The U.S. Council for International Business submitted its outline for how to improve the World Trade Organization to the Senate Finance Committee, which held a March 12 hearing on the WTO (see 1903120055). "Our recommendations for modernizing the WTO should not in any way be read as questioning the business support for WTO. Instead, they are intended to highlight areas for action that would strengthen the ability of the organization to more effectively meet the demands of a changing world," the trade group wrote.
American manufacturers expect a trade deal between the U.S. and China to be announced within “the next couple of weeks” but think tariffs on Chinese goods will likely remain in place for longer, said Ryan Ong, director of international economic affairs policy for the National Association of Manufacturers. Ong, speaking at an export controls and customs information session at KPMG offices in Washington on March 6, said the increasingly “intense negotiations” between the U.S. and China during the last few months suggest a deal is close.
The Organic Trade Association's new Organic Fraud Prevention Solutions program will allow organic companies to enroll in an effort to "help minimize or eliminate organic fraud," the trade group said in a March 6 news release. “Fraud in the global organic supply chain poses a significant threat to the integrity of the organic brand,” said Laura Batcha, CEO of the OTA. “For the past two years, the Organic Trade Association has prioritized significant time and resources into organic fraud prevention solutions. We are fighting fraud on many fronts, including through the 2018 Farm Bill and through private sector initiatives. The more companies that join this industry-driven program, the stronger the organic supply chain will be.”
The American Apparel and Footwear Association wants NAFTA to stay in place while Congress is working on ratifying its replacement, it announced March 4. "More than 200,000 American jobs in our industry are supported by NAFTA. We are calling on Congress to approve the USMCA this year and for the Administration to quickly and seamlessly implement it,” said Rick Helfenbein, AAFA president and CEO. The organization had previously joined the U.S. Chamber of Commerce-organized USMCA Coalition (see 1902250024) to push for passage of the U.S.-Mexico-Canada Agreement to replace NAFTA.
Hank Paulson, who served as Treasury secretary during the George W. Bush administration, told an audience of trade advocates that even if a deal is reached with China, "the underlying tensions will persist and will be particularly intense in technology-related trade and investment." Paulson, who was introduced at a Washington think tank event by FedEx CEO Fred Smith on Feb. 27, said he never thought he'd see Democrats and Republicans applauding rising tariffs. "The trade debate in this city has changed markedly from just five years ago," he said.
Americans for Free Trade, a coalition of more than 150 trade associations, sent a letter to the White House Feb. 27 offering praise for the pause in escalations of tariffs on Chinese goods and asking that an agreement be reached that takes all tariffs away. "It is our hope that this momentum will build in the weeks ahead and lead to a final deal that addresses structural issues in China, removes tariffs on both sides, and eliminates trade uncertainty facing American businesses and farmers," they wrote. "Our coalition represents every part of the U.S. economy, including manufacturers, farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and oil companies, importers, exporters, and other supply chain stakeholders. Collectively, we support tens of millions of American jobs through our vast supply chains." Customs brokers and apparel, travel goods, furniture and jewelry importers were among those who signed the letter.
NSF Certification is now accredited by the American National Standards Institute to certify compliance with Food and Drug Administration food safety requirements, parent company NSF International said in a news release. The certification is required "for products imported under the FDA Voluntary Qualified Importer Program (VQIP), which is used to provide expedited entry" and is also "accepted by the FDA as an option for supplier verification to satisfy the [Food Safety Modernization Act] Supply-Chain Program and Foreign Supplier Verification Program (FSVP) requirements," the company said. Carey Allen, associate managing director of supply chain food safety operations at NSF International, said NSF "engages with suppliers and their customers to reduce the overall audit burden and incorporate specific customer requirements into third-party certification visits.”
Importers welcomed the news that tariffs on the largest tranche of Chinese products will not rise to 25 percent in five days (see 1902240001). “We welcome the Trump administration not raising tariffs to 25 percent,” Consumer Technology Association President Gary Shapiro said. Tariffs “are costing the tech industry an additional $1 billion per month, and the cost of 5G products and parts from China have skyrocketed,” he said. “We urge both sides to move forward to a permanent resolution that will address trade issues with China, while also protecting American leadership in innovation.”
Flexport received a $1 billion investment led by the Softbank Vision Fund, the company announced in a Feb. 21 new release. "In 2018, Flexport doubled top-line revenue to nearly $500M, increased headcount to nearly 1,000 employees, expanded our geographic footprint to 11 offices and warehouses around the world, and in September achieved the ranking of 11th largest freight forwarder by ocean volume on the world’s largest shipping lane, the Transpacific Eastbound," Flexport CEO Ryan Petersen said. Other investors include Founders Fund, DST Global, Cherubic Ventures, Susa Ventures and SF Express, Petersen said. Among future initiatives is an "Operating System for Global Trade," which is "a strategic operating model for global freight forwarding that combines technology and analytics, logistics infrastructure, and hands-on supply chain expertise." Peterson said that "by bringing together everyone -- importers, exporters, ocean carriers, airlines, warehouses, trucking companies, and customs brokerages -- on one platform to structure all the data required to conduct global trade, Flexport and the OS for Global Trade give businesses what they’ve never had before with their freight forwarders: deep visibility and control from origin to destination, fast and reliable transit times, and low and predictable supply chain costs." Flexport, which is primarily a freight forwarder, provides customs brokerage services through its subsidiary Flexport Customs.
Platinum Equity agreed to acquire Livingston International for an undisclosed amount, the companies said in a Feb. 21 news release. Livingston, which is based in Toronto, Canada, "holds the distinction of being Canada’s largest customs broker and third-largest entry filer in the United States," the companies said. “With Platinum’s support, we will continue to execute on our customer-centric growth strategy, which focuses on offering best-in-class customs brokerage, trade compliance and logistics services to more than 30,000 businesses in the U.S., Canada and around the world,” Livingston CEO Dan McHugh said.