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On January 10, 2019, LevaData, a supply chain AI company, released the results of its 2018 Automotive Survey based on responses from one hundred US-based auto executives. All of the individuals surveyed are senior executives of car manufacturers, car parts manufacturers or are in leadership positions in related industries.

The study was designed to gather feedback on the impact of NAFTA2 or as it has been renamed, the USMCA (US Mexico Canada Agreement), on the North American automotive industry. This industry is of major importance to the economies of three countries that are signatories to this agreement, and specifically to several U.S states (i.e. Michigan, Ohio, Kentucky, Tennessee) and the province of Ontario in Canada.

It should be pointed out that the USMCA has not been approved by the U.S. Congress. Based on the battle over President Trump’s border wall, this may suggest that some sections of the Agreement may be revised before it takes effect. Assuming that the essential structure of the agreement remains in place, here are some insights on how it will shape the industry in the coming years.

Impact of USMCA on North American Vehicle Production

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This has been a remarkable year in history and in the world of Freight Transportation. Here are some observations on the major developments that will shape 2019.

1. The Coming Economic Downturn and Recession

The looming emerging markets credit crisis is expected to grow in both scale and scope. Some emerging markets have come under serious economic and financial stress as a result of foreign-denominated debt and currency depreciations. An emerging markets credit crisis will unfold in 2019.

Most economic forecasters, including various government agencies and big Wall Street banks, expect the American economy to continue growing in 2019. But there is a broad consensus that the pace will slow as the “sugar high” provided by the Trump administration’s $1.5 trillion tax cut and spending increases begin to wear off.

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The Surface Transportation Summit celebrated its 10th anniversary at the International Centre on October 10. The event addressed the profound changes that have taken hold of the Transportation industry in 2018 and where they will likely lead us in 2019.

Paul Ferley, Assistant Chief Economist, Royal Bank of Canada, kicked off the day by highlighting that the US economy is operating beyond capacity. The U.S. is stimulating an already hot economy with tax cuts and low interest rates. As we look ahead to 2019, he noted that the level of future growth will depend on the actions of economic policy-makers.

Rising oil prices, still accommodative monetary policy and strong U.S. growth have moved the Canadian economy to capacity. The new USMCA (formerly NAFTA) trade agreement has created stability although with tariffs on steel and aluminum, and a president who can act erratically, this could change at any time.

The U.S. Federal Reserve’s objectives will likely be to try to moderate the level of activity. The concern is that President will try to boost an economy that is already over capacity. In Canada, a low dollar coupled with rising oil prices and ongoing increases in interest rates by the Government of Canada are expected to moderate growth.

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This week President Trump imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum products from Canada, Mexico, and the European Union. The rationale was that this was done for reasons of National Security. In view of the very modest size of Canada’s military and the longstanding, peaceful relationship between the two countries, this explanation is ludicrous.

We are also being led to believe that the President apparently took these actions to protect jobs in the steel and aluminum industries, to correct what he deems as unfair trade practices by other countries and to bully Canada and Mexico into making concessions on the new NAFTA agreement that has been under negotiation for many months. Again, these are weak reasons to damage the strongest trade relationship between any two nations in the world.

In the case of NAFTA, the most recent sticking point has become the “sunset clause.” Vice President Mike Pence advised Prime Minister Trudeau last week that he'd have to accept this clause, which would make the trade agreement subject to renegotiation every five years. Trudeau said he couldn't accept the terms. The sunset clause is just one sticking point. The U.S. is also seeking changes to the "rules of origin" that govern how much of a car must be manufactured in North American to avoid import taxes in the three countries that make up NAFTA.

As a Canadian businessperson, I have two messages for Prime Minister Trudeau, push back hard against these bullying tactics and hit President Trump where it hurts. As the world has seen, persuasion, charm, diplomacy, and logical reasoning don’t work with this president. The fact is that both French President Macron and German Chancellor Merkel, two long-time allies, went to the White House in recent weeks to reason with him. Their visits appear to have had no impact.

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Donald Trump created high expectations as he became president in January 2017. These expectations were fueled by his extensive list of campaign promises (https://www.washingtonpost.com/news/post-politics/wp/2016/01/22/here-are-76-of-donald-trumps-many-campaign-promises/?utm_term=.bb0ed2101fa1 ).

While Trump made much of his “Make America Great Again” slogan, one can only look back on the past year as a major failure. While a high quality conservative judge was appointed to the Supreme Court and some executive orders were signed, there are few other successes to point to. Despite having control of all three branches, the Republicans could not pass any major legislation during the past 10 months of 2017. America withdrew from the Trans Pacific Partnership Agreement, a major 12 country trade pact and the Paris Climate Change accord, that has been signed off by every other country other than the United States. While these actions may appeal to the Trump base, they are not creating jobs in America.

Four emerging developments threaten to stifle the Trump presidency. They are the passage of a Tax Reform bill, the Muller investigation into Russia meddling into the U.S. election, America’s threat to pull out of NAFTA. and the sexual harassment scandals that are emerging in the political, entertainment and media sectors.

The Tax Reform Bill

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This week marks the six-month anniversary of the Donald Trump presidency. Four months ago, I posted a blog (http://www.dantranscon.com/index.php/blog/entry/will-donald-trump-be-a-successful-president ) that looked at the president’s strengths and weaknesses. I thought, at the time, that this might help provide some insights into his potential for success or failure in the job. These are my thoughts at this milestone.

Clearly president Trump has made several key decisions during this period. He terminated America’s interest in the Trans Pacific Partnership (TPP), took America out of the Paris Climate Accord, overturned president Obama’s decision to not permit the Keystone XL pipeline into America, changed the balance of America’s alliances in the Middle East, pushed hard for the repeal and replacement of Obamacare, initiated a review of America’s participation in NAFTA, instituted a ban on citizens from six primarily Muslim countries and oversaw the appointment of a new Supreme Court Judge, justice Neil Gorsuch.

While he has talked a lot about infrastructure spending, reducing taxes, building a wall between Mexico and the United States and tax reform, there have been few legislative achievements. Other than some positive stock market and employment numbers, most Americans are not seeing many tangible results from this president. Donald Trump’s overall approval rating stands at 39 percent, a historical low for a president in office for six months. On the bright side, his approval rating among Republicans stands at 85 percent. Looking back at my March blog, I now realize that my assessment of Donald Trump was largely correct. However, I now see some character traits more clearly and these traits are very problematic for him.

President Trump did have and still does have a vision of America. He frequently talks about “Make America Great Again” and about restoring lost manufacturing jobs to the United States. One of his biggest problems is that he lacks a coherent plan to make his vision a reality. Withdrawing from the Paris accord will not bring back lost coal mining jobs. Job growth in the energy sector will come from investing in the new sources that are growing rapidly. Withdrawing from TPP will hurt America’s trading relationships with countries in the Asia- Pacific region. His Make America a Loner Strategy is hurting the country’s relationships with many of its allies.

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America’s Downward Spiral in 2017

Posted by on in NAFTA

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We are now four and a half months into the Trump presidency. While the president has not been able to achieve any significant legislative successes, he has been able to accomplish something much more far-reaching. He has managed to undo decades of American policy and dramatically reduce the country’s stature in the world. How do we make sense of Trump’s strange journey so far? These are my thoughts.

Donald Trump received 62 million votes in last year’s election. These votes did not come from a homogeneous base of voters. Rather, they came from the following groups.

Loyal Republican Voters

There are American citizens who vote for the Republican candidate in every election. While Donald Trump may have not been the preferred candidate for all Republican voters, the people who typically support this party voted predominantly for him. They expect him to uphold traditional Republican party values.

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b2ap3_thumbnail_Truckload-logos.jpgThe truckload sector of the freight industry is different from the LTL and small parcel segments in one important respect. Unlike the other two segments, anyone who can buy or finance the purchase of a tractor-trailer unit and drive the rig, can enter the industry. Freed from the requirement to build cross-dock facilities and/or buy sorting machines, the barriers to entry are low and there are thousands of truckload carriers throughout North America. Nevertheless, the industry has had its challenges over the last couple of years.

Revenues Dropped in 2015 and 2016

Here are links to the top 100 carriers in the United States (http://resources.inboundlogistics.com/digital/trucking_top100_chart_0916.pdf ) and Canada (http://www.todaystrucking.com/top100 ). The top 50 truckload carriers in the United States are listed in the March 20, 2017 issue of the Journal of Commerce. Altogether, the combined revenue of the Top 25 Truckload Carriers dropped 1 percent last year, to $26.9 billion, after falling 2.3 percent, to $27.1 billion, in 2015.

Swift Transportation, Schneider National, J.B. Hunt Transportation Services, Landstar System and Crete are the five largest US based carriers; TFI (formerly TransForce International), Mullen Group, TransX, Trimac Group and Bison Transport are Canada’s largest truckload carriers. It should be noted that TFI now derives roughly 50% of its revenues from the United States.

Revenue declined last year at 15 of the companies on The Journal of Commerce’s Top 25 US Truckload Carriers rankings, according to SJ Consulting Group, which prepared the data. That’s an improvement compared to 2015, when revenue fell at 19 companies. As an indicator of the weakness in pricing last year, the Cass Truckload Linehaul Index, a measure of truckload pricing excluding fuel surcharges, turned negative in March 2016 and declined for 11 straight months.

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b2ap3_thumbnail_Estes---Saia_20170407-192111_1.jpgThe big news on the LTL scene in Canada over the past few weeks has been the severing of ties between Estes Express, the number 14 ranked carrier (on the Transport Topics list) in the United States and TST Overland Express, a large Ontario-based LTL carrier that is one of the major divisions of TFI International (formerly known as TransForce), Canada’s giant trucking conglomerate. This is a partnership that has endured for many years.

Estes Express Lines will be teaming up with two regional Canadian less-than-truckload carriers to offer LTL freight services to Canada under an Estes freight bill. Estes will be working with Speedy Transport of Brampton, Ontario, and Pacific Coast Express Ltd. (a division of the Landtran Group) of Surrey, British Columbia, to offer Estes Canada service. The new alliance will start May 22, according to Estes.

The company stated that U.S. shippers will work with only one carrier, Estes, from pickup to delivery, and all freight will be delivered on an Estes delivery receipt. In effect, Speedy Transport and Pacific Coast Express will become agents of Estes. When asked what drove the need for Estes to convert its Canadian service to a direct model, Ed Alderman, Vice President, International and Offshore Sales for Estes, said Estes wants customers to have the same quality Estes customer service experience from shipment to delivery as they have come to depend on domestically.

As reported in Transport Topics, Estes said it is forming dedicated account teams in Canada to provide the same service level that U.S. customers receive. Freight will move across the border in Estes pup trailers equipped with captive beams and Estes’ proprietary Webb walls. This direct method of cross-border shipping is meant to reduce handling of freight and decrease risk of damage, the company said.

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Today, the Prime Minister of Canada met with the President of the United States (#TrudeaumeetsTrump) for the first time. For President Trump, it was one in a series of meetings and phone calls that he has had with foreign leaders. For many Canadians, the question was where Canada ranks with America’s new president on trade and NAFTA.

The NAFTA agreement that was signed in 1994 between the United States, Canada and Mexico, has helped strengthen the ties between the three countries. There are nine million Americans whose jobs rely on the movement of goods from the United States to Canada. Most Canadians know that America is the number one market for Canadians goods and that Canada is the number one market for exported goods from thirty-five states. About 74% of Canadian goods are exported to the USA; 18.3% of American made goods go to Canada. The dollar value is about same. There is almost $2 billion in Commerce that takes place between the two countries on a daily basis.

In addition to these key issues, this was also an opportunity for the two leaders to set the tone for the years to come. Canadians put a high value on their relationship with the United States. They understand that we are and have been best friends, neighbours and allies. We have worked with Americans and fought beside Americans in a variety of wars.

The headlines in the Canadian media have identified that Canadians had a certain level of “anxiety” as PM Trudeau boarded a flight to Washington. During the election campaign, Donald Trump talked about “tearing up” the “terrible” NAFTA deal. From a transportation industry perspective, “trucks haul two-thirds by value of Canada-U.S. trade; anything that might disrupt that trade – whether it’s about scrapping NAFTA, a border tax, or further layers of border security – is of a real concern to us,” says David Bradley, Chief Executive Officer of the Canadian Trucking Alliance. “Moreover, anything that thickens the border and makes supply chains less reliable and predictable would have a profound impact on the competitiveness of both countries.”

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Canada Needs to Prepare for Negotiations on NAFTA

Posted by on in NAFTA

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The North American Free Trade Agreement (NAFTA), came into effect on January 1, 1994, creating the largest free trade region in the world. It was designed to generate economic growth and help raise the standard of living for the people of all three member countries.

“By any measure the NAFTA has been a success by serving as a basis to grow both trilateral and bilateral North American relationships and the results speak for themselves. This integration helps maximize our capabilities and make our economies more innovative and competitive. In 1993, trilateral trade within the North American region was over US$288 billion. In 2015, our total trilateral merchandise trade amounted to over US$ 1.0 trillion.” (Source: Government of Canada Global Affairs Canada website). This is a more than threefold increase since 1993.

During the recent US election, Bernie Sanders and Donald Trump frequently spoke about the need to renegotiate NAFTA. They commonly highlighted the impact that “bad trade deals” as they were framed, had on American industry. As the election campaign unfolded, Hillary Clinton fell into line with her opponents on this issue. While the subject of renegotiating NAFTA has come up before, this time will likely be different. Here’s why.

Donald Trump has already stated that one of his major priorities is to create jobs in America. He campaigned with the slogan “Make America Great Again.” A big part of making America great again is bringing back jobs that were lost to other countries. This message resonated strongly with working class people living in “rust belt” states. In fact, the race for the Presidency was decided in Michigan, Ohio, Pennsylvania and Wisconsin. These states turned their backs on the Democrats and voted for Donald Trump. To maintain the support of working class Americans in these states, Mr. Trump will have to demonstrate that he is trying to bring back jobs to these states. To better understand the challenges of people living in cities in this area, who have lost their jobs, I encourage everyone to read Hillbilly Elegy by J.D. Vance (see my blog on the book http://www.dantranscon.com/index.php/blog?view=entry&id=253 ).

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This is the sixth and final blog in this series on surface freight transportation within Canada and between Canada and the United States. In this blog I will focus on tips for carriers to help achieve success in the Canadian freight market.

Is the Canadian Freight Market Worth the Investment?

As outlined in the first blog in this series, Canada is a large country, from a geographic perspective, with a population about the size of the state of California. The first question that any American carrier should ask is whether or not Canada is worth the investment in time and resources. As outlined through this series of blogs, when dealing with Canada, there is much to learn about Canadian laws, customs clearance, exchange rates and a host of other issues. Is serving the Canadian market of strategic importance to your company or would another US market (or foreign market) be more profitable? If there is value in the Canadian market, there are a series of steps that need to be undertaken.

Educate yourself on your Canadian freight activity and Canadian carriers

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In my last blog, I provided an overview of Canada’s economy and demographics. In this blog, I will outline the importance of trade to Canada, and the United States, and then touch on some of the key variables that facilitate the trading process.

Canada has been a major trading nation for many years. Well before NAFTA was signed in 1994, Canada and the United States were major trading partners. As pointed out in the last blog, Canada possesses many raw materials that are in high demand throughout the world. With such a small population, Canada is not able to consume many of the raw materials that it produces. As a result, 58% of Canada’s exports consist of pulp and paper products, energy supplies (i.e. oil, coal and gas), minerals, food products, fish, seafood and fertilizers. By contrast, 38% of Canada’s exports are manufactured goods, primarily machinery, automotive parts, aerospace and aviation products, equipment, chemicals, plastics and information technology. Ontario and Quebec contain the largest centers for manufactured goods. Western Canada is a key producer of coal, grain, oil, natural gas and potash.

Canada – U.S. Trade

NAFTA has just entered its 23rd year. It was designed to expedite the trading process between Canada, the United States and Mexico. There are $750 billion in goods and services traded annually between Canada and the U.S. Exports represent 30% of Canada’s GDP. The United States is Canada’s largest trading partner; it receives 73% of Canada’s exports and 63% of its imports. Canada receives 23% of U.S. exports and 17% of its imports. Canada is largest export market for 35 of the 50 US states.

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Some KPIs to Monitor the Transportation Industry

Posted by on in Economy

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There are a host of economic indicators that provide economists, academics and transportation professionals with insights into how the general economy is performing. Data on gross domestic product, imports, exports, housing starts, stock market trends, consumer confidence and unemployment levels are barometers of the level of economic activity in a particular country. These indicators, while somewhat indirect, highlight trends in the economy. Declines in unemployment levels indicate more people are working and as result buying more goods and services. Increases in housing starts suggest that a growing number or people are buying homes, furniture, appliances and carpets. These indices correlate somewhat with freight transportation activity levels. The same applies to other measurements of economic activity.

However, these types of general economic indicators, while helpful, don’t necessarily provide direction as to the specific segments of the economy experiencing the strongest or weakest growth. They don’t shed light on whether there are higher levels of growth in dry van, refrigerated or flat bed traffic.

As a result, transportation professionals need to turn to other indices to understand where the freight industry is going. Some of these measurements are outlined below.

1. ISM Managers’ Index (https://www.instituteforsupplymanagement.org/ )

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In President Obama’s State of the Union message that he delivered to a joint session of congress on Tuesday, January 20, he stated that the “shadow of the (economic) crisis has passed” in the United States. The very next day, the Governor of the Bank of Canada dropped interest rates by 0.25 percent “to stave off emerging risks such as weak inflation and a real-estate downturn.” The rate cut, the first by a Group of Seven country in the face of oil prices that have tumbled to about $46 (U.S.) a barrel from $110 last June, caught financial markets off guard. The Canadian dollar plummeted about 1.5 cents to close at 81.07 cents.

This raises a number of questions. First, are the economies of Canada and the United States that different? As two large trading partners that share the largest unprotected border in the world, why has the U.S. signaled that the recession has passed while Canada has highlighted its fears of falling backward into a downturn?

It is interesting that this announcement comes as the manufacturing sector in eastern Canada revs up. Anecdotal evidence from truckers (in eastern Canada) suggests that freight volumes are strong for the month of January, stronger than in prior years. Why make this move and why make it now?

There are two ways to frame the move by Steve Poloz, the Governor of the Bank of Canada. One could look at yesterday’s announcement as an act of desperation, as the sign of a country that blinked first in the face of the challenges facing the energy industry. While we have been receiving hints of increases in interest rates for some time, this action runs contrary to expectations. It may signal a worry, possibly based on early reports of layoffs and cancelled capital expenditures in the energy sector, that the Bank of Canada had to do an “about face” and take dramatic action to counter this potential threat to the economy. Of course, this also signals Canada’s overdependence on energy, that we have two many “eggs in one basket” and that our economy is nowhere near as diversified as the American economy.

Clearly the quick drop in the value of Canadian dollar is unsettling and may not instill confidence in the Canadian government, the BOC, our currency or the Canadian economy. The central bank warned that lower oil prices would take a sizable bite out of economic growth in 2015, delay a return to full capacity and hurt business investment – a trend that has already triggered layoffs and spending cuts in Alberta’s oil-and-gas industry. Canada’s two-speed economy is undergoing a major reversal of fortunes, with the once-booming energy sector fading while the manufacturing sector is rebounding, Mr. Poloz said. Economist David Madani of Capital Economics said that “clearly, [the BoC] is far more worried about a severe housing market correction.”

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This past year was a tumultuous and transformative year in Freight Transportation. What is in store for us in 2015? Here are some trends to watch.

1. Dimensional LTL Pricing

The National Motor Freight Classification (NMFC) system, developed during the Great Depression by the National Motor Freight Traffic Association, classifies goods based on four elements—density, stowability, handling, and liability—that reflect a shipment's "transportability." However, the ratings from the system are not derived from the dimensions of the actual shipment but from average shipment characteristics. The classification methodology was not designed to accommodate the changes in modern-day production methods, where goods tend to be lighter and generally cube out in a trailer before they weigh out. For nearly eight decades, less-than-truckload (LTL) carriers have been using this system to allocate their trailer space.

Change will come to the LTL freight industry in 2015, driven by so-called dimensionializing, or dimensioning, machines that precisely calculate the amount of space a shipment will occupy in a trailer. The machines measure a shipment's dimensions—arrived at by multiplying length, width, and height—and provide proof of their calculations. A high-end "static" machine designed to measure stationary objects sells in the low to mid-$80,000s. The payoff can be rapid—30 to 60 days, depending on how a carrier uses the machine and how it calculates return on investment (ROI). Carriers like UPS Freight and FedEx Freight, LTL units of highly visible companies that have used dimensioners in their parcel operations for decades, are going that way. Old Dominion Freight Line Inc., that has used dimensioning equipment since 2009, YRC Worldwide Inc., and many of the other leading players in the LTL sector will likely follow the leaders.

2. Low Energy Prices will continue for much of 2015

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The North American Free Trade Agreement (NAFTA) is celebrating its 20th anniversary in 2014. Since the enactment of NAFTA in 1994, trade between the United States, Canada and Mexico has increased almost 200 percent to an estimated $930 billion. The cross-border flow of goods between the U.S. and Canada has grown to $400 billion.

A new U.S. Transportation Department report shows three of the five surface transportation modes, truck, rail and pipeline, carried more U.S. trade with North American Free Trade Agreement partners Canada and Mexico by value in 2013 than compared to the year before. Most U.S.- Canada trade in 2013, 83.6%, was carried on the surface modes of truck, rail and pipeline. Trucks carried 54.4%, followed by rail at 16.7%, pipeline at 12.6%, vessel at 5.7% and air at 4.5%.

Michigan led all states in trade with Canada in 2013 with $74.6 billion. Of the top 10 states for U.S.-Canada trade in 2013, Washington had the highest percent change over 2012, a 6.4% increase. The top commodity category transported between the U.S. and Canada in 2013 was mineral fuels, valued at $134.1 billion, with $79.2 billion or 59.1% moved by pipelines. The next highest commodity category transported by a single mode in U.S.- Canada trade was vehicles and vehicle parts (other than railway vehicles and parts) with $66.1 billion in trade moved by trucks. Cross-border trade via truck and rail continues to show positive trade growth for Canada and the United States. The growth continues as freight transportation providers on both sides of the border strengthen their relationships with cross-border shippers.

Transforming words and good intentions into more concrete and long-term action, both the United States and Canada are promoting greater economic growth and jobs through a stronger, more visible commitment to regulatory cooperation. With greater opportunities for growth on the horizon, trucking companies on both sides of the border have bolstered their cross-border service offerings to accommodate trade. While Canada and the United States have been good friends for many years and have the longest unpatrolled border in the world, they are distinctly different countries. The two countries have different geographies, climates, cultures, currencies, populations, laws and transportation systems. A failure to understand the unique features of each country can lead to fines, service problems and unhappy customers.

As an example, Canadian e-Commerce is expected to grow at a double-digit pace over the next few years, and U.S. businesses are increasingly tapping in to that $32 billion annual market. But the not-so-good news is that businesses are bumping into unexpected challenges in transporting those goods from the U.S. to their Canadian consumers. A new research brief, “Canadian e-Commerce Presents New Opportunities for U.S. Businesses,” details those challenges, and also highlights ways in which U.S. businesses are overcoming those obstacles. The research brief details findings of a study conducted by Peerless Research Group in which supply chain managers were queried about issues with U.S./Canada e-Commerce shipping.

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Over the past two months Stephen Harper has presented a clear and compelling vision of where he wishes to take Canada during his tenure as Prime Minister.  First there was the border Security and Trade Agreement with the United States that he and President Obama announced to the world in December.  He followed this announcement with an important speech this week in Davos, Switzerland at the World Economic Forum in which he outlined his plans to expand trade with nations around the world.

It is important to put these initiatives in context.  Canada has the 10th largest economy in the world.  Thirty percent of the country’s GDP comes from exports.   The United States is Canada’s largest trading partner receiving 73 percent of Canada’s exports and 63 percent of its imports.  Canada receives 23 percent of U.S. exports and 17 percent of its exports.  Canada is the number one export market for 35 of the 50 U.S. states.  Trade with Canada is more than twice the volume of all U.S. trade with the nations in the European Union.  While the north/south flow of goods has changed over the years due to the rise in the value of the Canadian dollar against the U.S. dollar, this is still a very large and important trading relationship for both countries.   

The Security and Trade agreement announced in December will facilitate freight flows by reducing the number of inspections and integrating the trusted trade programs of the two countries.  The rhetoric and political posturing over the past few weeks concerning the Keystone Pipeline project has overshadowed the size and scope of our trading relationship with the United States and the initiatives being taken to take this relationship to a new level.  “We will also continue working with the Obama administration to implement our joint ‘Beyond the Border’ initiative, our plan to strength and deepen our economic and security links to our most important partner,” stated Prime Minister Harper in Davos.

This week the Prime Minster made it very clear Canada will not put “all of its eggs in one basket.”  The nature of the Canadian economy, the need for Canada to market its energy, wheat, potash, pulp and paper and manufactured goods requires the country to sell and distribute these goods to other markets.  “However, at the same time, we will make it a national priority to ensure we have the capacity to export our energy products beyond the United States, and specifically to Asia.  In this regard, we will soon take action to ensure that major energy and mining projects are not subject to unnecessary regulatory delays - that is, delay merely for the sake of delay,” commented Prime Minister Harper.

“We will continue to advance our trade linkages.  We will pass agreements signed, particularly in our own hemisphere, and we will work to conclude major deals beyond it.  We expect to complete negotiations on a Canada-EU free trade agreement this year.  We will work to complete negotiations on a free-trade agreement with India in 2013.  And we will begin entry talks with the Trans-Pacific Partnership, while also pursuing other avenues to advance our trade with Asia.”

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