Treasury Secretary Janet Yellen said she is “concerned” about China’s new export controls on critical minerals used to produce semiconductors (see 2307060053), saying the U.S. is still assessing the impact but that they “remind us of the importance of building resilient and diversified supply chains.” Speaking during a July 7 roundtable with American businesses in China, Yellen said the administration is working to make sure U.S. companies are competing with China on a “level playing field.”
The U.S. “firmly” opposes export controls by China on certain metals used to produce semiconductors, a Commerce Department spokesperson said July 6. “These actions underscore the need to diversify supply chains,” the person said in an email. “The United States will engage with our allies and partners to address this and to build resilience in critical supply chains.”
Top European and U.S. officials have talked about the need for their EU-U.S. Trade and Technology Council to produce concrete outcomes, and two were achieved in Sweden, at the fourth meeting -- standard conformity on how to charge electric heavy duty vehicles.
U.S. Trade Representative Katherine Tai said she and Australia’s Trade Minister Don Farrell, meeting on the margins of the Asia-Pacific Economic Cooperation trade ministers' meeting, agreed the negotiations on the trade pillar of the Indo-Pacific Economic Framework for Prosperity have been constructive.
Very little of a hearing on customs modernization focused on the issues CBP and the trade have focused on as they work on a modernization proposal. The agency and traders are talking about new kinds of advance data, expedited release for trusted traders, better harmonization of data requests from partner government agencies and CBP, and data sharing from CBP with rights holders on intellectual property violations, among other changes.
The U.S., Japan, the EU, Canada and the U.K. said that stronger rules are needed to tackle market distortive policies, saying in a statement that with more of these, and "practices to reinforce vulnerabilities," the countries in the G-7 "need to make effective use of existing means while developing new tools as appropriate."
The chairman of the powerful House Rules Committee used his perch to promote a bill he sponsored that would allow the president to lower duties on non-import-sensitive goods made by a country that lost exports due to coercive actions; increase duties on imports from the "foreign adversary" committing the coercion; and allow the U.S. to more easily facilitate trade, including exports, with the coerced parties (see 2302230021).
University of Delaware Professor Sheng Lu, who specializes in Fashion and Apparel Studies, told an audience from the U.S. Fashion Industry Association that although there are good reasons to want to source more apparel from Central America and the Dominican Republic -- to avoid forced labor from Xinjiang or generally reduce China exposure -- growth is unlikely unless Dominican Republic-Central America Free Trade Agreement countries are able to access more nylon, viscose, wool or linen fabrics.
The top European official on trade said while the U.S.-EU Trade and Technology Council has been very helpful in restricting technology exports to adversaries, "we need to deliver more on the trade side."
About 10% of critical raw materials, as measured by value, faced export restrictions in the last decade, according to a new report from the Organization for Economic Co-operation and Development -- and the use of restrictions grew five-fold in the 2017-2019 period, compared with the two-year period 10 years earlier. Export taxes are the most frequent restriction, the authors said, adding: "This may be related to the fact that, under WTO rules, quantitative restrictions on exports are generally prohibited while export taxes are not."