Trade Clippings - January 12 to January 18, 2015

  • January 19, 2015

Dear International Trade and Investment Sub-Committee Members, 

Here are the international trade and investment articles and publications of interest for the week of January 12 to January 18. Anca Sattler has curated this week’s edition. Anca is an associate at Gowlings in Ottawa, practising primarily in the areas of international trade law, copyright law, and commercial litigation.

News

The Associated Press, “Palestinians protest John Baird's visit to Ramallah” (January 15, 2015) 

  • Dozens of Palestinian protesters hurled eggs and shoes at the convoy of the visiting Canadian foreign minister Sunday in a show of defiance toward Canada's perceived pro-Israel stance.
  • John Baird was visiting Ramallah to meet Palestinian Foreign Minister Riad Malki when demonstrators pelted his convoy.

Bill Curry, “Canada-South Korea free trade deal shows small gains for both sides: report”, The Globe and Mail (January 15, 2015)

  • Canada’s free trade deal with South Korea will hurt the domestic auto sector, but the pain will be softened by the fact that Canadians will have a bit more money to buy new cars, according to the first detailed analysis of the trade pact. 

“International Trade Minister Takes Budget Input at TRU”, CFJC TV Kamloops (January 15, 2015)

  • Canada's Minister of International Trade, Ed Fast, was in Kamloops today. Conservative Kamloops-Thompson-Cariboo MP Cathy Mcleod hosted Fast and community business leaders in a round table meeting at TRU. Minister Fast was in town to hear input from the business community about the 2015 budget, which Finance Minister Joe Oliver announced today will be delayed until April because of market instability and the falling price of oil. Fast was also in town to promote Canada's trade agenda.

International Centre for Trade and Sustainable Development, “White House warns of veto as US Congress pushes Keystone pipeline decision” (January 15, 2015)

  • The US Senate on Monday agreed by 63-32 to proceed with debating legislation geared towards approving the controversial Keystone XL infrastructure project that would move oil extracted from the tar sands of Canada’s Alberta province down to the US’ Gulf Coast. The Senate is now expected to vote on a final Keystone bill as early as this Friday after considering various amendments.

International Centre for Trade and Sustainable Development, “"Fast Track," TPP Debate Set to Ramp Up as New US Congress Takes Office” (January 15, 2015)

  • The long-stalled debate over whether to renew “fast track” trade powers is set to gear up again after members of the 114th US Congress took office in Washington last week, with incoming congressional leaders in both chambers flagging the legislation as a priority item for the coming months.

International Centre for Trade and Sustainable Development, “EU Commission Publishes Results of TTIP Public Consultation on ISDS, Investment Protections” (January 15, 2015)

  • The European Commission released on Tuesday the long-awaited results of its public consultation on investment protections in the EU-US trade talks, noting “huge scepticism” regarding investor-state dispute settlement (ISDS) and pledging to hold additional consultations in the coming months before deciding on any policy proposals.

International Centre for Trade and Sustainable Development, “Chinese Government Abolishes Rare Earth Export Quotas” (January 15, 2015)

  • China has done away with its strict export quotas on 17 rare earths elements as well as tungsten and molybdenum, the country’s state media reported early in the new year, following a WTO ruling last August that such restrictions were largely inconsistent with the body’s trade rules.  

Newswire, “Hyundai reduces prices by up to $1,300 due to Canada-Korea Free Trade Agreement” (January 14, 2015)

  • Amidst an environment with a Canadian dollar that is declining in value on international markets and an automotive industry that is raising vehicle prices, Hyundai Auto Canada Corp. is celebrating the next significant step toward barrier-free international trade by announcing today that – effective January 15 – the manufacturer suggested retail price (MSRP) of many Hyundai models have been reduced by up to $1,300. This move is made possible with the recent implementation of the Canada-Korea Free Trade Agreement (CKFTA). The price reductions affect a wide variety of 2015 model year Hyundai vehicles in the company's line-up, from the Accent subcompact and Elantra compact, to the Equus full-size premium sedan and 7-passenger Santa Fe XL SUV.

Government Announcements/Press Releases

World Trade Organization, “Appellate Body issues report on Argentina’s import measures” (January 15, 2015)

  • On 15 January 2015, the WTO Appellate Body issued its report in the case “Argentina – Measures Affecting the Importation of Goods” (WT/DS438/444/445). The complainants in this case were the European Union, the United States and Japan.

DFATD, ”Baird to Travel to Israel and West Bank” (January 15, 2015) 

  • Foreign Affairs Minister John Baird today announced that he will travel to Israel and the West Bank, where he will meet with senior government officials in Tel Aviv, Jerusalem and Ramallah.

World Trade Organization, “Appellate Body report in US-China dispute over countervailing measures adopted” (January 16, 2015)

  • China believed that the Appellate Body (AB) findings, together with the unappealed panel findings, constituted an emphatic rejection of the United States’ entire analytical framework for determining the existence of alleged input subsidies. In particular, China welcomed the AB’s rejection of the US approach to the interpretation of “public body”, the rejection of the US method for evaluating market distortion in determining whether the provision of financial contribution has conferred a benefit, the AB’s interpretative analysis on specificity — especially its reversal of the panel’s findings in relation to the proper identification of a subsidy programme and in relation to the identification of the granting authority — and its findings on adverse facts available determinations. However, China regretted that the AB was unable to complete the analysis on specificity and facts available due to insufficient analysis by the panel.

World Trade Organization, “Azevêdo: India’s support “vital” in WTO negotiations this year” (January 16, 2015)

  • Director-General Roberto Azevêdo, in his address to the Partnership Summit of the Confederation of Indian Industry in Jaipur on 16 January 2015, said: “It is in the interest of developing countries that the WTO is seen as an organization that delivers. So we must succeed in these efforts—and, as ever, India’s leadership will be vital.”

DFATD, “Minister Fast Welcomes Export Wins for Honeywell and L3 Wescam” (January 16, 2015)

  • The Honourable Ed Fast, Minister of International Trade, today congratulated Honeywell and L3 Wescam on their recent signing of defence contracts.
  • Honeywell, based in Mississauga, Ontario, signed a US$4.1-million agreement to provide specialized electrical aircraft components to the United States Department of Defense.

World Trade Organization, “Azevêdo invited to participate in informal meeting of African ministers” (January 18, 2015) 

  • At the invitation of Egypt’s Minister of Industry, Trade and Small and Medium-sized Enterprises, Mounir Fakhry Abdel Nour, Director-General Roberto Azevêdo participated in an informal meeting of African ministers on 18 January in Cairo to discuss the WTO’s work in 2015. At the end of the meeting, the ministers issued a press statement.

DFATD, “Canada Strengthens Cooperation with Israel” (January 18, 2015) 

  • Foreign Affairs Minister John Baird and Avigdor Lieberman, Israel’s Minister of Foreign Affairs, today met in Jerusalem, where they reaffirmed the importance of the Canada-Israel relationship and committed to strengthening cooperation even further. The meeting comes one year after Prime Minister Stephen Harper made a historic visit to Israel and witnessed the signing of a Canada-Israel Strategic Partnership Memorandum of Understanding.

CBSA, “Trade Compliance Verifications”, Report, (January 2015)

  • The CBSA manages trade compliance with the Tariff Classification, Valuation, and Origin programs using the following two post-release verification processes: Random verifications and Verification priorities

Commentary

John Manley, “If Ottawa truly wants to tear down provincial trade barriers, it should start with supply management”, National Post (January 13, 2015)

  • Prime Minister Stephen Harper and Ontario Premier Kathleen Wynne clearly don’t see eye-to-eye on much, but it’s good to see they are on the same wavelength when it comes to interprovincial trade. After their much-anticipated tête-á-tête this month, the Prime Minister’s Office announced that, among other priorities, they had agreed “on the need to reduce barriers to internal trade.”

Jock Finlayson, “Canada looks set for another year of modest economic growth”, News Optimist (January 13, 2015)

  • The early weeks of 2015 have been a reminder that we live in a turbulent and risk-prone world. From plummeting oil prices to terrorist attacks in France, jittery stock markets, slowing growth in China, and renewed political uncertainty in Greece, there has been much to capture the attention of those inclined to fret about the future. But the underlying economic picture is more favourable than a glance at the newspaper headlines may suggest.

Timothy Lane, “Drilling Down - Understanding Oil Prices and Their Economic Impact”, Madison International Trade Association (MITA) (January 13, 2015)

  • Remarks: Good afternoon. I want to thank the Madison International Trade Association for inviting me to this annual outlook event. I’m happy to be back in America’s Midwest, a region that has many important ties to Canada. Your economy has a lot in common with ours, and it is affected by many of the same global forces.
  • The dramatic drop in oil prices over the past few months is certainly a major new force in the world economy today (Chart 1). Oil prices affect almost everyone, for better or for worse. Petroleum products are a big slice of families’ budgets and a significant cost of production for a myriad of industries.

Andy Blatchford, “Canada targeted by more claims under NAFTA than U.S. or Mexico: report”, The Canadian Press (January 14, 2015)

  • Canada has been the target of more claims in the North American Free Trade Agreement than its Mexican and American partners, a new study has found.
  • As a result, Canada has been forced to shell out over $150 million in damages and tens of millions more in legal fees since the trade deal came into force in 1994, says a report released Wednesday by the left-leaning Canadian Centre for Policy Alternatives.

Dan McCrum, “Orderly adjustment and the 50 per cent club”, Financial Times (January 15, 2015)

  • There’s plenty of discussion about why the oil price collapsed (read Izzy’s take on the changed structure of the market, for one), but consider a broader question: if markets can be so wrong about the price of one of the most widely used and heavily traded commodities, what else are they missing?

Timothy Lane, “Low oil prices ‘likely bad’ for Canada”, Financial Post (January 15, 2015)

  • Canada, like other countries, has been trying to regain its economic footing since the global financial crisis. From the outset of the Great Recession, the Bank of Canada has been providing significant monetary stimulus. But we have yet to reach the point where growth is self-sustaining. For that to happen, the sources of growth will have to rotate away from consumption and toward increased exports, which are our traditional economic engine.

Laura Dawson, “Canada should focus on Taiwan trade”, The Western Producer (January 16, 2015) 

  • Canada can find its diversified economic future in Asia, but will it take the risks it needs to grow?
  • While Canada focuses its effort and energy on the Trans-Pacific Partnership negotiations, international trade experts are turning their attention to widening the TPP list. Canadian agricultural opportunities in Taiwan demonstrate why that needs to happen.