The auto industry publicly asked the Trump administration not to rush into certifying readiness for the U.S.-Mexico-Canada Agreement's entry into force, given the fact that “a global pandemic is significantly disrupting our supply chains, and the industry is throwing all available resources into managing production through this crisis for our employees and for the broader U.S. economy.”
The U.S. trade representative has had “no conversations” with China about possible delays in agricultural purchase commitments due to the coronavirus pandemic, according to coronavirus guidance issued by the U.S. Department of Agriculture. The guidance, which includes a series of frequently asked questions to address virus-related concerns for traders and others who have been impacted, said no delays under the U.S-China phase one deal are expected. “We expect that the Chinese will meet their commitments under the agreement,” the USDA said.
Canada's House of Commons approved the U.S.-Mexico-Canada Agreement -- called CUSMA in Canada -- by unanimous consent March 13, before adjourning until April 20 due to the coronavirus pandemic. The Canadian Senate passed it less than an hour later. Royal Assent, the equivalent of a presidential signature in the U.S., followed shortly, and the Senate adjourned as well. Now, all three countries must continue to work on uniform regulations so that they can certify the treaty is ready to enter into force. Efforts to slow the spread of the coronavirus disease COVID-19 may slow that process, because the countries also have to evaluate the progress toward fulfilling commitments, such as setting up labor courts in Mexico and getting new rules of origin processes in place. Once that certification is issued, NAFTA will be replaced on the first day of the third month after the announcement.
Senate Finance Committee Chairman Sen. Chuck Grassley, R-Iowa, told reporters that the coronavirus outbreak's impact on China's factories has shown policymakers that the U.S. is too dependent on China for imports. “There ought to be more manufacturing in the United States, but that isn't just on pharmaceuticals, but that could be on anything you're having these supply chains are being interfered with,” he said March 11 in his office at the Capitol.
Forty-six House Republicans, led by Rep. Steve Womack, R-Ark., told the U.S. trade representative in a letter March 10 that he must get the United Kingdom to agree to import chicken with chlorine or other antimicrobial washes.
The annual report on Russia's compliance with World Trade Organization standards echoed much of last year's report (see 1902050029). The U.S. exported $6.7 billion in goods to Russia in 2018, with aircraft, machinery and vehicles as the most common exports. That is nearly 29% less than was exported 10 years ago. It has complied with its tariff commitments, but has numerous non-tariff barriers, the U.S. Trade Representative's report said.
In an annual report about China's compliance with its World Trade Organization commitments, the U.S. trade representative repeated complaints from last year's report (see 1902050024) about how U.S. imports are treated by Chinese customs authorities.
A bill that calls on the administration to begin negotiations on a U.S.-Taiwan free trade agreement passed the House of Representatives unanimously March 4. While the bill -- the Taiwan Allies International Protection and Enhancement Initiative (TAIPEI) Act -- already passed the Senate, the Senate needs to vote again to send it to the president's desk because the bill language was not identical between the two chambers. “It is the sense of Congress that the United States should engage in bilateral trade negotiations with Taiwan, with the goal of entering into a free trade agreement that is of mutual economic benefit and that protects United States workers and benefits United States exporters,” the bill says.
The U.S. Department of Agriculture expects China to begin fulfilling portions of its agricultural purchase commitments by the end of this summer, Secretary Sonny Perdue said during a March 4 House hearing. Although the coronavirus outbreak has delayed the purchase commitments under the phase one trade deal (see 2001150073) and thrown global agricultural trade into uncertainty, Perdue said the USDA has received “signals” that China intends to fully comply with the purchase agreements (see 2002250055). “We believe that China is a shrewd customer. They’re going to buy where the best deal is,” Perdue told the House Agriculture Committee. “We think they’ll come into this market in late spring and summer and fulfill the commitments.”
Export Compliance Daily is providing readers with some of the top stories for Feb. 24-28 in case you missed them.