More than 75 members of the House, both Republicans and Democrats, are asking the Defense Logistics Agency and the Office of the U.S. Trade Representative not to restrict purchase of personal protective equipment -- such as N95 masks, also called respirators, gloves, gowns, and shoe covers -- to U.S. sources. They say that importing is critical to stop the shortages.
The American Association of Exporters and Importers is asking the Trump administration to help importers and exporters deal with the impact of COVID-19 response measures, whether that impact is a cash crunch, the effects of telework or business decisions made in response to delays in shipments from China. The group is asking the administration to extend the time to respond to regulatory notices that are paper based, including entry filings deadlines, because telecommuting makes it more difficult to manage the paper flow. It is also asking CBP to extend the protest period for customs duties and decisions.
Tourism between the U.S. and Mexico is barred, beginning at 11:59 p.m. March 20, and continuing until April 20, but “this temporary alteration in land ports of entry operations should not interrupt legitimate trade between the two nations or disrupt critical supply chains that ensure food, fuel, medicine, and other critical materials reach individuals on both sides of the border,” the U.S. government said in a notice. Individuals engaged in lawful cross-border trade are specifically exempted from the restrictions.
Bold action from the administration to address the economic fallout of the COVID-19 response crisis is needed, the Business Roundtable said in a letter sent March 18 to the Trump administration. It asked for “immediate tariff relief through the duration of the global pandemic," among other things. "Tariff relief can support the public health response as well as economic recovery. As an immediate step, the U.S. government should suspend tariffs on all medical and health products and other supplies necessary for the public health response to the COVID-19 outbreak.” It suggested that the administration work to ensure expedited customs clearance authorities, unspecified regulatory flexibility and, possibly, more money for transportation and port infrastructure. It criticized buy local provisions for goods needed for the epidemic, as well as export controls on those goods, saying they exacerbate scarcity problems.
The language of the U.S.-Mexico-Canada Agreement says that in order for the treaty to take effect on June 1 -- as U.S. officials have told Congress they want -- the countries would have to agree that they're ready 12 days from now. Kenneth Smith Ramos, a former top negotiator of the NAFTA rewrite, said the three countries cannot say they've completed their internal procedures by then. “#NotHappening,” he wrote in English at the end of a tweet in Spanish.
Claims that NAFTA was ripped up or that it was just a rebranding are wrong and paying attention to the changes could mean big savings for businesses, said Dickinson Wright Cross-Border Practice Chair Dan Ujczo during a March 17 Global Chamber webinar. Ujczo said that one polymer and chemicals company he talked to saw that changes from NAFTA to the U.S.-Mexico-Canada Agreement “are going to save us $17 million.” He urged businesses that use NAFTA to convene their purchasing, accounting and either in-house customs teams or customs brokers to investigate their supply chains, because he predicted that CBP will pay closer attention to rules of origin, and he said many companies are relying on slapdash rules of origin certificates from suppliers (see 2002190028).
Rep. Rashida Tlaib, D-Mich., along with the Trade Subcommittee and Intelligence Committee chairmen, and others, plan to ask the director of national intelligence to publicly release what information it has on forced labor, whether in camps or in factories where Uighurs are threatened they will be returned to detention if they do not work -- “especially information related to the textile and cotton industries, and the names of organizations and institutions benefiting from forced labor,” she wrote.
President Donald Trump, asked about a letter from businesses and trade groups sent earlier on March 18 that said he should lift sections 232 and 301 tariffs, said he couldn't imagine why Americans would want that. “China is paying us billions and billions of dollars in tariffs and there’s no reason to do that,” reporters quoted him as saying at a press conference. "It could be that China will ask for a suspension or something. We’ll see what happens. China is having a very rough time.”
Treasury Secretary Steven Mnuchin hasn't talked specifically to cargo airlines' executives, though he said with regard to passenger airlines “I've had conversations around the clock with all the airline CEOs.” Mnuchin spoke to reporters after leaving the Senate Republicans luncheon. “Essential travel, we want to have airlines that operate, maybe on a reduced basis. Airlines have a short-term liquidity issue, and absolutely, that's something we talked about today” with Senate Republicans. “I've also spoken to the [House] Speaker about that,” he said.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said the export restrictions on masks, respirators, medicines and other goods needed for responding to the COVID-19 pandemic is “a bad cycle,” and he urged the president and world leaders “to work together on a coordinated response on the epidemic.” Grassley, who was speaking with reporters on a conference call March 16, said restrictions reduce global supply and lead to higher prices. “I was encouraged to see the G7 leaders' statement today,” he said, which mentioned support for global trade.