Canadian Import/Export Association Concerned With New China Customs Info Sharing Agreement
The Canadian Association of Importers and Exporters (IE Canada) took umbrage at a customs information sharing treaty that was quietly signed between Canada and China in November, expressing concern over the continuing lack of publicly available details in a letter sent Jan. 6. First reported by Global News (here), the deal was signed Nov. 8 by Foreign Affairs Minister John Baird, but, unlike similar agreements with the European Union and Israel, went unannounced by the Canadian government. Canada has since released few details on the arrangement, and IE Canada’s concerns with the deal have gone unabated, said the Canadian trade association. Reached for comment, a Canadian Border Services Agency spokesman said the deal is a standard Customs Mutual Assistance Agreement negotiated under World Customs Organization guidelines.
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A major source of discomfort for IE Canada was the lack of public and industry involvement in the deal. Although most Canadian treaties must be given a hearing in Parliament, Prime Minister Stephen Harper's administration invoked an exception that allowed the treaty to escape public scrutiny, said IE Canada. The exception is available for treaties that are “urgently required,” but it is “unclear why this issue was considered ‘urgent’ enough not to go through normal democratic channels,” said the trade group, noting its “surprise that such an important treaty would not be consulted upon with Canadian international traders before being signed.”
IE Canada said it is concerned about whether any data elements shared with China could increase the risk of corporate espionage. It also expressed apprehension over how U.S. parent companies “will react when they learn that information that pertains to their Canadian subsidiaries may be at risk of being shared with the Chinese government.” As a result, the trade association will be asking the Canadian Border Services Agency about the type and amount of information to be shared, as well as what controls will be put in place and how the information will be used.
A CBSA spokesman told International Trade Today that the agreement is a CMAA "negotiated using elements of a model agreement" created by the WCO, "a well-established document used by customs administrations for negotiating bilateral agreements." The agreement allows for the exchange of information collected under the Canadian Customs Act, including "data, documents, reports or other communications," he said. It includes confidentiality and information protection safeguards, including additional provisions "regarding the handling of information, such as breaches, errors, unauthorized access, retention and disposal, as well as the requirement to have internal audit mechanisms in place," he said.
"Sharing information with China, Canada’s second-largest single nation trading partner, will improve supply chain security and further facilitate trade," said the CBSA spokesman. "Furthermore, this Agreement will enable information-sharing so that cross-border customs offences can be more effectively prevented, investigated and prosecuted," he said. The U.S. CBP currently has CMAAs in place with about 70 countries, including China.
Email ITTNews@warren-news.com for a copy of the letter from IE Canada.