Three trade groups thanked U.S. Trade Representative Katherine Tai for starting consultations with Mexico over what they call "discriminatory policies" in the energy sector, but warned: "It appears that the administration of Mexican President Andrés Manuel López Obrador will not change the course of his country’s energy policy without continued, direct and forceful pressure from the U.S. government."
The U.S. asked the Mexican government to review a Unique Fabricating, Inc. plant in Queretaro, Mexico, based on allegations that the factory is obstructing workers’ freedom of association and right to collective bargaining, the Department of Labor said in a March 6 news release. Mexican labor union Transformacion Sindical recently filed a complaint under the USMCA Rapid Response Mechanism alleging Unique Fabricating, a U.S.-based company, denied it access to the facility and interfered with organizing efforts, DOL said.
CBP's Commercial Customs Operations Advisory Committee (COAC) will next meet March 29 in Seattle, CBP said in a notice. Comments are due in writing by March 24.
The U.S. government, dissatisfied with the narrowing of a Mexican ban on genetically modified corn (see 2302150026), has asked for technical consultations under the USMCA's sanitary and phytosanitary (SPS) chapter. A formal dispute can't be initiated without first taking this step.
The Indo-Pacific Economic Framework for Prosperity needs strong commitments on labor rights, the environment and on digital trade, among other items, a coalition of organizations and unions told the Biden administration.
Deputy U.S. Trade Representative Jayme White, speaking during a panel discussion with representatives from USMCA partners, said the NAFTA rewrite's credibility is on the line if enforcement is weak. White, who discussed USMCA implementation on a Brookings Institution panel along with a Canadian minister and a Mexican senator who leads that body's Special Committee for USMCA Implementation, said if promises on environmental rules, labor standards and energy aren't fulfilled, workers will say: "Well, you don't enforce it."
A trade group for the Mexican steel industry, CANACERO, warned that Mexico likely will retaliate against U.S. steel exports if the U.S. reimposes 25% tariffs on Mexican steel -- and the U.S. exports much more steel to Mexico than vice versa.
CBP issued the following releases on commercial trade and related matters:
The International Trade Commission posted Revision 1 to the 2023 Harmonized Tariff Schedule. The update includes a technical correction to the USMCA rules of origin and a minor correction for organic surface-active agents (other than soap). The update also implements the extension through May of exclusions from Section 301 tariffs for 81 medical care products related to COVID-19 (see 2302020065) and implements corrections to descriptions and tariff numbers of two other Section 301 exclusions (see 2302090027). Also, the update removes Western Sahara from country designations and codes in the statistical annexes.
The muted response of the agriculture secretary to Mexico's concessions on genetically modified corn was not enough, according to Rep. Jason Smith, R-Mo., chairman of the House Ways and Means Committee. Smith sent a letter Feb. 15 to USDA Secretary Tom Vilsack and U.S. Trade Representative Katherine Tai arguing that it is time to initiate a formal dispute over the non-tariff-barriers.