The American Apparel and Footwear Association is asking Congress to renew the African Growth and Opportunity Act this year, five years ahead of its expiration. “Companies are poised to diversify out of China, and Africa is a logical place for many of them. The on-again, off-again nature of the program before the ten-year renewal was extremely disruptive and meant the industry was not able to take full advantage of the first 15 years of the program,” AAFA's letter said. The trade organization is also asking that the quota limit for third country fabric be increased from 3.5% to at least 4%, with a growth provision.

The struggle the U.S. is having to manage the COVID-19 pandemic is a higher priority than what's happening at the World Trade Organization, said Dennis Shea, U.S. ambassador to the WTO. He noted that the U.S. has a third of the world's reported cases of the disease, and that more Americans have died from COVID-19 than citizens in any other country.

Dockworkers' strikes, hurricanes and the trade war have all been major problems for importers and exporters at various points in the last 20 years, but the impact of COVID-19 dwarfs them all, panelists and listeners said on a webinar during the National Association of Foreign-Trade Zones virtual conference May 13.

Panelists tasked with envisioning how trade will change post-COVID-19 pandemic disagreed on what's most useful to avoid another shortage of critical supplies in an emergency, but said they expect that things will change. Nicole Bivens Collinson, a lobbyist at Sandler Travis, said clients are already planning how to reshape supply chains, after the painful experience of not receiving shipments as the pandemic hit China, then South Korea, then the rest of the world.

While auto parts, LCD panels and pharmaceuticals are most concentrated in the Chinese province where the coronavirus epidemic began, a recent Congressional Research Service report noted that quarantines are affecting port staffing, which can affect all shipments from China. “Business reopening has been uneven across sectors and locations in China. Many firms are awaiting government approvals to reopen and are facing difficulties in meeting new operating requirements, such as providing masks for employees,” the report said. Because passenger air traffic has been curtailed to and from China, there is much less space for air cargo shipments.

Half the companies surveyed by the U.S.-China Business Council say that it's too soon to tell if the tariffs in the China trade war were worth it for the gains won at the negotiating table, even as 78 percent of respondents welcome the phase one deal. Companies see the phase one deal -- which takes effect Feb. 14 -- as something that will prevent more tariff hikes. Of those who are directly affected by the commitments in phase one -- 60 percent of the companies -- the purchase promises matter most, with 30 percent saying that's the most relevant plank. Protection of intellectual property was a close second, with 27 percent of companies saying that's most important.

Trade professionals should expect more tariffs if President Donald Trump is re-elected, warned a former U.S. trade representative, Bob Zoellick, who was speaking to an audience at the Washington International Trade Association on Feb. 4. In a second Trump term, “expect a China sequel.” He said that the European Union is clearly in his target sights now. “If you're in Brussels or if you’re in the European Commission embassy here,” he said, or if you're a company that does production in Europe, there's “a flashing yellow light and it’s turning orange. One thing we know about Trump, he’s not subtle.You're next.”

Experts disagreed on whether the spread of the coronavirus will make it impossible for China to reach its purchase commitments, or make it more likely that China will wish to please the U.S., as its economy suffers. But one thing most agreed on -- the disease's impact is another reminder, after the tariff war, that companies should diversify instead of being wholly reliant on Chinese factories. The experts were on a panel at the Washington International Trade Association conference Feb. 4 on the future of U.S.-China trade.

Eliminating Thailand's eligibility for the Generalized System of Preferences program, because of a complaint from pork producers, would hurt U.S. importers more than Thai businesses, one witness said, and would be unlikely to convince the country to allow pigs fed with ractopamine to be imported. China and the European Union also ban meat that was fed the growth-enhancing drug. Dan Anthony, testifying on behalf of the GSP Action Committee, told the panel of government officials that they should put great weight on the potential harm to U.S. importers as they make their decision. He gave the example of a 25-person company that imports from Thailand, and had to pay $60,000 to $70,000 a month in tariffs during the two years GSP was not in force. Once it was renewed, the North Carolina company hired 17 full-time employees, and today, employs 70 people.

Fossil Group filed for an exemption to the 15 percent List 4A Section 301 tariffs it has paid since Sept. 1 on the traditional watches it imports from China under tariff subheading 9102.11.2520, said a Dec. 6 posting in the Office of the U.S. Trade Representative’s public docket. “Fossil continues to look for ways to diversify its sourcing for traditional watches,” the vendor said. It recently invested in a factory in India that has “capacity to address our product needs” for the local market, but can’t “address our product needs in the global markets,” it said. “Watch manufacturing is a highly specialized skill which cannot be readily duplicated.” Moving traditional watch manufacturing out of China “is not feasible at this time, especially in the very challenging market for traditional watches that Fossil has been experiencing over the last couple of years,” it said. The exemption request doesn’t list Fossil smartwatch imports, which also have List 4A exposure. Fossil also requested exemptions on four classifications of watch straps imported under subheadings 9102.11.10.30, 9102.11.25.30, 9102.11.30.30 and 9102.11.45.30, plus three on the watch cases it imports under subheadings 9102.11.10.20, 9102.11.30.20 and 9102.11.45.20.