M.E. DEY JOINS TRADE MISSION TO JAPAN AND CHINA

M.E. Dey President Robert Gardenier, and Executive Vice President Sandi Siegel, will join Governor Doyle's trade mission to China departing Milwaukee September 10th.  While in China, they will meet with our branch partner offices in Ningbo, Shanghai and Beijing as well as visiting the various shipping ports.  If you are currently having any challenges with your cargo moving in or out of China, please contact our office so we can help you manage your imports and exports to China.

C U S T O M S / S E C U R I T Y

CBP Offers Online Fee Payment for Border-Crossing Program
Friday, August 17, 2007

Washington – U.S. Customs and Border Protection announced today that southern border crossers may now utilize a Web tool to apply for and administer their participation in CBP’s Secure Electronic Network for Travelers Rapid Inspection (SENTRI) program.

In addition to applying online, SENTRI participants may now pay application and other program fees online. Key benefits of the online system include streamlining the entire application and vetting process for new applicants and renewals, and added convenience of a quick and secure online fee payment option.

“As the SENTRI program continues to increase in popularity with frequent travelers along the U.S.-Mexico border, we are excited to offer an online fee payment capability to better facilitate the application process,” said CBP Commissioner W. Ralph Basham.

SENTRI is a popular frequent traveler program that provides dedicated lanes and expedited processing for pre-approved, low–risk travelers. Applicants voluntarily undergo a background check, in-person interview and fingerprinting, and pay a 5-year membership fee. The online application, launched in November 2006, has decreased processing time from several months, to an average of 4–6 weeks.

With the new online payment system, new applicants will be able to pay their initial $25 application fee through their online account. Current members can also pay other fees, for example membership card or vehicle decal replacement, online.

Once a new applicant has been conditionally approved through their online account, they will then schedule their appointment, also through an online scheduling tool. At the time of their appointment, they will complete the interview and fingerprint process and obtain a membership card, vehicle decal, and pay the remaining fee of $102.00. The total cost for an individual SENTRI membership is $127.00.

For families interested in enrolling in SENTRI, it’s important to note that every individual, children included, must create a separate account online and submit a separate application. Adults 18 years of age or older must each pay the $25 application fee. Children 17 years of age and younger may apply at no cost. Families will be responsible for an additional fee of $204.00 at the time of interview. Families may either schedule an interview appointment for each family member using the “schedule interview” option in their online account, or contact a local Enrollment Center to schedule an appointment as a family unit.

The SENTRI program was first implemented in 1995, and has grown to include 15 lanes at nine locations along the U.S.-Mexico border. More than 129,000 travelers from both sides of the border currently are enrolled in the program.

The SENTRI card is also proposed as an alternative document to the passport under new travel document requirements for U.S. citizens. This change, slated to be implemented at land and sea crossings as early as summer of 2008, requires a secure, verifiable document denoting citizenship and identity for U.S. citizens, who previously were not required to present documentation. Ample advance notice and a robust public information campaign will precede full implementation of the new requirement.

Applicants with technical questions regarding their SENTRI application may call the CBP Help Desk at 1-800-927-8729; press 0 then press 1. A list of Frequently Asked Questions on the new online fee payment program is also available at www.cbp.gov. SENTRI FAQ'S 

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CBP Launches Online Application for Cross-Border Travel Program

New Nexus Online Application Unveiled for Travel Program Members
Thursday, August 16, 2007

Washington, D.C. — U.S. Customs and Border Protection announced today that cross-border travelers wishing to apply for Nexus privileges are now able to do so through a new, online application system.

Nexus is a popular, joint frequent traveler program with Canada where applicants voluntarily undergo a background check, in-person interview and fingerprinting, and pay a $50 five-year membership fee. Under the new system, individuals may submit an online application and pay the membership fee at www.cbp.gov.   Apply Online for NEXUS and SENTRI

“We are pleased to continue expanding the Nexus program, not only at new airports throughout 2007 but also by improving the application process itself with this new online flexibility,” said CBP Commissioner W. Ralph Basham. “This program has tremendous benefits for our law enforcement officials as well as travelers, particularly as it has been proposed as an alternative document to a passport under new document requirements, and we want to encourage new members to sign up.”

Once an applicant is notified that they are conditionally approved through their online account, they will need to schedule an appointment, also through their online account, to complete the interview and fingerprint process and to obtain their membership card.

Approved members have access to dedicated commuter lanes, airport kiosks and telephonic marine reporting that allows expedited processing. Key benefits of the new online application system include expediting the entire application and vetting process, and streamlining the processing time for new applicants and renewals. Individuals who have already mailed their application to the Canada Border Services Agency should continue with this process.

First implemented in 2000, the Nexus program has grown to include 15 lanes at 11 locations along the U.S./Canada border, at marine reporting locations border-wide, and at five Canadian airports. The Nexus card has also been proposed as an accepted alternative to a passport under new travel document requirements, slated to go into effect for land and sea crossings as early as summer 2008. Ample advance notice and a robust public information campaign will precede full implementation of this requirement. The Nexus card is also acceptable as an alternative to a passport for air travel, a requirement that went into effect January 23, 2007.

Currently, U.S. and Canadian citizens are not required to present a passport or specific document when seeking to enter or re-enter the United States at land and sea crossings. CBP highly encourages travelers to carry, at minimum, proof of citizenship such as a certified copy of your birth certificate, along with government-issued photo ID, such as a driver’s license.

More than 133,000 travelers from both sides of the border currently are enrolled in the program, which accounts for more than 6 percent of border crossings. A list of Frequently Asked Questions on the new online system is available at www.cbp.gov. Travelers may also call the CBP Help Desk at 1-800-927-8729, press 0 then 1 for technical support, or the Canada Border Services Agency Help Desk at 1-888-281-5778 for French calls, or email SGIL-AIDE@cbsa-asfc.gc.ca. 

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CBP to Sponsor Information Exchange on Automated Trade Processing System in Atlanta
Tuesday, August 21, 2007

ATLANTA – U.S. Customs and Border Protection has scheduled an event where the trade community to participate can speak openly, learn about and provide input on the Automated Commercial Environment (ACE), the trade processing system for the United States. Registration is now open for the free event to be held Oct. 15-17 in Atlanta.

Many companies have been utilizing ACE since 2002, and CBP encourages more companies to participate. The event will explain how ACE has helped companies comply with a new regulatory mandate and how ACE has given thousands of importers, brokers and truck carriers an advantage over their competitors.

New ACE functions have been developed that will benefit many professions and businesses. Regulatory and technical changes will be discussed that will impact the business of importing goods into the United States.

Learn about these changes and how to prepare for them by attending this free conference at the Marriott Hotel, One Hartsfield Centre Parkway, Atlanta, GA 30354

Among the tools now available are:

            National view of company's transactions;
Paying duties and fees on a monthly statement;
Reporting tool with transactional, financial and compliance data;
Mandatory submission of electronic manifest for trucks creating 5106 online;
Participation of other government agencies;
Ability for brokers, cartmen, lightermen and facility operators to meet;
CBP regulatory requirements; and
Highlights of future functionality.

Registration for this event is free, but required for each attendee. Please sign up early to attend and for a one-on-one appointment. Register today!   ACE Exchange VIII Event Registration 

Blaine, Wash. CBP Agriculture Specialists Intercept Scales Insect; Prevents Entry of Serious Threat to U.S. Agriculture Industry
Friday, August 24, 2007

Blaine, Wash.— Recently at the Peace Arch port of entry in Blaine, Wash., a Customs and Border Protection agriculture specialist intercepted a species of scales insect never seen in the United States that could have caused serious damage to American agriculture.

The armored scales insects were found under the leaf stem of a mangosteen fruit seized from a passenger arriving from Canada. A scale is an insect that lives under a hard shell on the surface of a plant or fruit and uses its straw-like mouthparts to suck the juices from its host.

Foreign scales and other exotic pests pose a serious risk to American agricultural resources because they have no natural predators in the U.S. They can damage fruit and potentially kill entire fruit trees.

The U.S. Department of Agriculture’s Systematic Entomology Laboratory determined the scales as a probable new species of Diclavaspis, adding to the significance of this discovery. As a new species, its impact to American agriculture, had it gone undetected, could be devastating.

The CBP agriculture specialist and the CBP officer at U.S. ports of entry and international mail facilities target, detect, intercept and thereby prevent the entry of these potential threats before they have a chance to do harm. On a typical day in fiscal 2006, CBP seized more that 4,000 prohibited meat, plant material or animal products, including 147 agricultural pests at ports of entry.

For more information on the role of CBP agricultural inspections, please visit the U.S. Customs and Border Protection Web site at Protecting the Food Supply: Agriculture Inspections. 
Protecting the Food Supply: Agriculture Inspections 

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Most border crossings now have armed guards
31 July 2007, CSCB

Almost all of Ontario's major border crossings with the United States now have at least one armed guard on duty as the federal government rolls out a 10-year program that will eventually see all the country's land and sea boundary officers carry guns.

Border points at Niagara Falls, Sarnia, Fort Erie, Windsor and Sault Ste. Marie each employ at least one of the 39 guards who passed an initial pair of RCMP firearms training courses this month, according to Ron Moran, president of the Customs Excise Union.

"Now that the firearms training program is underway, we expect to have more than 100 officers deployed throughout the country by the end of August," federal Public Safety Minister Stockwell Day said in a release.

Public Safety Minister Spokesperson Melisa Leclerc] said the decision on which crossings to initially send armed guards was based on volume of traffic and perceived risk. She said the program will eventually arm all 4,800 guards at Canada's land and sea entry points but not officers at international airports.

Leclerc said about 400 extra guards are being hired to provide each of the country's 160 land and sea entry points with at least two officers during business hours.

Moran said nine guards failed the pilot firearms training, which teaches the proper handling, use and storage of weapons, and provided more than 40 hours of range training.

S H I P P I N G / T R A N S P O R T A T I O N

New CSI Port in Balboa, Panama Becomes Operational
Monday, August 27, 2007

Washington — U.S. Customs and Border Protection announced today that the Port of Balboa became the 52nd operational Container Security Initiative port to target and pre-screen maritime cargo containers destined for U.S. ports.

CBP joined the U.S. Department of Energy’s National Nuclear Security Administration and the government of Panama in signing a Declaration of Principles February 12 to help prevent smuggling of nuclear and other radioactive material through implementation of the Container Security Initiative and Nuclear Security Administration’s Megaports Initiative.

“Securing global trade is a major priority for CBP, so I am pleased to be partnering with Panama,” said CBP Commissioner W. Ralph Basham. “We are committed to using high-tech equipment and smarter, more secure containers to safeguard the supply chain, but realize that cooperation from our friends around the globe is our most potent weapon.”

Panama is a key location for transshipments of trade vessels that are destined for the United States. The initiation of CSI screening operations in Panama will give CBP critical access in Central and South America to scan cargo on maritime vessels before they enter the United States.

The Port of Balboa is one of three ports scheduled to become operational this fiscal year. The Panamanian ports of Colon and Manzanillo are projected to become operational by September 2007.

CBP’s Container Security Initiative, launched weeks after the terrorist attacks of 2001, is a cooperative effort with host country governments to identify and screen high-risk shipments before they leave participating ports. More than 80 percent of all cargo containers destined for U.S. shores originate in or are transshipped through 52 CSI ports in North, South and Central America, Europe, Asia, Africa and the Middle East.

Under the Megaports Initiative, Energy’s National Nuclear Security Administration will provide specialized equipment to all CSI ports in Panama designed to indicate the presence of special nuclear and other radioactive materials in containerized cargo, thereby enhancing Panama’s capability to deter, detect and interdict illicit shipments of nuclear and other radioactive materials at its ports. The initiative is currently operational in eight ports; operational testing is underway in four additional ports; and another 12 ports in Asia, Latin America and the Caribbean, Europe and the Middle East are scheduled to be operational in 2008. 

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Tracking The Elusive Shipping Container
August 27, 2007

The world is a very different place out beyond the horizon. Even as you read this, there are some 40,000 large cargo ships plying the world's waterways and oceans, not to mention innumerable smaller merchant craft, all pulling in and out of ports, loading, unloading, changing out crews and cargos, and steaming from one location to the next.

In what can be a very murky world of shadowy ship registry offices, lengthy manifests, and dockhands who change out faster than Barbosa's crew, how all these ships come by their cargo, how that cargo is loaded, by what polyglot seamen and in what untamed ports, can be an amazingly scrambled and trackless story rivaling the Pirates of the Caribbean.

Scenario: A single ship starts out in Singapore with containers filled with electronics, passes through Indonesia where it picks up spices, sails to Calcutta to load cotton, Port Said where it boards an Egyptian crew, Piraeus where it stops for fuel, Tangier where it picks up leathers, Scotland where it packs in woolen sweaters, and finally sets sail for Newark, New Jersey. Eleven million containers packed with such goods reach U.S. ports every year.

At any point in a merchant ship's journey, pry open container XYZ mid-ocean, and what might you find? When you can't be sure, that spells danger. The possibility that a single container has gone purposefully astray and might now be packed with explosives, or loaded with a virulent biologic destined for our shores, is not a fictional scenario. (In 1988, it was an Al Qaeda merchant ship that delivered the materials needed to bomb U.S. embassies in Tanzania and Kenya. That same ship was never seen again.)

Given lots of time, Customs agents could find all contraband. But, in the world of maritime shipping, time is the enemy. Try delaying a delivery, and you may face some rough characters down at the docks (think On the Waterfront). What's more, anything that hinders the swift transit of goods around the world can have a rippling effect on the world's economy.

MATTS -- DHS S&T's Marine Asset Tag Tracking System -- is a miniature sensor, data logging computer, radio transceiver, and GPS tracking system integrated into a compact and inexpensive black box, about the size of a deck of cards. Affixed to a shipping container, MATTS can use its on-board GPS chip to estimate its location if the GPS signal is lost. And, in the final version of the system, containers outfitted with MATTS tags will be able to transmit through shipboard communications systems, even if they are placed deep below deck. The tag's signal will "jump" from container to container until it finds a path it can use. Better yet, this black box stores its location history and reports it back when in range (up to 1 km) of an Internet equipped ship, container terminal, or a cell phone tower. At any point in a container's journey, its history can be examined, and if anything has gone amiss, authorities know instantly to scrutinize that particular container.

Ultimately, MATTS will be integrated with S&T's Advanced Container Security Device. The ACSD sends an alert through MATTS when a container has been opened or tampered with on any side, providing even more security.

"MATTS will globally communicate in-transit alerts to Customs and Border Protection, and this capability satisfies a high-priority CBP requirement," says Bob Knetl, Program Manager for the MATTS research within S&T's Borders and Maritime Division.

In late April 2007, one hundred MATTS-equipped containers started out in the Port of Yokohama, Japan, and are now making their trans-Pacific crossing to the Port of Los Angeles/Long Beach, where they will then continue by rail to the Rochelle, Illinois, Rail Terminal and be unloaded and trucked to their final destination. This test, ending in August, will demonstrate that the communications can be used internationally (in this case, by Japan's Ministry of Land, Infrastructure and Transportation) and that transitioning to domestic drayage once portside in Long Beach also runs smoothly.

MATTS was developed under a DHS S&T Small Business Innovation Research (SBIR) contract by iControl Incorporated, a small Santa Clara, CA-based company.

"A serious threat is posed by the cargo that containers may hold," says Vinny Schaper, SBIR Program manager. "We have to view the ocean with grave concern, and realize that a maritime attack is not beyond the realm of possibility and if it comes, it will probably involve the use of merchant ships. Eleven million containers a year are brought onto our docks. Interrupt this with a terrorist attack, and the backup would reach around the world."

Note: This story has been adapted from a news release issued by US Department of Homeland Security.

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W O R L D   T R A D E 

Statement by USTR Susan C. Schwab on monthly trade deficit numbers
08/14/2007

“June trade data, released this morning, show that the U.S. trade deficit has fallen by 7.7% so far this year, compared to the same period of 2006.  American exports are up by 11%, more than twice as fast as the 4.4% increase in U.S. imports. Highlighting the importance of exports, other recently released data on the economy showed that export expansion has accounted for 40% of U.S. economic growth over the last year.  Good trade agreements remove barriers, expand trade and help support incomes and better paying jobs in America.  Consumers, workers, companies, farmers and ranchers benefit from agreements to further open global markets to U.S. exports.” 

US asks WTO to rule in piracy dispute with China
Tuesday , August 14, 2007

The Bush administration asked the World Trade Organization to rule in a complaint against China over piracy of copyrighted movies, music, software and books, escalating a dispute that has roiled commercial relations.

The US Trade Representative's office took the formal step of asking the Geneva-based arbiter to decree that China's laws fall short of international agreements after consultations failed to resolve differences over what the US argues are weak Chinese laws to safeguard patents and copyrights.

"We still see important gaps that need to be addressed,'' Sean Spicer, a spokesman for the trade representative, said in a statement.

China's copying of movies, music and software cost companies $2.2 billion in 2006 sales, according to an estimate by lobby groups representing Microsoft Corp, Walt Disney Co, and Vivendi SA. The WTO complaint, announced in April, is the first by the US against China for breaching intellectual property rights.

Under WTO rules, China can block the establishment of a three-member panel this month, and then the US will need to again request a panel in September, which China can't block. The judges typically take a year or more to rule on a complaint. The two sides held one formal consultation in June, and China hasn't "taken any steps that address US concerns,'' the trade office said. This is one of five WTO cases the US has brought against China and the third case against China where the US has requested a WTO dispute settlement panel.

China prefers "negotiations and consultations as the way to resolve disputes,'' because "sanctions don't resolve disputes,'' said Liao Xiaoqi, China's vice minister of commerce, responding to the US move at a Beijing press conference. "China will continue using legal and administrative means to strengthen our protection of intellectual property rights.''

In this case, the US says that China is violating provisions of the WTO guarding intellectual property rights because thresholds for sale of pirated or counterfeited goods are so high they effectively allow such sales on a commercial scale, and violators don't face criminal prosecution.

Secondly, the US says China allows pirated goods that are seized by authorities to be sold once the fake labels on them are removed. The US wants those products destroyed.

Thirdly, Chinese laws don't provide copyright protection to works that are waiting for censorship approval, which allows pirates to get a head start on legitimate distributors, the US argues.

Also in April, the US filed a complaint about barriers that US-based movie, music, book and other copyright industries face in selling to China. It didn't ask the WTO to rule on that dispute today, and instead said it's still considering next steps.''

—Reuters

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Under Secretary Mancuso Travels to Israel for Discussions on Enhancing Bilateral High-Tech Trade

WASHINGTON - The Commerce Department’s Bureau of Industry and Security (BIS) today announced that Mario Mancuso, Under Secretary for Industry and Security, will travel to Israel, visiting Tel Aviv, Haifa, and Jerusalem, from August 27-30, 2007.  Under Secretary Mancuso will meet with senior government officials and business leaders to discuss dual-use export control cooperation, high-technology trade and investment issues.

"The United States and Israel have a unique strategic partnership and share a mutual interest in enhancing secure high technology trade and investment," said Under Secretary Mancuso.  "A robust export control and high technology dialogue will help advance the economic and security interests of our two nations, and I look forward to working with my colleagues from the Government of Israel on these important issues."

Under Secretary Mancuso also commended the Israelis for the significant progress they have made towards implementing a comprehensive export control program.

Under Secretary Mancuso will participate in meetings with the Ministry of Industry, Trade and Labor, the Ministry of Defense, and the Ministry of Foreign Affairs. He will also meet with Israeli and U.S. business leaders to discuss ways to promote secure high technology trade and investment. 

U.S. begins arbitration process over lumber deal
08 August 2007, CSCB

The U.S. government has launched arbitration proceedings in what will be the first major test of the Canada-U.S. softwood lumber agreement.

It claims Canada is violating terms of the year-old treaty by pushing too much B.C. and Alberta lumber into the U.S. market and by forest-industry support programs offered by Ontario and Quebec.

"It is truly regrettable that, just 10 months after the agreement entered into force, the United States has no choice but to initiate arbitration proceedings to compel Canada to live up to its SLA obligations," U.S. Trade Representative Susan Schwab said yesterday in a news release.

The move means the American complaints will go to binding arbitration before the London Court of International Arbitration.

This dispute-settlement mechanism was a key feature of the treaty, something the previous agreement in force between 1996 and 2001 didn't have.

Canadian International Trade Minister David] Emerson said despite this move, the agreement has worked well for Canada's forest industry. "Different points of view may arise from time to time in administering such a complex agreement," he said.

The seven-year renewable agreement, which came into force last October, replaced U.S. lumber import duties with a Canadian export tax and for some provinces a combination of quotas and a lower border tax. Canadian exporters also got back about $4 billion (U.S.) in duties collected since May 2002, about 80 per cent of the total.

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The Office of the United States Trade Representative

Joint Statement on 2007 NAFTA Commission Meeting
08/14/2007

2007 NAFTA Commission Meeting      Vancouver, Canada – August 14, 2007

Joint Statement

The Honourable David Emerson, Canada’s Minister of International Trade; Eduardo Sojo, Mexico’s Secretary of Economy; and Ambassador Susan C. Schwab, United States Trade Representative, are pleased to release the following Joint Statement, which outlines the overall results of the August 14th, 2007, meeting of the NAFTA Free Trade Commission (FTC), in Vancouver, Canada. The three Ministers noted that the work accomplished at this meeting would help lay the foundation for the upcoming North American Leaders Summit in Montebello from August 20-21, 2007.

The NAFTA – now in its 14th year – has been a remarkable success story for all three partners. It has contributed to significant increases in trade and investment flows between Canada, the United States and Mexico, and has contributed to economic growth and job creation throughout  North America.

A strong, modern and flexible NAFTA is essential for the continent to maintain its competitive edge in an increasingly complex, fast-paced and connected global marketplace.

As the NAFTA concludes the complete elimination of duties within North America, we must look for new and creative ways of further promoting trade and new business opportunities. We must build upon our initial success, and continue to strengthen our regional competitiveness with a view not only of intra-NAFTA trade, but considering other regions as potential destinations for our exports and an important source of imports.

In keeping with our collective commitment to increasing market efficiencies, economic growth, prosperity and innovation in all three countries for the benefit of our citizens, we engaged in a constructive discussion of what we can do to achieve these goals. Thus, we have agreed to:

         - develop a work plan to respond to the ever increasing pressures on North American competitiveness.  The plan – which will address the key issues that impact our trade and identify the most effective means to facilitate it – will be presented for review at our next meeting so we can develop a strong and competitive North American platform that increases the welfare and the prosperity of all our citizens;

          - facilitate trade in specific sectors in order to foster stronger more competitive North American value chains. To this end, we have instructed officials to move ahead on the following sectors: swine, steel, consumer electronics, and chemicals. We also tasked our officials to identify a second set of sectors. We look forward to receiving progress reports on the first set of sectors, as well as reviewing work plans for the second set of sectors, at our next FTC meeting; and

         - conduct an analysis of the free trade agreements that each country has negotiated subsequent to the NAFTA, beginning with those in the western hemisphere. This work will focus on identifying specific, meaningful differences between agreements, especially those related to trade facilitation and transparency.

In 2006, we also instructed our officials to review the mandates of the NAFTA working groups and committees. Armed with this analysis, the working groups must identify potential improvements and ensure that the NAFTA work programs reflect current realities and challenges, including work that is taking place in parallel initiatives. We have directed officials to examine how this work can be used to support the new sectoral initiatives and other initiatives discussed today, including the review of FTAs.

We also reaffirmed our commitment to cooperate in other regional and global fora:

          - We are committed to multilateral trade liberalization and to successfully concluding the WTO Doha Round of negotiations.  We urge all WTO Members to demonstrate renewed energy and flexibility in the negotiations based on the Chairs’ texts in agriculture and non-agricultural market access, and put the Doha Development Agenda on a path toward a balanced and ambitious overall outcome that results in meaningful improvements in global trading conditions.

          - At the same time, we reaffirm our commitments undertaken at our last meeting of APEC Ministers Responsible for Trade, held in July 2007 in Cairns, Australia.  To this end, we reiterated our commitment to examine the prospect of a Free Trade Area of the Asia-Pacific (FTAAP).

We are also pleased with significant progress on rules of origin. In 2003, the NAFTA Working Group on Rules of Origin set out to liberalize the requirements for obtaining NAFTA duty-free treatment.

          - The first set of changes – affecting approximately US 20 billion in annual trilateral trade – was implemented in 2005.

          - A second set of changes – affecting an estimated US 15 billion in trilateral trade – was implemented in 2006.

          - We have now agreed to a third set of changes – affecting an estimated US 100 billion in trilateral trade. These changes will be implemented in 2008.

These efforts confirm NAFTA’s ability to adapt to ever-changing competitive conditions including new sourcing patterns and production methods. In this context, we asked the Working Group on Rules of Origin to continue its work to pursue further liberalization opportunities.

We also commend our officials for having completed the technical rectifications to align the NAFTA rules of origin with the Parties’ updated tariff schedules resulting from the World Customs Organization’s amendments to the nomenclature of the Harmonized Commodity  Description and Coding System that came into force on January 1, 2007. We are pleased to note that the NAFTA Working Group on Rules of Origin will soon consult with officials from Chile to share experiences with issues of common interest.

We recognize the concept of cumulation of origin as an important mechanism for creating new business opportunities by strengthening the competitiveness of North American products globally.  The Commission intends to instruct the Working Group on Rules of Origin to study further appropriate opportunities for cumulation.

We take note of the agreement reached by the Chapter 19 Operation Working Group on proposed amendments to the NAFTA Chapter 19 Rules of Procedure. We commend the Working Group for its efforts to improve the functioning of Chapter 19 panels. We refer the proposals developed by the Working Group to the State Parties to complete any internal review procedures, with a view to having the Commission adopt an agreed package of amendments to the Rules of Procedure by November 15, 2007.

We are pleased to accept the Mutual Recognition Agreement that has been signed by the architecture professions of Canada, Mexico and the United States. We hereby encourage our respective competent authorities to implement it in a manner consistent with the NAFTA. This agreement will facilitate the recognition of credentials within the three NAFTA countries. By facilitating the cross-border trade in services, this type of agreement contributes to achieving the objectives of NAFTA, and we encourage other bodies of professionals to complete the agreements that are being negotiated to develop mutually acceptable standards and criteria for licensing and certification of professional service providers.

We agreed that regional cooperation has provided significant benefits for economic growth and job-creation in each of our countries.  We further agreed to pursue opportunities, wherever practical, to promote further cooperation for the benefit of our producers and consumers. Finally, we agreed that the United States will host the next NAFTA Commission meeting, at the Ministerial level, in 2008.

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Tonga becomes the 151st member of WTO

The WTO, on 27 July 2007 welcomed the Kingdom of Tonga as its newest member. Tonga applied for accession to the WTO in June 1995, but negotiations effectively started in April 2001.The terms of membership, which include the Report of the Working Party for the Accession of Tonga, the Protocol of Accession, and the Schedules of Tonga’s commitments on Market Access for Goods and Services, were adopted by the WTO at the Hong Kong Ministerial Conference in December 2005.

Tonga ratified its accession package on 27 June 2007 which was the final step in the accession process before Tonga could officially join the WTO. Under WTO rules, a country becomes a member 30 days after national ratification.

“I am very pleased to welcome Tonga as a new member. It is important for the WTO to continue facilitating fuller integration into the world economy of small developing countries such as Tonga” said Director General Pascal Lamy.

Tonga is one of the world's smallest economies with a population of approximately 116,000 and an area of 748 sq km. Trade accounts for 54% of GDP. Its annual growth reached 1.9% in 2006 and its major Industries are agriculture (41% of GDP) and fisheries (20% of exports). Tonga's main trading partners are Japan, the United States, New Zealand and Australia.

A S I A  

Amid another recall, China defends its exports
03 August  2007, CSCB

China on Thursday again defended its products after Mattel Inc. said it was recalling 1.5 million Chinese-made toys worldwide because their paint may contain too much lead.

The recalled toys made for Mattel's Fisher-Price unit include popular preschool characters such as Elmo and Big Bird and dozens of other items. The case is the latest in a deluge of product safety scares that have tainted the "made in China" brand.

Vice Commerce Minister Gao Hucheng reiterated that Chinese products were overwhelmingly safe, and called on foreign media not to hype the problems of a small minority of goods or companies, Reuters reported. "When problems occur, we never shirk, have always sought truth from the facts and responsibly deal with them," Gao said in a statement on his ministry's Web site.

Mattel has two sprawling plants in Guanyao, an hour's drive south of Guangzhou, capital of the booming southern Chinese province of Guangdong. But it was not immediately clear if they were connected to the tainted toys. Mattel said the toys were made by a contract manufacturer using a non-approved paint pigment containing lead.

Lead paint has been linked to health problems in children, including brain damage.

Mattel is asking U.S. consumers and sellers to return 967,000 plastic toys and is recalling another 533,000 from other countries, including Britain, Canada and Mexico.

The recall comes amid heightened concern worldwide about the safety of China's exports. Many of the previous problem products have involved smaller manufacturers, but now a major company in a sensitive sector has been hit.

China has fought back against consumer concern by promising tough quality controls, but also by accusing foreign media of "alarmist" reporting that could stoke a protectionist backlash. "Over 99 percent of China's export products are good and safe," Reuters quoted Commerce Minister Bo Xilai as saying in Beijing on Wednesday.

President Bush has ordered a review of U.S. rules intended to keep out harmful imports following a series of scares involving Chinese goods this year.

The U.S. has stepped up inspections of Chinese goods after a chemical additive in pet food caused the death of some pets. Toxic ingredients were also found in Chinese toothpaste and fish exports, while the deaths of patients in Panama were blamed on improperly labeled Chinese chemicals mixed into cough syrup. Chinese-made toy trains were recalled in the U.S. in June because some may have contained lead paint.

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China to ban tobacco promotion by 2011
www.chinaview.cn  2007-08-29

BEIJING, Aug. 29 -- China, the world's largest tobacco producer and consumer, will ban all forms of tobacco promotion by January 2011.

    A ban on tobacco advertising has been in place since 1996, but firms have managed to sidestep the rules and promote their brands in other more subtle ways such as sponsoring sporting events, or using their logos without mentioning "cigarettes" on television, radio and in newspapers and magazines.

    Xu Guihua, vice-president of China Tobacco Control Association, made the landmark announcement on Monday at a seminar in Guangzhou, capital of Guangdong Province. She said the country is committed to fulfill its obligations to the World Health Organization (WHO) Framework Convention on Tobacco Control.

    China formally became a member of the convention last January.

    Xu said the nation lags behind other countries in efforts to control the use of tobacco, and the biggest problem is the lack of national regulations banning smoking in public areas.

    To date, fewer than half the cities have framed rules on smoking bans in some public spaces. Efforts to ban smoking in other areas such as karaoke parlors and restaurants have been stifled by unwilling owners and managers who fear a loss of business.

    Figures from the Ministry of Health show that China has an estimated 350 million smokers, almost a third of the world's 1.1 billion smokers.

    Cigarette makers spent more than 1.6 billion yuan (212 million U.S. dollars) to promote their brands last year, according to China Youth Daily.

    In 2005 the government collected 240 billion yuan (31.7 billion dollars) in tobacco taxes.

    According to the WHO convention, tobacco products must carry prominent health warnings on the packaging.

    This measure needs to be implemented within three years from when China signed the convention.

    Within five years, China must fulfill it commitment to comprehensively ban all forms of tobacco advertising, promotion and sponsorship.

    Last year, authorities found there were 231 instances of tobacco promotion considered illegal. The violators were fined a mere total of 1.23 million yuan (162,780 dollars).

    A senior official from China's State Tobacco Monopoly, who did not want to be named, said the administration was "actively taking measures" to fulfill its obligations to the convention.

    Regulations to further control tobacco promotion on the Internet were expected shortly, he said.

    Despite a willingness to cooperate, the official said tobacco producers were lawful enterprises, and it was not fair to "butcher the industry."

    "There is market demand for tobacco, people can choose if they smoke or not," he told China Daily.

    He said tobacco firms are using scientific and technological improvements in tobacco products to "lower" the harmful effects of smoking.

    However the WHO has long argued there is no way to make smoking healthier.

    Yang Yan, a researcher with Chinese Center for Disease Prevention and Control, said 12 percent of deaths in China are caused by tobacco related illnesses, and by 2025, that figure will climb to 33 percent.

    Source: China Daily

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