The Office of the U.S. Trade Representative is requesting comments on whether exclusions to tariffs on Chinese imports on Section 301 List 1 should be extended beyond Oct. 2, it said in an Aug. 3 notice. Comments are due by Aug. 30, it said. The evaluation's focus will be on whether, despite the first imposition of these additional duties, the particular product remains available only from China. The companies are required to post a public rationale.
As the Office of the U.S. Trade Representative weighs whether to remove any items from the Airbus retaliatory tariff list and replace them with other goods, or to hike tariffs on any goods now being taxed at an additional 25%, most trade groups are asking him to limit tariffs to aerospace, and spare what they import. The decision is due by Aug. 12.
A “key thing” about the Trade Act Section 301 tariff exclusions on Chinese goods that have been granted or extended is that most are set to expire Dec. 31, Nicole Bivens Collinson, president-international trade and government relations with Sandler Travis, said during a Sports & Fitness Industry Association webinar July 23. If President Donald Trump is reelected, she believes, his administration “will view that as a mandate” for eradicating tariff exclusions permanently, she said.
Spain and France announced that Airbus is going to repay subsidy launch loans at market rates -- Germany and the United Kingdom have already been paid back -- and the European Commission said July 24 that this “removes any grounds for the U.S. to maintain its countermeasures on EU exports and makes a strong case for a rapid settlement of the long-running dispute.” The World Trade Organization ruled last year that Airbus and the four countries were not in compliance with industrial subsidy disciplines, and the U.S. imposed 10% tariffs on Airbus planes and 25% tariffs on various foods and beverages, and some apparel and tools (see 1910020044).
Michael Nemelka, the nominee for deputy U.S. trade representative, said that the first case under USMCA could begin in the fall, if consultations with Canada or Mexico fail. Nemelka, who currently works as a special adviser to the USTR, said that they are reviewing complaints this month. After that, staff will consult with the congressional committees of jurisdiction about which complaints would make the best cases. Then a consultation process would begin.
The Office of the U.S. Trade Representative will publish on July 21 the tariff rate quota allocations for raw cane sugar for fiscal year 2021.
The Office of the U.S. Trade Representative, the U.S. Department of Agriculture and the Commerce Department will hold virtual hearings on how the Trump administration can redress “any unfair harm” caused by foreign countries' trading in seasonal and perishable produce. The hearings were originally planned for Florida and Georgia in April. The virtual hearings will be at 9 a.m. on Aug. 13 and Aug. 20. Testimony or comments are due Aug. 3.
The U.S. says that China has not complied with the findings of the World Trade Organization on its excessive agriculture subsidies (see 1902280031), and so it is asking for permission to hike tariffs on Chinese goods to offset the $1.3 billion in annual subsidies. “The United States and China agreed that the reasonable period of time for China to implement the [Dispute Settlement Body]'s recommendations would expire on June 30, 2020,” the U.S. said in a document filed in Geneva. “The parties have not reached agreement on compensation. Therefore, the United States is entitled to authorization by the DSB to take countermeasures under Article 22 of the [Dispute Settlement Understanding].” The WTO will discuss the request July 29.
The Office of the U.S. Trade Representative received close to 400 comments on the possibility of punishing Austria, Brazil, the Czech Republic, India, Indonesia, Italy, Spain, Turkey and the United Kingdom if they start collecting digital service taxes, as the countries have proposed. The USTR is also considering punishing the European Union, which is considering a unionwide DST.
The Office of the U.S. Trade Representative is requesting comments on whether recently granted (see 2007090035) and coming tariff exclusions on Chinese imports on Section 301 List 4 should be extended beyond Sept. 1, it said in a notice. While USTR recently issued a request for comment on the previous five sets of exclusions expiring Sept. 1 (see 2006250001), it is also considering extensions for “exclusions granted under the sixth notice and a forthcoming seventh notice of product exclusions.” The agency will start accepting comments on the extensions on July 15. The comments are due by Aug. 14, it said. The evaluation's focus will be on whether, despite the first imposition of these additional duties, the particular product remains available only from China. The companies are required to post a public rationale.