Tech companies and trade associations favor working more closely with U.S. trade partners to diversify information and communications technology (ICT) supply chains and make them more resilient to disruption and bottlenecks, several commented Nov. 4 in BIS-2021-0021. The Commerce Department’s Bureau of Industry and Security sought comment to help the secretaries of Commerce and Homeland Security prepare a report to the White House on supply chain disruptions in the “critical sectors and subsectors” of the ICT “industrial base” by the one-year anniversary of President Joe Biden’s Feb. 24 executive order (see 2109170029).
Corruption, poor logistics and overly strict rules of origin are all barriers to Mexico benefiting from companies' decisions to diversify out of China, a panel of experts from Mexico and the U.S. said. Luis de la Calle, a former Mexican trade official who worked on implementing NAFTA and who represented Mexico at the World Trade Organization, said Mexican leaders have a lack of vision to take advantage of this moment, and he said they are also hobbled by what he called "ideological incompetence."
The National Association of Manufacturers CEO is calling on the Biden administration to "act as quickly as possible to finalize and publicize [its China] strategy. Such a clear, robust strategy on China, including U.S.-China trade, would be critical in bolstering manufacturers’ efforts to retain and hire American workers, invest in domestic operations and adjust supply chains, and providing meaningful opportunities for manufacturers to seek targeted relief from broad application of Section 301 tariffs."
The Commerce Department on Aug. 24 released its quarterly list of (i) completed antidumping and countervailing duty scope rulings and (ii) anti-circumvention determinations. The following list covers completed scope rulings for the period April 1, 2021, through June 30, 2021:
Although there were some specific complaints about how USMCA has gone in its first year -- especially what witnesses and senators said was an anemic effort to get Mexico to change its stance on genetically modified agricultural crops -- much of the hearing in the Senate Finance Committee on July 27 explored how USMCA should be seen as a model for future trade agreements.
The Commerce Department on July 2 finalized a scope ruling that self-drilling anchor bolt systems (SDABS) imported by Midwest Diversified Technologies are not subject to antidumping and countervailing duties on forged steel fittings from China (A-570-067/C-570-068). Just as it had in a preliminary scope ruling issued in May (see 2105200027), the agency found the fittings, used to improve the structural integrity of soil or rock to provide a stable foundation for construction, are not “forged” for the purposes of the order because they are not intended to hold high pressure and lack any pressure rating at all. Petitioners in the case raised the possibility that companies could circumvent AD duties by omitting a pressure rating from their pipe fittings (see 2106090057). In response, Commerce clarified “that the absence of a pressure rating or the lack of a pressure rating in this instance was only one characteristic among many that, taken together, led to our conclusion that MDT’s SDABS couplers are outside the scope of the Orders.”
A Japanese and a Korean economist said that trade tensions between their two countries are no longer really disrupting Korea's semiconductor industry, though they are still increasing costs for some of the Japanese exporters.
Self-drilling anchor bolt system (SDABS) couplers imported by Midwest Diversified Technologies (MDT) are likely not subject to antidumping and countervailing duties on forged steel fittings from China (A-570-067/C-570-068), the Commerce Department said in a preliminary scope ruling issued May 17. While the scope of the order says it covers all fittings, it also indicates that low-pressure fittings are exempt, and MDT’s fittings, intended to connect hollow bars, are not able to convey liquids and gases at high pressure, Commerce said.
A former U.S. trade representative and a former deputy national security adviser agree that companies that do business in China are stuck between a rock and a hard place, as they will anger China if they disavow abuses in Xinjiang or Hong Kong, but could break U.S. law if they make clothes with Xinjiang cotton.
The European Union, Japan, South Korea and U.S. all recognize they will be at the mercy of China during the energy transition unless they change the supply chains for batteries, experts said. The U.S. has nickel mines and a lithium mine (with another in process of opening), but China's dominance in processing minerals and making cathodes and anodes means China still could interfere with America's ability to produce economical electric vehicle batteries.