A trade lawyer who has represented steel companies in trade remedy cases said that he is concerned that the proposed green standards for steel will not be as effective in preserving the American steel industry's market-based foundation, because foreign firms will subsidize overcapacity in the name of shifting from higher carbon-intensity mills to more environmentally friendly ones. Alan Price, who chairs Wiley Rein's trade practice, was one of three panelists on a Feb. 24 Washington International Trade Association webinar on "Fair and Clean Trade in Steel and Aluminum."
Although garment companies are motivated to learn more about working conditions and environmental practices deeper into their supply chains, most cannot find out what the vendors three and four steps down are doing, according to Sheng Lu, an associate professor of fashion and apparel studies at the University of Delaware.
Sanctions, rather than additional tariffs, are the most likely result of political pressure to not look soft on China, Bank of America analysts Ethan Harris and Aditya Bhave predicted. The two wrote in a Feb. 18 note that it's not surprising that China did not purchase the volume of U.S. exports it promised, but "what's unusual is the lack of follow-through from either side so far, other than empty rhetoric."
The Climate Leadership Council is establishing a Center for Climate and Trade, which will have three co-chairs: former U.S. trade representative Charlene Barshefsky, who held that position during the Clinton administration; President George W. Bush's former chair for the White House Council on Environmental Quality, James Connaughton; and Jennifer Hillman, former commissioner at the U.S. International Trade Commission and former member of the World Trade Organization Appellate Body.
Descartes Systems Group bought NetCHB for $40 million, "plus potential performance-based consideration," the companies said Feb. 10. NetCHB, headquartered in Arizona, helps in automating customs broker filings, including for Section 321 Type 86 entries, Descartes said. "The maximum amount payable under the all-cash performance-based earn-out is $60.0 million, based on NetCHB achieving revenue-based targets over the first two years post-acquisition," it said.
The American Apparel and Footwear Association, after the government Consumer Price Index for January showed apparel prices up 5.1% and footwear prices 6.1% higher compared with January 2021, is arguing for an "immediate elimination and refund of punitive Section 301 tariffs on U.S. imports from China." CEO Steve Lamar asked the Biden administration Feb. 10 "to pursue swift and effective policies to immediately alleviate the increasingly overwhelming costs on companies and address the shipping crisis," and to get involved with the port labor negotiations for West Coast ports. That contract expires this summer.
The U.S. Chamber of Commerce, the National Association of Manufacturers and the Business Roundtable said Feb. 10 the business community is trying to find workarounds to the blockade at the Detroit-Windsor Ambassador Bridge and other Canadian border crossings, "but we are already seeing some production cuts, shift reductions, and temporary plant closures. The North American economy relies on our ability to work closely together, including our manufacturing sectors. We need to apply the same spirit of cooperation to tackle this problem.
Panelists at a Washington International Trade Association conference Feb. 2 said they're not sure when the supply chain crisis will ease, noting the U.S. brought a record number of containers into the country last year. Jonathan Gold, the National Retail Federation's vice president for supply chains, said he expects the amount to be even higher in 2022.
A consulting firm hired by the National Council of Textile Organizations published an analysis that says that adding cumulation provisions and altering the Dominican Republic-Central America Free Trade Agreement's short supply mechanism would destabilize Central America by destroying more than 247,000 jobs in apparel. "U.S. textile manufacturing and employment will be devastated through the loss of billions of dollars in exports to the CAFTA-DR region, and the loss of over 307,000 jobs in the short to medium term," the Werner International report said.
U.S. Chamber of Commerce officials that lead the group's international policy initiatives said again that the U.S. is wasting an opportunity by letting trade negotiations stall. The vice presidents in charge of Africa, Europe, the Western Hemisphere and Asia policy spoke on a Jan. 18 webinar that was a follow-up to the State of American Business program.