A trade lawyer who has clients in the auto industry says that Mexico's and Canada's auto rules of origin arbitration win does not necessarily change sourcing and investment decisions, because automakers were already proceeding as if 100% of originating parts' value would be counted when calculating the regional value content of vehicles.
An auto parts manufacturer in Piedras Negras, Mexico, which was previously subject to a rapid response complaint, is the target of a second complaint, this time by the union that won an election there in August, La Liga.
Sen. Bill Cassidy, R-La., joined by Rep. Maria Elvira Salazar, R-Fla., has proposed that most countries in Central and South America should be invited to join USMCA, and that before that can be negotiated, the countries should be added to the Caribbean Basin Trade Preference Area.
A panel ruled for Mexico and Canada on how the USMCA auto rules of origin should be interpreted, saying the U.S. is in breach of its agreement by conditioning a longer period to comply for auto exporters, known as an alternative staging regime, on requirements that are not in the USMCA text or the uniform regulations.
U.S. Trade Representative Katherine Tai, just before she signed a memorandum of cooperation with Japan on fighting forced labor (see 2301050039), suggested that auto or auto parts imports could be in CBP crosshairs after a British university alleged that many cars could have content touched by Chinese forced labor.
Ahead of a meeting of the "Three Amigos" -- the presidents of the U.S. and Mexico and the prime minister of Canada -- Jan. 9-10, business groups that advocate for North American integration said during a Jan. 6 webinar that they're hoping to see more evidence of nearshoring and using North American resources to diversify away from China.
Japan's economy minister, while acknowledging that complete decoupling is possible, said that dependence on China leaves countries open to economic coercion, broken supply chains and economic insecurity.
U.S. Trade Representative Katherine Tai and Japan’s Minister for Economy, Trade, and Industry Nishimura Yasutoshi will sign a Memorandum of Cooperation to launch a task forced on the promotion of human rights and international labor standards in supply chains on Jan. 6, the Office of the U.S. Trade Representative said.
Assistant U.S. Trade Representative Terry McCartin, along with other U.S. officials, will travel to Taipei for in-person negotiations for the U.S.-Taiwan Initiative on 21st-Century Trade, which has similar objectives to the Indo-Pacific Economic Framework. The negotiations are scheduled for Jan. 14-17.
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