Unsurprisingly, this week has been all about the USA. In
fact, I don’t remember a time in my life when the rest of the world was this
focused on the USA and its future approach to trade! On that note – I promise
to do a review of what I see in the Trump administration’s first 100 days[i],
as they relate to trade. President-elect Trump made some promises to the voters
about his first hundred days (after he assumes office, not yet), and a few of
the points could directly impact trade compliance professionals. I’m sure I’m
not the only one, but I plan to have a look at that, and see what may be in the
cards…
In the meantime, there’s a couple developments north of the
border I’d like to mention.
First up: something I hadn’t actually heard about until
recently: the TFA. What’s that? Its long name is the “World Trade Organisation
(WTO) Agreement on Trade Facilitation”, or “TFA” for short. The TFA is
essentially an agreement to standardize and streamline customs release
processes among member nations (members of the WTO). Below is an image of the
official pamphlet[ii]:
There’s nothing earth shattering in here, but it will affect
countries that adopt it. Perhaps the most controversial portion is an agreement
for the more “developed” countries to help (through direct financial aid) less
advanced countries as they adopt the provisions. Significant provisions
include:
· Prompt release times at the border
· Release upon bond, not requiring payment of
duties up front
· Processes for advanced rulings
· Processes for appeals and audits
· Discipline regarding fees, charges and penalties
· Authorized operator programs
Overall, as I say, not that revolutionary from a North
American perspective, but clearly a big change for some other countries. As
expected, the USA has signed this deal. It will come into force when 2/3 of the
members ratify the deal. Imagine my surprise when I read the list of current
signatories and my own county wasn’t on it? Canada is usually first to the
dance floor when UN or WTO agreements are proposed! Especially considering the
little impact it would surely have on us, I was really confused.
A look at the Global Affairs Canada web site doesn’t help
much:
Yes, there is a great FAQ section and a presentation, but
the answer to the question “When will Canada ratify the TFA?” is:
“Canada will be in a position to submit its instrument of
acceptance to the WTO, once Bill C-13, introduced in Parliament on April 13,
2016, receives Royal Assent.”
Hmmn. It’s 2016 right, Justin? (Inside humour only a
Canadian would get…). I’m really unsure why this is not ratified. The government
has a majority, which is as close to a totalitarian government as you can get
in Canada, so nothing is stopping them. Honestly – I don’t know. Just curious –
if anyone has insight into this and would like to comment or reach out to me
please do – is there more to the story than I know, or is this just the slow
wheels of bureaucracy? It’s most unlike us to be the last to the table….
The other thing I’d like to discuss is CETA. It looks like
Wallonia relented (See: Last post) and CETA will become reality. It’s time we
take a hard look at the provisions, and prepare to adopt its rules into our trade
compliance lives. Well… sorry folks: I took too long, this entry has reached its
limit. But I will be back with a look at CETA rules of origin and what to
expect for those familiar with NAFTA!
[i] https://assets.donaldjtrump.com/_landings/contract/O-TRU-102316-Contractv02.pdf
[ii] https://www.wto.org/english/thewto_e/20y_e/wto_tradefacilitation_e.pdf
