USMCA

International Trade Today is providing readers with some of the top stories for Oct. 29 - Nov. 2 in case they were missed.

The main advisory committee for the Office of the U.S. Trade Representative unanimously supports the U.S.-Mexico-Canada Agreement as "far better than the existing NAFTA," and encouraged Congress to enact it as quickly as possible. The committee includes three union leaders, and the rest of its 21 members are either from right of center think tanks or business interests.

No business or labor group came out against the U.S.-Mexico-Canada Agreement, in comments filed to the International Trade Commission, even as some groups expressed concerns about aspects of the deal to replace NAFTA. Comments are due before the ITC holds a hearing on Nov. 15.

The higher quotas for poultry and dairy under the new NAFTA should create $450 million in benefits by the time they phase in 19 years from now, according to a new study by Purdue University economists. That gain is massively overshadowed by the size of $1.8 billion in lost sales now to Mexico and Canada because Mexico placed tariffs on pork, poultry, cheese and apples and both countries levied duties on some retail food products. When you combine the gains in the new NAFTA with the losses from retaliatory tariffs, the net loss is $779 million, according to the study. The biggest bite has been from tariffs on pork and poultry in Mexico -- those exports have fallen by 7 percent.

International Trade Today is providing readers with some of the top stories for Oct. 22-26 in case they were missed.

Trade promotion authority puts obligations on the administration to consult, and follow congressional objectives, but the provisions that constrain Congress have no teeth, former trade staffers from both sides of the aisle agreed. Stephen Claeys, a partner at Wiley Rein and former Republican House Ways and Means Trade Subcommittee counsel, said the rules about how long Congress can delay a vote on a trade agreement, and the fact that they have to vote on it with no amendments, are wholly voluntary. "There is no TPA jail. There's no TPA judge," he said during a panel discussion hosted by The Federalist Society.

International Trade Today is providing readers with some of the top stories for Oct. 15-19 in case they were missed.

Lifting the steel and aluminum tariffs on Mexico and Canada before the NAFTA replacement is signed at the end of November would be a good idea, Sen. Rob Portman, R-Ohio, told reporters Oct. 23. Portman was one of a handful of senators at a meeting with U.S. Trade Representative Robert Lighthizer a little more than a week ago, and he said Lighthizer did not say that was his goal.

Changes to de minimis is the most significant change from NAFTA in customs administration and trade facilitation under the rewritten agreement, practitioners say, but exactly how that will work in practice is still unknown. Shipments from the U.S. or Canada into Mexico will not face duties if they are valued at less than $117, and will not have to pay tax if they are valued at less than $50. Shipments into Canada from NAFTA partner countries will be tax-free if valued under 40 Canadian dollars, and duty-free at under 150 Canadian. (Mexico's $117 limit matches C$150 at current exchange rates.)

Autos and auto parts make up 25 percent of the NAFTA trade, and the head of the trade group that represents Detroit's Big 3 auto firms says they will push aggressively to get the NAFTA rewrite through Congress next year. Matt Blunt, CEO of the American Automotive Policy Council, said, "If party control changes in one of the chambers, that does make it more difficult to gain approval of USMCA, but I still think it's highly doable." Blunt is the former governor of Missouri, and his father Roy Blunt is in the Republican leadership in the U.S. Senate.