Current and former government officials from the U.S., Mexico and Canada agreed that the recent Three Amigos summit was successful, but that implementing the ambition of relocating a semiconductor supply chain to North America will need dedicated attention. The officials spoke on a webinar hosted by the Council of the Americas and Wilson Center on Jan. 20.
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Senate Finance Committee member Bill Cassidy, R-La., wants the government to greatly expand its tariff liberalization, to cover many South American and Central American countries and to cover goods made in factories that moved from China to the Western Hemisphere.
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.
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.
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.
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.
The Treasury Department published its fall 2022 regulatory agenda for CBP. The only new mention of any regulations is a new long-term action that would amend CBP's regulations "pertaining to prior disclosure and to the procedure for demanding payment of duties, taxes, fees, or revenue" when a penalty claim isn't issued. "Amendments are designed to encourage participation in the prior disclosure program and to enhance the effectiveness of the duty/revenue demand process," the agenda said.
Two lawmakers asked the Biden administration this week to begin negotiations on trade deals with Ecuador and Uruguay. Trade agreements with both countries would “capitalize on the bipartisan momentum and success” of USMCA, said Sens. Bob Menendez, D-N.J., and Rob Portman, R-Ohio.