Dear International Trade and Investment Committee Members,
Here are the international trade and investment articles and publications of interest for the week of February 17 to February 23. This week’s edition has been curated by Anca Sattler. Anca is an associate at Gowlings in Ottawa.
In this edition, we have moved the hyperlinks from below the article description to the citation itself. To access the full text of the article, please click on the article citation.
Top News
- Director-General Roberto Azevêdo, in presenting his first global trade-monitoring report to WTO members on 17 February 2014, said that trade growth projections for this year are “much improved, hovering somewhere between 4.0% and 4.5%.” However, he said “407 new restrictive measures were reported during the review period,” affecting 1.3 % of world merchandise imports—valued at $240 billion.
- U.S. President Barack Obama and his Canadian and Mexican counterparts on Wednesday discussed ways to reduce any trade frictions at a summit in central Mexico, but clear divisions remained over the Keystone XL oil pipeline project.
- The Mexican government wants Prime Minister Stephen Harper and U.S. President Barack Obama to have the three countries make economic decisions as a bloc and is hoping for a commitment at a leader’s summit this week.
- China urged the United States on Monday to "objectively and fairly" handle an ongoing trade dispute between the two countries after Washington signaled last week it could extend import duties on Chinese solar panels to a wider range of products.
- Talks between the US and EU for a comprehensive trade and investment pact are set to kick into higher gear, following a highly-anticipated “political stocktaking” meeting between the two sides’ top trade officials. Though the negotiations are said to be “on track,” both sides cautioned that the biggest challenges are yet to come.
- Chief negotiators from the twelve Trans-Pacific Partnership (TPP) countries are meeting this week in Singapore, in a bid to give the talks a major push before ministers arrive this weekend. The upcoming ministerial gathering is expected to be a key indicator of whether the group can seal a deal in time for US President Barack Obama’s trip to Asia this April.
- Leaders from 46 countries pledged last week to act together to combat a growing illegal wildlife industry, following a high-level meeting convened by the UK government and the British royal family.
- The US’ controversial country-of-origin labelling (COOL) requirements for livestock and meat imports were once again under scrutiny at the WTO this week, as hearings began to determine whether recent changes to the policy have brought it in line with international trade rules. The dispute dates back to 2008, when Canada and Mexico first challenged the measure as being discriminatory against their own livestock industries.
- The trade outlook for the upcoming year is “cautiously positive,” WTO Director-General Roberto Azevêdo said last week, with global trade flows slated to increase between 4 and 4.5 percent this year. However, he warned, trade restrictions are also on the rise, which could put this growth in jeopardy.
Other News of Note
- The Honourable Maxime Bernier, Minister of State (Small Business and Tourism, and Agriculture), outlined the Government of Canada's commitment to supporting and enhancing the competitiveness of Canada's pork sector in international markets today at the Canada Pork International (CPI) Annual General Meeting.
- Two Canadian cities are vying to become North America’s primary centre for trading the Chinese yuan, an effort that has received federal backing amid a broader desire by Ottawa to strengthen ties with Beijing.
- Canada is now using diplomats, government trade representatives and senior ministers to help domestic companies aggressively pursue military exports, a move that industry officials say has paid off with a multibillion dollar armored vehicle deal with Saudi Arabia.
- In a press conference held in the center of Toluca, all three leaders praised advances of the region’s cooperation in the past two decades, but as pointed out by Peña Nieto, recognized the need to “go a step further.”
Government Announcements/Press Releases
- The Honourable Ed Fast, Minister of International Trade, today announced that the foreign investment promotion and protection agreement (FIPA) between Canada and Kuwait came into force on February 19, 2014.
- The Honourable Christian Paradis, Minister of International Development and Minister for La Francophonie, met today with representatives of Canadian businesses to consider opportunities to form partnerships designed to reduce poverty in developing countries.
- He also highlighted Canada’s strong interest in expanding its economic relationship with New Zealand, especially as both countries enhance their relations in Asia. “In a highly competitive global economy, closer and deeper economic ties will benefit both our countries by creating more jobs, opportunities and prosperity in both countries,” said Baird.
- Prime Minister Stephen Harper today met with Enrique Peña Nieto, President of Mexico, and Barack Obama, President of the United States, for the seventh North American Leaders’ Summit (NALS). Their discussions addressed a wide range of regional and global issues, with a particular focus on enhancing North American competitiveness in the 21st century.
Commentary
- The federal government’s budget promise to sign on to five intellectual property treaties will likely please potential free trade partners in Europe and around the Pacific, say legal analysts briefed on the subject.
- On January 27, 2014 the Minister of Foreign Affairs tabled five intellectual property treaties in the Canadian House of Commons. The Government will now observe a twenty-one day sitting period, expiring March 4, 2014, when Members of Parliament may debate aspects of the treaties and vote on related motions.
- The Agreement on Internal Trade (AIT) came into force in 1995 and is an agreement between Canada and the provinces and territories (other than Nunavut). It has been amended and developed over the years. The provisions on procurement apply to the provinces and territories, and to identified Crown corporations. There are specific provisions that apply to the MASH sector.
- When international trade collapsed in 2009, the Canadian economy turned inward, and for a change, discovered a steady source of growth. That source is now tapped out, and economy-watchers have for some time turned their eyes back to trade. So far, the view has been uninspiring. Will Canadian trade carry growth forward, or is our hopeful gaze in for a big disappointment?