At the opening of the 2024 African Growth and Opportunity Act Forum, U.S. and African trade leaders emphasized the importance of reauthorizing AGOA before its expiration in 2025 and discussed changes they would like to see to it to increase utilization, strengthen supply chains and support economic growth.
The U.S. has suspended liquidation for goods from the Impro Industries Mexico facility in San Luis Potosi, a Chinese-owned factory that makes parts used in automotive, energy, medical and agricultural sectors.
The Canadian press noted that Canada is working to convince officials that might serve in a future Trump administration to spare Canadian goods from a global 10% tariff, but former U.S. trade representative Robert Lighthizer, who recently traveled to Canada, has said Canada won't necessarily be exempted.
Dan Ujczo, senior counsel in Thompson Hine's trade practice, said he expects a second Biden or Trump administration to say it won't authorize USMCA to continue for another 16 years in 2026, when the trade pact is up for review.
The government of Mexico has asked the U.S. to exempt Mexican bifacial solar panels from a global safeguard tariff. Economy Secretary Raquel Buenrostro noted that USMCA, or T-MEC, as they call it in Mexico, has rules in this regard. The July 12 press release didn't spell it out, but safeguards are only to be applied to Mexico and Canada if their imports are integral to the injury to U.S. producers; the U.S. eventually reversed the solar panel safeguard on all Canadian panels (see 2207070041).
Tariff carve-outs for Mexican steel and aluminum in the Section 232 action will be curtailed, so that only steel that is melted and poured in North America can qualify, and so that aluminum that was smelted or cast in China, Russia, Belarus but worked again in Mexico will be taxed at higher rates.
Danielle Fumagalli was named acting assistant U.S. trade representative for Japan, Korea, and Asia-Pacific Economic Cooperation (APEC) Affairs, the Office of the U.S. Trade Representative said in a news release July 3. Fumagalli had been deputy assistant USTR in the same office, and had helped negotiate the U.S.-Japan Critical Minerals Agreement.
Almost three years after environmental groups asked the Office of the U.S. Trade Representative to ask the tri-national Commission on Environmental Cooperation to establish a formal factual record of Mexico's failure to enforce its ban on gillnets in the Upper Gulf of California in Mexico (see 2108130052), that commission will begin such a fact-finding mission.
Changes to the USMCA rules of origin (ROOs) have "had a positive economic impact on the U.S. and North American auto industry, although with some challenges in implementation and new challenges emerging," according to the Office of the U.S. Trade Representative. The USTR report to Congress, mandated by Congress when NAFTA was rewritten, noted that carmakers "are still adjusting to the full scope of USMCA’s autos rules," with 13 entities given extended time to meet the stricter rules, at least for some models.
A number of prominent trade groups, along with Winnebago, the motor home and powerboat maker with 6,000 employees, questioned the wisdom of a tariff hike from 7.5% to 25% on lithium-ion batteries outside the electric vehicle sector (Harmonized Tariff Schedule subheading 8507.60.0020).