Preamble: The U.S. Foreign-Trade Zone Board defines a Foreign-Trade Zone (FTZ) as a physical area within the United States that, for customs purposes, is treated as if it is outside U.S. borders.
FTZs offer a flexible, streamlined, profitable approach to the movement of goods and services that will encourage Canadian businesses to take advantage of manufacturing, storage, distribution, value‑added, domestic and re-export trade opportunities. An effective and efficient FTZ program will ultimately increase Canada’s competitiveness in the global supply chain.
Resolution: That the Federal Government:
a) Use the nomenclature Foreign Trade Zone (FTZ) in creating a program that restructures and fully integrates current FTZ-like programs into a single program with one federal point of contact for potential users;
b) Reduce or remove the restrictions on the amount of added value activity that can occur in a FTZ;
c) Allow companies that sell a significant proportion of their production within Canada to participate in the FTZ program;
d) Allow the deferral of GST/HST throughout all components of the FTZ program; and
e) Promote and market the FTZ program effectively in domestic and foreign markets.
The Manitoba Chambers of Commerce produces Resolution reports as part of its commitment to be accountable to its members. The reports are updated as matters unfold and have two components:
MCC Advocacy: Specific activities the MCC has done to help make this Resolution a reality.
Developments: All other information (e.g. government action, media coverage, reports) that relates to Resolution.
Advice, comments, and information sharing are welcome; simply enter a reply at the bottom of this post.
May 15, 2011: The 2011-2012 Resolutions were posted on the MCC website, listed as part of a comprehensive Report on AGM 2011 and then notice of this story was circulated through a news release as well as in an MCC E-Update which is sent to all MCC members, Media and Government.
June 22, 2011: Resolution books were sent to every MLA and every Member of Parliament that hails from Manitoba. The following had this Resolution specifically drawn to their attention with a detailed letter setting out the background to this issue, Government initiatives (where applicable), and an argument for the Resolution:
- The Premier
- The AffairsMinister of Entrepreneurship, Training and Trade
- The Federal Minister of Foreign Affairs and International Trade Canada
July 18, 2011: The Honourable Peter Bjornson; Minister of Entrepreneurship, Training and Trade; wrote to the Manitoba Chambers of Commerce on this issue.Here is his response:
On the subject of Foreign Trade Zones, Manitoba supports efforts which will augment CentrePort Canada’s competitive advantages as a logistics hub and part of the global supply chain. To that end, Manitoba stands behind CenrePort Canada’s efforts to have Canada’s Foreign Trade Zone-like programs evaluated and revised if deemed appropriate by the Government of Canada. Through Budget 20-11, the Federal Government has committed to examining these programs and ensuring that they are internationally competitive, efficiently administered and effectively marketed.