Commenters Say NAFTA Negotiation Objectives Should Include Language on ACE, North American Single Window

More commenters on NAFTA renegotiations pushed for the U.S. to protect development of ACE and a North American single-window system in any updated agreement. The American Association of Exporters and Importers said in comments to the Office of the U.S. Trade Representative (here) that NAFTA should allow electronic signatures for the certification process in all three parties. The signature should be generated by software identifying and authenticating the signer and confirming the signer’s approval, AAEI said. “Acceptance of this type of electronic signature is distinct from NAFTA’s current and outdated practice of requiring certificates that are either hand-signed or that include an electronically reproduced image of an original handwritten signature.”

U.S. negotiating objectives could include funding ACE, supporting the rollout of the Canadian single-window system, and allowing Mexico and the U.S. to share import data for the single window, to eliminate the need for export reporting between the two countries, Daimler said (here). Some think NAFTA could be a platform to explore a North American single window (see 1706140037). The Toy Association said (here) that NAFTA renegotiation should provide for continued automation of customs processing, data harmonization and single-window programs, and the free flow of trucks between Mexico and the U.S.

Continuing NAFTA drawback restrictions would endanger drawback simplification achieved through ACE, the Duty Drawback Coalition said (here). Eliminating NAFTA’s drawback restrictions would align NAFTA with the vast majority of other U.S. free trade agreements and has bipartisan congressional support (see 1705120016), the coalition said.

Repealing NAFTA duty deferral restrictions would also help manufacturers in U.S. foreign trade zones, the National Association of Foreign-Trade Zones (NAFTZ) said (here). NAFTA requires certain goods imported into a U.S. duty deferral program and subsequently withdrawn for export to Mexico or Canada to be treated for duty purposes as if withdrawn for U.S. consumption. While the restriction allows for U.S. companies to reduce duties owed to CBP by the amount of any duties paid to Mexico and Canada, U.S. FTZ manufacturers still often have to pay full U.S. duties on products exported to those countries because qualified products exported to them have zero duties upon importation, NAFTZ said.

Mexico and Canada should stand up a customs bonding system mirroring CBP’s, including the recently implemented eBond system, the International Trade Surety Association (ITSA) commented (here). Canada has a paper-intensive bond system, while Mexico doesn’t have one, which causes delays in U.S. and Canadian exports to that nation, ITSA said.

The International Wood Products Association (IWPA) anticpates that some will push for “traceability” requirements for wood products imported into NAFTA countries during negotiations, but cautioned that the “important” process isn’t a “magic bullet.” Traceability is problematic for U.S. wood producers who sort lumber and other wood by species and grade rather than point of origin, and lack documentation that would allow a specific product to be accurately traced to its exact point of harvest, IWPA said (here) . Also, a negotiated softwood lumber settlement with Canada would reduce market uncertainty and ease price increases, as opposed to duties, IWPA said. “U.S. negotiators must make every effort to reach a settlement in the ongoing softwood lumber dispute that is the subject of a current antidumping/countervailing duty investigation,” the group said.

The American Petroleum Institute (API) advised (here) USTR against working to raise any tariffs above the current zero rate for current oil and gas shipments under NAFTA, and to either reduce or eliminate any tariffs still in place under NAFTA. API also called for provisions instituting full drawback benefits, enshrining norms outlined by the World Trade Organization Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and provisions preserving regulatory autonomy for the parties, including mutual recognition of Mexican, Canadian and U.S. regulatory regimes for oil and natural gas.