Free
Trade Negotiations Expanded
Canada has embarked into trade negotiations with El Salvador,
Guatemala, Honduras and Nicaragua with the intention of developing
a Free Trade Agreement with all four countries. In addition
to the Free Trade Agreements, Canada would be party to environmental
and labour cooperation agreements. A successful outcome would
add impetus to the Free Trade Area of the Americas.
Bilateral trade between Canada and the four Central American
countries reached $617 million in the year 2000, plus $158 million
in direct investment in these markets. |
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On December
5, 2001 International Trade Minister, the Honourable Pierre
Pettigrew announced that the World Trade Organization would
be establishing a panel to review the 19.31% provisional duty
that U.S. Commerce had imposed on Canadian softwood lumber imports.
This provisional duty, a result of the U.S. Department of Commerce
countervailing duty investigation, remained in effect until
December 15, 2001 and cannot be reimposed until the investigation
has been completed which is expected to by mid-May 2002.
In addition to the countervailing duty investigation, the Dept.
of Commerce has also issued its preliminary decision with regard
to anti-dumping on some softwood lumber products from Canada.
In response to this, importers are now required to post security
ranging from 5.94 to 19.24%. These duties are expected to remain
in place until the conclusion of the investigation also expected
to happen by May 2002. However, as reported by The Canadian
Press, talks between Canada and the U.S. are ongoing and Pierre
Pettigrew is hopeful that an agreement might be reached as early
as January. |
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The Office of the
Auditor General recently released their report on the CCRA; Managing
the Risks of Non-Compliance for Commercial Shipments Entering Canada.
As outlined in the report the objectives of the audit were:
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- to assess
whether the CCRAÕs (Canada Customs and Revenue Agency)
risk management strategy for identifying and targeting high-risk
shipments and its inspection regime have been satisfactorily designed,
implemented, and monitored to achieve its objective of protecting
Canadian society and industry;
- to assess
whether the CCRAÕs post-release verification regime has
been satisfactorily designed, implemented, and monitored to achieve
its objective of ensuringcompliance; and
- to determine
whether the CCRA has measured and reported the results of its
inspections and post-release verifications.
The report concluded
that while the CCRA has performed well in several areas, it still
has challenges ahead. The report identified the need for the CCRA
to improve the targeting of high-risk shipments and to show that
their risk management approach is viable.
The Agency has
encountered road blocks in its efforts to verify importersÕ
compliance. They have been successful in improving release times
at the border and in their efforts to increase efficiency while
keeping resources at the same level.
The Auditor
GeneralÕs report on the CCRA can be accessed at the following
web site:
http://207.61.56.166/news/viewfile.cfm?id=2341&mime=pdf.
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| BAN |
on
Certain Commodities
from Netherlands, Germany,
California and Oregon |
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As a result
of an outbreak of the fungal disease known as Sudden Oak Death
in California, a few commodities are prohibited from import
from the Netherlands, Germany, California and Oregon. They are:
soil; soil in association with plants; Sudden Oak Death (SOD)
susceptible species of propagative (nursery stock) and untreated
non-propagative commodities (untreated forest products); and
bark of SOD susceptible species in association with plants.
Additional information can be found at the Canadian Food Inspection
Agency website here. |
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Customs
Self - Assessment
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On December 6, 2001 the Minister of National
Revenue, the Honourable Martin Cauchon announced the implementation
ofthe Customs Self Assessment (CSA) program in Windsor, Ontario. The
program has been on the drawing board for over a year (refer to Customs
Reporter Spring 2000).
Currently, there are two importers who have been approved under the
program and seven carriers. While several other companies have applied,
it is clear that this initiative has not attracted the response anticipated
by the CCRA.
Additional information on the CSA program can be obtained at Customs
web site: http://www.ccraadrc.gc.ca/customs/business/importing/csa/
assessment-e.html or contact your local Russell A. Farrow Technical
Services/Trade Compliance department. |
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