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Buy America Affecting Projects in Canada

Posted by on Nov 28, 2014

On November 25, 2014, Minister of International, Trade Ed Fast, issued a statement raising concerns with the U.S.’ attempt to apply Buy American restrictions to a project at the Port of Prince Rupert, British Columbia. The full statement, available at http://www.international.gc.ca/media/comm/news-communiques/2014/11/25a.aspx?lang=eng, reiterates the importance of an integrated economy in North America and highlights the benefits of dismantling trade barriers and eliminating inefficiencies created by protectionist policies. Buy America provisions require that U.S. products and materials be used in transportation infrastructure projects valued over USD$ 100,000.00 so that U.S. mass transit-related projects may only use 100% U.S. steel, iron and manufactured products. The project in question involves the upgrade of the Prince Rupert ferry terminal on British Columbia’s West Coast [the “Prince Rupert Project”].   The Alaska Marine Highway System has exclusive use of the ferry terminal, which services passengers shuttling between Alaska and British Columbia, as part of a 50-year lease agreement between the Alaska Department of Highways and the Prince Rupert Port Authority. The State of Alaska has made it clear that the Prince Rupert Project, valued at approximately USD $15 million and located on Canadian soil, is subject to Buy America. Since funding for the Prince Rupert Project derives from the U.S. Federal Highway Administration, the Project must comply with Buy America provisions.  Bidding documents on the Alaska Department of Transportation’s website also require that all iron and steel used in the Prince Rupert Project must be U.S. made. Consequently, Canadian iron or steel may not be used for this $15 million project in Canada. In the wake of the recent Morrison Colorado South Park Bridge incident, where Canadian steel was used to repair the bridge in violation of the Buy America provisions, there has been a growing debate as to the impact of reciprocal trade provisions on U.S. – Canada economic integration. The Canadian Government is also facing mounting pressure from various stakeholders, such as the Canadian Manufacturers and Exporters (CME) Association to implement retaliatory and reciprocal measures against Buy American provisions to “even out the playing field”. The North American Free Trade Agreement [“NAFTA”] does not address in great detail reciprocity between both countries in the...

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Startup Canada Economic Club of Canada Luncheon

Posted by on Nov 27, 2014

Woods, LaFortune LLP attended the very successful Startup Canada Economic Club of Canada Luncheon on November 25, 2014 at the Fairmont Chateau Laurier. The topic of discussion at the Luncheon was “Growing Canadian Entrepreneurship: Reducing The Startup Failure Rate and Improving Financial Management”. Specifically, the need to encourage and achieve financial literacy among entrepreneurs in Canada was addressed as an important way to ensure their continued growth and success in various market sectors and locations. A recent study conducted by Intuit Canada identified financial illiteracy as one of the largest barriers to the success of entrepreneurs. In response to this finding, the Startup Canada Financial Literacy Committee was launched to provide private sector-led initiatives to increase financial literacy among Canadian entrepreneurs. The panelists identified and explored some of the key challenges faced by startup companies and discussed the best approach to creating more resilient and high-growth companies. Overall a well attended and highly informative event. Speakers and panelists included the Honourable Kevin Sorenson  (Minister of State (Finance) for the Government of Canada), Lucie Tedesco (Commissioner of Financial Consumer Agency of Canada), Jeff Cates (President of Intuit Canada), Cairine Wilson (Vice-President, Member Services and Publisher, CPA Magazine, CPA Canada), and Laura O’Blenis (Chair, Startup Canada Task Force). The panel was moderated by former BNN Anchor and Startup Canada Board Director Andrea Mandel...

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Celebrating the Canadian International Trade Tribunal’s 25th Anniversary

Posted by on Nov 23, 2014

On November 20, 2014, Gordon LaFortune, Catherine Walsh, and Michael Woods attended a reception at the Rideau Club in Ottawa marking the 25th anniversary of the establishment of the Canadian International Trade Tribunal (CITT). The CITT was established in 1988 and began operations in January 1989, is the work of the amalgamation of four federal tribunals – the Tariff Board, the Canadian Import Tribunal, the Textile and Clothing Board, and the Procurement Review Board of Canada. An independent quasi-judicial body operating within Canada’s trade remedy system, the main legislation governing the work of the CITT is the Canadian International Trade Tribunal Act (CITT Act), the Special Import Measures Act (SIMA), the Customs Act, the Excise Tax Act, the Canadian International Trade Tribunal Regulations, the Canadian International Trade Tribunal Procurement Inquiry Regulations and the Canadian International Trade Tribunal Rules. As the trade remedies area (anti-dumping, countervail and safeguards) is one of the most visible of the CITT’s mandates, it is interesting to note that Canada was the first country to enact anti-dumping legislation. That was in 1904 and following the completion of the GATT Kennedy Round Negotiations, Canada set up the Anti-Dumping Tribunal (ADT) in 1968. The ADT became the Canadian Import Tribunal and then the CITT. The National Commodity Tax, Customs and Trade Section of the Canadian Bar Association organized and hosted the reception and Woods, LaFortune LLP was pleased to serve as one of the sponsors for the successful event. We congratulate current and former Members, the many trade lawyers who have appeared before the CITT, and especially the hard-working and very effective staff members, past and present. Woods, LaFortune LLP have appeared in a large number of trade remedies matters before the CITT (see https://www.wl-tradelaw.com/wp-content/uploads/2014/10/Complete-List-of-Trade-Remedies-Cases.pdf) in addition to several government procurement...

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Exporting to Canada – Opportunities for U.S. Companies

Posted by on Nov 21, 2014

With approximately $1 trillion in annual bilateral investment and trade, Canada offers many profitable business and/or investment opportunities for U.S. firms, and especially for small and medium size enterprises (SMEs). The Canadian market is a great place to begin exporting given its geographic proximity to the U.S. and the many similarities in business culture between both countries. Despite these similarities on certain levels, the Canadian regulatory landscape is quite complex and can present new exporters with important challenges. There are many key considerations to be taken into account in an export venture, and the sheer volume of documentation and resources available on the topic of exporting to Canada can often be overwhelming and convoluted. In conjunction with the U.S Commercial Service of the U.S. Embassy in Ottawa (http://www.export.gov/canada/), Woods, LaFortune LLP and Shane Brown of Thompson Ahern International (http://www.taco.ca/en/) put on a Webinar as part of the series on the logistics of doing business in Canada on November 12, 2014. Attended by U.S. companies of varying sizes and sectors, the Webinar focused on condensing all the relevant considerations to be mindful of when exporting to Canada. As alluded to by its title “Exporting to Canada: Where Do We Begin?”, the Webinar’s main purpose was to take participants through the ABC’s of exporting to help create a successful business venture in Canada. The presentation, which can be found under our publications section (https://www.wl-tradelaw.com/exporting-to-canadawhere-do-we-begin-webinar-slides/), identifies key trends and opportunities in the Canadian market for U.S. firms. It highlights the need for, and main components of an effective export plan, marketing strategy and market entry strategy for new exporters. It also walks through the important steps and considerations to be taken into account from Duty Deferral Programs, Carriers or Freight Forwarders and Insurance, to Customs and Tariff Classifications, to name a few. Regulatory considerations such as labelling, certifications and standards are also explored, as well as NAFTA’s role and the protections it offers to U.S. companies investing or doing business in Canada. The team behind the Webinar is currently working on completing a checklist for new exporters, to highlight, in a single user-friendly document, all the key considerations and things that need...

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