Representatives from the domestic textiles industry testified at an Office of the U.S. Trade Representative hearing May 2 regarding ways to promote supply chain resilience, especially after many were disrupted by the COVID-19 pandemic (see 2404290057).
Canadian Solar, which is ramping up a 5-gigawatt solar panel manufacturing factory in Texas, told the Office of the U.S. Trade Representative that tariff rate quotas on solar cells under the current safeguard action and Section 301 tariffs on machinery that helps make solar panels and cells are harming solar manufacturers. Canadian Solar also is working on opening a solar cell plant in Indiana, but it won't open until late 2025. It imports cells made in Thailand. The TRQ only allows five gigawatts' worth of tariff-free cells in annually.
Masud Husain, a Canadian foreign service official, will replace Sheri Meyerhoffer as the new head of the government agency that investigates human rights concerns, including forced labor, in Canadian-linked supply chains, the country announced April 30. Husain will take over “later this year” in an interim role as the Canadian ombudsperson for responsible enterprise (CORE), Canada said.
The Forced Labor Enforcement Task Force is responsible for naming companies that are known to use Uyghur forced labor, including through labor transfers to other regions of China. But FLETF member and Deputy Undersecretary of Labor for International Affairs Thea Lee said she hasn't seen an effective way of monitoring those labor transfers, though the U.S. government believes they are growing.
Hugo Boss has implemented a "comprehensive risk management system" to monitor compliance with human rights within its supply chain, the company said in a statement. The statement was in response to the Canada Ombudsperson for Responsible Enterprise's forced labor complaint against the retailer (see 2404260040). CORE said it has closed the complaint review.
The National Customs Brokers & Forwarders Association of America's president told the U.S. trade representative that customs brokers and others in the trade community aren't "pro forced-labor, pro-pollution, pro-unsustainable environmental practices," but that too often, "‘race to the top’ objectives do not take into consideration the ability to actually implement the policies, and the costs associated with the goals."
The Canada Ombudsperson for Responsible Enterprise withdrew complaints against Hugo Boss Canada and GobiMin, the agency announced on April 24 and April 25. Both companies participated in "good faith," with GobiMin divesting from a gold mine that allegedly used Uyghur forced labor, and Hugo Boss participating in a confidential dispute settlement process with the parties that filed the complaint against the company and providing a "satisfactory response or remedy to their allegations," a CORE spokesperson said in an emailed news release.
Perkins Coie partner Michael House told an audience of automotive supply chain professionals that this fiscal year has seen not only a sharp increase in the number of detentions, "but even more important, in our view, is the scope of products being detained has diversified, and there's been a steady increase in detentions of merchandise that were outside those original so-called priority sectors."
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Sen. Marco Rubio, R-Fla., wants CBP to investigate the role of slave labor in goods being sold over retail apps Temu and Shein, he said in an April 16 letter to DHS Secretary Alejandro Mayorkas. Rubio asked that CBP investigate the exporters and, if necessary, add them to the Uyghur Forced Labor Prevention Act’s Entity List, which keeps track of companies that sell merchandise produced with slave labor. Both companies have abused the de minimis provision to get goods tainted by forced labor into the U.S., the senator said.