Many details needed for the uniform regulations and the final implementing instructions for the U.S.-Mexico-Canada Agreement remain under discussion, agency officials said on May 14. Many specifics have not been agreed to, either between Mexico, Canada and the U.S., between the Office of the U.S. Trade Representative and the auto industry, or between CBP and USTR. “There's still even discussions with USTR and the [auto] industry on what constitutes a core part,” Maya Kumar, director for textiles and trade agreements, told members of the trade community on a conference call.
The Bureau of Alcohol, Tobacco, Firearms and Explosives will end its participation in a CBP pilot on electronic filing in ACE of export-related ATF forms and data (see 1607080020), ATF said in a notice. The Border Interagency Executive Council and the departments of the Treasury and Homeland Security “asked ATF to end the pilot,” the notice said. “Pilot participants can continue to function as they did while on the pilot. Participants will not notice any differences after the pilot has ended. At some point, CBP will mandate importers and exporters to use the ACE single window; however, [the Department of Homeland Security] needs all pilots successfully completed to move to their next phase of implementation. The termination of the pilot will not cause any delays for participating exporters, and CBP will continue to transmit the certificate of exportation to ATF electronically.” CBP has not yet announced a date for when the filing entries in ACE will be mandatory, the notice said.
G-20 trade ministers said export restrictions imposed due to the pandemic should “not create unnecessary barriers” and urged countries to refrain from restricting exports of food, according to a May 14 joint statement. In the statement, the ministers reaffirmed their commitment to mitigate pandemic impacts on trade and investment and called for more actions to help with the global recovery, including proposed measures to support trade regulations, facilitation, transparency, logistics and more. Minimal export restrictions will help “build resilience in global supply chains,” the ministers said, adding that the G-20 should support World Trade Organization reform, share best practices for border restrictions and create a “non-discriminatory, transparent, predictable and stable trade” environment.
The Office of Information and Regulatory Affairs began an interagency review for a final rule from the Commerce Department that will implement certain export control decisions from the 2020 Australia Group meeting. The rule, received by OIRA May 5, will add certain “rigid-walled, single-use cultivation chambers and precursor chemicals” to the Commerce Control List. The rule would also amend the Export Administration Regulations by revising biological and chemical controls on the CCL.
The U.S. Export-Import Bank focused on 5G during a teleconference on May 14 as part of its “Strengthening American Competitiveness” initiative. Chair Kimberly Reed said EXIM’s goal is that at least $27 billion of the bank’s funds be dedicated to exports that compete directly with China. “For us to be successful … it’s going to be critical for us to achieve tangible results in the form of completed deals that help specific businesses here in America generate exports and support U.S. jobs,” said Senior Vice President-Program on China and Transformational Exports David Trulio: “Economic security is national security.”
The Commerce Department amended its direct product rule, increasing restrictions on foreign-made chips exported to, and made by, Huawei and its affiliates, the agency said in a May 15 interim final rule. Commerce also said it does not expect to issue another temporary general license extension for the Chinese technology company after its latest 90-day renewal expires Aug. 13.
The government of Canada issued the following trade-related notices as of May 15 (note that some may also be given separate headlines):
The director general of the World Trade Organization will resign in August, citing personal reasons and adding that the organization needs a new leader for “post-COVID realities.” Roberto Azevedo made the announcement during a virtual meeting with WTO members on May 14, saying he hopes the WTO continues its reform efforts. He also urged members to “promptly move ahead” to select the next director general. “I urge you not to treat the process of selecting the next DG as business as usual. This organization must start 2021 … ensuring that the multilateral trading system responds to new economic realities, above all the post-COVID recovery,” Azevedo said. “It cannot afford to be distracted by a protracted search for a new DG.” Azevedo will officially step down Aug. 31, one year before his term was set to end.
Luxembourg ended its relief for late submissions of value-added tax returns, according to a May 13 post from KPMG. The measure, originally issued to help industry cope with the COVID-19 pandemic, was ended May 12, KPMG said. All pending VAT returns not yet submitted “need to be filed as soon as possible to avoid potential penalties,” the post said. A number of countries have introduced VAT relief measures to help companies mitigate impacts of the pandemic (see 2005050018, 2004240005, 2004030023, 2004030016 and 2004030022).
Hungary recently announced aid for its agriculture sector to mitigate impacts of the COVID-19 pandemic, including measures to incentivize purchases of domestic goods over imports, according to a U.S. Department of Agriculture Foreign Agricultural Service report released May 11. Hungary is asking retail chains and domestic suppliers to “favor Hungarian products over imports” and will review its “import conditions” for certain agricultural goods, the USDA said. “A temporary adjustment of the quantity of imports originating from third countries could help to achieve a state of balance on the internal market and the creation of equal competitive conditions for internal production,” Hungary’s agriculture minister said, according to the USDA.