The sole U.S. producer of titanium sponge, TIMET, argued to the Commerce Department that two Japanese companies and TIMET should be given a price advantage and that all other countries' producers should be restricted through quotas or tariffs that are not subject to drawback. TIMET, which failed to win an antidumping case because the International Trade Commission said its production was not in direct competition with imports used by other U.S. processors, is asking for a preference pricing scheme, similar to those used in suspension agreements for antidumping cases.
The Office of the U.S. Trade Representative's proposal to tariff up to $11 billion worth of goods from the EU as part of a long-running dispute over aircraft subsidies (see 1904090031) adds some new tension to an already fraught trade relationship. Although the trade dispute resolution that the U.S. is asking for pertains to large commercial airplanes, it goes far beyond aerospace, hitting cheeses and other food, wine, clothing and building materials. “This case has been in litigation for 14 years, and the time has come for action. The Administration is preparing to respond immediately when the WTO issues its finding on the value of U.S. countermeasures,” USTR Robert Lighthizer said in a news release.
The European Union and the U.S. have not formally begun the trade talks first agreed to last July, as the 28-member bloc still does not have a mandate to negotiate. Given that, many observers are doubtful negotiations could make substantial progress this year.
The following lawsuits were filed at the Court of International Trade during the week of April 1-7:
International Trade Today is providing readers with some of the top stories for April 1-5 in case they were missed.
Steel fence posts assembled in Mexico are actually products of the U.S. and are not subject to the Section 232 tariffs, CBP said in a Feb. 27 ruling. The ruling was in response to a request from Alex Romero of A.F. Romero & Co. Customs Brokers on behalf of Merchant Metals that asked CBP to weigh in on whether steel fence posts sent to Mexico for assembly operations could be returned under heading 9802 and whether the return entry triggers Section 232 liability. CBP said the Mexican processing doesn't create a substantial transformation of the posts.
Rep. Lizzie Fletcher, who defeated a nine-term Republican incumbent last fall, is clear that NAFTA has benefited her district in the Houston area and the whole state of Texas. But Fletcher, who has been chosen as a co-chair of the trade task force in the New Democrats caucus, said she's not being urged by constituents to get NAFTA's replacement ratified as soon as possible.
President Donald Trump denied he said Mexico has a year to improve drug interdiction (see 1904040030), but, for the second day in a row, he suggested Mexico is improving its control of migration, so he won't need to close the border soon. "I don't think we'll ever have to close the border because the penalty of tariffs on cars coming into the United States from Mexico at 25 percent will be massive," Trump told White House reporters a few hours after he made the one-year remark, on April 4.
The Mexican undersecretary for North American affairs, who was the current administrator's chief negotiator in the NAFTA renegotiations, said as he meets with Democrats in Congress, "we are making progress" in convincing them that the labor reforms under consideration in Mexico are very strong. Jesus Seade, speaking at a press conference April 4 at the Mexican Embassy, added, "It doesn't mean that anybody asked, 'Seade, where do I sign?'"
The Trump administration clearly underestimated the number of product exclusion requests that would be filed under the Section 232 steel and aluminum tariffs, said Deputy Assistant Secretary of Commerce for Export Administration Matthew Borman, during an April 2 Senate Appropriations subcommittee hearing on the Commerce Department’s 2019 budget request. Borman said Commerce’s prediction was based on the number of exclusion requests it received during a “steel safeguard action” taken during 2001. Borman said that about 6,000 requests were submitted then. “Obviously there turned out to be quite a few more in the current process,” Borman said, adding that Commerce has processed more than 45,000 of the estimated 85,000 exclusion requests it has received.