In its annual State of American Business, the U.S. Chamber of Commerce chose to emphasize the need to double the level of legal immigration, its opposition to Build Back Better legislation and what it sees as overly aggressive antitrust enforcement over the need to remove tariffs on hundreds of millions of dollars' worth of Chinese imports. Three years ago, the Chamber was arguing that the tariffs needed to go (see 1901100007), but last year, admitted it was not politically feasible as it laid out its trade agenda (see 2101130057).
The Council on American-Islamic Relations said Intel was wrong to remove a phrase from its supplier letters that told them they should not source goods or labor from China's Xinjiang province. The Uyghur Forced Labor Prevention Act says that any goods made with Uyghur labor outside Xinjiang, or made in Xinjiang, would be presumed to be made with forced labor, and therefore barred from entry into the U.S. CAIR Deputy Executive Director Edward Ahmed Mitchell said, "Once again, an American corporation has showed extreme cowardice by bowing to the sensitivities of the Chinese Communist Party, which is perpetrating a genocide against Uyghur Muslims. By removing language that explicitly prohibits the sourcing of goods from the Uyghur region of China, Intel is enabling the Chinese governments' efforts to profit from forced labor and bully the world into silence."
Imports through the major U.S. retail ports are expected to return to normal growth rates in 2022, but volumes will remain high after a year of “unprecedented increases,” the National Retail Federation reported Jan. 7. In November, U.S. ports handled 2.1 million 20-foot-long cargo containers, 4.5% fewer than in October but up 0.5% year over year, the association said. Supply chain challenges continue, even with the holiday selling season in rearview mirrors, said Jonathan Gold, NRF vice president-supply chain and customs policy. “The huge increases in imports we’ve seen have leveled out, but volume is still at high levels. We hope the system will find a way to catch up, but there is much that remains to be done to clear out port backlogs and increase capacity throughout the supply chain.” NRF sees the COVID-19 omicron variant as the “wild card” that could drive more imports “if consumers stay home and spend their money on retail goods rather than going out,” Gold said.
American Apparel and Footwear Association CEO Steve Lamar said that the White House should "provide broad and immediate tariff relief," given that the price of clothing rose 5% and footwear rose 4.7% in the last 12 months. Both are slower than the overall rate of inflation, which was 6.8%. "This is a direct result of unnecessary tariffs and the worsening shipping crisis,” Lamar said Dec. 10. AAFA applauded the House's passing the Ocean Shipping Reform Act, but said the administration still should work on immediate actions to unsnarl congestion in the shipping system.
How to manage China's market distortions is an ever-present question in the relationship between the U.S. and the EU and will need to be addressed eventually, the deputy director-general of BusinessEurope and the president of the China Center at the U.S. Chamber of Commerce said during a Dec. 9 Chamber event. Luisa Santos, from BusinesEurope, said that she sees new ambitions in Europe to address the disruption caused by non-market economies, including an anti-coercion tool that was just announced. But, she said, there needs to be more work in coordinating with the U.S. and Japan on how to address subsidies, state-owned enterprises and forced technology transfer. "I think one of the most important things to agree on what we think is a distortive subsidy and then the best way to address it," she said.
A group of Washington, D.C.-based lobbying and public affairs entities plans a listing on London’s Alternative Investment Market, a submarket of the London Stock Exchange, in mid-December. Public Policy Holding Company Inc. (the group) operating subsidiaries are Crossroads Strategies, Forbes Tate Partners, Seven Letter, O'Neill and Associates, and Alpine Group Partners. The group represents companies and industry groups on various trade issues, among other things.
The Coalition for a Prosperous America asked the Office of the U.S. Trade Representative to allow domestic companies to rebut exclusion applications that claim that there are no affordable alternatives to Chinese products. "Unlike the prior tariff exclusion rounds, the Biden Administration has chosen not to afford any opportunity for domestic producers to rebut unsubstantiated and false claims in importers’ requests," the Coalition wrote in a letter it made public on Dec. 6. It said that USTR needs to closely scrutinize the 2,024 exclusion requests.
The newly formed Coalition for Economic Partnerships in the Americas does not explicitly say that the textile rules of origin in CAFTA-DR need reform, though it calls on the administration "to do what previous administrations ignored: to structure trade to support investment in the United States and our allies in Central America. In order for our economy to thrive, we must eliminate the bureaucratic red tape that hinders production and investment in the region."
PSA International agreed to acquire BDP International from private equity firm Greenbriar Equity Group, the companies said Nov. 30. PSA is based in Singapore and describes itself as "a leading global port group and trusted partner to cargo stakeholders." Tan Chong Meng, CEO of PSA, said "BDP will be PSA’s first major acquisition of this nature -- a global integrated supply chain and transportation solutions provider with end-to-end logistics capabilities." BDP's services include "air and ground transportation; origin management, export freight forwarding; import customs clearance and regulatory compliance; trade compliance, analytics and optimization solutions." The deal's financial terms weren't released.
The National Association of Foreign-Trade Zones is asking FTZ-user companies and FTZ grantees to tell them if they hold aluminum or steel from the European Union member countries in their FTZs, and to talk to their senators and representatives about the fact that if there isn't language about FTZs in the proclamation rolling back the tariffs on EU metals, those tariffs will still be due when the metals enter into commerce.