FedEx CEO Fred Smith worries about the impact of President Donald Trump’s recent imposition of “protectionist tariffs” on imported steel and aluminum because “history has shown repeatedly that protectionism is counterproductive to economic growth,” he said on a March 20 earnings call. “The better approach is to encourage open markets and free exchange of products and services and to reduce barriers to trade,” he said. Smith thinks “the correct way to go here is to deal with China on the issues with China,” he said. The “overall” aim should be to “lower trade barriers” and tariffs around the world, “not to engage in less trade,” he said. FedEx will “continue to advocate against any move towards protectionist trade policies that could slow economic growth and undermine all the positive impacts” from the tax overhaul, company Chief Information Officer Rob Carter said. In the roughly two weeks since Trump announced he would impose the steel and aluminum tariffs on all but Canada and Mexico, “we’ve not seen any quantifiable shipper behavior change” as a result, Carter said.

Steel and aluminum importers should begin an analysis of the "immediate and potential duty exposure" as a result of the coming tariffs on the metals (see 1803080025), trade consultancy Livingston International said in blog post. Importers may also consider "the potential to make the case that those materials are not available or are in short supply from US sources," to avoid the tariffs. Steel and aluminum may also want to look into modifying products "for import such that the HTS classification no longer falls under these proclamations," the company said. Also important will be checking that articles believed to be affected by the tariffs are correctly classified and ensuring that the "broker will be prepared to compliantly apply the Chapter 99 provisions for affected articles of steel and aluminum."

The National Council of Textile Organizations and the American Fiber Manufacturers Association will merge effective April 1, NCTO said in a press release. The merged entity will take NCTO’s name, and still be led by NCTO President and CEO Auggie Tantillo, the trade group said. “The NCTO merger with AFMA strengthens the U.S. textile industry’s ability to influence federal policy,” said NCTO Chairman Bill McCrary. “It brings new members and financial resources to NCTO and extends the organization’s political reach. It also cements NCTO’s status as the voice of every facet of the U.S. textile production chain, a fact that will help NCTO to more effectively influence federal policies that affect U.S. textile investment, production and workers.”

Coming new drawback processes under the Trade Facilitation and Trade Enforcement Act (see 1802120020) are the source of "considerable concern," said Steven Baker, a lawyer who chairs the Customs Committee of the American Institute for International Steel, in a blog post. While the drawback processing is set to move to ACE on Feb. 24, "not all functions are supported in ACE, and as of this writing no regulations have been issued," Baker said.

The Airforwarders Association signed a memorandum of understanding with The International Air Cargo Association (TIACA), AfA said in a news release. The memorandum includes shared participation in each other's events, "exchange of information on projected activities and relevant events of both associations," and "continuous consultation," AfA said.

FedEx Trade Networks recently instituted a new organization structure for "specialty logistics and e-commerce solutions," it said in a news release. Several companies will be realigned under FedEx Trade Networks, it said. This new organization will now include: FedEx Custom Critical, FedEx Cross Border, FedEx Supply Chain, FedEx Trade Networks Transport and Brokerage, and a new company called FedEx Forward Depots. FedEx Forward Depots will have "responsibility for Critical Inventory and Service Parts Logistics, 3-D Printing, Repair Center and the FedEx Packaging Lab," it said.

The U.S. Council of International Business will "continue to oppose policies that handicap U.S. trade" in 2018, the USCIB said in its trade agenda. Among those policies are a "lack of clear standards at U.S. customs for forced labor," it said. The trade group will also "urge the Administration not to introduce new proposals in NAFTA that will weaken existing provisions or negate the benefits that U.S. companies derive from the U.S. being part of NAFTA," it said. USCIB will push for trade deals with the EU and Asian countries "to ensure that American goods and services companies have open and fair access to the markets in the Asia-Pacific."

Maersk and IBM will form a joint venture meant to "provide more efficient and secure methods for conducting global trade using blockchain technology," the companies said in a Jan. 16 blog post. The new company will work to develop a new platform to "provide end-to-end supply chain visibility that enables all actors involved in a global shipping transaction to securely and seamlessly exchange shipment events in real time," it said. The platform will also "digitize and automate paperwork filings for the import and export of goods by enabling end users to securely submit, stamp and approve documents across national and organizational boundaries."

The Delta Cargo warehouse at JFK Airport in New York will be closed until Jan. 11 due to "operational challenges and safety concerns related to the recent severe winter weather in the Northeast," the company said in an alert. "As our team works to resume normal operations, Delta Cargo is working closely with our JV partners to process freight through partner facilities at JFK," it said.

The U.S. should look at strengthening existing trading partnerships rather than consider leaving them, U.S. Chamber of Commerce CEO Thomas Donohue said in a Jan. 10 speech. "Withdrawing from NAFTA would be a grave mistake," he said. While recent deregulatory moves and tax reform are good, "a wrong move on NAFTA would send us five steps back," he said. That's also true of the FTA with South Korea, he said. "We agree that in some areas the Koreans need to do more to faithfully implement the deal," Donohue said. "But overturning it would hurt American farmers and manufacturers -- and benefit only our foreign competitors." There are opportunities for trade growth, particularly with India, the Middle East and Africa, he said. "We need to clinch new deals that will open markets -- not undermine the ones we have."