Daily Update from the CSCB for 9 February 2009

February 9, 2009

Update to CFIA AIRS website

Chapter 07 was published to modify the conditions for the following HS codes for California with new miscellaneous codes.

07.06.10.3017.01 - Carrots - with tops (fresh or chilled)
07.06.10.3017.02 - Carrots - without tops (fresh or chilled)

New miscellaneous codes:

#746 - With soil, entering Canada through BC or end destination of BC
#747 - With soil, not entering Canada through BC
#748 - Without soil, entering Canada through BC or end destination of BC
#749 - Without soil, not entering Canada through BC

***

Clarity needed in trade debate

This article is excerpted from the 9 February 2009 edition of the “Toronto Star”.

Trade Minister Stockwell Day cheered last week after the United States Senate amended the "Buy American" clause in its $800 billion-plus stimulus package. Day suggested the amendment, acknowledging "U.S. obligations under international trade agreements," represented a triumph of Canadian diplomacy. He called it "a great step forward."

But what was really gained?

First of all, the fact that the U.S. is bound by its international trade agreements should go without saying.

Secondly, both the WTO … and NAFTA …, while applicable at the federal level, specifically exempt state and local governments and agencies from "government procurement" obligations.

And in the stimulus package now before Congress, formally known as the American Recovery and Reinvestment Act, much of the money will flow to state and local governments for a range of projects from highway expansion to bridge repairs, transit upgrades and school construction. …

Some Canadian commentators have suggested this is much ado about nothing because the U.S. has had Buy American legislation on its books for decades, notably for transit and airports. But Canadian manufacturers and exporters are concerned that the stimulus package would extend the Buy American requirements to a much broader range of projects.

Accordingly, businesses here are pressing for a specific Canadian exemption from the Buy American clause in the stimulus bill. There are, indeed, precedents for this. In 2002, for example, Canada (along with Mexico) was specifically exempted from punitive new U.S. tariffs on imported steel.

But that was when the Republicans were in charge in Washington. With the Democrats now controlling both houses of Congress and the White House, an exemption is less likely.

So Canadian labour leaders are arguing for mirror legislation here – a Buy Canadian law that would apply to federal money that flows to provinces and municipalities for infrastructure projects….

Some provinces already have Buy Canadian measures in place. Ontario, for example, requires 25 per cent minimum Canadian content for transit equipment. But the CAW (whose members make transit equipment at Bombardier's Thunder Bay plant) says that is too low and is calling for at least 50 per cent Canadian content.

There are concerns that such Canadian content requirements would drive up costs and/or trigger a trade war. The former concern must now be balanced against the need to protect jobs, while the latter may be exaggerated given that the U.S. and other countries are already doing this.

Much is at stake here, in both jobs and dollars. We need a clear-headed debate on the issue in the coming weeks, instead of applause for minor amendments to American laws.

***

Stimulus efforts eclipse bank plan

The following article is excerpted from the 9 February 2009 edition of the “Toronto Star”.

The Obama administration has pus


Topic(s): 
Rules of Origin & Trade Agreements / Trade Agreements
Information Source: 
Canadian News Channel
Document Type: 
Email Article