The Federal Communications Commission should strengthen the agency’s equipment authorization process to make sure no devices enter the U.S. that are produced with forced labor in China, Commissioner Brendan Carr said in a March 30 speech. The FCC's approach should align with legislation introduced by Sen. Marco Rubio, R-Fla., earlier this year (see 2101290045), Carr said, according to a news release from his office. “We should do our part at the FCC by launching a proceeding that would update our equipment authorization rules to ensure that we are not approving any devices that have been produced with forced labor,” Carr said. “One way we can do this is by requiring every company that procures any devices or components from the [Xinjiang Uyghur Autonomous Region (XUAR)] to meet a heightened burden to ensure that their supply chain does not rely on any forced labor. Communist China must not profit from their human rights abuses.”
An importer of garments that were detained by CBP due to the suspected involvement of North Korean nationals in the production was unable to sufficiently show forced labor wasn't used, CBP said in a recently released ruling dated March 5. The use of North Korean labor is considered to be forced labor under the Countering America’s Adversaries Through Sanctions Act (see 1711070046). The ruling marks the first one directly focused on forced labor since 2002 (see 2001070033), according to CBP's rulings database.
Top Glove in Malaysia is seeking more details from CBP about the agency's finding on the company's use of forced labor (see 2103260028), the company said in an emailed statement. “Top Glove wishes to inform all stakeholders that our U.S. counsels are liaising with representatives from the U.S. Customs and Border Protection (CBP) to obtain more clarity and information on CBP’s recent Finding Information Document,” it said. The company highlighted an independent audit that it submitted to CBP (see 2009080041) and said the company “continues to take extensive remedial actions to further improve our practices and enhance our internal control measures with regard to our labour management.”
Imports of disposable gloves made by Top Glove Corporation in Malaysia may be seized by CBP as of March 29 under a finding that the company uses forced labor, CBP said in a notice released March 26. CBP's finding follows a withhold release order aimed at the company's gloves in July last year (see 2007150032). A CBP official recently said more findings are likely to come (see 2103120051).
A broader governmental approach would be important and helpful in the bigger fight to stop forced labor within supply chains, said Brian White, vice president-compliance at The J.M. Smucker Co., in a March 23 email. White's email was in response to a request for comment on some criticisms of recommendations from the Commercial Customs Operations Advisory Committee's Forced Labor Working Group (see 2103230027).
U.S.Trade Representative Katherine Tai talked with Japan's Trade Minister Kajiyama Hiroshi about how they're concerned about unfair trading practices from non-market economies such as China, but did not mention that topic coming up with the South Korean trade minister. South Korean Trade Minister Yoo Myung-hee and Tai talked about how the U.S.-Korea free trade agreement strengthened economic ties, and discussed World Trade Organization reform, the call summary said. The Korean press emphasized agreement on writing digital trade rules. Tai also spoke with Mexican Economy Secretary Tatiana Clouthier, and they talked about fully implementing USMCA and Mexico's labor reform. “Tai also stressed the critical importance of cooperation on climate and environmental issues, as well as reform at the World Trade Organization and the mutual benefits of robust bi-lateral agricultural trade,” a readout of the talk said. Clouthier tweeted her thanks for such a productive meeting.
A bill that would reverse permanent normal trade relations with China was introduced by Sens. Tom Cotton, R-Ark., Jim Inhofe, R-Okla., and Rick Scott, R-Fla., on March 17. It would require annual presidential approval for most favored nation status, but also would rewrite the Jackson-Vanik Amendment to say countries with trade abuses and human rights abuses would not be permitted to have MFN status. “For twenty years, China has held permanent most-favored-nation status, which has supercharged the loss of American manufacturing jobs. It’s time to protect American jobs and hold the Chinese Communist Party accountable for their forced labor camps and egregious human rights violations,” Cotton said in a press release.
International Trade Today is providing readers with the top stories from March 15-19 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The Commercial Customs Operations Advisory Committee's Forced Labor Working Group's recommendations seem to be “of a piece of a general overall attitude by U.S. importers to try and ride out the current widespread public outrage,” the Southern Shrimp Alliance said in a March 22 letter to CBP's Office of Trade Forced Labor Division Director Therese Randazzo. The SSA said “each of these recommendations appears designed to complicate and further limit the agency’s ability to effectively enforce” Section 1307 of the U.S. Code. The COAC approved the recommendations for submission to CBP at a March 17 meeting (see 2103160027).
U.S. Trade Representative Katherine Tai opened her first full week on the job with a series of video calls with major allies and trading partners -- Canada, the United Kingdom, the European Union -- and diplomatic summaries of the calls from both sides mostly echoed each other, suggesting there was a good deal of agreement.