Trade Clippings May 2021

  • June 07, 2021

Dear Members of the CBA International Law Section, here are the international trade and investment articles and publications of interest for the month of May 2021.This month’s edition has been prepared by Amy Lee. Amy is an associate working in areas of sales and indirect tax, customs and international trade at Blake, Cassels & Graydon LLP and a member of the Communication Committee of the Section.

News

U.S. requests dispute settlement panel on Canadian dairy quotas under USMCA trade deal Reuters (May 25, 2021)

The Biden administration on Tuesday escalated a simmering trade dispute with Canada over dairy import quotas, requesting that the first dispute settlement panel under the U.S.-Mexico-Canada Agreement be formed to review the matter.  The U.S. Trade Representative's office said its complaint alleges that Canada was improperly allocating USMCA tariff-rate import quotas on 14 dairy products, diverting a portion of them to Canadian processors and unfairly limiting export opportunities for U.S. dairy farmers and processors.

U.S. Plans Higher Canadian Softwood Duty, Lumber Group Says Bloomberg News (May 24, 2021)

The U.S. Department of Commerce issued new preliminary rulings on antidumping tariffs on Canadian softwood lumber imports that would double the current duties if implemented.

Press Releases & Governmental Notices

Minister Ng participates in meeting of G7 trade and investment ministers Global Affairs Canada (May 28, 2021)

At the meeting, the G7 ministers agreed to redouble efforts on the accelerated production and equitable distribution of COVID-19 vaccines and to take decisive steps to ensure that the WTO is prepared to respond to future trade and health challenges.  Minister Ng reiterated Canada’s continued engagement with other G7 countries on WTO reform.  Other topics discussed included modernizing digital trade rules, supporting coordinated global climate change action and in ensuring a sustainable future economy, fostering greater participation in global trade by under-represented groups including the two initiatives championed by Canada: the WTO trade and gender workplan, and the Global Trade and Gender Arrangement.

CARM: CBSA Assessment and Revenue Management project Canada Border Services Agency (May 25, 2021)

The Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM) project is a multi-year initiative that will modernize and streamline the process of importing commercial goods. The CBSA announced the first release of CARM Client Portal on May 25, 2021.  CARM Client Portal is a self-service tool that will facilitate accounting and revenue management processes with the CBSA.  The CARM Client Portal is now available for importers, brokers and trade consultants, who will be able to view their transactions and statements of account, request a ruling and pay invoices with new electronic payment options.

Prime Minister Justin Trudeau speaks with President of Indonesia Joko Widodo Prime Minister of Canada (May 25, 2021)

Prime Minister Trudeau and President Widodo agreed to take further steps towards negotiating a Canada-Indonesia Comprehensive Economic Partnership Agreement, discussed the global response to the COVID-19 pandemic and offered Canada’s support in seeking a resolution to the crisis in Myanmar.  Prime Minister Trudeau expressed Canada’s interest in developing closer ties with ASEAN, including through a Canada-ASEAN free trade agreement.

Customs Notice 21-14 Temporary amendments to the requirements for requesting a 30-day extension to the 90-day period to submit certain corrections following a CBSA trade compliance final verification report Canada Border Services Agency (May 19, 2021)

Given the unprecedented circumstances of the COVID-19 pandemic, effective May 19 and valid through September 1, 2021, inclusively, the requirements for requesting a 30-day extension to the 90-day period to submit certain corrections to a declaration of origin, tariff classification, or value for duty under section 32.2 of the Customs Act, following a CBSA trade compliance final verification report, will be temporarily amended.  The notice provides details of the amended policy for requesting the extension.

Canada concludes successful Free Trade Commission meeting with the United States and Mexico Global Affairs Canada (May 18, 2021)

The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, Katherine Tai, United States Trade Representative, and Tatiana Clouthier Carrillo, Mexico’s Secretary of Economy discussed progress on the implementation of the new NAFTA, integrated supply chains, taking action to end forced labour, advancing environmental priorities and mitigating the economic effects of climate change.  The three also discussed how their countries can work together to ensure that the new NAFTA generates inclusive growth and benefits women, Indigenous peoples, racialized communities and other under-represented groups, for a stronger recovery from COVID-19.  The meeting was concluded with the adoption of a trilateral statement outlining the overall results of the meeting and of work related CUSMA committees and working groups. 

Canada imposes additional sanctions on individuals and entities affiliated with Armed Forces of Myanmar Global Affairs Canada (May 17, 2021)

The Honourable Marc Garneau, Minister of Foreign Affairs, today announced additional sanctions against 16 individuals and 10 entities under the Special Economic Measures (Burma) Regulations in response to the military’s ongoing brutal repression of the people of Myanmar and their refusal to take steps to restore democracy.  These actions are taken in coordination with the United Kingdom and the United States and align with measures recently imposed by the European Union. They are also consistent with our G7 commitment to continue to take action should the Tatmadaw fail to reverse its course.

Minister Ng announces launch of Canada’s Foreign Investment Promotion and Protection Agreement Model Global Affairs Canada (May 13, 2021)

The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, introduced Canada’s modernized and inclusive Foreign Investment Promotion and Protection Agreement (FIPA) Model.  The new FIPA model balances the interests of all Canadians, including women, Indigenous peoples and owners of small and medium-sized enterprises, so that the benefits of Canada’s investment agreements are shared broadly across society. The new model includes a number of innovations, clarifies core investment protections, and preserves the right to regulate in the public interest.  The summary of main changes in the 2021 FIPA model can be found at this Global Affairs Canada webpage.

Minister Ng signs memorandum of understanding with Chile on intellectual property and innovation issues Global Affairs Canada (May 10, 2021)

On Thursday, May 6, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, and Rodrigo Yáñez, Chile’s Under-Secretary for International Economic Relations, signed a memorandum of understanding (MOU) to foster collaboration on intellectual property (IP) and innovation issues.  This MOU creates a formal mechanism for the two countries to enhance bilateral engagement on IP under the Canada-Chile Free Trade Agreement and encourages discussion of small and medium-sized enterprises’ innovation, IP awareness, growth, and prosperity. It also promotes inclusivity for under-represented groups and supports Canada and Chile’s coordination of IP discussions in various multilateral forums, such as the World Intellectual Property Organization, the World Trade Organization and the Asia-Pacific Economic Cooperation. 

Flat Hot-rolled Carbon and Alloy Steel Sheet and Strip – notice of expiry of order Canadian International Trade Tribunal (May 10, 2021)

The Canadian International Trade Tribunal’s finding made on August 17, 2001 concerning the dumping of certain flat hot-rolled carbon and alloy steel sheet and strip originating in or exported from Brazil, the People’s Republic of China and Ukraine, and the subsidizing of such products originating in or exported from India, is scheduled to expire on August 11, 2021, unless the Tribunal has initiated an expiry review.  Interested firms, organizations, persons or governments and their counsels wishing to make submissions on whether an expiry review is warranted must file their intention to participate by June 7, 2021.  The deadline for filing submissions is June 14, 2021.  

Certain Steel Goods – notice of commencement of exclusions inquiry Canadian International Trade Tribunal (May 10, 2021)

The Tribunal is to determine if there is at least one domestic source of supply for certain heavy plate and stainless steel wire which are subject to safeguard measures, or if there is a firm and commercially viable plan to produce such goods domestically.  The Tribunal must report to the Minister of Finance by July 9, 2021.

Upholstered domestic seating – notice of commencement of inquiry Canadian International Trade Tribunal (May 6, 2021)

The Tribunal has initiated an inquiry to determine whether the dumping and subsidizing of certain upholstered domestic seating from China and Vietnam have caused injury or retardation or are threatening to cause injury.

Upholstered domestic seating – notice of preliminary deterrminations Canada Border Services Agency (May 5, 2021)

On May 5, 2021 the Canada Border Services Agency (CBSA), pursuant to subsection 38(1) of the Special Import Measures Act (SIMA), made preliminary determinations of dumping and subsidizing with respect to certain upholstered domestic seating from China and Vietnam.  The statement of reasons for the preliminary determinations has also been published on May 20.

Concrete reinforcing bar – notice of final determination  Canada Border Services Agency (May 5, 2021)

On May 5, 2021, pursuant to paragraph 41(1)(b) of the Special Import Measures Act (SIMA), the Canada Border Services Agency (CBSA) has made a final determination of dumping regarding certain concrete reinforcing bar from Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore and Vietnam. The statement of reasons for the final determination has also been published on May 20.

Certain Grinding Media – notice of commencement of inquiry Canadian International Trade Tribunal (May 3, 2021)

The Tribunal has initiated an inquiry to determine whether the dumping and subsidizing of certain chrome cast iron grinding media from India have caused injury or retardation or are threatening to cause injury.

Message to Industry – Opening of the Application Period for the Dairy Year TRQs Global Affairs Canada (May 3, 2021)

Global Affairs Canada has prepared new Notices to Importers for the 2021-2022 dairy year TRQs, with an application period starting on May 1, 2021 and a deadline of June 15, 2021.  These Notices can be found on the Supply-Managed TRQs website.  Global Affairs Canada will continue to apply certain changes for the 2021-2022 dairy year TRQ application process in recognition of the continued impacts of COVID-19 on stakeholders’ ability to conduct normal operations.  On an exceptional basis, the requirement to provide an accountant's letter for the upcoming TRQ application period is waived. All TRQ applications are to be submitted electronically.

Opinions & Editorials

Canada Resolves Wine Dispute with Australia, but Barriers to Inter-provincial Trade in Alcohol Remain Conlin Bedard LLP (May 28, 2021)

On May 12, Australia and Canada informed the World Trade Organization’s Dispute Settlement Body that they had reached a mutually agreed solution regarding the outstanding panel dispute initiated by Australia. In its panel request, Australia claimed that certain federal excise duties, as well as measures with respect to the sale of wine in British Columbia, Ontario, Quebec, and Nova Scotia discriminate against imported wine in violation Canada’s WTO obligations.  Pursuant to the mutually agreed solution, Canada and the provinces agreed to remove the impugned measures identified as discriminatory by Australia, in exchange for the withdrawal of Australia’s legal claim.  The article discusses the background to the dispute and the mutually agreed solution, along with commentary on other related matters such as inter-provincial trade restrictions.

Featuring 

Carbon and Controversy: Why we need global cooperation on border carbon adjustment International Institute for Sustainable Development (May 18, 2021)

Border carbon adjustment (BCA) (or CBAM for "carbon border adjustment mechanism," as it’s called in the EU) involves imposing charges or regulations at the border to mirror the costs that climate pricing policies impose on domestic firms.  The European Commission has a mandate to propose a CBAM measure by July 14 this year.  Canada announced federal consultations on BCA in its 2020 Fall Economic Statement and the US has included BCA in the USTR’s 2021 Trade Policy Agenda.  The article discusses various design issues and considerations associated with BCA as a policy tool.

Sustainability and information security: Opportunities and challenges White and Case (May 6, 2021)

There has been increased focus in recent years on the environmental impact of international arbitration, and concerns surrounding cybersecurity and data protection issues and how to address them. The article explores how each of these topics are viewed and dealt with in practice by users.