Some U.S. states were willing to pay Volkswagen more than Canada was for a new Volkswagen electric vehicle factory, Canadian Prime Minister Justin Trudeau said during a speech at the Council on Foreign Relations in New York. But, Trudeau said, when Canada matched the national incentives offered by the Inflation Reduction Act, Ontario's other advantages were enough to land the major economic development win.
Mexico intervened in a union election at Goodyear in San Luis Potosi, a plant that has drawn attention from Democrats in Congress for years because there was a wildcat strike by workers, and 57 of them were fired (see 1906250025). The election was to see if workers wanted to retain a captive union that had not supported the wildcat strike. The Mexican government, which was observing the election, said it would order a redo of that election, because both observers from the Federal Labor Center and video evidence revealed that the incumbent union stole a ballot box.
Amazon is “committed to ensuring” its products “are produced in a way that respects human rights,” a company spokesperson said April 25 in response to a complaint submitted this week under Germany’s new supply chain law. “We engage with suppliers that are committed to these same principles and have clear requirements outlined for suppliers in our Supply Chain Standards,” the spokesperson emailed.
Two non-governmental organizations and a trade group filed the first complaint under Germany’s new supply chain law this week, saying Amazon, Ikea and Tom Tailor aren’t meeting certain human rights due diligence requirements. The complaint, filed by the European Center for Constitutional and Human Rights, FEMNET and the National Garment Workers Federation, said Bangladeshi garment factories for the three companies “have not been adequately monitored, endangering workplace safety for employees.”
The top European official on trade said while the U.S.-EU Trade and Technology Council has been very helpful in restricting technology exports to adversaries, "we need to deliver more on the trade side."
About 10% of critical raw materials, as measured by value, faced export restrictions in the last decade, according to a new report from the Organization for Economic Co-operation and Development -- and the use of restrictions grew five-fold in the 2017-2019 period, compared with the two-year period 10 years earlier. Export taxes are the most frequent restriction, the authors said, adding: "This may be related to the fact that, under WTO rules, quantitative restrictions on exports are generally prohibited while export taxes are not."
A senior official in the Indonesian government told Reuters that his country will ask the U.S. to agree to a mini trade deal for critical minerals, such as the one it granted Japan, so that Indonesian nickel can qualify under a content threshold for friendshored critical minerals. However, the Japan deal requires no export restrictions in the sector, and Indonesia has blocked nickel exports in the past. Also, Indonesia's processing industry is intertwined with Chinese companies, and the Inflation Reduction Act explicitly is designed to cut China out of the electric vehicle battery supply chain.
Trade ministers from the U.S., Japan, the EU, Canada, the U.K., France, Germany and Italy said they will work for "necessary reform" at the World Trade Organization, including trying to reach an agreement to restore "a fully and well-functioning dispute settlement system accessible to all Members by 2024."
The office of the Mexican Economy Secretary said it agrees with the U.S. that there is reason to investigate Unique Fabricating, a Michigan-headquartered manufacturer that makes foam, rubber and plastic components such as seals, door water shields, gaskets and glove box liners. Transformation Sindical told the Office of the U.S. Trade Representative that managers at the plant in Queretaro, Mexico, denied them the ability to visit with workers at the site and give them the option of joining their union (see 2303090038). Mexico's government said March 17 that it will begin an investigation to see if workers at the plant were denied their rights to join an independent union. The USMCA Rapid Response Mechanism allows 45 days for that investigation.
Mexico is beginning consultations on how to remediate violations at Manufacturas VU, a Michigan-headquartered supplier of interior automotive trims, after its investigation found serious irregularities, and found that the company placed obstacles for its workers to choose their own union and to collectively bargain. The office of the Economy Secretary made the announcement March 16. It is the second time VU's plant in Piedras Negras has been the subject of a Rapid Response Mechanism complaint from the Office of the U.S. Trade Representative. Mexico and the U.S. have 10 days to put forward a remediation plan. So far, no fines or curtailed tariff benefits have been imposed on Mexican exporters targeted in the Rapid Response Labor Mechanism under USMCA. This is the only plant with repeated complaints (see 2301300030).