Although lawmakers thought eliminating the NAFTA certificate would be helpful, some importers are more comfortable with structure, so there will be a certificate template available on CBP's trade agreements web page “as soon as possible,” Adam Sulewski, USMCA Center project leader at CBP, said during a conference call June 29. He reminded importers, “We can accept those required nine data elements in any form.”
The World Trade Organization arbitrator will not announce a decision on the size of retaliatory tariffs on the U.S. over Boeing subsidies until the fall, according to Reuters, citing unnamed sources. The U.S. has already imposed tariffs on European food, beverages, aircraft parts and a few other products, because a WTO arbitrator said the European Union had not come into compliance with a decision that said it gave too-large subsidies to Airbus. The decision had been expected in May or June, and EU officials were hoping that if they were granted the right to retaliate, that would convince the U.S. to negotiate a civil aviation settlement that would lift the U.S. tariffs. Instead, the Office of the U.S. Trade Representative is talking about adding more products to its 25% tariff list (see 2006240017).
The Office of Information and Regulatory Affairs completed its review of the interim final rule from the Department of Labor on certification under the U.S.-Mexico-Canada Agreement. The review was completed on June 24, it said. The labor value content, as it is known, is needed for both cars and light trucks to meet the new auto rules of origin under the USMCA. For cars, starting July 1, 33% of the vehicle must come from workers making at least $16 an hour in the U.S., $20.91 in Canada, or 304.21 pesos in Mexico, if the company is not granted alternative staging. If it is granted alternative staging, the threshold is 25%.
It's unclear how a President Joe Biden would try to use policy to shape the global supply chain, but the Atlantic Council's Asia Security director said that since Biden prefers a multilateral approach, he “might be less likely” to impose tariffs or export controls. Miyeon Oh, who was speaking during an Atlantic Council webinar June 26, said he might try to get allies to coordinate an effort “to rebalance the global supply chain,” and he might seek to use American participation in the Trans-Pacific Partnership as a way to do so.
Countries that do not guarantee women's equal protection under the law, protect women from discrimination in hiring, or stop violence and sexual harassment at work should not be able to export products duty free under the Generalized System of Preferences benefits program, Sen. Bob Casey, D-Pa., and Sen. Catherine Cortez Masto, D-Nev., said. Their bill, introduced June 18, would amend the GSP program with these conditions (see 2006230053).
Most senators' questions to Acting CBP Commissioner Mark Morgan at a Homeland Security Committee hearing June 25 were on immigration, but Sen. Rick Scott, R-Fla., asked him what the agency can do to stop counterfeit goods from coming in from China. Morgan said CBP is working to not just “come up with new policies, but also new techniques and new processes to help us identify and stop goods from coming into this country.”
As part of a resolution on banking regulations, the House of Representatives voted June 25 to block a resolution that Rep. Peter DeFazio, D-Ore., and Rep. Frank Pallone, D-N.J., proposed, that the U.S. withdraw from the World Trade Organization (see 2005130062).
The Office of the U.S. Trade Representative ought not to announce 10% tariffs on Canadian aluminum at the end of this week, just before the U.S.-Mexico-Canada Agreement goes into force, Ways and Means Chairman Richard Neal, D-Mass., told International Trade Today in an interview. The administration has not announced its intentions, but several outlets quoted unnamed sources saying the tariffs are coming if Canada doesn't agree to voluntary restrictions on its exports.
The Democratic National Committee chairman, and progressive star Sen. Elizabeth Warren, D-Mass., described President Donald Trump's trade war with China as a failed attempt at getting tough on China that hurt Pennsylvania exporters and manufacturers. “China smelled Trump's desperation and played him like a fiddle,” DNC Chairman Tom Perez said on a video conference call with reporters June 24. “He lost the trade war that he started.”
The U.S. Chamber of Commerce and the Aluminum Association reacted with dismay June 23 to a Bloomberg report that the U.S. could re-impose 10% tariffs on Canadian aluminum on July 1, because of an alleged surge in imports since tariffs were lifted. The U.S. trade representative told senators last week that he is in consultations with Canada on the issue.