The U.S. requested three more panels under the rapid response labor mechanism in the USMCA to investigate three Mexican manufacturing facilities. The Office of the U.S. Trade Representative said that the U.S. and Mexico "were not able to agree on a plan for the full resolution of workers’ concerns at their facilities," and so USTR activated the dispute settlement panel under USMCA.
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.
The U.S. requested a panel under the rapid response mechanism in the USMCA for the third time to investigate a Canadian mining facility located in Mexico. The Office of the U.S. Trade Representative said that the U.S. and Mexico were unable to come to an agreement and so "the United States therefore has determined that it is appropriate to request a panel to verify the facility’s compliance with Mexican labor laws."
Tariffs promised by President-elect Donald Trump would result in increased prices for U.S. consumers, experts warned in an analysis of current trade flows and tariff rates.
Embossing and foil labeling operations don't constitute a use or materially change the goods, and such products are therefore eligible for unused merchandise drawback and in the same condition for the purpose of claiming drawback under USMCA, CBP determined in a recent ruling.
If incoming President Donald Trump imposes 25% tariffs on all Mexican and Canadian imports, it would be deeply disruptive to business in Texas, Arizona, Michigan and southeastern states with major auto manufacturing.
The former chief of staff to then-U.S. Trade Representative Robert Lighthizer has been chosen for USTR in Donald Trump's second administration.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Customs brokers expressed concern about a 25% tariff on Mexico and Canada and a 10% additional tariff on China that President-elect Donald Trump announced in a Nov. 25 Truth Social post, citing uncertainties about how U.S. importers would be able to afford bond stacking and if they would be liable financially for the imports, among other issues.
As the leaders of some Canadian provinces have said their country should cut its own deal with the incoming Trump administration because Mexico hasn't aligned with the U.S. to keep Chinese electric vehicles out of its market, the new Mexican President Claudia Sheinbaum told reporters that it's nothing to worry about.
Trump transition team members may have already drafted an executive order hiking tariffs on Chinese imports, said Peterson Institute for International Economics fellow Mary Lovely, during a webinar moderated by former European commissioner and now PIIE fellow Cecilia Malmstrom.