U.S. Trade Representative Katherine Tai, speaking April 5 at the American University Washington College of Law, said the traditional approach to trade, "which prioritized aggressive liberalization and tariff elimination," had "significant costs" in addition to "significant benefits."
Manufacturas VU, the only manufacturer in Mexico to be subject to two rapid response complaints on labor rights, has agreed to a course of action to satisfy both Mexico and the U.S., and to avoid any penalties on its automotive exports.
The U.S. and Japan signed an agreement in Washington "formalizing the shared commitment of the Parties to facilitate trade, promote fair competition and market-oriented conditions for trade in critical minerals." The mini-deal that includes pledges not to impose export duties on the products, investment review within their countries for the sector, and a pledge to "confer on potential effective and appropriate domestic measures to address non-market policies and practices" that affect trade in critical minerals and critical minerals supply chains.
The U.S. asked the Mexican government to review a Unique Fabricating, Inc. plant in Queretaro, Mexico, based on allegations that the factory is obstructing workers’ freedom of association and right to collective bargaining, the Department of Labor said in a March 6 news release. Mexican labor union Transformacion Sindical recently filed a complaint under the USMCA Rapid Response Mechanism alleging Unique Fabricating, a U.S.-based company, denied it access to the facility and interfered with organizing efforts, DOL said.
A U.S. delegation met with Mauritanian civil society leaders, international organizations and Mauritanian government officials to talk about the challenges to ending hereditary slavery and other forced labor issues in the country, but also heard about "notable progress" in addressing the problem. The Labor Department, the Office of the U.S. Trade Representative and the State and Justice departments met with Mauritanian officials last week, a readout said. Mauritania was removed from the African Growth and Opportunity Act in 2019 over the issue.
Senior U.S. officials and country representatives from the Pacific Islands Forum recently discussed the possibility of allowing eligible members of the PIF to be designated for a regional association for the Generalized System of Preferences benefits program, an Office of the U.S. Trade Representative readout of the meeting said. The regional designation “has the potential to further integrate regional supply chains and promote enhanced access to the U.S. market for the developing Pacific Islands states,” the readout said. The U.S. and the Pacific Islands agreed to “a number of follow-up items, which will shape further trade and investment discussions in preparation for the United States-Pacific Islands Trade and Investment Dialogue later this year,” it said.
U.S. Trade Representative Katherine Tai said the future economic relationship with China has to be navigated in the context of the U.S. needing "a thriving economy that is based on market competition principles. How do we accomplish this, given that the second-largest economy in the world operates on a very, very different system ... and makes its own decisions?"
Deputy U.S. Trade Representative Jayme White, speaking during a panel discussion with representatives from USMCA partners, said the NAFTA rewrite's credibility is on the line if enforcement is weak. White, who discussed USMCA implementation on a Brookings Institution panel along with a Canadian minister and a Mexican senator who leads that body's Special Committee for USMCA Implementation, said if promises on environmental rules, labor standards and energy aren't fulfilled, workers will say: "Well, you don't enforce it."
The Biden administration won't overturn a limited exclusion order blocking the import of Apple Watches that the ITC found infringe on patents owned by AliveCor, a spokesperson in the Office of the U.S. Trade Representative confirmed. AliveCor had said that the USTR told it the administration would not move to block the order during the 60-day presidential review period (see 2302210064). According to AliveCor, this is the first-ever limited exclusion order against Apple to clear presidential review, although the Patent and Trademark Office's Patent Trial and Appeal Board recently ruled the underlying patents were invalid. An Apple spokesperson said the exclusion order will have no practical impact as enforcement is on hold pending AliveCor’s appeal of the PTAB ruling to the Federal Circuit.
U.S. Trade Representative Katherine Tai hailed the introduction in Mexico of a resolution that would ban the importation of merchandise made with forced labor, calling it an "important step forward." Tai said once it passes, it will help North American countries tackle transshipment.