An advocacy group for the Generalized System of Preferences benefits program showed that purchases of 25 products that were once covered by GSP have shifted back to China since the program's expiration.
Ahead of a meeting of the top trade officials of Canada, Mexico and the U.S., business groups from all three countries said each country is taking "steps that have undermined or risk undermining the benefits negotiated through enactment of the USMCA." The Business Roundtable, the Business Council of Canada and the Consejo Mexicano de Negocios did not specify what actions they find troubling. They did say that governments and business interests should work together since "[b]usinesses, workers, farmers, and families are navigating many challenges and risks, including rising costs due to inflation, supply chain disruptions, and labor shortages."
The Coalition for Economic Partnerships in the Americas has posted its recommendations for changes to the short-supply rules in CAFTA-DR, the Dominican Republic-Central America Free Trade Agreement.
The U.S. Chamber of Commerce and the American Chamber of Commerce in each of the countries that have signed onto the Indo-Pacific Economic Forum issued a joint statement strongly supporting the IPEF but also suggesting that tariff reductions be considered. "That is the best way to achieve the most meaningful benefits for American businesses, workers, and consumers," they said June 23.
The Alliance for American Manufacturing told the administration that it's "absurd" to blame Section 301 tariffs for inflation, given they started years before inflation began to rise. "U.S. consumers would see little to no benefit from tariff roll backs and any erosion of tariffs will benefit China’s Communist Party and China’s manufacturing sector, which would make up the difference by increasing its prices," the group wrote. It said that all tariffs should remain. "AAM strongly supports allowing USTR to continue its fact-based exclusion process without congressional mandates or any other political interference that predetermines an outcome. While an accessible and transparent exclusion process is essential for trade enforcement actions, unwarranted tariff relief may very well signal the demise of a U.S. company that is seeking to establish a market foothold or one that has reinvented itself to fill gaps in our domestic supply chains," it wrote.
The National Council of Textile Organizations, the Narrow Fabrics Institute and the U.S. Industrial Fabrics Institute told the administration in response comments that if 7.5% Section 301 tariffs on apparel are lifted, it could risk "reversing once-in-a-lifetime nearshoring trends."
The National Council of Textile Organizations is arguing that the yarn-forward rule for the Dominican Republic-Central America Free Trade Agreement must be retained, because it is driving what it calls "massive investment" in the countries in Central America. The letter it sent to Vice President Kamala Harris on May 31 is timed to her attendance at the Summit of the Americas, and recognizes her role to try to mitigate the poverty and corruption that leads Central Americans to migrate to the U.S. without visas.
Almost 40 agricultural trade groups, along with two port and perishable logistics trade groups, asked the U.S. trade representative to reduce, lift or suspend tariffs so that China would lift its retaliatory tariffs on U.S. crops. “Tariff relief could not come at a more important time,” the trade groups said in a letter. “Rural America and small businesses are facing significant challenges due to the lingering impacts of the COVID-19 pandemic, logistical and supply chain disruptions, record levels of inflation, and the increasing impacts of Russia’s war on Ukraine. "
Former Mexican ambassadors to the U.S. and a former U.S. ambassador to Mexico expressed anxiety that Mexico is not able to capitalize on the move to nearshore or friendshore for a variety of reasons.
Applied DNA Sciences recently received a first request for traceable tagged cotton "that is directly attributable to the recent passage of the Uyghur Forced Labor Prevention Act," the company said in an earnings news release. The company's CertainT platform is described as allowing for raw materials and products to be traced through unique molecular identifiers. "Our team has presented to many members of Congress, Federal agencies, and Committees regarding the utility of our platform in enforcing the Act," the company said. "Though not expected to be material to revenue in the current fiscal year, the shipment anticipates a global brand’s multi-year commitment to our CertainT platform through a scaled deployment across its many supply chains. We believe that the passage of the Act is a trigger point for the wider adoption of our CertainT platform that holds the potential for molecular taggant sales for textile fiber applications to become a second material revenue stream," it said. "With less than 45 days before the Act goes into force, we believe interest in CertainT by brands and their supply chains has never been higher.”