Agreements that emerged from the WTO Ministerial Conference in Nairobi last week will undercut U.S. exports and distort trade, because they allow developing countries to use marketing, processing, and transportation subsidies for exported commodities until 2023, the American Soybean Association said (here). ASA echoed statements made this week by Agriculture Chairman K. Michael Conaway, R-Texas, who said that the agreed 8-year period during which developing countries may provide subsidies runs counter to the U.S. position that the authority for these subsidies expired in 2004, at the end of the implementation period for the Uruguay Round commitments (here). “The agreement reached in Nairobi at least assigns a definitive date to ending these subsidies,” Conaway said in a statement. “But, the success of this aspect of the agreement will ultimately be measured by its rigorous and full enforcement.”
The National Foreign Trade Council supports the Trans Pacific Partnership, especially the mechanisms to settle disputes, liberalize trade, and soften trade barriers, the NFTC said (here). “It is imperative that TPP provide very high standards, comparable to those which business enjoys in the United States, so this agreement can serve as a strong foundation for other trade agreements going forward,” the organization said. “The NFTC believes that the agreement can be a major step forward in establishing rules-based international trade and in opening foreign markets; enhancing economic growth for the United States, as well as for its Pacific Rim trading partners; providing major new market opportunities for goods, services and investment; reducing barriers to trade and investment; and providing disciplines over state-owned enterprises that compete with private companies.”
The Maersk Group joined the Global Alliance for Trade Facilitation (GATF), a multilateral group aimed at formalizing a framework for dialogue between businesses and world governments on implementing the 2013 WTO Trade Facilitation Agreement, the company said (here). Along with the United Kingdom, Canada, Germany, Australia, and WTO, the group also includes private companies such as DHL, Walmart, and now Maersk. The shipping company said it believes its experts can offer local market insights, as 90 percent of all traded products are moved by sea. “When fully implemented, the WTO Trade Facilitation Agreement will represent an important step toward minimising supply chain barriers and reinvigorating global trade,” Maersk CEO Nils Andersen said in a statement. “By joining the Alliance with governments and partners, the Maersk Group will use its local expertise to support the implementation and stimulate local growth.”
PricewaterhouseCoopers outlined the Trans-Pacific Partnership provisions that apply specifically to the textile and apparel industry in a Dec. 17 report (here) . While the "vast majority of textile and apparel goods covered under the TPP are subject to a 'yarn forward' rule of origin," the trade deal "includes a de minimis exception whereby goods can still qualify for TPP benefits if the total weight of nonoriginating materials is not more than 10 percent of the total weight of the good," said PwC. Also, "some apparel goods, such as [brassieres] and baby garments, are subject to a less restrictive 'cut and sew rule' whereby the yarn or fabric can be sourced from anywhere but must be cut and sewn within a TPP participating country for the final goods to qualify," it said. The agreement also includes a "short supply list of products" that "allows fabrics, yarns and fibers not commercially available in the TPP participating countries to be sourced from non-TPP countries and still qualify for benefits, provided they meet any specified end-use requirements."
The U.S. will provide $50 million and has joined the United Kingdom, Canada, Germany, Australia, the WTO, and the global private sector to launch the Global Alliance for Trade Facilitation, intended to formalize the framework for dialogue between businesses and world governments on implementing the 2013 WTO Trade Facilitation Agreement (TFA), USTR said Dec. 17 (here). “It depends on assessments, with real metrics on how we're doing so we can continue to improve how we deliver capacity building, and make sure it's having the desired effect,” USTR chief Michael Froman said at the WTO Ministerial Conference in Nairobi.
Industry groups praised expansion of the Information Technology Agreement, following a deal reached Dec. 16 in Nairobi that will eliminate tariffs on a wide range of IT products and services. The U.S. Chamber of Commerce noted that it met with negotiators from dozens of countries in Geneva for more than two years and with officials in foreign capitals. “The news that one of the world’s most successful trade agreements will be expanded significantly will provide good cheer for American companies and the workers they employ,” chamber Executive Vice President Myron Brilliant said in a statement. “This huge tax cut is good news for consumers and should spur growth in one of the world economy’s most dynamic sectors.” The United States Council for International Business also lauded the agreement, as well as U.S. Trade Representative Michael Froman for his "determination" in reaching the deal. “This market-opening agreement holds vast potential to boost U.S. exports and lower the costs of doing business for companies of all sizes,” USCIB CEO Peter Robinson said. “All businesses use ICTs, and dropping barriers on high tech products will contribute to global growth, jobs and sustainable development.”
The Computer & Communications Industry Association on Dec. 11 applauded customs reauthorization legislation passed by the House the same day, saying it will improve the ability of small businesses to “participate” in the global economy by raising the threshold at which they must pay customs duties from $200 to $800. “This provision recognizes the great importance of Internet-facilitated physical trade,” CCIA CEO Ed Black said in a news release (here). “While trade in digital services is an important component of our Internet exports, there are great economic gains to be achieved from promoting cross-border trade in goods. When global digital platforms allow small businesses to reach consumers worldwide, everyone wins.”
The Emergency Committee for American Trade (ECAT) on Dec. 10 came out in favor of the Trans-Pacific Partnership, while acknowledging some unidentified concerns of its members over the deal. Still, it pledged to work with Congress and the Obama administration on finding a “path forward” on those areas, ECAT said. “Since the release of the TPP agreement’s text on November 5, 2015, ECAT has been reviewing the outcomes which were achieved and consulting with our member companies – representatives of virtually all sectors of the U.S. economy,” ECAT President Calman Cohen said. “After a thorough review, ECAT members find much to support in the TPP agreement and applaud many of the outcomes achieved by U.S. Trade Representative Michael Froman and his team that will benefit the United States’ economy and its businesses – both large and small, farmers, and workers. The fast-growing Asia-Pacific region will be home to 3.2 billion middle-class consumers by 2030, and the TPP presents a market-opening opportunity that the United States cannot afford to miss. The agreement is evidence that the United States is taking a leading role in writing the rules for 21st-century international trade and investment.”
Chris Reynolds and Andre LaMorgia, previously with OHL, recently founded a new customs consultancy and brokerage named Cardinal Trade Associates in Philadelphia (here). At OHL, Reynolds was senior manager of trade services and LaMorgia was senior trade compliance analyst.
Datamyne acquired Zepol for an undisclosed price, the two trade data companies said in an Oct. 27 news release (here). “As two tech start-ups launched over the last decade, Datamyne and Zepol helped redefine and revitalize trade data driven business intelligence,” said Brendan McCahill, Datamyne CEO. “As one, we are positioned to claim leadership in the sector.” McCahill will remain CEO of the combined companies.