After 47,000 stores in the U.S. closed in a week, Flexport says that so many companies can't take shipments arriving at East Coast ports that those ports are now shopping for more warehouse space. Because importing companies' warehouses are either full or closed, they tell the ports they'll pay demurrage charges for the goods to stay there. “The ports are actually worried now they won’t have enough space,” said Chandrakant Kanoria, Flexport's head of network operations, during a webinar March 31. He said Savannah is hoping to almost double its warehouse space, and the New York and New Jersey terminals are talking with warehouse providers to try to make room, as well. There are problems in the warehouse logistics ecosystem, as well, because Amazon warehouses stopped accepting any goods other than essentials.
Exports to the European Union rose by 5.9% in 2019, the U.S. Chamber of Commerce said in its annual report on the business ties between Western Europe and the U.S. Exports to Belgium, Spain, Austria, Bulgaria and Denmark were all up by double digits, with the most growth in Austria, where exports were 60% above 2018 levels. However, the growth was about half the pace of 2018, when exports to the EU grew by 11%.
Canadian and Mexican politicians are sending different messages to their countries' journalists about how quickly the uniform regulations can be completed for the new NAFTA, now known as the U.S.-Mexico-Canada Agreement. A Canadian politician and a labor leader told a Canadian newspaper that a June 1 date of entry into force is unlikely, given how much remains to be done to be ready, and especially with the disruption caused by the coronavirus COVID-19 pandemic.
Trade restrictions created as result of the coronavirus COVID-19 crisis will change trade years from now and may lead to fewer international shipments in the medical arena, panelists said on a webinar March 26 hosted by the Washington International Trade Association.
The Senate Finance Committee chairman, joined by 11 other Senate Republicans, is asking President Donald Trump to consider a total moratorium on new or raised tariffs, as well as examining how tariffs and import and export restrictions specific to medical supplies can be tackled. They praised the Office of the U.S. Trade Representative for excluding some medical supplies from Section 301 tariffs since the novel coronavirus COVID-19 pandemic spread to the U.S., but said a wider review should be done to make sure none remain. And they encouraged him to coordinate with other countries that have imposed export restrictions in response to COVID-19, so that there aren't cost increases and “critical supply shortages.”
A Georgia congressman wrote to the secretary of state, asking for a temporary export ban on medical supplies needed for coronavirus COVID-19 response. Rep. Doug Collins, R-Ga., said on March 24 that the Northeast Georgia Health System tried to order high-speed testing equipment, and the U.S. company producing it said it is not taking orders from new customers because it has a surge in orders from Europe.
The American Association of Exporters and Importers is asking the Trump administration to help importers and exporters deal with the impact of COVID-19 response measures, whether that impact is a cash crunch, the effects of telework or business decisions made in response to delays in shipments from China. The group is asking the administration to extend the time to respond to regulatory notices that are paper based, including entry filings deadlines, because telecommuting makes it more difficult to manage the paper flow. It is also asking CBP to extend the protest period for customs duties and decisions.
The Public Health Agency of Canada said that workers who are essential for the movement of goods and people, such as truck drivers, railroaders, flight crews and mariners, will still be allowed to cross into Canada without having to self-isolate after arrival. “These workers are asked to closely self-monitor, and self-isolate immediately should they exhibit any symptoms. It is recommended that employers in these sectors conduct active daily monitoring of their staff for COVID-19 symptoms,” the Canadian government said.
The language of the U.S.-Mexico-Canada Agreement says that in order for the treaty to take effect on June 1 -- as U.S. officials have told Congress they want -- the countries would have to agree that they're ready 12 days from now. Kenneth Smith Ramos, a former top negotiator of the NAFTA rewrite, said the three countries cannot say they've completed their internal procedures by then. “#NotHappening,” he wrote in English at the end of a tweet in Spanish.
President Donald Trump, asked about a letter from businesses and trade groups sent earlier on March 18 that said he should lift sections 232 and 301 tariffs, said he couldn't imagine why Americans would want that. “China is paying us billions and billions of dollars in tariffs and there’s no reason to do that,” reporters quoted him as saying at a press conference. "It could be that China will ask for a suspension or something. We’ll see what happens. China is having a very rough time.”