Agricultural trade groups recently wrote to President Joe Biden, asking him to quickly nominate someone for the job of chief agricultural negotiator at the Office of the U.S. Trade Representative. “The world is moving forward on trade agreements, and unjustified barriers to U.S. food and agricultural exports are growing,” the letter said, so the office needs an advocate for expanding agricultural market access for U.S. food, seafood and ag products.
Arent Fox is launching a Forced Labor team led by Angela Santos to assist companies in implementing forced labor compliance procedures, the firm announced in a May 12 alert. Given CBP's increased focus on forced labor in global supply chains, the need for proper import compliance and supply chain due diligence is at an all-time high. The new team seeks to help with that compliance and offers other services such as protests and petitions for release of seized merchandise, forced labor codes of conduct, supplier forced labor agreements, supply chain evaluations, customs questionnaires, forced labor audits and protest, forfeiture and customs penalty cases, according to the alert.
An increase in CBP bond increase letters in recent years doesn't seem likely to dissipate anytime soon, International Bond and Marine Brokerage said in a blog post. The increased tariffs during the Trump administration led to more bond notices from CBP (see 1807260011) and during April, "IB&M saw its highest level of monthly bond increases since former President [Donald] Trump was in office," it said. "What does that mean for customs brokers and their importing clients? More of the same we’re afraid," it said. "Higher Tariffs on Chinese merchandise and ensuing Bond Increase letters do not appear to be going away any time soon. We recommend customs brokers advise importers not to simply take the bare minimum bond amount requested on CBP's increase demand letter. We instead recommend importers go with a bond amount based on CBP’s guidance to Forecast the next 12 months of anticipated duties to avoid Bond-Stacking Liability. Customs Brokers should use entry data from CBP and work closely with clients to avoid insufficiency letters, demurrage, unnecessary collateral, cash tie-ups, and additional single entry bond fees."
Sobel Network Shipping Co. acquired Sunshine Services International, an airline general sales agent “with an export-focused client base that will complement Sobel's expanding and diverse business footprint,” Sobel said in a May 3 news release. Terms of the deal weren't released.
The National Association of Beverage Importers is pleased that U.S. Trade Representative Katherine Tai chose to highlight the pause in tariffs between European countries and the U.S. over Airbus and Boeing subsidies, and believes her testimony in front of a Senate subcommittee on April 28 “is a very promising sign for successful settlement negotiations.” But NABI President Robert Tobiassen said his group is concerned that an announcement of a permanent solution to the dispute could come just two or three weeks before the temporary pause ends, which makes it hard for importers to know how to schedule shipments. They said another extension of the temporary pause now, even of just two more months, would be better.
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.
The Tax Foundation, a nonpartisan think tank that advances right of center tax policy, issued a lengthy report how Congress might consider changing the tax code for faster growth, for income distribution, or for reducing the deficit, noting that each change requires balancing trade-offs. For instance, the Foundation says that getting rid of safeguard tariffs on washing machines and solar panels, the Section 232 tariffs on metals, making permanent the pause in Airbus tariffs, and removing and the Section 301 tariffs on $475 billion worth of Chinese imports will mean a reduction in $79.5 billion in revenue next year, though the economists at the think tank estimated that the savings would spur enough economic growth that about $7 billion of that loss would be recovered with other taxes.
Although the Aluminum Association opposed the imposition of 10% tariffs on imported aluminum in 2018, now the trade group doesn't want those tariffs lifted entirely. The tariffs have already been removed on Canada, the No. 1 source of imported aluminum. “We were not in favor of the drastic move of putting [Section] 232 in” and “we would not be in favor of the drastic move of removing 232 in one fell swoop,” Aluminum Association CEO Tom Dobbins said.
The president of the U.S.-China Business Council told an online audience of customs brokers that he sees them as the problem solvers in trade, and that they're going to continue to have plenty of problems to tackle over the next few years. Craig Allen, who spoke to the National Customs Brokers and Forwarders Association of America April 14, said that the U.S.-China relationship, while intensely interdependent economically, is marked by mistrust and antagonism, and “the trend lines are not good.”
The trade policy counsel at a free markets-oriented think tank said that the hike in tariffs on 70% of what we import from China has increased costs on consumers, led to an estimated 300,000 fewer jobs, and didn't achieve its aims. “That might have been worth it if China were making wholesale changes to its commercial policies, but the early indications are not positive,” Clark Packard said during an R Street Institute webinar April 9. Packard said that staffers on Capitol Hill accept his argument that tariffs are damaging to the U.S. economy, but they say that not doing anything to respond to China's quest for economic domination is not an answer.