The Office of the U.S. Trade Representative is disinclined to offer an informed compliance period for most importers, “because most of the rules of origin have remained essentially the same” as what was in NAFTA, so CBP can honor the U.S.-Mexico-Canada Agreement claims with the same information that backed NAFTA claims, according to Brenda Smith, executive assistant commissioner of CBP’s Office of Trade.
Sen. Josh Hawley, R-Mo., announced that he's introducing a joint resolution that the U.S. should withdraw from the World Trade Organization. Such a resolution, if it were to pass, would not be binding.
The U.S. said that it's resolved the Boeing subsidy dispute at the World Trade Organization (see 2005060052), and a spokesman for the European Union said May 7 that the EU doesn't agree. “While the EU is still examining the impact of the legislative action concerning the Washington State [business and operations] tax, the EU notes that the rulings in this dispute cover a number of additional measures where the US remains non-compliant (including NASA and Department of Defense Research and Development measures and certain State and local measures),” the spokesman said. He said that the EU is ready to continue discussions with the U.S. to negotiate a balanced solution that would resolve both the Airbus and Boeing subsidy cases.
Canada, Mexico, China, the United Kingdom, Japan and an assortment of other countries around the world said the World Trade Organization has an essential role to play in ensuring the continued flow of essential goods -- including medical supplies -- across borders. “We stress that trade restrictive emergency measures aimed at protecting health, if deemed necessary, shall be targeted, proportionate, transparent and temporary, not create unnecessary barriers to trade or disruption to global supply chains, and be consistent with WTO rules. We pledge to lift any such measures as soon as possible,” the statement said. “We also stress the necessity of maintaining agriculture supply chains and preserving Members' food security. We, therefore, pledge to not impose export restrictions and to refrain from implementing unjustified trade barriers on agricultural and food products in response to the COVID-19 pandemic.” No country in the European Union signed the statement, issued May 5, nor did the U.S.
The United States notified the World Trade Organization that it has fully complied with the WTO's findings in the Boeing subsidies dispute, the Office of the U.S. Trade Representative said May 6. The European Union and U.S. have been battling for 15 years over whose subsidies to their aircraft manufacturers distort trade. The WTO has said that both sides were in the wrong, and the U.S. currently has Section 301 tariffs on about $7.5 billion worth of European aircraft, food, apparel, linens, tools, wine and spirits in a WTO-sanctioned retaliation for past Airbus subsidies.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, hopes that a free trade agreement with the United Kingdom -- for which negotiations started May 5 -- would be more favorable to American agriculture than European Union policies have been. Grassley, who was speaking to reporters on a conference call May 5, said the EU restrictions that irritate him the most are on the use of feed additives for cattle, geographical indications, and “that we can’t get [genetically modified organisms] into Europe.”
The Congressional Research Service, in a May 1 report, noted that Congress may want to turn its attention to the U.S.-Kenya negotiations not only because of the free trade agreement's potential economic effects, but also because of mandates in the African Growth and Opportunity Act (AGOA) -- Kenya is the second-largest beneficiary of AGOA when oil is excluded.
At the southern border, not every document can be processed electronically yet, but they're working on it, the CBP Laredo Field Office told traders on a conference call May 1. Documents including meat certificates, phytosanitary certificates, bovine paperwork, and CITES certificates are still needed in paper form. Assistant Director of Field Operations Armando Taboada asked those listening to make sure the drivers and runners coming to the Texas port wear masks. “I know Gov. [Greg] Abbott relaxed a little bit of the requirements,” he said, but added, “It’s for our own health and safety, for all of us.” He said most drivers are wearing masks, but there are a few stragglers.
As Thompson Hine lawyers on a webinar discussed exemptions to the Federal Emergency Management Agency restrictions on exports of personal protective equipment, they noted that goods held in bonded warehouses or in foreign-trade zones aren't subject to the controls. As a result, they expect the two to become more widely used over the next year.
Rep. Brad Schneider, D-Ill., said that many of his colleagues think “that we can pull back and do everything ourselves,” and that he thinks they may look at the shortages during the COVID-19 pandemic response as evidence that reshoring is the way to go. “You will see more capacity building in the United States, and that makes sense; the idea we can do it all ourselves is pure folly.” Schneider, who was speaking on a webinar hosted by the Washington International Trade Association on April 28, also thinks there needs to be redundancy in supply chains, and more warehousing and less “just-in-time” delivery.