A new report from the Florida Department of Agriculture says that unfair competition with Mexican imports of blueberries, strawberries, watermelons, bell peppers, sweet corn and tomatoes is costing Florida farmers at least $1.31 billion in lost sales, or 10%, and possibly as much as $2.63 billion, or 20%. The report says that in 2000, Florida farmers of these and other specialty crops sold $3.32 billion worth of produce and that by 2019, it was $2.87 billion. The report does say that from 2005 to 2013, Florida farmers had more revenue from sales than they had in 2000, but since the figures are not adjusted for inflation, that is still not good news for the sector.
The U.S. is now facing formal complaints from both Mexico and Canada over how it's calculating regional value content in the auto rules of origin under USMCA. Canada formally joined Mexico's call for consultations, it announced Aug. 26. Canada says that, like Mexico, it does not agree "with the interpretation of the United States of the relationship between the core parts and vehicle regional value content calculations."
John Porcari, a Transportation Department deputy secretary and chief operating officer during the Obama administration, has been named port envoy to the Biden administration's Supply Chain Disruptions Task Force. Porcari, who was Maryland's transportation secretary and chairman of the Maryland Port Commission before joining the federal government, has been working in the private sector in recent years, including leading the U.S. division of an Israeli company that sells artificial intelligence solutions for traffic congestion.
Sen. Chuck Grassley, R-Iowa, told reporters on a press call that his constituents are saying they're concerned there is a "lack of a trade agenda in this administration." He said that in the months since Katherine Tai was confirmed as U.S. trade representative, "I haven't seen any movement on trade agreements."
The Central America-Dominican Republic Apparel and Textile Council says that while job growth in its industry is "an important part of any solution addressing the root causes of irregular migration from Central America to the United States," it disagrees with some critics of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), who note that exports have not grown since the trade agreement has been in effect, and says a looser apparel rule of origin is needed (see 2104140047 and 2107210039).
U.S. Trade Representative Katherine Tai said in a readout of her call with Ethiopia's chief trade negotiator that she told Mamo Mihretu that if the conflict in northern Ethiopia is not resolved, it could affect Ethiopia's eligibility for the African Growth and Opportunity Act trade preferences program. She said the conflict has created a humanitarian crisis and said there are "ongoing violations of internationally recognized human rights."
The U.S.-China Economic and Security Review Commission published a brief on fentanyl smuggling, noting that the mail and express shipping routes that had been common sources of the opiate have declined as smuggling across the Mexican border has increased. The commission said that while most fentanyl and precursor chemicals to make fentanyl are still coming from China, the manufacturing is happening more often in India and Mexico since China agreed to make fentanyl a more tightly regulated product back in 2019. "China’s weak supervision and regulation of its chemical and pharmaceutical industry also enable evasion and circumvention," the brief said.
A proposal to use a carbon border adjustment tax as a pay-for in legislation Congress hopes to pass this fall faces many obstacles, both political and technical. Politically, it must get support from all 50 Democrats in the Senate, including Sen. Joe Manchin, whose home state of West Virginia exports about a third of its coal; in some recent years, coal was about half of all exports from the state.
After Mexico asked it for consultations (see 2108230041), arguing that the NAFTA approach to roll-up should be continued under USCMA, the Office of the U.S. Trade Representative said the request is under review. USTR spokesman Adam Hodge said that U.S. government officials "remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed.”
There have been no productive discussions in the last month between Republican and Democratic trade staffers to find a compromise on renewing the Miscellaneous Tariff Bill and Generalized System of Preferences benefits program, Rep. Kevin Brady, R-Texas, said in response to a question from International Trade Today during a telephone press conference. "Regrettably, I see further delays in that because the speaker [of the House] and all her committees are focused on jamming through these tax hikes and welfare expansion," Brady said, referring to Democrats' legislative priorities. Brady said that while the Senate's Trade Act of 2021 is the framework for a bipartisan solution to GSP and MTB renewal, "we need time on task to do that," and he doesn't know if there will be conversations working toward that.