The only outstanding USMCA rapid response labor complaint, against Manufacturas VU, a Michigan-headquartered supplier of interior automotive trims, has been settled, the Office of the U.S. Trade Representative announced.

Electric vehicle manufacturing and supply chain resilience in semiconductors continued as major topics in the U.S.-Mexico High-Level Economic Dialogue, and pharmaceutical supply chain resilience is now also on the agenda, according to a joint statement after the HLED in Mexico City Sept. 12.

India chose not to sign onto the trade pillar in the Indo-Pacific Economic Framework, which focuses on digital trade, trade facilitation, science-based sanitary and phytosanitary rules, trade in environmental goods, and laws to protect labor rights.

U. S. Trade Representative Katherine Tai said that when she met with Korea’s Minister for Trade Ahn Dukgeun, he told her his country's concerns about the electric vehicle provisions of the Inflation Reduction Act. "They ... highlighted the importance of meaningful action on clean energy technologies to combat the climate crisis while addressing supply chain and security vulnerabilities," she said in a readout of the Sept. 7 meeting.

Trade facilitation -- or how customs is administered -- and digital trade practices are non-tariff barriers that the Indo-Pacific Economic Framework can tackle, and therefore help U.S. exporters, particularly small businesses. That was the message from a senior official at the Office of the U.S. Trade Representative, which is managing one of the four pillars of the IPEF.

A complaint from Rethink Trade and SNITIS, a Mexican labor union, submitted in early August alleging that the management of BBB Industries de Mexico in Reynosa, Mexico, conspired with a captive union to rig a contract vote was not pursued by the U.S. government, Reuters reported. Previously, the Office of the U.S. Trade Representative asked Mexico to investigate five other complaints brought under USMCA's rapid response labor mechanism. Four of those complaints have been resolved, and one, against Manufacturas VU, an auto parts plant in Piedras Negras, is still pending. The agency told Reuters there was not "sufficient, credible evidence of a denial of rights," so that's why it didn't go forward. USTR didn't comment.

A call between U.S. Trade Representative Katherine Tai and Valdis Dombrovskis, the EU's top trade official, covered what the U.S. characterizes as "supply chain vulnerabilities," but the EU and U.S. readouts of the Sept. 1 call characterized the discussion differently.

U.S. Trade Representative Katherine Tai had a first video call with Japan's new trade minister, Nishimura Yasutoshi, ahead of an in-person meeting next week. "Ambassador Tai and Minister Nishimura reaffirmed ongoing collaboration to address non-market policies and practices, including economic coercion, and shared commitment to respect internationally-recognized worker rights, including eradicating forced labor," USTR's readout said. This followed a lower-level series of meetings, called the U.S.-Japan Partnership on Trade, where the U.S. said they discussed regulatory transparency, standards issues that are barriers to U.S. exports of products and services, and the U.S.'s desire that Japan buy more ethanol.

Deputy U.S. Trade Representative Sarah Bianchi said she and South Korea's deputy trade minister discussed South Korea's concerns about the restrictions on tax credits for electric vehicles that are in the Inflation Reduction Act, "and agreed the two sides would keep in close contact on this issue over the coming weeks." The meeting was Aug. 30. The EU also has complained that only cars assembled in the U.S. will qualify, and has threatened to bring a case at the World Trade Organization (see 2208110052). As a country with a free-trade agreement with the U.S., South Korea could benefit from the conditions around critical minerals (see 2208040045), but South Korean firms, like all advanced battery manufacturers, are heavily reliant on Chinese inputs.

The Office of the U.S. Trade Representative is seeking public comments on how well China is fulfilling its commitments to the World Trade Organization. There will be no public hearing due to COVID-19, but the interagency Trade Policy Staff Committee will facilitate public participation via written questions and written responses. Written comments are due at www.regulations.gov, docket number USTR-2022-0012, by Sept. 28 at 11:59 pm EDT. Government officials will pose written questions to commenters in October, and the original writers will have until Oct. 26 at 11:59 pm EDT to respond.