With the aim of increasing international business and investment between Canada and China, Prime Minister Stephen Harper and Chinese Premier Li Kegiang announced in November that Canada would be designated as an official Renminbi (“RMB”) currency trading hub. With the RMB, also commonly referred to as the Yuan, having recently emerged as the second most prominent currency in trade finance behind the U.S. dollar, countries around the globe have been aggressively competing and bidding against one another to establish their own RMB trading centers. The RMB currency trading hub, which is estimated to become operational in Canada over the next three to six months, will be the first of its kind in North America. This move represents an important competitive advantage for Canada on the international trade and international finance plane. In simple terms, the RMB currency trading hub is a centre authorized to complete RMB transactions at stable and predictable exchange rates. Currently, Canadians buying and/or selling in China typically have to convert monies used to finance their deals into an intermediary currency, which most often than not, is the U.S. dollar. An RMB currency trading hub in Canada will allow Canadian companies to transact directly in RMB, thus eliminating the often costly U.S. dollar middleman. In other words, the Canadian dollar will be valued directly against the RMB for the first time, thereby eliminating the additional layer of uncertainty in the foreign exchange market when converting in and out of the USD. The introduction of the RMB trading hub in Canada is anticipated to significantly reduce transaction fees for both importers and exporters. The Canada Chamber of Commerce stated in a Report that over the next decade, “the direct benefits of an RMB trading hub would be an additional $21-32 billion of exports, plus potential discounts in imports totalling $2.8 billion.” HSBC Bank Canada indicated that the increase in investment that would be driven by the presence of an RMB trading hub in Canada would easily be in the range of $22 million by 2018. China’s growth as an economic superpower is significant for global investment and holds particular importance for Canadians. China currently ranks as the...
Read MoreCanada-Korea Free Trade Agreement Part I: The Sleeping Giant – A Big Asia Pacific Move Forward for Canada
Introduction On September 22, 2014, Prime Minister Stephen Harper and South Korean President Park Geun-hye signed the Canada-Korea Free Trade Agreement [“CKFTA” or “Agreement”]. For Korea, this was the latest in a series of FTAs concluded with major economies, including one with the European Union [“KOREU”], the United States [“KORUS”], and Australia [“KAFTA”]. For Canada, it marked the winding up of two big negotiations with major economies, the other being the Canada and European Union (EU) Comprehensive Economic and Trade Agreement [“CETA”].[1] The CKFTA is Canada’s first “full-fledged trade agreement with an Asian economy.”[2] For Korea, the Agreement signaled the continuation of an “aggressive program of FTAs with major global economies.”[3] The Canada-Korea Free Trade Agreement [“CKFTA”] may prove to be one of Canada’s most important trade policy initiatives since the Canada-U.S. Free Trade Agreement and the North American Free Trade Agreement [“NAFTA”] were negotiated 25 and 20 years ago respectively [see – https://www.wl-tradelaw.com/woods-lafortune-discuss-25th-anniversary-of-free-trade/]. Being the world’s 15th-largest economy and the fourth-largest in Asia, Korea has easily become both an Asian-Pacific gateway and a hub for global traders. South Korea is Canada’s 7th largest merchandise trading partner and Canada’s 3rd largest in Asia, after China and Japan.[4] Canada-South Korea two-way merchandise trade reached nearly $10.1 billion in 2012; Canadian merchandise exports to South Korea were $3.7 billion while Canadian merchandise imports were $6.3 billion.[5] About the Agreement This article is the first of a three part review of the CKFTA. Part I of this series offers a general overview of the CKFTA and its provisions, while Parts II and III will cover investment and dispute settlement provisions respectively. The CKFTA covers many aspects of Canada-South Korean trade, including trade in goods and services, investment, government procurement, non-tariff barriers, environment and labour cooperation. Certain tariffs will be eliminated upon the coming into force of the Agreement and the remaining tariffs will be phased out within a number of years. Non-Agricultural goods The CKFTA will eliminate duties on all non-agricultural goods including industrial goods, fish and seafood products, as well as forestry and value-added wood products. All South Korean tariffs on fish and seafood products will also be eliminated. Products benefiting...
Read MoreCanada Launches Anti-Dumping Investigation Against Chinese Solar Panels
The Canada Border Services Agency (CBSA) has recently announced that it has initiated an investigation into the alleged dumping and/or subsidization of solar modules and laminates originating in or exported from China. The investigation was launched in response to complaints from four Ontario-based companies, namely Eclipsall Energy Corporation, Heliene, Silfab Ontario and Solgate, that Chinese companies have imported dumped and/or subsidized solar modules and laminates into the Canadian market, to their detriment. The CBSA’s investigation closely follows both the EU and the U.S. in their recent imposition of Anti-Dumping tariffs on solar modules from China. The U.S. ruling on injury is due in mid-January and is said to potentially have a great impact on the Chinese solar industry. For a copy of the Public Complaint see...
Read MoreALENA et le droit commercial international – NAFTA Chapter 11 and International Commercial Law
Au cours des prochaines semaines, l’équipe de Woods, LaFortune LLP fournira des bulletins de publication sur l’accord économique et commercial global (AECG) récemment négocié entre le Canada et l’Union européenne. En tant que point de départ, nous allons tout d’abord repasser à travers une série de présentations préparée par une équipe d’anciens collègues, que nous avons donné à la faculté de droit de l’Université d’Ottawa le 8 avril 2013. Michael Woods de Woods, LaFortune LLP se compte parmi cette équipe, ainsi que l’ancien premier ministre du Québec, Pierre Marc Johnson, Véronique Bastien, et Julie Robinson. Le thème abordé comprenait le droit Commercial International avec un accent sur le libre-échange ainsi que sur le chapitre 11 de l’ALENA. Maître Johnson, est maintenant associé au cabinet montréalais Lavery de Billy au bureau de Montréal, Véronique Bastien travaille pour l’OCDE à Paris, et Julie Robinson est auxiliaire juridique pour l’honorable France Thibault de la Cour d’appel du Québec. Elle complète également une maîtrise en droit dans le domaine du droit constitutionnel et du droit de l’environnement à l’Université Laval. Les deux présentations sont disponibles sous notre section de publication: https://www.wl-tradelaw.com/alena-chapitre-11-nafta-chapter-11/ https://www.wl-tradelaw.com/droit-commercial-international-international-commercial-law/ Over the course of the next few weeks, the Woods, LaFortune LLP team will be providing informative publications on the recent Canada – European Union (EU) Comprehensive Economic and Trade Agreement (CETA). As a starting point, we will first revisit a series of presentations prepared by a team of old colleagues that was given at the University of Ottawa’s Law Faculty on April 8th, 2013. Michael Woods of Woods, LaFortune LLP was one of the team members, as was former Premier of Quebec, Pierre March Johnson, Veronique Bastien and Julie Robinson. The topic of these presentations was international commercial law, as a whole, with a particular focus on free trade and NAFTA Chapter 11. Mr. Johnson is now counsel at Lavery Lawyers in Montreal, Veronique Bastier works for OECD in Paris, and Julie Robinson is clerking for the Honourable France Thibault of the Quebec Court of Appeal. The presentations, made in French, are available at the links above....
Read MoreDroit commercial international – International Commercial Law
Droit commercial international
Read More
