Forty-four House members, led by prominent trade skeptic Rep. Rosa DeLauro, D-Conn., told the administration that they do not support the inclusion of eight of the 13 countries in the Indo-Pacific Economic Framework negotiations, and that Congress and outside stakeholders should have "the opportunity to weigh in at the outset on proposals for specific negotiation objectives and, as negotiations continue, on draft text."
USMCA
The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.
CBP posted several documents ahead of the Sept. 14 Commercial Customs Operations Advisory Committee (COAC) meeting:
A complaint from Rethink Trade and SNITIS, a Mexican labor union, submitted in early August alleging that the management of BBB Industries de Mexico in Reynosa, Mexico, conspired with a captive union to rig a contract vote was not pursued by the U.S. government, Reuters reported. Previously, the Office of the U.S. Trade Representative asked Mexico to investigate five other complaints brought under USMCA's rapid response labor mechanism. Four of those complaints have been resolved, and one, against Manufacturas VU, an auto parts plant in Piedras Negras, is still pending. The agency told Reuters there was not "sufficient, credible evidence of a denial of rights," so that's why it didn't go forward. USTR didn't comment.
Some companies said in recently submitted comments they used to benefit from Section 232 tariffs but no longer do. Others said they previously were able to mitigate the cost impact of Section 301 tariffs through exclusions, finding other suppliers or other trade benefits but can't anymore.
The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet remotely Sept. 14, CBP said in a notice. Comments are due in writing by Sept. 9.
The U.S. and Mexico successfully resolved a rapid response complaint over alleged violations of worker rights at the Teksid Hierro de Mexico plant in Frontera, Mexico (see 2206060046), the Office of the U.S. Trade Representative said Aug. 16. The facility, which is owned by Stellantis, will take several steps meant to protect worker rights, USTR said. As a result of the resolution, USTR Katherine Tai instructed Treasury Secretary Janet Yellen to direct CBP to resume entry liquidations of goods from the factory, in an Aug. 16 letter.
A day before the House is expected to pass a bill, the Inflation Reduction Act, that includes electric vehicle tax credits with strings attached for sourcing and assembly, activists and analysts are reacting to European Union's argument that the EV tax credit violates World Trade Organization rules.
U.S. Trade Representative Katherine Tai, speaking at the United Steelworkers convention, told union leaders and members explicitly that the Indo-Pacific Economic Framework for Prosperity is not a repeat of the Trans-Pacific Partnership. She said the administration learned lessons from TPP, and "[b]ecause of that, tariff elimination is not on the table."
The Commerce Department published notices in the Federal Register Aug. 11 on the following AD/CV duty proceedings (any notices that announce changes to AD/CV duty rates, scope, affected firms or effective dates will be detailed in another ITT article):
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