The aluminum producers of Canada, Mexico and the U.S. have written their leaders -- as well as Mexico's president-elect -- asking that tariffs on aluminum be lifted, without quotas, before Nov. 30. "The USMCA cannot work for the aluminum industry or our many downstream customers without exempting Canada and Mexico from the [Section] 232 tariffs or quotas," the three trade groups wrote in a Nov. 5 letter. They suggested that unnaturally cheap Chinese aluminum cannot come into the U.S. through a free-trade backdoor. "Canada recently moved to align its country of origin marking regime for steel and aluminum products to prevent transshipment and diversion of aluminum and steel. Mexico has initiated an anti-dumping case on aluminum foil imports from China," the letter said, so the tariffs in the region are no longer needed. The U.S. aluminum trade group never supported aluminum tariffs on allies.
International Trade Today is providing readers with some of the top stories for Oct. 29 - Nov. 2 in case they were missed.
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.
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.
The U.S. will not meet with China to talk about trade until he's convinced they're ready to make a deal, President Donald Trump said, speaking with reporters after U.N. Ambassador Nikki Haley announced her resignation on Oct. 9 at the White House. Trump said the U.S. rebuilt China by purchasing so many Chinese goods, and that he wants to put an end to the unbalanced trading relationship. "China wants to make a deal. And I say they’re not ready yet. I just say they’re not ready yet. And we’ve canceled a couple of meetings because I just say they’re not ready to make a deal," he said. "It’s been a one-way street for 25 years. We’ve got to make it a two-way street. We’ve got to benefit also, OK?"