The Aluminum Association cheered the Mexican decision to apply tariffs to 544 tariff lines in aluminum and aluminum products. The tariffs are as low as 5% or 10% on some products, but are 25% and 35% on most.
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.
A career staffer in the Office of the U.S. Trade Representative whose portfolio includes the auto industry told an audience of auto industry supply chain professionals that it's likely the U.S. will be talking with Mexico about the increased foreign direct investment from Chinese companies manufacturing auto parts or, potentially, assembling vehicles, in Mexico.
The Committee for the Implementation of Textile Agreements seeks comments by May 24 on a request by Canada to change the USMCA rules of origin for a fabric used in the production of fire hose. Canada says there is no commercial availability in the U.S., Canada or Mexico of “high-tenacity polyester yarn, single or multiple, multifilament, untwisted, untextured, and measuring more than 920 decitex, used in the production of fire hose, with or without lining, armor or accessories of other materials.” The yarn is classifiable in subheading 5402.20, and “end-use classification” for the fire hose is heading 5909.
Former top officials in the Office of the U.S. Trade Representative during the Trump and Biden administrations said there will be no return to a pre-Trumpian, pro-free trade philosophy, whether Joe Biden wins re-election this fall or Donald Trump returns to the White House in 2025.
The U.S. on April 16 requested the establishment of a USMCA dispute settlement panel to consider its rapid response labor complaint against a Mexican call center, marking only the second time the U.S. has requested that a panel be formed, according to an April 16 news release from the Office of the U.S. Trade Representative.
The International Trade Commission published notices in the April 15 Federal Register on the following AD/CVD injury, Section 337 patent or other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):
U.S. Trade Representative Katherine Tai testified April 16 before the House Ways and Means Committee regarding the Biden administration’s trade policy agenda for 2024. She expressed support for upcoming legislation to renew the Generalized System of Preferences benefits program and to close the de minimis imports loophole (see 2404160029), and she detailed some of the administration’s values and aims for the upcoming year. “Our approach is one that addresses and advances the interests of all parts of our economy and does not pit Americans against Americans,” she said.
The Office of the U.S. Trade Representative seeks more comments on how USMCA rules of origin are affecting trade in automotive goods, as it compiles an annual report it will send to Congress by July 2025. USTR will hold a hearing on its investigation on Oct. 8, with requests to appear due Sept. 24 and prehearing briefs due Sept. 26. Post hearing briefs are due Oct. 16, and all other written submissions are due Nov. 18, USTR said. Automakers and their suppliers told USTR in comments on the agency’s 2024 report on the same issue that not having a form for certificate of origin has made compliance more difficult, among other things (see 2402050048).
Ahead of congressional hearings featuring U.S. Trade Representative Katherine Tai, the U.S. Chamber of Commerce’s senior vice president said on an April 15 press call that his organization is concerned about the “laissez faire” approach he said the Biden administration has been taking in negotiating against foreign trade barriers and enforcing existing U.S. trade agreements.
A new bill from the Senate Foreign Relations Committee's top Republican and a Democratic member would renew the African Growth and Opportunity Act trade preference program for 16 years, offer more flexibility on country eligibility reviews, and soften the high-income graduation rules.