Unions appear ready to endorse the changes Democrats won to the NAFTA rewrite, though the most radical change -- stopping goods at the border for labor violations -- isn't in the deal. On Dec. 9, AFL-CIO President Richard Trumka said to The Washington Post, “We have pushed them hard and have done quite well,” in getting changes to the U.S.-Mexico-Canada Agreement. The House Democrats pushed for changes to the USMCA on labor, the environment, the biologics data exclusivity period and overall enforcement. If the AFL-CIO endorses their changes -- as seems likely after Trumka's comment -- passage in the House could follow quickly.
China hopes to reach a trade agreement with the U.S. “as soon as possible,” China said during a Dec. 9 press conference, adding that it plans to reduce import tariffs on industrial goods as part of a series of “guiding opinions” released by the State Council.
The growing complexity of international trade and the increasing use of front companies have made it more difficult to identify end-users and more challenging for enforcement authorities to prosecute illegal exports, according to a December report by The Stockholm International Peace Research Institute. In response, the European Union, and other multistate export regimes, should push for more transparency in penalties for export violations, create a forum for information sharing on national enforcement measures and improve reporting on those measures, the report said. The EU should also adopt “clearer” language on complex export concepts and make “detection, investigation and prosecution” a “key focus” of its industry outreach efforts.
China confirmed it will waive some import tariffs on U.S. soybeans and pork after receiving applications from Chinese companies, according to a Dec. 6 report from Xinhua, China’s state-run news agency. China's Customs Tariff Commission will “dedicate a range of goods” to benefit from tariff exemptions, adding that companies will buy the products through “independent negotiation.” Chinese companies can import U.S. soybeans and pork “as they see fit” and “bear the related profits or losses,” Xinhua said. China released its first batch of tariff exemptions on U.S. goods in September, exempting 16 items (see 1909110051). Soon after, China added certain agricultural products, including pork and soybeans, to the list of exempted goods (see 1909130013).
Agricultural trade associations applauded the Japanese Diet’s passage of the U.S.-Japan trade deal (see 1912040008) but urged the Trump administration to quickly begin working on a more comprehensive deal with Japan.
The U.S. needs to increase “engagement” with China to reach a trade deal, said Sen. David Perdue, R-Ga., adding that the U.S. has stronger, not weaker, trade relationships with its allies since President Donald Trump became president.
The Dec. 3 House passage of the Uyghur Human Rights Policy Act of 2019 will have serious repercussions for U.S.-China trade talks if the bill becomes law, a China Foreign Affairs Ministry spokesperson threatened on Dec. 4. H.R. 649 and the companion S. 178 that cleared the Senate in September demand tough U.S. sanctions on China over reports of government-run detention centers imprisoning millions of Muslim-minority Chinese citizens in Xinjiang.
Newly recommended export-related initiatives (see 1912020048), including an effort by CBP to reduce minor “parking ticket” violations, will better allow U.S. enforcement agencies to target serious export violators, Commercial Customs Operations Advisory Committee members said during a Dec. 4 meeting. CBP’s Export Modernization Working Group hopes fewer minor penalties will clear up enforcement officials to do more large-scale work. “It should help the enforcement side to have time to actually get the bad guys,” said Brenda Barnes, a COAC member and part of the EMWG.
Switzerland is “absolutely convinced” it needs a free trade agreement with the U.S., which could benefit U.S. agricultural exporters, a Switzerland ambassador and Switzerland trade expert said during a Dec. 3 Heritage Foundation panel. But a deal may be unlikely, particularly because Switzerland faces the difficult decision of accepting U.S. agricultural safety standards over those of the European Union, a trade expert said. That decision presents a significant barrier to a potential trade deal.
Export Compliance Daily is providing readers with some of the top stories for Nov. 25-29 in case you missed them.