After Mexico asked it for consultations (see 2108230041), arguing that the NAFTA approach to roll-up should be continued under USCMA, the Office of the U.S. Trade Representative said the request is under review. USTR spokesman Adam Hodge said that U.S. government officials "remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed.”
CBP extended its temporary travel restrictions on the northern and southern borders through Sept. 21, it said in two notices. The travel bans do not apply to cargo, and exempt crossing the border from Canada or Mexico to work in the U.S.
The Mexican government has asked the Office of the U.S. Trade Representative for formal consultations under USMCA's dispute resolution process over a disagreement on how the auto rules of origin should work. Mexico says that when it agreed to a 75% regional value content standard at the end of the phase-in period, its negotiators were assuming that once a part is considered originating, its value should count as North American as you move to assemblies, and ultimately, to the vehicle as a whole. So, Mexico says that in the text on the rules of origin, if a core part is originating, its full value is counted in a super-core part, such as an engine, and if that engine is originating, its value counts in the RVC for the vehicle as a whole.
Mexico recently suspended certain trade relief measures originally introduced to mitigate the impacts of the COVID-19 pandemic, KPMG said Aug. 16. They included measures to support the manufacturing industry, export services and rules for refunds of import taxes to exporters. During the suspension period, KPMG said “any days remaining will be considered to be ‘non-business days,’ so that any unexpired limitations period will be tolled and will not be triggered or to begin to run again until the first business day following the day the suspension ends, and at that time, the deadlines of any processes that have been paused will resume.” The suspension is in effect for 30 business days after Aug. 12.
Canada is considering several new legislative and regulatory amendments to its trade remedy system, KPMG said Aug. 10. The changes, announced by the country’s Department of Finance, aim to clarify standards to initiate anti-circumvention investigations, streamline the expiry review process, improve access for small and medium-sized businesses to the trade remedy system, and change the treatment of “massive importations,” including trade remedy complaint notification time frames. Canada is hoping the amendments increase the remedy system’s inclusiveness and transparency, boosts its ability to address trade injuries caused by dumped and subsidized imports, and reduce administrative burdens for traders and government investigators, KPMG said. The department is seeking public feedback on the changes by Sept. 26.
Representatives from manufacturing interests operating in Mexico said the COVID-19 pandemic has presented an opportunity to argue for locating more production in North America, for both reliability and speed, but there are still obstacles to making the argument for nearshoring as an answer to vulnerable supply chains. The president of the National Council of the Maquiladora and Export Manufacturing Industry and the director of global trade compliance for Illinois-headquartered manufacturer Regal Beloit spoke at the Wilson Center's "Building a Competitive U.S.-Mexico Border" conference, which was held Aug. 10 and 11.
Brazil recently announced improvements to its “revamped” import process introduced in 2018, which will allow certain traders to take advantage of the country’s “new import functionalities,” the Hong Kong Trade Development Council reported Aug. 12. The improvements will allow traders that are not part of Brazil’s authorized economic operator program to participate, expanding the scope of the new import process to cover about 30% of Brazilian imports, the report said. Under the program, traders with a “large number” of imports can “register, correct and consult single import declarations” and can benefit from improvements to bonded area procedures and “various administrative work processes.” The HKTDC also said excess tax payments will be refunded automatically and cargo delivered to importers, without the need for a paper receipt, if they stem from the “rectification or cancellation of import declarations.”
Canada and Argentina recently announced antidumping and countervailing duty decisions on certain products from mainland China, the Hong Kong Trade Development Council reported Aug. 10. Canada issued final affirmative AD/CVD decisions on upholstered domestic seating. Argentina renewed its AD duty order on mainland Chinese electrical connection terminals for cable diameters of up to 35 mm2. Canada also is seeking comments from interested parties by Aug. 31 on whether it should initiate an expiry review of the AD and CV duty orders on mainland Chinese flat welded large diameter carbon and alloy steel line pipe with an outside diameter greater than 24 inches (609.6 mm) and less than or equal to 60 inches (1,524 mm).
International coordination on how to account for embedded emissions in traded products is essential, Canada asserted in a recently published white paper about its exploration of a carbon border adjustment tax. "Work on international border carbon adjustments is in progress. An important part of advancing this work is ensuring a common understanding. To this effect, the government will continue its important conversations with Canadians and international partners, including the United States and European Union, in the coming months," the government wrote.
Ecuador recently lowered tariffs on 667 products, including 43 agricultural goods, a move expected to principally benefit U.S. exporters of soybean meal and wheat, the U.S. Department of Agriculture Foreign Agricultural Service said in an Aug. 3 report. The rates go into effect Oct. 1. Other U.S. exports that could benefit are liver and offal of bovine animals, kidney beans, peanut oil, sugars with added flavoring and coloring, and certain tea extracts. USDA also said the U.S. “previously faced tariff disadvantages for several products which are now at zero percent ad valorem for all countries,” which should create “opportunities” for U.S. exporters of other goods, including hazelnuts, malts, starches and animal feed preparations.