The recent surge in forced labor enforcement by CBP has been accompanied by a lack of transparency and a “broad and vague” interpretation of the withhold release orders the agency uses to block suspect goods, customs lawyer Robert Stang of Husch Blackwell said during a recent webinar.
Taiwan and the U.S. had their first official meeting under the Trade and Investment Framework Agreement since 2016, and Assistant U.S. Trade Representative Terry McCartin praised Taiwan for improving its enforcement of trade secrets protections, and its plan to change its medical device approval process.
Government representatives who oversee labor issues from Canada, the U.S. and Mexico held the first meeting of the USMCA Labor Council, and discussed both the implementation of Mexico's labor law reform and a complaint about the treatment of Mexican migrant workers in the U.S., and how abuses of migrant workers could be avoided in the future, whether through education and oversight through U.S. government agencies, or a better way of running seasonal work visas.
The top trade officials in the U.S., Canada and Mexico gathered virtually to celebrate the one-year anniversary of USMCA, which is July 1, with Canadian and Mexican ministers emphasizing the worth of integrated supply chains and U.S. Trade Representative Katherine Tai emphasizing the elements of USMCA that protect workers in the region and around the world. Tai said at a Wilson Center program June 30, "A good next step in this increased cooperation can be on the issue of forced labor. The USMCA includes a strong obligation to prohibit the importation of goods produced with forced labor. Working together to address this critical economic and moral issue would send a powerful message to the world."
The ongoing northern border travel ban seems to be leading to a growth in drug seizures found within cargo shipments, said Manuel Garza, Customs-Trade Partnership Against Terrorism program director in CBP's Office of Field Operations. “On a normal given year, I could probably count five seizures on the northern border with drugs,” he told the American Association of Exporters and Importers conference June 29. “This past year during COVID, we're probably up to 100, if not more than that,” he said.
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CBP detained 636 shipments between Oct. 1, 2020, and June 15, 2021, due to the possible use of forced labor on the goods, the agency said in recently updated trade statistics. That marks an increase of 265 stopped shipments from the previous release of statistics, when CBP said it detained 371 shipments between Oct. 1, 2020, and March 31, 2021 (see 2104160010). The total value of the detained shipments for this fiscal year so far is about $86 million, it said.
Although CBP was not able to meet its goal of adding forced labor to the Customs-Trade Partnership Against Terrorism program in 2020, as it had planned (see 2007130041), the agency is trying to do so before Sept. 30 this year, according to Valarie Neuhart, CBP deputy executive director in the office of trade relations. Neuhart, who was speaking to a supply chain meeting on June 24, also said the agency will host industry days on the topic of forced labor the week of June 28 to allow people to see demonstrations of technologies that can trace products' country of origin, or can help firms trace goods through complex supply chains.
This year's version of the Senate Uyghur Forced Labor Prevention Act, harmonized with the House version, passed the Senate Foreign Relations Committee June 24 by a unanimous voice vote. The bill, sponsored by Sens. Marco Rubio, R-Fla., and Jeff Merkley, D-Ore., would create a rebuttable presumption that all goods produced in China's Xinjiang region were made with forced labor. Before the vote, Rubio said that there are 1,500 companies located in or near more than 100 mass detention facilities. "This is slavery. As simple as that. American companies argue that their supply chains are clean. What this bill says is: 'Prove it. Especially if it's coming out of Xinjiang.'" Rubio said he expects it will be impossible to prove there's no forced labor involved in the goods in most cases.
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