A Costa Rican court on June 4 restored lower 3.5% to 4% tariffs in the country on imports of milled and rough rice, overturning an April court ruling that had put higher 35% tariffs in place (see 2404250057). The decision “dramatically erodes” preferential access for U.S. rice exports under a tariff-rate quota negotiated in the Dominican Republic-Central America Free Trade Agreement, the Foreign Agricultural Service said in a June 12 report. “Earlier hopes for higher U.S. rough rice exports to Costa Rica in 2024 evaporated before a single shipment could reach Costa Rican ports.” However, FAS doesn’t expect the “stunning reversal to be the final word in this political tug-of-war,” as the lower tariffs “pose an existential threat to the majority of Costa Rican rice producers.”

The trade is watching whether more than 9,000 Canada Border Service Agency workers will go on strike on Wednesday should the impasse on labor contract negotiations continue.

The Dominican Republic is imposing higher duties on imports of U.S. mozzarella cheese after reaching the threshold for safeguard measures under the Dominican Republic-Central America Free Trade Agreement, USDA’s Foreign Agricultural Service said in a report. The country activated the safeguard after importing 472 metric tons of mozzarella cheese from the U.S. so far this year, the agency said,. The cheese will now be subject to an 11.2% tariff for the rest of the year. It was previously subject to a 2% out of quota tariff rate.

Brazil recently added 454 items and removed 603 items from its list of foreign capital goods and information technology and telecommunications goods subject to duty-free treatment under its Ex-Tarifario regime, the Hong Kong Trade Development Council reported June 3. They include goods classified in Harmonized System chapters 82, 84, 85, 86, 87 and 90, and they will benefit from duty‑free treatment through Dec. 31, 2025.

A union representing Canadian customs agents will meet with the government June 3 to try to negotiate a new labor deal and avoid a strike that could lead to disruptions at ports and border crossings across Canada. The Public Service Alliance of Canada, which represents over 9,000 border and customs agents for the Canada Border Services Agency, said May 29 it’s “hopeful” CBSA “will return to the bargaining table with a renewed mandate to reach a fair agreement for members” next week.

A recent change to Canada’s help desk services hasn’t caused any freight delays at the country’s border, Canada's customs agency said, disputing some points made by Canadian customs brokers in a letter to the government earlier this month.

Brazil temporarily removed tariffs on all imports of paddy rice, husked/brown rice and milled rice, USDA’s Foreign Agricultural Service said in a report last week. The duty suspension, meant to prevent “potential supply issues” and replenish Brazilian rice stocks following recent floods, is effective from May 21 until Dec. 31, USDA said. The agency said this could “stimulate” American rice exporters to focus on Brazil, pointing to a similar situation in 2020 when Brazil introduced duty-free imports and the U.S. became the top exporter behind the Mercosur countries in Latin America.

A disruption involving help desk services for customs business numbers used by Canadian importers and customs brokers is leading to delays and increased storage fees, the Canadian Society of Customs Brokers said in a letter to the government this week. The group urged the Canada Revenue Agency and the Canada Border Services Agency to fix the issue, saying the disruption is causing days worth of delays for routine procedures that previously took minutes.

Canada on May 21 officially launched a public comment period as it considers potential new requirements under its Aluminum Import Monitoring Program. The country said it's considering aligning its aluminum import rules with its country of melt and pour information requirements for steel imports, which would “support supply chain transparency and help obtain a more comprehensive picture of the origins of imported aluminum goods.”

Companies with certain business activities in Canada have until May 31 to file with the Canadian government and publish a report on their supply chain due diligence procedures as part of that country's anti-forced labor law, ArentFox said in a client alert this week.