China (Finally) Gets Canadian Cherries…and Other Canada-China Trade Developments

June 18, 2013

After a few false starts, China and Canada have come to an agreement regarding cherries.

And this isn’t small potatoes:  we’re talking over 1.5 million pounds here.  (Oh, and Canada got some impressive trade victories last week too…read below.)

But, more importantly, the story behind China and Canadian cherries showcases the sometimes arduous journey to trade liberalization.  

But first, hear Parliamentarian Dan Albas talk up B.C. cherries:

 

From Kelsey Johnson at iPolitics:

While the agreement is temporary, Geen said the industry hopes to have complete access by 2014. “This is a trial period… whereby the Chinese are going to be gaining comfort and confidence in systems and protocols we have here in Canada,” Geen said.

If the agreement becomes permanent, it could mean the development of a niche market for Canadian cherry growers, said Geen. Early estimates by the B.C. Cherry Association peg the value of the new market to be worth more than $10 million by 2014, with industry officials hoping to double that number (to $20 million) by 2019.

Because of the late growing season, Canadian growers, unlike their American counterparts, would be able to supply fresh cherries longer — likely well into September and even early October, he said. A highly perishable fruit, Canadian cherries are typically harvested starting in late June.

This seems to cap a good week for Canada, with Canada’s Agriculture Minister Gerry Ritz returning from Beijing with other China trade successes.

From Dwayne Klassen at WSJ:

Mr. Ritz said he signed two agreements with his Chinese counterparts, including a Memorandum of Understanding to establish an animal health working group. He also signed a second agreement on Grains and Oilseeds that aims to provide long-term, stable and predictable market access for Canadian wheat, barley and soybeans to China.

To minimize the risks of trade disruptions and contribute to global food security goals, China has also approved a number of new genetically engineered crop applications that are essential to continue to foster innovation in both Canada and China.


Privy Council’s May RCC Roundup

June 17, 2013

Courtesy of the folks at the U.S. Chamber of Commerce, here’s a nicely formatted summary of accomplishments made by Canada and the United States through the Regulatory Cooperation Council (RCC).  

The Privy Council Office published the report.

View this document on Scribd

A Soft U.S. Recovery Shows the Continuing Importance of the Canada-U.S. Economic Relationship

June 17, 2013

Kevin Carmichael reports on how sturdy signs of a American recovery–however soft–is welcome news for Canada.

Boiled down:

  • While U.S. growth projections have slid, there’s evidence of the Midwest region recovering (or, rather, continue to recover–albeit at a slower pace–from the economic doldrums of 2008.
  •  Canada and America’s economic fates are still tied together.  “As the U.S. economy goes, so goes Canada’s. The decoupling that appeared to occur between Canada and its largest trading partner in the direct aftermath of the financial crisis has proved illusory, the result of a more conservative banking system that was ready to translate the Bank of Canada’s record-low interest rates into cheap mortgages.”
  • Go America’s consumer economy!  “The weakest element of the U.S. economy right now is manufacturing, as weak global demand stifles exports. That’s a headwind, but not a body blow. The U.S. still is a consumption-based economy, as domestic spending accounts for more than 70 per cent of gross domestic product. And guess what? U.S. consumers are raring to spend.”

More from Carmichael’s Saturday report in The Globe and Mail:

Now, Canada’s housing boom is running out of steam. Future growth, according to the central bank, will depend on business investment and exports. Both are contingent on the strength of the U.S. recovery. There’s reason to be optimistic because Canada is overexposed to the industries that are leading the U.S. rebound: Canada produces a lot of automotive parts and cuts a lot of lumber. The Bank of Canada predicts U.S. residential investment will grow at an annual average rate of 12.5 per cent between now and 2015, which should generate export growth in Canada of about one percentage point a year, based on historical relationships.

It is still far from an economic boom, of course. The National Federation of Independent Business’s monthly sentiment index is showing signs of life for the first time since the end of the recession, but still is weak by historical standards. This week, Michael Hartnett, chief investment strategist at Merrill Lynch, called this year’s surge in stock prices the “most detested” rally of all time, while Ethan Harris, the investment bank’s co-head of global economic research, said it is too soon to declare victory over the recession. “The economy just isn’t that strong right now,” Mr. Harris told reporters in New York.


Eagle Eye Expositions, LLC Introduces New US/Canada Border Conference to Advance “Beyond the Border” Declaration

June 17, 2013

Detroit, MI. — Eagle Eye Expositions, LLC presents a new event called the US/Canada Border Conference to take place Sept. 12-13, 2013 at the Cobo Center in Detroit, Michigan.

The comprehensive two-day conference and exhibition will focus on implementation of the 2011 United States-Canada joint declaration, “Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness” declaration.

Read more here


Nelson Balido Improved Exit Control System Along Mexico-U.S. Border; Looks to Current BTB Pilot Program as Model

June 14, 2013

Nelson Balido, former Border Trade Alliance President and Homeland Security Advisory Council, advocates for a U.S. exit & entry information system along its northern and southern border crossings.  Why?  Currently, the United States focuses on obtaining entry information, and collecting exit information, in Balido’s view, represents a cost-effective, minimally trade disruptive border security strategy.

Balido model for building a successful entry/exit system?  The Canada-U.S. Entry/Exit Information System Pilot Program:

There are some signs, however, that policymakers are making progress on the exit control conundrum. The U.S. and Canada, as part of their Beyond the Border agreement, later this month will begin the second phase of their joint Entry/Exit Information System pilot program.

Under the information sharing program, an arrival by land in one country will constitute an exit from the other country. The first phase, which only reconciled the crossings of travelers who were neither U.S. nor Canadian citizens, was deemed a big success by both countries.

The Canadian experiment shows that with creative thinking we can craft an immigration system on the Mexican border that strengthens our border controls without negatively affecting our nation’s economic health, and for that we needs Mexico’s help. That means installing a process of coming and going through our international ports without stemming the tide of legal visitors who inject billions into our economy every year and who are critical to the economic wellbeing of so many Americans. According to the U.S. Travel Association, we actually have a tourism trade surplus, a rare bright spot in an otherwise muddy financial outlook.

The stakes are high in the exit control challenge, and no question it has to be implemented. The American people and the politicians they elect are demanding to know who we’ve let into the country and whether they’ve left. But for border communities who have already seen their economies suffer due to a broken entry system, failure could prove catastrophic.

The Entry/Exit Information System is a key action of the Beyond the Border Action (BTB) Plan.  As with other joint initiatives that have emerged from Canada and the United State’s BTB Initiative, the Entry/Exit Information has made clear progress:  just check out this May 2013 report on the results of the Pilot’s phase I performance

The New York Times also reported on the the success of the Entry/Exit Information System Pilot program’s first phase:

The pilot project with Canada, conducted from September to January, involved about a third of the traffic across the northern American border, tracking the departure of 413,222 foreigners from the United States. Starting this year, according to Congressional officials who have been briefed on the plan, the information collected at the Canadian border will be used to prevent certain foreigners who have stayed too long in the United States from returning again by revoking tourist visas or taking other steps.

The effort relies on an ingenious solution: as foreigners leave the United States to enter Canada — and their passports are checked by the border authorities there — the information is sent back to the United States and recorded as the official “exit” record. By the end of next month, the project is scheduled to be expanded to almost all land border traffic between Canada and the United States.

“The pilot was a success,” said David Heyman, assistant secretary for policy at the Homeland Security Department, in a statement. “We have the ability now to identify, with a high degree of certainty, on a real-time basis, those who overstay the terms of their legal entry into the United States.”

Airlines and cruise ships, relying on passenger manifests, are already mandated under law to turn over data on travelers as they leave the United States. That system has recently been improved so that entries and exits can more definitively be matched, federal officials said, although there remains a large backlog of unconfirmed exits.

The biggest weakness remains the southern border, which has the highest volume of traffic of land crossings, but still has almost no exit controls.

Not only is BTB showing Canada and the United States successfully working together to secure their border, the impressive work they’ve accomplished is impacting the Mexico-U.S. border policy discussion, laying out a blue-print on how all three nations to enhance their security and economic partnership.


U.S. Dept. of Commerce and DHL Team Up to Match Canadian Costumers with U.S. Manufacturers

June 13, 2013

From MarketWatch.com:

DHL Express and the U.S. Commerce Department today announced a new initiative that will provide DHL customers in Canada with a wide range of business resources, including useful trade and marketing information, business leads, access to new suppliers in the U.S. and access to potential buyers and distributors.

Through the partnership, announced at the Oil and Gas Expo, DHL Express Canada and the U.S. Department of Commerce will match DHL customers in Canada with U.S. manufacturers or sellers who are already exporters or who are interested in reaching markets in the United States. This new partnership between DHL with the U.S. Commercial Service (USCS), the export promotion agency of the Commerce Department’s International Trade Association, provides benefits both to U.S. companies seeking new contacts in Canada, and to DHL customers in the region, who will obtain expert advice on exports from the U.S. specific to their industry, valuable leads and marketing information provided by the USCS and the U.S. embassies and consulates as well as other benefits.


BTB Shiprider Program Gears Up for Full Implementation

June 12, 2013

CBCNews reports on progress made by Canada and the United States in coordinating their maritime defense through the Shiprider program.

Jena Baker McNeill’s 2009 Heritage Foundation WebMemo provides a concise overview of the Shiprider program, a joint initiative on the part of Royal Canadian Mounted Police (RCMP) and the U.S. Coast Guard (U.S.C.G.):

The Shiprider program was created in 2005 by the U.S. and Canadian governments to mitigate and eliminate the exploitation of these security seams. Instead of ceasing pursuit at the marine border, USCG officers now jointly patrol shared waterways with the Royal Canadian Mounted Police (RCMP). As a result, the USCG now has the ability to continue to the other side of the border to pursue terrorists and criminals.

Under the Shiprider program, officers from the USCG and the RCMP are assigned to each other’s watercrafts. In the course of their duties, if the patrolling officers deem it necessary to engage a suspected terrorist or criminal on the water and the watercraft is on the U.S. side of the border the lead USCG officer will be the principle acting officer–subject to the search, seizure, and arresting laws and regulations of the U.S. If the watercraft is on the Canadian side of the border, the opposite principles apply.

The Shiprider program represents a key action item of the 2011 Beyond the Border Initiative.  The program’s continued development not only enhances Canada-U.S. maritime border security, but exemplifies the commitment of both nations to deepen one of the world’s most successful and important bilateral relationships.

Today CBCNews provides on update on progress made since the Beyond the Border (BTB) Initiative’s launch in 2011:

Law enforcement officials on both sides of the Canada-U.S. border are gearing up for full implementation of the Shiprider Program, a binational program that erases the border on shared waterways.

The Shiprider Program was announced last year. It will be in full swing this summer on the Detroit River.

The joint program in the Windsor-Detroit area will allow law enforcement officers from Canada and the U.S. to ride together on the Detroit River, patrolling the water and chasing down criminals on both sides of the invisible international boundary. The program is also being used in some parts of British Columbia.

Teams of specially trained and designated law enforcement officers from Canada and the U.S. will co-crew ships originating from both countries.

A number of RCMP officers have been designated law enforcement officers in the U.S. Some U.S. Coast Guard officers have the same designation in Canada. They can perform their duties in either country

Koersvelt said both Canadian and U.S. officers have the authority to go ashore on each other’s country if they deem it necessary.

Earlier this year, the Department of Homeland Security announced it will pay up to $7,000 each for 30 multi-band radios to be used by Canadian first responders in border cities that share U.S. waterways.

The Shiprider Program isn’t necessarily debuting. It’s been used under “special circumstances” in the past, Koersvelt said.

Barry said that besides the RCMP and U.S. Coast Guard, the two agencies involved in the Shiprider Program, there are 26 other agencies patrolling the water.

“In the U.S., if you can name a law enforcement agency, they have a boat and they’re out there,” Barry said.

Barry said gun, drug and human smuggling are of particular concern in Windsor-Detroit.


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