction industry.
Investment intentions in the mining and oil and gas extraction sector total $44.9
billion, 26.4% less than in 2008.
Capital spending will decline primarily in Alberta and British Columbia.
Private sector investment is expected to drop 13.1% to $157.9 billion in 2009.
The decrease is largely attributable to the mining and oil and gas extraction
sector. If that sector had been excluded, the decline in private-sector investment
would have been reduced by half.
In contrast, total public sector investment will be $79.6 billion, up 9.5% from
2008. As a result, the public sector share of total capital spending will climb
from 28.6% in 2008 to 33.5% in 2009.
The declining demand and falling oil prices experienced in late 2008 resulted
in the cancellation or postponement of a number of investment projects. Capital
expenditures in the conventional oil and gas extraction industry are expected
to drop by 25.0% to $21.3 billion. That will be the industry's third consecutive
reduction in capital spending. In the non-conventional industry, mainly the Alberta
oil sands, investment is expected to total $13.2 billion, 31.1% less than in
2008.
Investment intentions in the mining sector are down 26.4% to $5.6 billion in
2009.
Lower capital spending is expected in 13 of the 20 industries that make up the
manufacturing sector. For the sector as a whole, investments of $18.4 billion
are planned, which represents an 8.5% decline. Investment decisions were affected
by the slowdown in the global economy in the second half of 2008 and its impact
on overall demand. The largest cuts in spending intentions are in the wood products
(-28.8%), petroleum and coal products (-28.0%) and transportation equipment (-7.7%)
manufacturing industries.
Investment intentions for 2009 are down in Alberta, as a number of projects in
the oil and gas extraction industry were suspended. The expected value of private
and public investment is $62.5 billion, a 15.3% decrease from 2008. In British
Columbia, investment intentions total $27.9 billion, down 9.8%. The decline is
partly due to lower spending in the oil and gas extraction sector and transportation
and warehousing industries. Capital expenditures will also fall substantially
in Northwest Territories and Nunavut, as a result of the slowdown in the mining
industries.
Investments in Ontario will decrease slightly (-1.6%), as higher spending by
public administrations will offset the spending reductions in manufacturing and
the mining industries. In Quebec, increased investment by public administrations
will make up for lower spending in the mining industries, leaving total investment
virtually unchanged (-0.4%).
Public administrations plan to invest $39.7 billion, up 10.5%, following a 22.3%
increase in 2008. The federal government's contribution will be 12.6%, compared
with 37.6% from the provincial and territorial governments, and 49.8% from regional,
municipal and local governments. The growth in capital spending is largely attributable
to local governments, whose capital expenditures are expected to total $19.8
billion in 2009, 13.2% more than the previous year. Both the federal (+6.3%)
and the provincial and territorial (+8.5%) governments will also boost their
spending. The increase in capital expenditures by the public sector is also evident
in the utilities industry and the transit and ground passenger transportation
industry. More than two-thirds of the investment in those industries comes from
the public sector.
Charts and a link to the data files are at http://www.statcan.gc.ca/daily-quotidien/090225/dq090225a-eng.htm
Food
Safety Inquiry Takes Shape
(Globe & Mail – Bill
Curry)
An all-party team of just seven MPs will be in charge of a Parliamentary review
of Canada's food safety system. The probe will operate as a sub-committee
of the Commons Agriculture Committee. It will look into the events surrounding
last summer's Listeriosis outbreak that killed at least 20 people, but also
the larger issue of food safety and food inspection in Canada.
The hearings are expected to include a review of federal policies that give
industry a greater role in the food safety and inspection process.
Plans are already afoot, according to Liberal MP Wayne Easter, to have the
committee use its powers to subpoena documents related to the outbreak that
the government is refusing to release to reporters through Access to Information
legislation. Mr. Easter said the committee may also hold in-camera hearings
to allow individuals to testify anonymously to the committee without fear
of retribution from their employer.
The hearings are expected to begin shortly and there is so far no date set
on when they will end. The probe was struck out of concern by some MPs that
the government's Listeriosis inquiry, headed by Alberta health expert Sheila
Weatherill, does not have adequate powers.
Conservatives on the agriculture committee say they fully support the investigation
by MPs.
Conservative MP Pierre Lemieux, who is parliamentary secretary to Agriculture
Minister Gerry Ritz, said he ensured the study was approved in an open hearing
so the public could see the Conservatives were on-side. “I wanted to
make sure that the facts were well known,” he said. “That we all
supported a food safety study and that it be done by a sub-committee.”
President Barack Obama
sought to strike a delicate balance between hope and reality on Tuesday to
reassure
Americans mired in economic crisis that they
would survive a "day of reckoning."
Riding high in opinion polls as he delivered his first address to a joint session
of Congress, Obama was careful to include a sober assessment of the grim economic
situation and his efforts to fix it.
But the politician whose memoir was called "The Audacity of Hope" and
who won the White House in last November's election amid chants of "yes,
we can" was also back in stride, telling recession-weary Americans they
can expect better days ahead.
"While our economy may be weakened and our confidence shaken, though we
are living through difficult and uncertain times, tonight I want every American
to know this: We will rebuild, we will recover," Obama, a Democrat, said
in a televised speech five weeks after taking office.
"And the United States of America will emerge stronger than before," he
said to loud applause in the packed chamber. Obama was interrupted by applause
more than 60 times as he addressed Congress, where Democrats control both chambers. …
Read the complete article at http://ca.reuters.com/article/topNews/idCATRE51N3VT20090225
U.S.:
There's No Stimulus Free Lunch
(HACER – Gary
S. Becker & Kevin M. Murphy, University of Chicago)
How much will the stimulus package moving in Congress really stimulate the economy?
The evaluations to date have been incomplete, so we looked at the likely stimulative effect from the spending parts of the House and Senate bills – over $500 billion – and assessed the quantitative effects of four basic factors.
1) How much increase in Gross Domestic Product (GDP) can be expected from the stimulus package?
In a full-employment situation, increased government spending would largely replace private spending, so the net stimulus to GDP would likely be quite small. In the present environment, however, with growing unemployment of both labor and capital, the net stimulus would be larger since the additional government spending would put some unemployed resources to work.
For example, if the government spent money to build new homes with unemployed labor, the stimulus to GDP might be close to, even larger than, the amount spent. However, given the present housing glut, that hardly seems to be a wise policy, although it is a small part of both the House and Senate stimulus packages.
In fact, much of the proposed spending would be in sectors and on programs where the government would mainly have to draw resources away from other uses. This type of spending includes adding broadband to rural areas, spending more on health coverage, encouraging scientific innovations, developing renewable energy, as well as many other things.
As President Barack Obama recently said, "This plan is more than a prescription for short-term spending – it's a strategy for America's long-term growth and opportunity in areas such as renewable energy, health care and education." Such spending may encourage long-term growth, but it will have little short-term effect on GDP.
So our conclusion is that the net stimulus to short-term GDP will not be zero, and will be positive, but the stimulus is likely to be modest in magnitude. Some economists have assumed that every $1 billion spent by the government through the stimulus package would raise short-term GDP by $1.5 billion. Or, in economics jargon, that the multiplier is 1.5.
That seems too optimistic given the nature of the spending programs being proposed. We believe a multiplier well below one seems much more likely.
2) The increased government spending in the stimulus package is supposed to be only temporary, until the economy returns to a full employment level, but probably won't be.
The evidence of past expansions of government programs is just the opposite. Once created they tend to survive and grow over time, even when the increases initially were said to be temporary. The underlying reason for this is that interest groups develop around new and expanded programs, and they lobby to keep and expand those programs.
This implies that the spending programs in the stimulus package will continue to some extent after the economy has returned to full employment. The multiplier at that time will surely be much closer to zero. Looking several years ahead, then, the average stimulus from the expansion in government spending will be smaller, perhaps much smaller, than the short-term stimulus.
3) The effects on consumers and businesses of the stimulus package depend not only on the stimulus to short-term GDP, but also on how valuable the spending is.
Whatever the merits of other government spending, the spending in this package is likely to have less value. A very large amount of money will be spent quickly over a two-year period: $500 billion amounts to about one-quarter of the total federal government annual spending of $2 trillion. It is extremely difficult for any group, private as well as public, to spend such a large sum wisely in a short period of time.
In addition, although politics play an important part in determining all government spending, political considerations are especially important in a spending package adopted quickly while the economy is reeling, and just after a popular president took office. Many Democrats saw the stimulus bill as a golden opportunity to enact spending items they've long desired. For this reason, various components of the package are unlikely to pass any reasonably stringent cost-benefit test.
4) There are no free lunches in spending, public or private.
The increased federal debt caused by this stimulus package has to be paid for eventually by higher taxes on households and businesses. Higher income and business taxes generally discourage effort and investments, and result in a larger social burden than the actual level of the tax revenue needed to finance the greater debt. The burden from higher taxes down the road has to be deducted both from any short-term stimulus provided by the spending program, and from its long-run effects on the economy.
We believe that it is incumbent on both supporters and opponents of the bill to thoughtfully evaluate each of these four factors. We recognize that how individuals will come out in their own evaluation of these factors will determine their attitude toward the stimulus package, and that there is considerable ground for reasonable differences of opinion.
Our own view is that the short-term stimulus from the legislation before Congress will be smaller per dollar spent than is expected by many others because the package tries to combine short-term stimulus with long-term benefits to the economy. Unfortunately, short-term and long-term gains are in considerable conflict with each other. Moreover, it is very hard to spend wisely large sums in short periods of time. Nor can one ever forget that spending is not free, and ultimately it has to be financed by higher taxes.
Mr. Becker, the 1992 Nobel economics laureate, is professor of economics at the University of Chicago and senior fellow at the Hoover Institution. Mr. Murphy, a MacArthur Fellow, is an economics professor at the University of Chicago and a senior fellow at the Hoover Institution.
[U.S.]
Manufacturing Production Will Likely Grow by 3% in 2010
(Industry Week – Adrienne
Selko)
MAPI predicts a 9% decline in 2009
A harsh 2009 may give way to a moderate rebound in 2010, according to the
Manufacturers Alliance/MAPI U.S. Industrial Outlook: Accelerating Decline,
a quarterly report that analyzes 27 major industries. On an annual basis, MAPI
forecasts manufacturing production to fall 9% in 2009 and grow 3% in 2010.
"Fortunately, we see an eventual end to the current recession, perhaps by
late 2009," said Daniel J. Meckstroth, Ph.D., Chief Economist for the Manufacturers
Alliance/MAPI. "A second round of federal fiscal stimulus, this time of
major proportions; growing pent-up demand as spending is postponed; lower commodity
prices, particularly oil; lower mortgage and borrowing rates resulting from
Federal Reserve monetary stimulus; and declining imports will all contribute
to a rebound in industrial production activity in late 2009."
Manufacturing industrial production, measured on a quarter-to-quarter basis,
declined at a 16% annual rate in fourth quarter 2008 after falling at a 9%
annual rate in the third quarter.
Non-high-tech manufacturing production declined at a steep 15% annual rate
in the fourth quarter of 2008. Non-high-tech manufacturing production is expected
to decline 8% this year and rebound a modest 2% in 2010. High-tech industrial
production fell at a 29% annual rate in the fourth quarter of 2008. MAPI predicts
it will decline 10% in 2009 and post 6% growth in 2010.
Steel production declined 41%, material handling equipment dropped by 25%,
and industrial machinery and domestic electronic computer equipment production
each decreased by 23%.
Domestic electronic computer equipment will decline 16% in 2009 and 13% in
2010, while electrical equipment will decline 10% in 2009 and 1% in 2010.
Merrigan
Nominated for Deputy Ag Secretary
(UPI.com)
Kathleen Merrigan has been nominated by U.S. President Barack Obama to be deputy
secretary of Agriculture, officials said Tuesday. Agriculture Secretary Tom Vilsack
said Merrigan, currently an agriculture professor at Tufts University in Boston, "will
bring to (the Agriculture Department) extensive expertise in agricultural marketing
and nutrition and in legislative affairs and will provide excellent, experienced
leadership as we move President Obama's agricultural and nutritional agenda forward."
Merrigan in 1999 was appointed administrator of the department's Agricultural
Marketing Service by President Bill Clinton. Prior to that, she was a senior
analyst at the Henry A. Wallace Institute for Alternative Agriculture and an
expert consultant at the Food and Agriculture Organization of the United Nations
in Rome, Agriculture Department officials said.
[U.S.]
Lawmakers Seek New Gov't Agency for Food Safety
(Associated
Press – Mary Clare Jalonick)
Lawmakers are pushing for a new government agency that would be responsible for
food safety in the wake of a massive salmonella outbreak in peanuts. A bill sponsored
by Connecticut Rep. Rosa DeLauro, a Democrat, would divide the Food and Drug
Administration in two, separating the agency's drug oversight and food safety
duties.
Agriculture Secretary Tom Vilsack has gone even further, suggesting that all
the government agencies responsible for food safety, including those that are
part of the Agriculture Department, should combine into one. The FDA bears the
brunt of food safety oversight, but at least 15 government agencies have a hand
in making sure food is safe.
[U.S.]
Apparel Group Slams Import Monitoring Plan
(American
Shipper)
A major apparel association is urging Congress to reject language in its 2009
appropriations bill that would instruct the Commerce Department to monitor
apparel imports from China and Vietnam.
“There is absolutely no factual basis for such monitoring; it is nothing more than unjustified, WTO (World Trade Organization) inconsistent, useless protectionism, that won’t bring a single job back to the United States” said Laura E. Jones, executive director of the U.S. Association of Importers of Textiles and Apparel in a statement issued Tuesday.
The 2009 appropriations bill includes a provision asserting that Congress “expects” the Commerce Department “to undertake apparel import monitoring, focusing on prices of imports from China and Vietnam and whether their state-run industries are illegally pricing products and dumping in the U.S. market.” Similar language was included in a House appropriations report last year.
Data
Show Deepening of Slump in Europe
(International
Herald Tribune – Judy Dempsey)
The economic downturn has spread across an even wider swath of Europe, from the
largest economy to some of the newest members of the European Union, according
to data released Tuesday. German business sentiment dropped to its lowest level
in 26 years, dragged down by bleak assessments about the state of the global
economy and the expectation of more layoffs, according to the Ifo survey.
The Ifo index, which is based on a survey of 7,000 company executives, fell this
month to 82.6 compared with 83 in January – and 104 this time last year,
when the German economy, the largest in Europe, was enjoying high levels of growth
and bumper export figures.
"The worsening business situation that has been going on for months has
continued
in February," said Hans-Werner Sinn, president of the Ifo Institute for
Economic Research, at the University of Munich. Although he added that the business
outlook for the coming half year "has been appraised slightly less negatively," Sinn
said that the export sector would continue to contract and that there were plans
in works for more layoffs.
Industrial orders in the euro-zone countries fell sharply in December, with factories
reporting a steep drop in demand for their goods. Eurostat, the European Union's
statistics division, reported Tuesday that industrial orders in the 16 countries
that use the euro slumped by 5.2% from November and dropped 22.3% from a year
earlier. This is the fifth consecutive monthly drop as demand falls for machinery
and electronic equipment.
Also on Tuesday, Latvia's credit rating was cut to junk by Standard & Poor's
because of a "worsening external outlook" triggered by the global financial
crisis. The country's rating was lowered one level to BB+ from BBB- with a negative
outlook, S&P said. The Latvian economy contracted 10.5% in the fourth quarter,
the worst performance in the European Union, and the Latvian coalition government,
which collapsed on Friday, was pushed to take a €7.5 billion or $9.6 billion
bailout from a group led by the International Monetary Fund, Bloomberg News reported.
Other Baltic states are facing stress. Estonia's A rating and Lithuania's BBB+
rating were put on credit watch with negative implications Tuesday by S&P.
On Monday, four East European central banks – in Poland, Hungary, Romania
and the Czech Republic – issued coordinated statements in an effort to
prop up their ailing currencies. The central banks argued that the recent sell-off
of their currencies on foreign exchange markets was not justified by their economic
fundamentals.
The Ifo findings coincide with fresh estimates by the International Monetary
Fund on Germany's growth prospects and news of more moves by manufacturers to
shorten work weeks, particularly in Germany's ailing car industry. The IMF estimated
last week that the German economy would contract 2.5% this year. The Federal
Statistics Office already showed that the economy shrank by 2.1% during the final
quarter of 2008, which is the biggest slump in two decades and which plunged
the country into recession.
Adding to the gloom, Norbert Walter, Deutsche Bank's chief economist, said on
German television this week that he expected, at best, a 5% contraction in the
German economy in 2009. This result would come "only if we have a real upswing
in the summer," he said. "It cannot be ruled out that this upswing
will not come."
Volkswagen said this week that two-thirds of its 92,000 employees would have
their working hours reduced.
But Mario Ohoven, the president of the German Association for Small and Medium-sized
Businesses, warned against excessive pessimism.
Germany
the Lone Euro Zone Economy Expected to Shrink Next Year
(CEP News)
While the euro zone economy as a whole is likely to manage a modest gain of 0.3% in 2010, the German economy is expected to fall 0.2% over the same period, the European Economic Advisory Group said. In a report published on Wednesday, EEAG expects the German economy to be the only one within the euro zone to decline next year, as its dependence on global trade will likely hinder recovery.
"Germany is expected to be hit relatively hard," EEAG said in its
report. "Large parts of the economy are much dependent upon international
trade. Private consumption in Germany has been weak for years now and a strong
turnaround is not expected anytime soon."
Top
Poland:
Wine and Distilled Spirits Face New Import Regime from March 1
(FlexNews – U.S.
Government)
From March 1, 2009, Poland will initiate a new excise stamp regime for alcohol.
Excise tax stamp plans were updated simultaneously for tobacco. The plan mirrors
a UK move in 2005. Poland’s Ministry of Finance aims to simplify the regime
with fewer kinds of stamps, but at the same time does raise the excise by nine
percent. The new regulations reduce the number of stamps issued from forty to
eight, and improves the security of the stamp with more counterfeit fighting
technology.
At present, the new system proscribes that product stamped with the old excise may continue to be sold until September 1, 2009. FAS Warsaw is satisfied, speaking to contacts, that the phase in will be extended an additional six months. Under ideal circumstances, duty paid, imported product should never be restamped.
The Polish Government seems to be aware of international concern over the phase in of the new stamp regime and is on the verge of approving the use of the old stamp from September 1, 2009 to March 1, 2010. After that deadline, store owners can restamp products and they would not be recalled. Amending this rule to extend the restamping deadline is within the authority of the Ministry of Finance and does not need interministerial or legislative approval.
Contacts at the Ministry of Finance have been receptive of U.S. industry concerns. The Distilled Spirits Council of the United States has been active in communicating to the Government of Poland that the new stamp regime should be introduced with a long period for changing the stamps and about new costs of administering the stamp regime.
It appears that the overall increase in administering the program and the increase in the excise tax are only nine percent higher than the Ministry’s last update to the excise tax in 2005. The new excise stamp regime does require a substantial increase in the prepayment for stamps, but that this amount is credited to the exporter and will be applied against the eventual levy of the excise. The Ministry of Finance stated clearly to FAS officers that the overall increase of the levy is nine percent.
The United States directly exports just under $10 million to Poland in wine
and distilled spirits annually. About $15 million in U.S. product is stored
in bonded warehouses in the UK or Germany and moved to Poland after excise
is paid and bottles stamped. The provisions for higher excise taxes affect
beer sales after March 1, 2009, as well, but stamping is not required.
Top
China
Sends Buying Mission to Europe
(Associated
Press – Joe McDonald)
A 200-member delegation of Chinese officials and businesspeople flew to Europe
on a multibillion-dollar buying mission Tuesday that Beijing said was meant
to promote free trade amid the global economic crisis.
The mission will go to Germany, Switzerland, Spain and Britain, countries visited
by Premier Wen Jiabao in January, the Commerce Ministry said. China often arranges
such buying missions in conjunction with high-level official visits.
The delegation will buy technology needed for its economic modernization, a
ministry spokesman, Yao Jian, said last week. Employees who answered the phone
Tuesday at the ministry declined to give other details. But state media say
purchases could total up to 15 billion yuan ($2.2 billion).
"Under the severe circumstances of the world economic recession due to
the global financial crisis, the Chinese government has organized this trade
and investment
promotion delegation to Europe in deepen Chinese-European trade, positively
expand imports from Europe and express China's support for an open market," the
ministry said in a statement.
A deputy commerce minister, Gao Hucheng, was quoted as saying China opposed
protectionist sentiment that has arisen as a result of the global slowdown.
The mission is meant to strengthen Chinese-European commercial and political
ties ahead of President Hu Jintao's trip to a London meeting April 2 of leaders
of the Group of 20 major economies, the government newspaper China Daily said.
British Prime Minister Gordon Brown has called for governments at the meeting
to renounce protectionism as part of efforts to restore global economic health.
Top
Japan’s
Exports Plunge 46% in a Year
(New
York Times – Bloomberg News)
Japan’s exports plunged 45.7% in January from a year earlier, resulting
in a record trade deficit, as recessions in the United States and Europe smothered
demand for the country’s cars and electronics. The shortfall widened to
952.6 billion yen ($9.9 billion), the Finance Ministry said on Wednesday in Tokyo.
It was the biggest deficit since 1980, the earliest year for which there is comparable
data. The drop in shipments abroad eclipsed a record 35% decline set in December.
Exports to the United States tumbled 52.9% from a year earlier, and shipments
to Europe also posted big declines. The collapse is likely to force Japanese
companies to keep firing workers and closing factories, worsening an economy
that shrank the most in 34 years last quarter.
“The pressure on companies to cut jobs and investment is rising and that
will
make the recession deep and protracted,” said Yasuhide Yajima, a senior
economist at NLI Research Institute.
Exports to China fell 45.1% and those to Asia dropped 46.7%.
Top
Taipei
Container Terminal Opens
(CIFFA
eBulletin – American Shipper)
The first phase of a new
container terminal in the Port of Taipei has opened, Asian news outlets reported
this week. The Taipei Port Container Terminal has
the financial backing of Taiwan's three largest ocean carriers – Evergreen,
Yang Ming and Wan Hai and expects to handle 750,000 TEUs in its first year.
In its first phase, the terminal will have two berths and capacity for 1.1
million TEUs. Plans are to expand it by seven berths for a total capacity of
4 million TEUs. The port could marginalize the nearby port of Keelung because
it has deeper draft and because it has the backing of the three local carriers – Evergreen has
a 50% stake, Wan Hai a 40% stake and Yang Ming the remaining
10%. TPCT could also steal business from Taiwan's biggest
port, Kaohsiung, which was once one of the three busiest ports in the world
but has seen its ranking slide in recent years. The Taipei terminal will offer
shippers more direct links to and from Taiwan's biggest city and capital.
Top
New
Release of CFIA EDI
(CFIA)
Please be advised that
a new version of the CFIA EDI system is tentatively scheduled to rollout
on March 3, 2009. The system was updated to address business
requirements, and to expedite / streamline requests for release. Clients will
not be required to make any changes to their existing systems as a result of
these upgrades. The CFIA Import Control Division does not expect these changes
to cause any interruptions of service.
Top
Get
Ready for Canadian Rule
(Fast Company – Anya
Kamenetz)
Now that Dubai has collapsed, Canada's looking like the next best place to weather
the economic storm. "When the tidal wave comes, the question is can you
still feel the ground under your feet? And we can." That's the view of Sandra
Pupatello, Ontario's minister of International Trade and Investment, whom I met
with today in New York.
Surprisingly, Canada's economy is outperforming the rest of the developed world.
Its banks were too strictly regulated to take in the worst excesses of the subprime
madness and as a result, it's beating even Swiss banks: In fact, at the beginning
of the crisis last fall, the country's banks were rated the best capitalized
in the world. While the U.S. has been tiptoeing up to the necessity of bank nationalization,
Stephen Harper's Conservative government has no problem with charges of "socialism." They've
put into place one of the most generous bank stimulus plans around to try to
stem the credit crunch.
The willingness to embrace a strong role for public investment in innovation,
particularly when it achieves social and environmental goals, was Pupatello's
major talking point in New York this morning. Ontario accounts for 40% of Canada's
GDP, and the government's $1.15 billion Next Generation of Jobs fund [http://www.ontariocanada.com/ontcan/en/nextgen_main_en.jsp]
provides matching investments of 15 to 20% for Ontario-based companies to expand
operations and create jobs in clean cars, fuels, technologies, and products.
For example, they kicked in $8 million for 6N, a next-generation manufacturer
that transforms lower grades of silicon for use in solar cells; and they've partnered
with Better Place, the electric-car-and-charger company. Another example of public,
private and university collaboration is the MaRS discovery district, a nonprofit
innovation center that brings together biotech researchers, VCs, and social entrepreneurs
in the same part of downtown Toronto with several research hospitals.
If you're interested in hatching a Canadian escape plan, good news – the
country actually has immigration targets of over 250,000 people a year.
Top
Customs
No
Short-Term Action Expected on [CBP] Uniform Rules of Origin Proposal
(World Trade Interactive)
Reports from industry trade associations indicate that U.S. Customs and Border Protection is not expected to take further action anytime soon on a July 2008 proposed rule that would establish uniform rules governing the country of origin of imported merchandise. Specifically, this proposal would (a) extend the application of the so-called tariff-shift country of origin rules set forth in 19 CFR Part 102.20, (b) amend the country of origin rules applicable to pipe fittings and flanges, printed greeting cards, glass optical fiber and rice preparations, and (c) revise the textile regulations set forth in 19 CFR 102.21.
According to reports, during a recent meeting between the Treasury Department and a number of industry associations it became clear that the two sides view the proposed rule differently. Treasury said the rule was intended to ease burdens on CBP and industry by reducing the number of inputs whose origin must be known to determine the ultimate product’s essential character. The trade community, however, sees the rule as a major change that would require manufacturers to determine the origin of all materials used in the production of a good.
Treasury officials acknowledged
that the proposed rule does not accurately reflect CBP’s original intent
and said it cannot move forward until this discrepancy is addressed. Treasury
and CBP will continue to consider how best
to do this over the coming months. In the meantime the trade community will
be seeking a meeting on the proposal with CBP as well.
Top
New Publications
IBM
Releases 2009 Chief Supply Chain Officer Study: Volatile Times Demand Pervasive
Visibility and Flexibility
(CNN Money)
IBM's Global Supply Chain study, based on face-to-face interviews with nearly
400 supply chain executives in 25 countries, reveals that 70% say their number
one challenge is overwhelming and fragmented data, as well as a lack of ability
to make sense out of the information. However fixing this "visibility" problem
is low on action plans because it is costly, difficult, silos are worse than
ever and respondents say they are just too busy.
Supply chain leaders understand the threat of information blind spots, but
they are only cautiously optimistic that they are taking steps to use their
valuable information for real competitive advantage. Just 16% indicated that
they are effective at integration and visibility of information across the
supply chain with external partners.
The study shows the greatest opportunity for these executives are smart devices
and integrated ERP systems that capture real time visibility: forecasts/orders,
schedules/commitments, pipeline inventory, and shipment lifecycle status. Automating
real-time detection with smart devices increases flexibility, speed and accuracy
to promote better decision-making.
The Global Supply Chain study, titled The Smarter Supply Chain of the Future,
was developed by IBM Global Business Services' Supply Chain Management Practice
in conjunction with the IBM Institute for Business Value, which develops fact-based
strategic insights for senior business executives. Supply chain executives
in 29 industries participated in structured interviews and candidly talked
about their most serious challenges.
According to the study, the number two issue for these executives is the having
the visibility and flexibility to manage risk, with 60% of respondents saying
risk is escalating as a concern. The last decade has been peppered with wake-up
calls: tainted food and toys, random acts of terrorism and, most recently,
the dramatic downturn in global economics, which will destabilize supply chains
as trading partners retrench or fail.
Among the respondents, 38% manage risk and supply chain performance in some
manner, but with separate tools and processes. Executives cite the lack of
standardized processes, insufficient data and inadequate technologies as the
chief stumbling blocks preventing effective risk management. The most successful
supply chain executives are incorporating risk management into their plans,
and using analytical predictive tools to mitigate risk, and identify new opportunities.
"As important as cheaper, faster, better is, this year, we're beginning
to hear a new verse – a clear message about the overwhelming need for
greater visibility and flexibility to manage risk," said Sanjeev Nagrath,
Global Leader, Supply Chain Management, IBM Global Business Services. "A
crisis in one country or region can now ripple very quickly across the world
economy,
creating tremendous turbulence. As supply chains have become more complex,
global and stressed, the executives we spoke with believe they must drive far
more intelligence throughout their supply chains if they are going to anticipate,
rather than react."
IBM's report calls for a future supply chain that is thoroughly instrumented,
interconnected and intelligent. It brings together the ability of human know-how
and technological excellence to make optimal use of machine-generated data – flowing
out of sensors, RFID tags, meters, actuators, and GPS. The entire supply chain
will be connected – not just among customers, suppliers and IT systems
in general, but also parts, products and other smart objects used to monitor
events within the supply chain. In addition, supply chain decisions will be
more intelligent on two fronts – automated for real time responses to
a range of external stimuli and also removing latency and increasing the certainty
about the outcomes of actions taken by business decision makers.
In addition, the leadership function will become more strategic. According
to the supply chain executives who were interviewed for the study, most are
overseeing traditional functions like distribution and logistics (77%), demand/supply
planning (72%), and sourcing and procurement (63%). But some are rising to
the level of a chief supply chain officer, taking a place in the C-Suite and
orchestrating strategy through execution in the complexities of today's global
supply chains in an ever-increasingly volatile marketplace.
IBM says the evolving role of the chief supply chain executive will also become "chief
collaborator," bringing together stakeholders (even those outside the
extended supply chain, like regulators, financial organizations and governments)
and facilitating joint planning and risk mitigation. Negotiation and stakeholder
management skills will be components of the future supply chain expertise.
Top
Industry Events
Brazil
Mining Sector: Building Alliances in Exceptional Times – March 3,
2009
The Brazil
Canada Chamber of Commerce in collaboration with BRASIL PAVILION is pleased to
invite you to attend to this breakfast presentation and networking event; Brazil
Mining Sector: Building Alliances in Exceptional Times. Recognized Canadian and
Brazilian industry and financial executives will share their experience and expertise
on working in the mining sector in Brazil.
Date: Tuesday, March 3rd, 2009
Time: 7:30AM - 9:45AM
Location:
Toronto Board of Trade
1 First Canadian Place
Toronto, ON
M5X 1C1
Take advantage of this event to engage with other Canadian companies and Brazil
PDAC delegates. Attached please find the flyer with more information on the
program. Registration online at http://brazilmining.eventbrite.com/
Top
Mexico,
a Key Sourcing Hub for the Global Aerospace Industry" – Breakfast
Presentation, March 5, 2009
The Canadian
Chamber of Commerce in Mexico in partnership with The Mexican Consulate and ProMexico
in Toronto is pleased to invite you to attend to this informative breakfast presentation
and networking event, which highlights Mexico's aerospace industry opportunities.
If you are among the constantly growing number of Canadian companies in the aerospace sector or related sectors such as electronic, tool making, metal mechanic and plastic, this is a must attend event. Join us for an expert panel presentation and discussion on Mexico's aerospace industry
Date: Thursday, March 5, 2009
Time: 8:00 a.m. – 10:30 a.m.
Location:
Four Points by Sheraton Toronto Airport
6257 Airport Rd, Mississauga ON. L4V 1E4
Panel Presentation:
Overview of the Aerospace Sector and the Industry Value Chain in Mexico
Flavio Díaz-Mirón Álvarez, Chief Country Representative,
Bombardier
Manufacturing Options
Eduardo Garza, President, MLT International Consultants
Infrastructure and Facilities in Mexico
Rafael McCadden, Industrial & Logistics Director, Colliers International
Remarks by
Francisco Javier Barrio Terrazas, Ambassador of Mexico in Canada
Carlos Pujalte,Consul General, Consulate of Mexico in Toronto
Rosalind Wilson,President,Canadian Chamber of Commerce in Mexico
Registration online at http://mexicoaerospace.eventbrite.com/
Top
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