International Trade Today is providing readers with some of the top stories from July 6-10 in case they were missed.
USMCA
The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.
CBP should “exercise discretion” when using its withhold release order (WRO) authority to address forced labor violations, leaving space for importers to use their leverage to get suppliers to change their illegal practices, the Commercial Customs Operations Advisory Committee (COAC) Intelligent Enforcement subcommittee said in draft recommendations released ahead of the July 15 COAC meeting.
CBP issued the following releases on commercial trade and related matters:
The Alliance for Trade Enforcement is asking U.S. Trade Representative Robert Lighthizer to bring up intellectual property and agriculture issues with Mexico and Canada in the USMCA. The alliance includes trade groups in pharmaceutical, biotech and creative industries and the National Association of Manufacturers, in addition to broad trade groups such as the National Foreign Trade Council and the U.S. Council for International Business.
Democrats who worked to change the USMCA to make it palatable to their colleagues in the House of Representatives wrote to Mexican President Andres Manuel Lopez Obrador about their concerns that abusive union practices are continuing, and they asked him to keep them updated on efforts to change the culture in his country.
The administration thought that allowing traders to certify that goods qualify for USMCA without having to use a specific form would be liberating, but traders continue to be confused about what to write, and wish there were a template to follow. There will be a template posted on the CBP website eventually, but it has not been done yet, a week after the USMCA replaced NAFTA.
The Mexico Institute asked whether it was a mistake for Mexico's president to visit President Donald Trump four months ahead of Election Day, particularly since Trump has been so hostile to Mexican immigrants.
CBP issued the following releases on commercial trade and related matters:
Jesus Seade, who led the USMCA negotiations on behalf of the president-elect in Mexico in 2018, said that while the World Trade Organization is a member-driven organization, the director-general should be more than just a facilitator, especially since the body is in crisis.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said, “generally technical fixes are easy to do,” and told International Trade Today that such a bill to make fixes to USMCA's implementation bill could hitch a ride on a Continuing Resolution to fund the government, if the bill were completed in time. Grassley said a week ago that he hasn't had any discussions on the technical fixes needed, including allowing post-importation refunds of merchandise processing fees.