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. is asking that a rapid response labor mechanism panel decide whether Grupo Mexico's decision to hire replacement workers after a strike is a violation of union rights covered by the USMCA. The treaty says that the panel must be formed in three days after a request, and that the panel has 30 days to make a determination. This is the first time Mexico and the U.S. have disagreed on remediation after the U.S. filed a rapid response labor complaint, and the first time the U.S. called for a panel.
Former President Donald Trump is considering making hiking tariffs on all imports a plank of his reelection campaign, as he discussed recently on Fox Business. According to a Washington Post story, although Trump said on TV that he liked the idea of a 10% duty on all imports, he has not settled on a number yet. Trump's former U.S. Trade Representative Robert Lighthizer said in January 2021 that all countries should have a 10% to 12% tariff on all imports, with higher tariffs for particularly important products (see 2101260048).
An importer of forged steel fittings told CBP it was never aware its Chinese supplier was participating in a scheme to transship forged steel fittings, covered by antidumping and countervailing duty orders, from China through Sri Lanka, yet CBP concluded its Enforce and Protect Act (EAPA) investigation with the determination that the importer, YVC USA, had evaded the duties, according to a recently posted notice.
An expert on China's electric vehicle manufacturing praised the Inflation Reduction Act's incentives to build U.S. advanced battery manufacturing capacity but told the U.S.-China Economic and Security Review Commission that completely cutting China out of that sector's supply chain is impractical. The Zero Emissions Transportation Association has made similar arguments (see 2208040045); the Treasury Department has not yet said how the "country of concern" restrictions for EV tax credits will be applied. However, Treasury allows leased cars to avoid all the localization rules.
Antidumping and countervailing duties on solar cells and modules from Cambodia, Malaysia, Thailand and Vietnam are now set to take effect in June 2024, after the Commerce Department continued to find in final determinations announced Aug. 18 that imports from the four Southeast Asian countries are circumventing AD/CVD on solar cells from China (A-570-979/C-570-980).
A new report from a human rights research group reveals over 200 recent allegations of labor abuses in Myanmar’s garment industry and highlights the due diligence challenges faced by fashion companies and other businesses sourcing from the region. The report, produced by the Business and Human Rights Resource Centre, said abuse allegations have spiked since the country’s military coup in 2021, and have included wage reductions, wage theft and forced overtime.
The Court of International Trade in an Aug. 17 opinion appeared to leave the door open for the government to collect additional duties in court cases filed by importers challenging denied protests. In the latest in a series of recently issued decisions finding the government can't file counterclaims in denied protest cases, Judge Gary Katzmann reclassified a government counterclaim as a defense, but said importer Second Nature Designs may be liable for more duties if that defense prevails.
A former Mexican economy secretary, Ildefonso Guajardo, who oversaw the NAFTA renegotiation, said Mexico's current administration has not complied with the energy provisions in the trade agreement, and has "tried to disrupt trade in corn, using excuses of sanitary issues" and genetic modifications. He said in both cases, the trade disagreements "have become part of the full political negotiation" that includes migration and also includes fentanyl and security issues.
The Court of International Trade on Aug. 16 denied a motion by importer Wanxiang America to dismiss a penalty case related to its alleged misclassification and failure to pay associated antidumping duties on tapered roller bearings.