The annual trade policy agenda report, put out by the Office of the U.S. Trade Representative, celebrated victories in export market access in 2019, even as it reported that goods exports fell by $21 billion compared with 2018. Manufacturing exports, which accounted for 83% of total goods exports, were down by $34.7 billion in 2019. Agricultural exports, which accounted for 9% of total goods exports, were down by $3 billion in 2019.
The Treasury Department’s recent settlement with a Swiss telecommunications and information technology organization highlighted the agency’s ability to “effectively” impose primary sanctions obligations on a non-U.S. person, according to a Feb. 28 post from MassPoint Legal and Strategy Advisory. It also showed how the Treasury’s Office of Foreign Assets Control can base sanctions jurisdiction on the “involvement in foreign transactions of U.S.-origin software and technology and telecommunications hardware” located in the U.S.
The United Kingdom government released on Feb. 27 a document outlining its approach to negotiations with the European Union on a permanent arrangement following Brexit. The document sets out the U.K.’s approach to negotiating a free trade agreement with the EU that removes all tariffs and quotas, including rules of origin, customs provisions and sectoral agreements. It draws heavily on recent EU trade agreements with Japan, South Korea and especially Canada for examples.
A Canadian government analysis of NAFTA's replacement -- known as the Canada-U.S.-Mexico Agreement in that country -- estimates that it will increase Canadian GDP by just under 0.25% over five years. The estimate is based on comparing CUSMA to a withdrawal from NAFTA, not from the present trade deal.
Vietnamese importers are struggling to import goods from China due to delays in receiving certificates of origin because of the coronavirus outbreak, according to a Feb. 27 report from CustomsNews, the mouthpiece for Vietnam Customs. Chinese suppliers have been unable to submit the certificates within the country’s mandatory time limit, which is causing traders to be unable to prove they qualify for preferential tariff rates, the report said. Normally, Chinese suppliers provide the certificates “a few days” after exporting the goods, the report said, but some certificates have been delayed by weeks. Some importers made declarations in January and have still not received certificate of origin documents to submit to Vietnam Customs, the report said. Vietnamese companies are reportedly asking the country’s customs authority to extend the deadline for additional submissions of certificates of origin to the end of March.
The U.S.-Swiss joint mechanism used to export humanitarian goods to Iran is now “fully operational,” the Treasury Department said Feb. 27. Treasury also issued a general license and a series of frequently asked questions to clarify how the mechanism can be used.
A Swiss telecommunications and information technology organization agreed to pay nearly $8 million for violations of U.S. terrorism sanctions, the Treasury’s Office of Foreign Assets Control said in a Feb. 26 notice. The organization, Société Internationale de Télécommunications Aéronautiques (SITA), committed more than 9,000 violations of the Global Terrorism Sanctions Regulations when it provided U.S.-origin services and software to airlines designated by OFAC.
CBP designated the Port of Ysleta, in El Paso, Texas, as port code 2401, the agency said in a Feb. 25 CSMS message. Starting on March 1, “all E-manifests making arrival into the U.S. via the Port of Ysleta are required to use port code 2401,” it said. But “Entry and Entry Summary transmissions will continue to utilize the port code 2402 (El Paso), as 2402 will be the Port of Entry for 2401,” it said. “For cargo arriving at Ysleta (2401) from Mexico and moving onward, the in-bond origination port will be 2401.”
In the Feb. 19-24 editions of the Official Journal of the European Union the following trade-related notices were posted:
A pro-free trade think tank in Canada published an analysis of the new NAFTA, known as CUSMA in Canada, and finds it lacking. “CUSMA has little traditional tariff liberalization, introducing only minor changes to market access compared to the NAFTA, and limited improvements in trade facilitation, while at the same time introducing a number of features that promise to be more restrictive of trade,” wrote the authors of the C.D. Howe Institute paper.