Canada's trade minister, Mary Ng, announced that Canada will launch a USMCA dispute with the U.S. over the continued antidumping and countervailing duties on some Canadian softwood lumber exports.
The electric vehicle tax credit provisions in the Inflation Reduction Act rest not just on North American vehicle assembly -- but also on critical mineral supply chains that don't exist yet and high North American battery content. Because the provisions are aimed at incentivizing new plants, automakers are lobbying for the phase-in to be more gradual.
Learn from the lessons of the failed Trans-Pacific Partnership, warned trade skeptics Rep. Rosa DeLauro, D-Conn., and Sen. Elizabeth Warren, D-Mass, in a letter they and other signatories released publicly Aug. 2. They said binding commitments in either the Indo-Pacific Economic Framework, or reached with Latin American partners, are not legal without congressional say-so. "The administration’s many public declarations about the proposed IPEF process seem to indicate that it plans to negotiate a binding agreement while circumventing congressional input, authority, and approval," they wrote.
The dispute panel grappled with what Mexico characterized as "the heart of the dispute" in its second day of a hearing about whether Canada and Mexico or the U.S. is right about one aspect of the complex USMCA auto rules of origin.
Dispute panelists chosen by the U.S., Canada and Mexico grappled with whether Mexico and Canada should have understood the implications of how core parts origination could be established as they negotiated the language in the automotive annex and the standard rules of origin chapter in the USMCA.
In filings at the USMCA Secretariat, Mexico and Canada say the Uniform Regulations for USMCA are clear, and say that " roll-up applies to the calculation of [regional value content] RVC for a vehicle. It obliges Parties to take 'no account' of the non-originating materials contained in an originating good when that good is used in the subsequent production of another good."
Senior administration officials said that President Joe Biden didn't talk with Chinese President Xi Jinping about whether he wants to make any changes to tariffs on $300 billion worth of Chinese exports over the course of a two-hour call.
House Ways and Means Chairman Richard Neal, D-Mass., said that even though the politics around an end-of-year tax extender may change if Congress makes some renewable energy tax credits permanent, he believes it's still likely that the modernization act for the Generalized System of Preferences benefits program and Miscellaneous Tariff Bill can get done by the end of the year.
Senate Finance Committee members praised the experience of Doug McKalip, the administration's nominee to be chief agricultural negotiator in the Office of the U.S. Trade Representative. McKalip, a senior adviser on international trade policy and other matters to the agriculture secretary, is a career staffer at USDA.
The House of Representatives passed a bill that offers tax credits and grants to semiconductor manufacturers and increases government spending on science research, on a 243-187 vote on July 28. Twenty-four Republicans voted for the bill. Rep. Sara Jacobs, D-Calif., voted present, as her family founded major chipmaker Qualcomm, which will benefit from the bill.