While the U.S.-Mexico-Canada Agreement allows importers to certify goods as deserving tariff benefits -- not just producers or exporters -- KPMG warned webcast listeners that if the importer and producer aren't related parties, it could be a mistake. Andrew Doornaert told listeners on May 11, “It would be a risk if you’re just relying on the exporter’s old NAFTA certificate.”
The Democratic members of the House Ways and Means Committee have told the leaders of CBP and the Department of Homeland Security that the failure to establish the Forced Labor Enforcement Task Force by the April 28 deadline in statute is unacceptable.
Several Republican senators told reporters at the Capitol May 11 that there's an appetite to punish China because of its lack of transparency on the spread of the novel coronavirus. President Donald Trump on April 30 floated using tariffs on Chinese imports to retaliate for the suppression of coronavirus details (see 2005010064), but has backed away from such talk more recently (see 2005070039). Assistant Majority Leader Sen. John Cornyn, R-Texas, said, “Well it seems like our relationship with China has just continued to deteriorate.” He added that it appears that China hid information in the early weeks of the outbreak in order to stockpile protective gear, “and otherwise protect themselves at the expense of the rest of the world.”
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, and Rep. Terri Sewell, D-Ala., agree that revisiting the tariff deferral for importers with lost revenue could be worthwhile for Congress. Both were responding to questions from International Trade Today on May 12, during conference calls with reporters. Grassley said, “It sounds like something we ought to be looking into.” Some other Republican senators have also offered support for the idea (see 2005050045)
The Office of the U.S. Trade Representative is disinclined to offer an informed compliance period for most importers, “because most of the rules of origin have remained essentially the same” as what was in NAFTA, so CBP can honor the U.S.-Mexico-Canada Agreement claims with the same information that backed NAFTA claims, according to Brenda Smith, executive assistant commissioner of CBP’s Office of Trade.
Sen. Josh Hawley, R-Mo., announced that he's introducing a joint resolution that the U.S. should withdraw from the World Trade Organization. Such a resolution, if it were to pass, would not be binding.
Backpacks imported from China that faced a 10% tariff, then a 15% tariff, then a 7.5% tariff -- in addition to the standard 17.6% tariff -- can now be excluded from the additional tariff, as long as they are a certain size. Luggage stores that fretted over tariffs that first went up in October 2018 (see 1905090012) say the break won't make a difference now.
Fifteen House Republicans, led by Rep. Michael McCaul of Texas, will serve on a task force evaluating China's economic threat, its efforts to gain a technology advantage, and the origin of the new coronavirus that causes COVID-19, House Minority Leader Kevin McCarthy said May 7.
Canada, Mexico, China, the United Kingdom, Japan and an assortment of other countries around the world said the World Trade Organization has an essential role to play in ensuring the continued flow of essential goods -- including medical supplies -- across borders. “We stress that trade restrictive emergency measures aimed at protecting health, if deemed necessary, shall be targeted, proportionate, transparent and temporary, not create unnecessary barriers to trade or disruption to global supply chains, and be consistent with WTO rules. We pledge to lift any such measures as soon as possible,” the statement said. “We also stress the necessity of maintaining agriculture supply chains and preserving Members' food security. We, therefore, pledge to not impose export restrictions and to refrain from implementing unjustified trade barriers on agricultural and food products in response to the COVID-19 pandemic.” No country in the European Union signed the statement, issued May 5, nor did the U.S.
The United States notified the World Trade Organization that it has fully complied with the WTO's findings in the Boeing subsidies dispute, the Office of the U.S. Trade Representative said May 6. The European Union and U.S. have been battling for 15 years over whose subsidies to their aircraft manufacturers distort trade. The WTO has said that both sides were in the wrong, and the U.S. currently has Section 301 tariffs on about $7.5 billion worth of European aircraft, food, apparel, linens, tools, wine and spirits in a WTO-sanctioned retaliation for past Airbus subsidies.