The U.S. and the EU will consult each other on planned action, and "may develop joint or cooperative measures to address distortionary effects on the global supply chain for legacy semiconductors," a joint statement from the ministerial meeting of the U.S.-EU Trade and Technology Council said. Both regions are offering government incentives to produce semiconductors, but if Chinese semiconductors are still cheaper than their own, delayed projects in Ohio and Arizona could be canceled.
U.S. and EU officials speaking in Belgium didn’t divulge many details about what they expect to come from the sixth meeting of the Trade and Technology Council this week, saying mostly that they hope the forum will continue no matter who wins upcoming elections in the U.S. and Europe (see 2403120066).
The EU-U.S. Trade and Technology Council likely will continue if former President Donald Trump is reelected, European Commission officials said at a briefing April 3. The sixth TTC meeting takes place April 4-5 in Leuven, Belgium. It's the last of this political cycle, given U.S. and European elections later in the year. The EC doesn't expect too much disruption of its work, which includes deliverables on 6G, platforms, standardization, artificial intelligence and quantum computing, officials said.
The International Trade Commission is preparing for new Chinese export controls on germanium and gallium to have a potentially “significant” impact on global supply chains, it said in a recently issued executive trade briefing (see 2307050018).
PHILADELPHIA -- While the intersection of trade and climate change isn't yet massive in terms of policy, a CBP green trade official noted that climate change is already affecting the transport of goods.
More than a quarter of the U.S. Senate asked the U.S. trade representative to push back against the EU Deforestation-Free Regulation, saying the approach presents "significant compliance issues due to its stringency and ambiguity. One specific concern is the traceability requirement. The EUDR imposes a geolocation traceability requirement that mandates sourcing to the individual plot of land for every shipment of timber product to the EU. In the U.S., 42 percent of the wood fiber used by pulp and paper mills comes from wood chips, forest residuals, and sawmill manufacturing residues -- wood sources that cannot be traced back to an individual forest plot."
Panelists from the U.S. and Mexico said that cars assembled in Mexico by Chinese-owned firms can't enter the U.S. with USMCA benefits because of the stringent rules of origin, but spent less time talking about how cars manufactured outside China, including in the U.S., could enter under 2.5% most favored nation tariffs.
A retired semiconductor designer seeks a general exclusion order banning imports of dynamic random access memory device integrated circuits from the Taiwanese company Etron Technology that allegedly infringe on his patents, he said in a Section 337 complaint filed with the International Trade Commission March 4. Wen Lin, a U.S. citizen that now lives in Taiwan, also seeks a cease and desist order against Etron. Comments are due to the ITC by March 19, the commission said in a notice.
U.S. Trade Representative Katherine Tai said that talking about tariffs more than other aspects of trade policy is, to a large degree, "a red herring," and said reducing U.S. trade policy "down to a conversation about tariffs is really unfair."
U.S. Trade Representative Katherine Tai, speaking at the University of Chicago, sidestepped a question about whether the administration would change the Section 301 tariffs, saying that although "there's a lot of drama and emotion around tariffs," the China tariffs are "the least interesting aspect of the management of our trade and economic relationship."