The Labor Council of the USMCA discussed several topics, including "key labor policies on violence and discrimination in the workplace," as well as "cooperation and technical assistance projects," and "implementation of the USMCA’s provision related to imports produced with forced labor," at a meeting June 28-29 in Mexico City. The meeting included government representatives who oversee labor issues from all three member countries. The council also discussed "the USMCA’s Labor Chapter implementation and conferred on further opportunities to collaborate on labor priorities as a North America Region," the joint statement from the meeting said. This was the Labor Council's second meeting, after the first took place in June 29, 2021 (see 2106300043).
Electro-mechanical actuators used in automotive applications don't meet the “parts” exception to the NAFTA tariff shift rule because the parts at issue are provided for is a separate subheading, CBP said in a recent ruling.
The U.S. faces the challenge of "convincing ourselves that it's worth getting back into the game" of negotiating trade agreements that lower tariffs, rather than convincing other countries to do the same, former Ohio Sen. Rob Portman said during a June 28 webinar. "Without the U.S. leading, it's difficult to see expansions of trade," he said, adding that the U.S. is currently seen as uninterested in promoting trade through reducing tariffs.
Three automakers are changing their blanket coverage period for USMCA documentation, the Automotive Industry Action Group said in an emailed alert. Ford, GM and Honda had been issuing blanket documentation that covered the period July 1 to June 30 each year, as a result of the USMCA’s July 1, 2020, effective date. The three automakers will now switch to blanket periods that run for the calendar year, from Jan. 1 to Dec. 31, the AIAG said. The change will “better align with other trade agreements” and “make it easier for suppliers to manage their trade documentation processes,” the AIAG said. The change will take effect for GM and Honda Jan. 1, 2024, and for Ford Jan. 1, 2025, the AIAG said.
Canada's proposed "last sale" change to its customs valuation practice could present a host of problems for customs brokers, law firm Neville Peterson said in a blog post. If the regulatory change, which would require imports to be assessed duties according to the price of their "sale for export," is approved, brokers would have to examine resales to accurately file entries and would "no doubt be required to file many post-importation adjustments," the firm said.
Rep. Earl Blumenauer, D-Ore., introduced a bill designed to improve and modernize trade adjustment assistance programs, including "significantly higher funding levels and expanded eligibility," according to a summary provided by Blumenauer's office.
International Trade Today is providing readers with the top stories from last week in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
The U.S. and Mexico have been consulting about U.S. complaints about favoritism to Mexican energy providers for 11 months, with no public movement toward a dispute settlement panel, and Karen Antebi, a former NAFTA negotiator, said she doesn't expect that to change in the next year.
The U.S. invoked the rapid response labor mechanism for a lead, zinc and cooper mine owned by Grupo Mexico, the second time the Office of the U.S. Trade Representative has used the USMCA tool outside the auto parts sector.
The U.S. is trying to negotiate with Canada and Mexico on auto rules of origin details, rather than complying with a dispute settlement panel decision that originating supercore parts are considered 100% North American as you calculate the vehicle regional value content, according to the leader of the trade group that represents Detroit's Big Three automakers.