While many expect a President Joe Biden to be less protectionist than President Donald Trump, Michael Smart, a managing director at Rock Creek Global Advisors and former international trade counsel for Democrats on the Senate Finance Committee, wasn't ready to say that Biden would roll back tariffs on either China or Europe, though he did say that Biden wouldn't “go after the European Union” as Trump has. He said that a Trump or a Biden administration would have the same focus on expanding Buy American rules, which cover government procurement.
Several trade groups representing businesses would like the USMCA's rapid labor mechanism for dealing with Mexico labor violations to be far less rapid, according to their suggestions on how the process should go. The National Foreign Trade Council, the Retail Industry Leaders Association and the National Retail Federation submitted nearly identical comments to the Office of the U.S. Trade Representative, which posted them publicly late on Aug. 17. They said that those arguing that Mexicans' rights to collective bargaining and freedom of association are being abridged by an employer should “be required to exhaust all other avenues prior to filing petitions.”
International Trade Today is providing readers with some of the top stories from Aug. 10-14 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said Taiwan's an attractive free trading partner but not as important to exporters as China is. “I'm for a free trade agreement with Taiwan, but I wouldn't want that to stand in the way of a phase two deal with China,” he told reporters on a conference call Aug. 17. China sees Taiwan as a breakaway province, and considers it part of China, not an independent country. Taiwan's president recently said he'd like negotiations to begin on an FTA (see 2008130010), and 161 House members have argued for opening negotiations with Taiwan (see 1912200014).
CBP updated its “suggested certification of origin template for trade agreements” to include USMCA and the U.S.-Japan Trade Agreement, CBP said in a CSMS message Aug. 14. The updated template is “a fillable template that demonstrates how such a Certification of Origin can be structured, and which users may elect to use,” CBP said. “Its use, or adherence to its structure, however, is in no way compulsory.” The template should be saved to a computer “for best results,” it said.
Some “high tech” goods of Chinese origin sent to Mexico for minimal handling and then to the U.S. are eligible for USMCA tariff treatment, CBP said in an Aug. 7 ruling. Jose Fierro, an El Paso, Texas, customs broker, requested the ruling less than a week after USMCA entered into force July 1. The broker said that a client “has contracted with a Mexican maquiladora facility to provide certain logistical services” and inquired whether USMCA treatment would apply.
The Customs Rulings Online Search System (CROSS) was updated Aug. 11 The following headquarters rulings were modified recently, according to CBP:
International Trade Today is providing readers with some of the top stories from Aug. 3-7 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
As Canadians consider which of 68 aluminum-containing products to put on a tariff retaliation list, U.S. industrial producers and buyers of aluminum reacted with dismay to the news that a large segment of Canadian aluminum imports will face a 10% tariff starting Aug. 16.
The International Trade Commission on July 30 issued Revision 18 to the 2020 Harmonized Tariff Schedule. This latest version implements extended exclusions from list two Section 301 tariffs on products from China under new subheading 9903.88.54 and new U.S. note 20(ggg) to subchapter III of chapter 99. The ITC also made a technical fix to general note 11 for USMCA. The changes are effective July 31.