The U.S. and United Kingdom will begin virtually negotiating a trade deal this week, U.K. Trade Secretary Elizabeth Truss said. The talks, which have been expected for months (see 2002190021, 2003020061 and 2001280042), will start through video conferences, the Office of the U.S. Trade Representative told Politico May 3, and will be held remotely until international travel resumes. In a May 3 tweet, Truss said the U.K. will “be working to bring benefits to all parts of [the U.K.] and boost our economies during #coronavirus recovery.” The USTR did not comment.
Eight House Republicans have joined to introduce a bill that would require the U.S. trade representative to submit a report to Congress on how World Trade Organization agreements will be fully implemented. In a press release announcing the bill's introduction on April 24, Rep. Ted Yoho, R-Fla., said: “For too long the United States, and the world, has turned a blind eye to much of China’s unfair practices in business and trade, and it has been the American producer and consumer who has paid the price. It’s time the United States and the global community assert their rights under WTO rules to hold China accountable for its behavior on the world stage and ensure a level playing field for all.” He said his bill would prevent China and other high-income nations from receiving special and differential treatment as developing nations. However, under current WTO rules, countries must willingly give up developing nation status; there is no way to force them to leave that status.
Although the auto industry appears to have lost the fight to delay a switchover from NAFTA to the U.S.-Mexico-Canada Agreement, an executive at the organization that represents parts suppliers said they now hope that with give-and-take on the implementing rules and perhaps some flexibility, the industry will be able to make a July 1 entry into force date work.
Sharon Bomer Lauritsen, assistant U.S. trade representative for Agricultural Affairs and Commodity Policy, has told industry representatives in her sector that she's retiring. Corn Refiners Association CEO John Bode said farmers, ranchers and agribusiness companies are grateful for her public service. The Office of the U.S. Trade Representative didn't comment
U.S. Trade Representative Robert Lighthizer notified Congress April 24 that the United States–Mexico–Canada Agreement will enter into force on July 1, 2020. Following that notification to Congress, the U.S. certified to Mexico and Canada that it's ready for the NAFTA replacement to take effect.
Although the hearing scheduled for input on a Kenya Free Trade deal was canceled, comments continue to come in for what the U.S. trade representative's priorities should be.
High-level Office of the U.S. Trade Representative and senior Brazilian officials agreed April 16 to “accelerate ongoing trade dialogue under the Brazil-U.S. Commission on Economic and Trade Relations (ATEC) with a view to concluding in 2020 an agreement on trade rules and transparency, including trade facilitation and good regulatory practices,” USTR said in a statement issued the following day. “They also agreed to engage in domestic consultations, consistent with each country’s domestic procedures, to solicit input on how best to expand trade and develop the bilateral economic relationship,” the statement said.
The Office of the U.S. Trade Representative issued a pre-publication notice April 20 that carmakers must submit draft staging plans under the U.S.-Mexico-Canada Agreement no later than July 1. Their final plans are due by Aug. 31, the notice said. If USTR approves the plans, companies would have five years instead of three to increase regional content and adjust to other changes in the auto rules of origin. In order to be approved, the companies must show how every model can meet the stricter standards, even if that can't be done within the five-year time frame. Many cars imported from Mexico do not meet the current standards and pay the 2.5% duty. “The petitioner also should identify any North American investments and sourcing, preferably by calendar year and location, which will allow such vehicles to meet the standard USMCA rules,” USTR said.
As a date of entry into force, June 1 “is too aggressive and unrealistic,” said The American Association of Exporters and Importers in a letter sent April 15 to the U.S. trade representative. The organization did not say what day would be late enough for traders, who are affected by the COVID-19 public health emergency. “Many companies have personnel working from home due to COVID-19, which will make responses to queries for data slower, thereby causing delays in the certification process for USMCA,” they said. But they noted that without final regulations, “it is impossible for companies to know if there will be an impact or if supply chains may need to be shifted.” Once the regulations are in place, AAEI said, it will take time to solicit documents from suppliers. The group asked that NAFTA certificates of origin for 2020 continue to be valid during a period of informed compliance until Jan. 1, 2021.
CBP has drafted some interim implementing instructions for the U.S.-Mexico-Canada Agreement that could be released as soon as April 17, a CBP official said during an April 16 conference call. The draft is being circulated within the government and is planned to eventually go up on CBP's website, she said. The instructions will detail how to file an entry, and the Special Program Indicator code will be S, she said. There's also some discussion about an S+ code for agricultural goods with special requirements, similar to the CAFTA-DR codes, she said. A CSMS message would announce the release of the instructions, she said.