Trade Perspectives | The Free Trade Conversation


For The Trading Post 02-23-2017 | Trade Talk Perspectives – Quick Updates on the conversation to catch up on this week:

It has been a fairly quiet couple of weeks for people sharing their perspective on “Free Trade”.  There is lots of noise in the global conversation around trade however much of it is political in nature and our aim is to provide you with the “fly on the wall” updates to conversations that directly impact the activity and requirements for trade as it affects your businesses. You can count on these updates to leave the generalized political conversation for other sources – staying focused on perspectives that impact you and your business directly is how we ensure we provide the most possible value into your inbox.

Here are the updates from current conversations for your review:

According to Jeff Berman who is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review, these are strong data points to keep in mind:

  1. NAFTA eases trade among 450 million people in the U.S., Canada, and Mexico, with NAFTA trade more than quadrupling in 20 years and, in turn, boosting the economies of each country.
  2. And according to U.S. Chamber of Commerce data, nearly 14 million U.S jobs depend on trade with Canada and Mexico, coupled with separate data from the Peterson Institute stating that NAFTA makes the U.S. $127 billion richer each year.   

Within 36 hours of the Trudeau-Trump speeches, France’s 20 Minutes reported that the European Parliament had adopted CETA. This finally gives Canada access to a thriving field to recover what it might need to concede within NAFTA. CETA will remove 99% of Canada’s customs tariffs in the European Union, increasing the latter’s trade by 25%.

 

Robin Speer, executive director of the Western Canadian Wheat Growers Association. Tyler Marr / Meridian Booster

Sound economic policy is key to ensuring competitiveness and market access for the agriculture sector, according to Robin Speer, executive director of the Western Canadian Wheat Growers Association.

Speaking to attendees in the Dick Jones Sales Pavilion Wednesday as a keynote speaker as part of Agri-visions taking place at the Lloyd Exhibition Grounds, Speer spoke on the increasing commodities being grown in Western Canada every year, and what needed to be done to ensure we can get the ‘Grain on the Train.’

“Transportation and trade are two key issues. They are heavily regulated issues that affect the bottom line and profitability of farming and economic growth,” Speer said.

“We want market access and we want competition and advanced infrastructure, and transportation to get our goods to market.”

With this, Speer touched on a number of key trade deals and pieces of legislation which were all resting high on the minds of producers in Canada.

With the approval of CETA (Comprehensive Economic and Trade Agreement) in Europe on Wednesday, and at home in Ottawa Tuesday night, Speer explained the “good news to the tune of hundreds-of-millions-of-dollars a year” in reduced tariffs for canola and livestock growers shipping their product to European markets.

Steve Lamar is executive vice president of the American Apparel & Footwear Association.

Regardless of what policy choices this administration works out with Congress, policy makers should take pain to remind themselves that trade – or more precisely access to global suppliers and global customers – remains important to our economy, our society, and our way of life.

As always we look forward to and appreciate your feedback, questions and comments!

For those of you who are doing compliance in-house or have an interest in furthering your compliance knowledge, our in-house seminar series on U.S. Trade Compliance and Canadian Trade Compliance are a great way to understand the movement, compliance and regulations around goods imported into both the USA and Canada.

Have questions or comments regarding the hidden areas of risk and how to mitigate them? A desire to share your thoughts with us or have us share your updates, tips ideas on trade with others? Leave a note in the comments section below or email Ask Your Broker.

We love to hear from you our readers!

Resources:
 http://www.mmh.com/article/new_legislation_calls_for_key_changes_to_be_made_to_nafta1/blogs
 http://nafta.einnews.com/article/367179888/K7wtO45ITq0Drx58?lcf=1Homazc_0YDKSVkdCVA4kA%3D%3D
 http://www.meridianbooster.com/articles/article/2017-02-21-agri-visions-2017#.WK3F6TsrKUk
 http://www.globaltrademag.com/global-trade-daily/changing-perspectives-trade-2017

 
 

Malcolm McLean – A Salute to the Brilliance of Carriers 02-2017


Malcolm McLean – 1914-2001

Salute to Carriers - Malcolm McLean

Who was Malcolm McLean?

Why is he perhaps the most important person in the history of carrier shipping?

With much respect and admiration for his ingenuity, we salute Malcolm McLean.

In our industry, as in life, we all stand on the shoulders of those who came before us.

The History of the Man:

While his name is relatively unknown today, this North Carolina trucker invented container shipping, a method now indispensable to the modern world of global trade. As amazing as that fact is, so is the personal story of Malcolm McLean.

Malcom McLean was born into a North Carolina farming family in 1914.

His father was a farmer who also worked as a mail carrier to supplement the family’s income. Struggling to assist his family during the Great Depression, a young Malcolm started pumping gas at a service station near his hometown of Maxton, and managed to save enough money by 1934 to buy a second-hand truck for $120.

 

Malcolm McLean’s very first truck!

Malcolm McLean and his First Truck

 

With that initial purchase, he was able to start a small trucking company to transport farmers’ goods and supplies.

McLean soon began hauling dirt, produce, and other odds and ends for the farming community in Maxton where reliable transportation was hardly commonplace.

Little did he know at the time that this purchase was the catalyst to set McLean on his lifelong career in the transportation industry.

Malcolm McLean the Fleet

Over the next six years, Malcolm’s resourcefulness enabled him to expand to thirty trucks by 1940. By the mid-1950s Malcolm’s company, McLean Trucking, amassed over 1700 trucks and he sold his company for $12 million dollars, a terrific sum in 1950s currency!

Keep in mind that this all happened during an economically bleak time – surrounding the Great Depression.

Why he is perhaps the most important person in the history of carrier shipping:

 

Malcolm McLean was not what we would refer to as a patient man. He was born into a world and time that demanded a certain sense of urgency. The phrase, “Time means money” is always top of mind for an entrepreneur, and most carriers of his day were – many continue to be today.

 

Waiting at the dock for between eight and twenty hours to have his truck loaded or unloaded drove McLean crazy! He was not the type of man to stand still, his every minute was spent towards a result that generated money for his business, his family and his future.

Only perhaps Jack Sparrow would hopefully relate to the extreme waits that took place for carriers when their delivery needed to go through the loading and unloading process at ports during that time given today’s efficiencies we enjoy.

 

His years in the transportation business showed McLean the need for an easier method of shipping goods. He had watched dock workers unloading goods from trucks and transferring them to ships, and marveled at the inefficiency of the process. “Wouldn’t it be great,” he asked himself, “if my trailer could simply be lifted up and placed on the ship?”

Knowing nothing about ships did not stop him from taking action!

In 1955, he gambled big on a container venture, buying two oil tankers and securing a bank loan to buy $42 million worth of docking, shipbuilding, and repair facilities. He refitted the ships and designed trailers to stack below or on the decks. One year later – he launched the solution to the problem he had little patience for and in April 1956, his first container ship, the Ideal X, departed Port Newark, New Jersey, headed for Houston loaded with stacked containers for the first time ever!

Thank you Malcolm McLeanTo you and to our carrier audience we offer a salute to the brilliance of Carriers!

Malcolm McLean 1957

 

Born 1914, Maxton, NC –   Died 2001, New York, NY

 

As McLean’s first container ship left Newark harbor, a man asked Freddy Fields, a top official of the International Longshoremen’s Association, “What do you think of that new ship?” Fields replied, “I’d like to sink that s_________h.” Longshoremen strikes ensued, but the cost of shipping dropped by a factor of a hundred. ~ PBS.org

 

Resources:

https://www.youtube.com/watch?v=YFbkVL1X9M8&t=13s
https://en.wikipedia.org/wiki/Malcom_McLean
http://www.pbs.org/wgbh/theymadeamerica/whomade/mclean_hi.html
http://hbswk.hbs.edu/item/the-truck-driver-who-reinvented-shipping

Our in-house seminar series on U.S. Trade Compliance and Canadian Trade Compliance are another great way to understand the movement, compliance and regulations around goods imported into both countries.

Have questions or comments regarding the hidden areas of risk and how to mitigate them? Share your thoughts with us. Leave them in the comments section below or email Ask Your Broker.

 
 

The Semi – A Salute to Alexander Winton and the Carriers of today!


The Invention, History and Evolution of the Semi – A Salute to Alexander Winton and the Carriers of today! 

When a truck driver emerges from the sleeper cab in his or her big rig in the morning and steps out to walk into the truck stop for a cup of coffee, and maybe a shower, it’s easy to be singularly focused on just getting on with the day.

Sometimes, though, it’s nice to look back and think about the history of the profession, and the history of the massive piece of equipment that is used to haul goods around every country on earth to keep each of us clothed, fed and everything in between. If you are buying it, a semi-truck brought it to the store you are purchasing from. With that said, what’s the history of those semi-trucks?

Alexander Winton, a Scottish man, started his career manufacturing bicycles in Cleveland and moved into the construction of “horseless carriages” in 1896.

He sold his first manufactured car in 1898, in the midst of more than 150 patents of automobile and engine designs that he had also filed. Winton promoted his new Winton automobile by touring the country with the vehicle and challenging others to car races.

This marketing strategy worked well and, by the end of 1898, Winton Motor Carriage Company had sold twenty-two automobiles, followed by one hundred the subsequent year. Not all customers lived in or around Cleveland, and the delivery of the vehicle posed a problem. How to bring the car to the client without burning mileage on the vehicle?

He addressed this issue with a new concept that he called an automobile hauler that could carry the new vehicle on a trailer. In 1899, Winton Motor Carriage started manufacturing the hauler for its own use as well as other car manufacturers.

Alexander Winton then went on to conceive and later that same year invent the semi-truck. Soon after, in 1899 he was selling his first manufactured semi-truck.

(Image: Courtesy of Open Road Drivers Plan – Infographic: )

The concept used a modified short wheeled touring automobile with a cart attached to it.

The platform sat on the top of the engine portion and rested on a pair of wheels on the other end. However, the automobile could only hold one car.

Before the cart was mounted onto the pulling car, the automobile to be delivered was wheeled onto the ramp of the cart and fastened to the platform, the edge of the platform resting on the ground was then elevated and attached to the top of the trunk of the pulling vehicle.

Others to salute for their roles in bringing the modern Semi into the fold as today’s modern source of ground transport include:

George Cassens who took the vehicle hauling business to the next level in the 1920’s. As a car salesman needing to deliver the cars that he sold, he relied on car haulers extensively. When in the early 1930’s, manufacturers attempted to ship the new cars directly to the buyers, he realized that the shipment costs were prohibitive for the car manufacturers. He stepped in and offered to haul the cars from the manufacturing site to the car owners. He devised a $1,850 four-car auto trailer that was pulled with a two-ton Dodge truck.

August Charles Fruehauf was a Detroit blacksmith, who built a carriage for a person who wanted to transport his boat in 1914 and officially called it a “semi-trailer.” He duplicated the carriage for additional usages such as hauling lumber. In 1918, he incorporated the Fruehauf Trailer Company.

John C. Endebrock had experience in building horse carriages and used his wisdom in developing the “trailmobile,” an iron chassis mounted on wheels and springs that could be trailed behind a Ford Model T. This 1918 design was conceived so that it would be easy for a single operator to hook the trailer to the car. Earlier trailers required three men to hook up the chassis to the car.

Over a century, the four-wheel design from Winton has evolved into an 18-wheeled articulated semi-truck with three axles. Today, semi trucks transport more than 670,000 tons of goods each year in the U.S. alone that are taken to destinations by 3.5 million truck drivers. This represents more than 70 percent of all U.S. freight delivery.

 

A semi-trailer truck is the combination of a tractor unit and one or more semi-trailers to carry freight. It is variously known as a transport (truck) in Canada; semi or single in Australia; semi, tractor-trailer, big rig, or eighteen-wheeler in the United States; and articulated lorry, abbreviated artic, in Britain and Ireland. A semi-trailer attaches to the tractor with a fifth wheel hitch, with much of its weight borne by the tractor. The result is that both tractor and semi-trailer will have a distinctly different design than a rigid truck and trailer.

 

For those of you who are doing compliance in-house or have an interest in furthering your compliance knowledge, our in-house seminar series on U.S. Trade Compliance and Canadian Trade Compliance are a great way to understand the movement, compliance and regulations around goods imported into both the USA and Canada.

Have questions or comments regarding the hidden areas of risk and how to mitigate them? A desire to share your thoughts with us or have us share your updates, tips ideas on trade with others? Leave a note in the comments section below or email Ask Your Broker.

We love to hear from you our readers!

Sources listed below:
http://www.ehow.com/about_6532700_invented-semi-truck_.html
http://www.gwtrans.com/the-history-of-semi-trailer-trucks/
http://hankeringforhistory.com/the-history-of-the-18-wheeler/
https://en.wikipedia.org/wiki/Semi-trailer_truck
https://en.wikipedia.org/wiki/Kenworth
http://www.protectmycdl.com/index.php/infographic-history-semi-trucks/
http://www.protectmycdl.com/wp-content/uploads/2014/07/hisotry-of-trucking-infographic.jpg

 
 

Pacific Customs Brokers Ltd. Presents | CBSA Commercial Vision – Beyond 2020


CBSA Commercial Vision – Beyond 2020 by Jan Brock

You can Read this eBook in the reading tabs below OR

Download NOW and Read when its convenient!

CBSA Commercial Vision

Beyond 2020 – A Summary

eBook written by Jan Brock, Senior Trade Advisor with Pacific Customs Brokers.

Retired Chief of Commercial Operations of Canada Border Services Agency,  Pacific Highway Crossing

This ebook is a synopsis of the Canadian Border Services Agency (CBSA) Commercial Vision beyond 2020.

eBook - by Jan Brock

CBSA Commercial Vision

The following tabs will take you through the chapters of this eBook – or you can click on the image above and download it to reach at your convenience.

Introduction

The Commercial Vision for CBSA was born as a key commitment in the CBSA’s Report on Plans and Priorities (RPP) for 2007, found here.

The CBSA recognises that it must continually evolve to meet the challenges of protecting Canada from threats while also contributing to its prosperity by facilitating trade and commerce. The CBSA has mapped out its evolution on a commercial continuum and analysed it to identify:

  1. What the “pain points” are for clients
  2. What technology changes are needed
  3. What are the best practices for trade chain partners
  4. How can Canada achieve a high ranking in the global customs environment?

CBSA explored these areas in an attempt to identify the best potential areas of transformation. These transformation areas are the foundation for The CBSA’s Beyond 2020 – The Commercial Vision.

The World Customs Organization (WCO) anticipates a future of significant change and is challenging customs agencies across the world to:

  •   Think unconventionally
  •   Adopt new practices
  •   Streamline technologies
  •   Renew partnerships

The above actions are needed due to the broadening of the role of customs organisations beyond the traditional role of collecting duties and taxes on international trade. The WCO foresees challenges to include increasing volumes and complexities of international trade, shifting trade patterns and emerging economies; increased security threats and organised crime activity; the proliferation of just-in-time industries and trade and mounting societal demands for safety and security. Customs organisations must change and reorganise themselves to meet these current and future challenges.  The WCO findings state that no customs organisation can operate independently.  CBSA committed itself to “pushing the border out” in the 2001 Smart Border Declaration, and then in the Beyond the Border Action Plan (BTB) with the U.S. Beyond 2020 – The Commercial Vision recognises that the time has come for CBSA to extend its focus beyond North America.

CBSA thinks the Beyond  2020 – The Commercial Vision rises to this challenge

CBSA has already implemented numerous BTB actions to improve program delivery to include eManifest, Single Window Initiative (SWI) and CBSA Assessment and Revenue Management (CARM). This modernization continues to evolve, and  CBSA will further automate and integrate commercial processes and update tools and technologies.  CBSA believes that these changes will better meet the needs of the trade chain partners and border services officers (BSOs) and improve the Agency’s approach to enforcement and trade facilitation. It is expected that by 2020 the CBSA’s current modernization will be fully implemented and The Vision of Beyond 2020 can be realized.

Vision

CBSA’s  states its Commercial Vision provides strategic guiding principles and actions that will enable the Agency to transform its commercial programs into a more efficient and effective border management model.

The CBSA Executive Committee has stated publicly that it wants the Agency to strive for a top 3 global ranking in trade facilitation and border management in the World Economic Forum (WEF) global rankings. Canada’s current performance in the WEF’s global rankings ranks Canada 20th out of 138 countries in the WEF Global Enabling Trade Report which focused on the efficiency and transparency of its border administration. From a trade perspective, the WEF has stated that trade to Canada suffers from burdensome import procedures and high tariffs. Canada’s ranking has also suffered due in part from a poor performance in the areas such as a number of days and costs associated with importing goods; the predictability of the time required to satisfy import procedures; and the overall efficiency of the customs clearance process. To meet this vision and challenge of the WCO, CBSA needs to lay the groundwork today for the commercial vision of the future.

CBSA hopes to leverage today’s commercial modernization agenda and existing partnerships and use this as a foundation for transformation.

CBSA is working toward streamlining and simplifying import, export and in-transit processes with the goal to excel in the delivery of border services in a dynamic and fluid operating environment. This is the challenge facing the Agency in the years to come.

CBSA ‘s Beyond 2020 – The Commercial Vision is founded on the following guiding pillars:

  1.                        Simplifying the Commercial Process
  2.                        Improving Client Entity Management and Commodity Identification

III.                        Advancing Global Border Management

  1.                        Optimised Enforcement and a Revised Compliance Approach.

CBSA completed a strategic review of its Commercial Continuum with its internal and external trade chain partners to identify issues in the current commercial program which may not be addressed by the Agency’s modernization agenda resulting in the generation of recommendations to transform the Commercial Program into the 21st century.

The issues identified by the internal partners included the need to:

  • Provide a more robust pre-arrival risk assessment process;
  • Allocate additional resource investments required to administer dual processes (paper and electronic documents)
  • Conducting health, safety and security examinations at the First Point of Arrival  (FPOA)
  • The need for greater access to detection technology such as Large Scale Imaging (LSI)
  • Allocate an adequate infrastructure footprint

Trade Chain partners have expressed that for CBSA to truly transform its business and make services more efficient, there should be:

  • Greater harmonisation of Government of Canada policies
  • Enhanced predictability and transparency in procedures and processing
  • The examination process must be simplified
  • Procedures should be harmonised with global partner agencies where possible

The path forward for CBSA is to re-evaluate and challenge conventional thinking and rethink its commercial continuum by:

  • Create a single simplified commercial process, regardless of the mode or type of cargo movement
  • Obtain the right information at the right time to identify and mitigate risks before arrival in Canada.
  • Re-evaluate the merits of transactional processing and eliminate where it is deemed feasible.
  • Enhance the transparency of procedures and processes
  • Harmonise with domestic and international partners to reduce the administrative burden and costs for trade chain partners
  • Invest in innovative technologies and tools to mitigate health, safety and security risks, and to increase client-focused self-service options
  • Expedite the flow of low-risk goods by modernising or reallocating for the collection of revenue
  • Introduce an eCommerce program to enable effective exercising of our mandate and ensure parity with the postal and courier modes; this will also enable the CBSA to deal with growing volumes in these modes more effectively.

Pillars

The Guiding Transformational Pillars

Based on the opportunities mentioned above, CBSA has established 4 Guiding Transformational Pillars

  1.                        SIMPLIFYING THE COMMERCIAL PROCESS

Drivers: The commercial process today is comprised of a variety of processes and subprocesses beyond the regular and trusted trader streams. Exception-based processes can be cumbersome and labour intensive. National application of processes is inconsistent. There are multiple client profiles, inconsistent commodity identification and multiple security deposits. The global environment is rapidly evolving, and complex customs procedures do not facilitate trade. There are changing patterns, and threats and CBSA has an inadequate infrastructure and poor access to tools with a continually reduced workforce and therefore has compromised itself in meeting the current challenges.

Vision: Both external and internal stakeholders want a single simplified commercial process (for all modes, including export and in-transit movements) for reducing the complexity of the current process and addressing the inefficiencies and duplicative processes. Innovative technologies like Web-based applications can be leveraged to facilitate compliance regulations and meeting obligations. Simplification reduces costs to both the government and trade chain partners.  Simplifying the process will improve training efforts for both CBSA and clients. Feedback has indicated that Commercial Program training is challenging with the various processing options and model differences. This has led to inefficiencies in the delivery of the program and the lack of national consistency. Simplifying the process will strengthen CBSA’s position with transparency, consistency and certainty for the stakeholders.

II IMPROVING CLIENT ENTITY MANAGEMENT AND COMMODITY IDENTIFICATION.

Drivers: Customs Organisations must have accurate identification for clients and cargo so that eligibility determinations can be made, risk assessments can be done to determine the level of interventions and enforcement.  The Current client identification process has multiple client profiles which hamper CBSA from making effective risk assessments. Who is this client? And what is crossing the border? The requirement for scientific names for cargo is not mandatory, and as a result descriptions on import, documentation can be vague. Consequently, plants and animals and related products may not be identified at the time of import. This could result in non-compliant shipments being released in Canada threatening animal and plant health, human health and the Canadian economy. CBSA has recently implemented SWI to allow trade chain partners to electronically comply with the permits and requirements of participating OGDs while improving commodity and client identification. Identification of the commodity entity can be complex as it is derived from multiple trade documents and information sources. As part of SWI, CBSA is assessing the feasibility of introducing a Universal Product Code (UPC) registry service for UPC symbols that is based on global standards to identify goods more accurately.

Vision:  Consultation feedback tells CBSA that it can improve through the creation of a single profile for each trade chain partner, linked to the crew, commodity and conveyance. This would allow CBSA to assess the credentials and make better decisions on the existence of risk at the earliest possible point. Also, CBSA could institute a secure commercial crew program to better identify the crew associated with the shipment. Efficiencies can be gained with leveraging SWI and seeking better source information to aid in risk assessment and admissibility decisions.

III ADVANCING GLOBAL BORDER MANAGEMENT

Drivers: To meet the challenges posed by inherent complexities of the global operating environment, the CBSA must leverage and strengthen its international, domestic and Other Government Departments (OGD) partnerships. Trade chain partners have said that differences in national customs procedures impact global trade by reducing procedural predictability and adding additional costs to customs compliance. The CBSA should explore new MRAs, global trade programs, Global Networked Customs models, and exchange best practices with international partners in the WCO as options to meeting international challenges.

Vision:  The CBSA can benefit itself and trade chain partners by making greater strides in sharing information and harmonising procedures where legally/feasibly possible with its global partners to increase the predictability of the customs process and to lessen the financial impact of customs compliance. To increase flows of information and intelligence between customs organisations, the CBSA can procure interoperable technologies and tools. The global supply chain can also benefit by addressing gaps in the export process, exploring opportunities for better insight, and improvements to the Trusted Trader Program.

IV OPTIMIZED ENFORCEMENT AND REVISED COMPLIANCE APPROACH

Drivers:  The emergence of new patterns and threats in the global trade chain drives the need to focus on a commercial enforcement and compliance framework that reflects the dynamic nature of risk, and can instantly respond to new emerging types of threats.  To be effective, the CBSA must validate whether current enforcement strategies such as administrative monetary penalties (AMPS) are meeting the intended objective (corrective or punitive) and re-examine the reasons for continued non-compliance regardless of corrective action to be taken. At many Ports of Entry (POEs) BSOs state that they lack the appropriate enforcement infrastructure and innovative tools to interdict high-risk shipments. Also poor and inadequate infrastructure footprints influence the ability to conduct quality examinations or the installation of detection technology to conduct these examinations. All of these inadequacies may permit trade chain partners to mitigate high-risk shipments to ill fitted POEs.

Vision: CBSA plans to renew its focus on enforcement so that it can enhance its ability to balance the facilitation of trade with the needs of national security and health and safety threats at the First Port of Arrival.

Beyond 2020

The CBSA’s Beyond 2020 Commercial Strategy

To complement the Vision, a Commercial Strategy is being developed. The Commercial Continuum Strategy for Achieving the Beyond 2020 – Commercial Vision will identify how the Agency intends to convert its commercial modernization into one of transformation. This is a huge task. The first step will identify strategic goals and the second will identify the milestones to enable the Agency to execute the goals.

The formulation of this strategy is being done with close partnership with external and internal stakeholders. Continued consultation and collaboration through 2017 with the Border Commercial Consultative Committee (BCCC)  and BCCC sub-committees.

Ii the Spring of 2017 the BCCC sub-committees will be restructured to reduce duplication and align common themes.

CBSA also intends to consult with small and medium enterprises to discuss the approach, quantify benefits, and ensure “ease of doing business”. These consultations will take place in 2017 and may take the form of importer roundtables.

By late February 2017, a detailed project implementation timeline will be presented to BCCC.

CBSA Manager Sharon Crawford, of the Commercial Program Directorate – Programs Branch, is leading the Beyond 2020 – Commercial Strategy.

 

Sources

CBSA Report on Plans and Priorities 2016-17

CBSA Website.

WCO Website

WEF Website

Canadian Association of Importer and Exporters IE Canada.

 

 

 
 

Trade Talk | It is Approved! CETA Free Trade Agreement


CETA gets a YES

Trade Talk | It is Approved! CETA Free Trade Agreement

Trade – New 2017

The European Union’s (EU) parliament approved a trade deal, The Canadian European Trade Agreement (CETA) with Canada on Wednesday, extolling the pact as a sign of co-operation at a time when many political forces are trying to halt globalization.

After three hours of debate on Wednesday and years of negotiations preceding that, the EU’s legislature approved the deal by a margin of 408 for, 254 against with 33 abstentions, allowing for its provisional entry into force.

Prime Minister Justin Trudeau is set to address European Parliament in Strasbourg, France,— a first for a Canadian leader — and is scheduled to address top business leaders a day later in Germany.

The deal will drop barriers between the EU’s economy of half a billion people and Canada’s 35 million. Trade between the two sides amounts to more than 60 billion euros ($63 billion) a year, and the EU expects the so-called CETA deal to boost this by 20 per cent by removing almost all tariffs.

 

What we know for sure:

 

The Agriculture industry gets set for a win, after 7 years, 93.8% of the agricultural tariffs will be eliminated.

There were 695 Members of European Parliament (MEPs) present in the 751-seat legislature in Brussels, 408 voted in favour of CETA, 254 against it and 33 votes abstained from voting. CETA won EU Approval. CETA’s full implementation will require ratification by dozens of regional and national parliaments and their are socialist challenges yet to overcome.

The CETA trade deal in numbers:

98% – The number of tariffs between the EU and Canada that would be eliminated

 

€500 million – The estimated amount that EU exporters would save in duties annually

  • 3.6m The population of Wallonia
  • 36.3m The population of Canada
  • 508m The population of the EU

 

Source: StatCan, Europa.eu

 

CETA will see the removal of 99% of non-farm duties between the EU’s market of 500 million people and Canada’s 35 million – trade worth €63.5bn ($67bn; £54bn) in 2015. That will boost growth and jobs on both sides of the Atlantic, supporters say. ~ Reuters

 

According to the public stage of opinion, both governmental and business sector wise, there is good reason to be very happy with this progress.

What we are talking about:

Our Senior Trade Advisor shares some qualifying commentary: CETA has not yet been ratified so there is no set date for the actual implementation.

Once all the information has been received in regards to the rules of origin forms required and duty reductions; we will be able to advise our trade partners.

Once implemented most import duties on qualifying goods will be eliminated. Certain commodities will be subject to dty reductions over a longer period. Some examples of these goods are automobiles, grain and certain fish products as well as dairy.

If you have specific questions regarding specific imports, please forward to our Trade Advisory to review. If the information is available we will be able to give an opinion.

What we think:

These are early days – ratifying CETA has a ways to go yet. There will be a phasing in of the items in CETA over time and as governing parties determine which aspects to phase in they will also release the data required to support our trade partners in executing their trade in accordance with CETA.

 

We think Canadians will benefit as will the EU. Is this the Golden bible of Trade Agreements for Free Trade, that is yet to be seen and we are too early into the process to make those determinations.

 

What we advise:

 

Engage your customs broker early – There are tremendous potential benefits, especially in the agriculture sector. It will take some time yet for full ratification to be implemented which means that having the expertise of your trade compliance broker is an essential component of exploring or accessing benefits ahead with CETA.

 

You can reach our experts, as always 24/7 at : Toll Free 888.538.1566

What we are reading:

The CETA Agreement in its entirety as it stands today can be viewed here:

http://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/ceta-aecg/index.aspx?lang=eng

 

An overview of its impact by province across Canada as provided by the Canadian Government is below:

 

CETA will eliminate tariffs on almost all of Canada’s key exports when it comes into force. Exporters will also benefit from other CETA provisions that will ease regulatory barriers, reinforce intellectual property rights, and ensure more transparent rules for market access.

Alberta

Alberta stands to benefit significantly from preferential access to the EU market. The EU is already Alberta’s fourth-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Alberta’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

British Columbia

British Columbia stands to benefit significantly from preferential access to the EU market. The EU is already British Columbia’s fifth-largest export destination and fourth-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of British Columbia’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Manitoba

Manitoba stands to benefit significantly from preferential access to the EU market. The EU is already Manitoba’s third-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Manitoba’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

New Brunswick

New Brunswick stands to benefit significantly from preferential access to the EU market. The EU is already New Brunswick’s second-largest export destination and third-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of New Brunswick’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Newfoundland and Labrador

Newfoundland and Labrador stands to benefit significantly from preferential access to the EU market. The EU is already Newfoundland and Labrador’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Newfoundland and Labrador’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Northwest Territories

The Northwest Territories stand to benefit significantly from preferential access to the EU market. The EU is already the Northwest Territories largest export destination and trading partner. Once in force, CETA will eliminate tariffs on almost all of the Northwest Territories’ exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Nova Scotia

Nova Scotia stands to benefit significantly from preferential access to the EU market. The EU is already Nova Scotia’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Nova Scotia’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Nunavut

Nunavut stands to benefit significantly from preferential access to the EU market. The EU is already Nunavut’s largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Nunavut’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Ontario

Ontario stands to benefit significantly from preferential access to the EU market. The EU is already Ontario’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Ontario’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Prince Edward Island

Prince Edward Island stands to benefit significantly from preferential access to the EU market. The EU is already Prince Edward Island’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Prince Edward Island’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Quebec

Quebec stands to benefit significantly from preferential access to the EU market. The EU is already Quebec’s second-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Quebec’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Saskatchewan

Saskatchewan stands to benefit significantly from preferential access to the EU market. The EU is already Saskatchewan’s fourth-largest export destination and fourth-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Saskatchewan’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Yukon

Yukon stands to benefit significantly from preferential access to the EU market. The EU is already Yukon’s seventh-largest export destination and second-largest trading partner. Once in force, CETA will eliminate tariffs on almost all of Yukon’s exports and provide access to new market opportunities in the EU. Exporters will also benefit from improved conditions for export.

 

Headlines today:

Huffington Post: BRUSSELS — The European Union’s parliament approved a trade deal with Canada on Wednesday, extolling the pact as a sign of co-operation at a time when many political forces are trying to halt globalization.

After three hours of debate on Wednesday and years of negotiations preceding that, the EU’s legislature approved the deal by a margin of 408 for, 254 against with 33 abstentions, allowing for its provisional entry into force.

 

Global News: After three hours of debate on Wednesday and years of negotiations preceding that, the EU’s legislature approved the deal by a margin of 408 for, 254 against with 33 abstentions, allowing for its provisional entry into force.

The agreement as it was voted on without ratification is available at the link below:

Oct 2016: http://trade.ec.europa.eu/doclib/docs/2014/december/tradoc_152982.pdf