Venable lawyers said no one knows whether President-elect Donald Trump will hike tariffs on China by 10 percentage points, by 60 percentage points, or bring current tariff levels to 60%. Nor does anyone know if the threat of 25% tariffs on Canadian and Mexican exports will become reality.
Forced Labor
CBP is the primary U.S. agency tasked with combating forced labor in international trade. It is the only agency with legal authority to take enforcement action and prevent entry into domestic commerce of goods produced with forced labor. CBP combats forced labor by issuing Withhold Release Orders (WROs) and Findings, and enforcement of the Uyghur Forced Labor Prevention Act (UFLPA), and Countering America’s Adversaries Through Sanctions Act (CAATSA). Goods subject to WROs and Findings, UFLPA, and CAATSA status cannot be entered at any ports of the U.S.
The Congressional Research Service, in an updated report last week on the ban on goods made with forced labor in the Trade Act of 1930, highlighted how the U.S. has used negotiations in free trade agreements to try to expand the bans on goods made with forced labor.
Congress will pass a spending bill before leaving next week, and while everyone wants to attach their legislation to it, the prospect for Haitian trade preferences to get a ride seems relatively strong.
CBP posted the following documents for the Dec. 11 Commercial Customs Operations Advisory Committee (COAC) meeting:
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Sen. Rick Scott, R-Fla., asked U.S. Trade Representative Katherine Tai to open a Section 301 trade investigation on Chinese garlic growers, arguing that the sector is subsidized by forced labor and "other unfair and unethical trade practices."
The Office of the U.S. Trade Representative opened a Section 301 investigation on Nicaragua's actions and practices "related to labor rights, human rights, and the rule of law," saying that it is concerned that Nicaragua's "repressive and persistent attacks" on these rights and violations of the rule of law may burden U.S. commerce.
Restricting de minimis was never a natural fit for the defense policy bill, one of only two major bills expected to get a vote in the lame duck session of Congress. A bill to fund the government past Dec. 20 is the other.
Daikin, Panasonic and Sony have confirmed forced labor allegations at their Malaysian plastics supplier Kawaguchi Manufacturing.
A bipartisan duo have introduced a bill that would require the administration to establish a "Denied Parties List" for exporters wishing to send packages under the de minimis exclusion, based on at least three past shipments of counterfeits, illegal drugs, or goods made with forced labor.