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Keeping an eye on globalization trade

by | Dec 9, 2017 | Globalization Trade

Global trade trends we’ll be watching at in our sights in international business outlook in 2017 and for those years to come.

Canada has signed a number of free trade agreements with several countries to develop trade, “on an equal footing with partner country companies, in the country’s market“. It goes without saying that small and medium sized and large Canadian companies have little choice and are condemned to diversify and explore more trade opportunities for export and import markets for trade in their products Value-added, high-quality goods and services in developed and emerging economies in the major economic blocs that have developed in other parts around the world.

What we will looked at in our sights in economics for the managers and executives of MSMEs or expect in the international business world 2017 and for those years to come?

  • ‘’ A major milestone for the global trading system was reached on 22 February 2017 when the first multilateral deal concluded in the 21 year history of the World Trade Organization’s   Trade Facilitation Agreement (TFA) entered into force ‘’;
  • Continuing talks to reach a trade agreement for the implementation of the Canada-Caribbean Single Market and Economy Free Trade Agreement (CSME);
  • the exploratory talks to improve their trade relations between Canada and the Southern Common Market (MERCOSUR);
  • the approved and the signing of the Canada-EU Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union (EU) on 30 October 2016. The agreement is expected to increase trade between the EU and Canada by 20-25%;
  • The signing of the Agreement in Principle for an EU-Japan Free Trade Agreement (FTA), which was initialed on 6 July 2017 between Japanese Prime Minister Shinzo Abe and European Commission President Jean -Claude Juncker at the permanent headquarters of the European Union in Brussels (Belgium);
  • the start of talks to renegotiate North-America Free Trade agreement (NAFTA) trade relations between the three partners (Canada, the US and Mexico), and the rising protectionism in target markets, such as the United States, China, the Asia-Pacific Rim countries. Canada, the United States and Mexico are preparing to start their discussions on the renewal of the trade agreement, Wednesday, August 16, 2017 in Washington, DC U.S.;
  • several countries are striving to introduce a range of tariff and non-tariff barriers to protect their domestic markets from external competition in order to stimulate local production by creating good sustainable jobs for workers and competitiveness of SMEs and large enterprises;
  • ‘’ Even before it was clear that a sentiment of protectionism would form the foundation of the new U.S. administration’s trade policy, an overwhelming majority of Canadian manufacturers identified the need to diversify markets beyond our neighbour to the south. ‘’[1];
  • Protectionist threats from U.S. leading exporters to diversify: “Maybe this is a big wake-up call for Canadian companies that finding customers outside the U.S. is not a ‘nice to do’, but a ‘must do’,” says award-winning trade economist and industry consultant Jayson Myers. “Diversity of export markets is critical.”[2];
  • « Plusieurs experts en commerce international interrogés par La Presse canadienne s’accordent pour dire que cette liste constitue la colonne vertébrale à partir de laquelle la position américaine sera articulée. Le protectionnisme américain est notamment fondée sur des consultations menées auprès d’entreprises américaines »[3] which led to the development by the new Trump-Pence administration of a list of complaints related to business practices in the export-oriented manufacturing sector and the service sector, being quite considered strategic sectors in the targeted markets. In addition to Canada, these countries are potentially targeted, such as, the China, Germany, Japan, Ireland, Vietnam, Italia, South-Korea, Malaysia, India, Thailand, France, Switzerland, Taiwan, Indonesia and Mexico. These countries were originally targeted by the revision of the US trade deficit.;
  • On May 12, 2017, the US President Donald Trump announced that United States concluded a trade agreement with the Government of China (R.P.C) to reduce the US trade deficit balance between two countries, but to the advantage of China in this moment;
  • As an example that a strong wind is observing to illustrate that a sentiment of protectionism threats would form the foundation of the new Trump-Pence U.S. administration’s trade policy. As of April 10, 2017, ‘’ U.S. imposes new seafood import rules to minimize harm to marine mammals. The United States is now requiring proof that its seafood imports are harvested in a way that minimizes harm to marine mammals like whales — and that has concerned some members of Atlantic Canada’s fishing industry. As of Monday, countries had to submit a list of fisheries measures in place to limit by-catch and gear entanglements with whales, turtles, porpoises and seals. The U.S. wants standards comparable to those imposed on American fisheries Two-thirds of all seafood caught in Canadian waters is exported to the United States, which is the world’s largest importer of seafood. According to Canadian government statistics, the top suppliers in 2014 were China, Canada, Indonesia, Chile and Vietnam.’’[4];
  • The future in the European Union with the launching of Article 50 of the Brexit talks with a view to the exit of the United Kingdom from the Free Trade Agreement by the end of March 2017. The bill “Brexit” will be “very salty” for the United Kingdom warned the president of the European Commission, Jean-Claude Juncker before the Parliament of the European Union in Strasbourg, France, 21 February 2017. An “Exit bill” of up to € 60 billion could be required from the UK, according to European sources from AFP. The negotiations surrounding the divorce between the United Kingdom and the European Union (EU) have only begun yet the cost of the breakup already fuel controversy. At the beginning of May 2017, European negotiators have revised upwards the financial requirements that Britain may have to assume an exit bill that will reach 100 € billion. This sum corresponds to the United Kingdom’s budgetary commitments within the EU[5];
  • At the beginning of August 2017, UK has launched a bombshell by publishing laugh, ‘’ Britain is prepared to pay up to £36 billion to the EU to settle the so-called Brexit divorce bill, The Telegraph can reveal. Senior Whitehall officials have concluded that such an offer – the first time a precise figure has been proposed – is the only way to break the current deadlock in negotiations. However, the UK will only agree to pay the sum – equivalent to €40 billion – it if the EU agrees to negotiate the financial settlement as part of a deal on future relations, including a trade deal.’’[6]; and
  • The talks started on the initiative of the European Union which have been held since 2013 to negotiate the terms of trade relations of the Transatlantic Trade Investment Partnership (TTIP) process’’ between the EU and the US.

[1]© Copyright 2017 Jeff Brownlee, FITT – Forum for International Trade Training. All Rights Reserved (FITTforTrade.com): ‘’ Export diversity beyond U.S. is key to long-term profitability for Canadian manufacturers ‘’. Published on April 13, 2017. Page consulted on June 10, 2017.  http://www.tradeready.ca/2017/topics/market-entry-strategies/export-diversity-canadian-manufacturers/#sthash.ArdPRKj7.dpuf

[2] Op. cit., © Copyright 2017 Jeff Brownlee, FITT – Forum for International Trade Training. All Rights Reserved.

[3]© Droit d’auteur 2017 La Presse Canadienne. Radio-Canada. «ALENA : un document donne des indices sur ce que Donald Trump voudrait renégocier». Publié le vendredi 3 février 2017. Page consultée le lundi 6 février 2017. http://ici.radio-canada.ca/nouvelle/1014891/alena-donald-trump-document-renegociation

[4]© Copyright 2017 Radio Canada/CBC Atlantic by Paul Withers,’’U.S. imposes new seafood import rules to minimize harm to marine mammals’’ CBC News Posted: Apr 11, 2017 6:00 AM AT| Last Updated: Apr 11, 2017 6:00 AM AT. Page consulted on June 16, 2017. http://www.cbc.ca/news/canada/nova-scotia/us-seafood-import-rules-marine-mammals-harm-minimizing-1.4065066

[5]© Copyright 2017 ICI Radio-Canada, Radio-Canada avec Agence France-Presse. Brexit : une facture « très salée » pour le Royaume-Uni, publié le 21 février 2017 9H46. Page consultée le 21 février 2017. http://ici.radio-canada.ca/nouvelle/1018092/brexit-facture-salee-royaume-uni-commission-europeenne-junker

[6]© Copyright 2017, The Telegrah. ‘’UK ready to pay £36bn Brexit bill, but only if EU talks trade’’ By Peter Foster, Europe Editor 6 August 2017 • 7:45am