USTR Posts Comments for 2017 National Trade Estimate Report
Several countries have lax counterfeit drug seizure regimes, strenuous import licensing processes, and big gaps between the upper limit on tariffs that can’t be exceeded under World Trade Organization rules and the most-favored nation (MFN) tariff rate charged at the border, commenters told the Office of the U.S. Trade Representative as part of its preparation for the 2017 National Trade Estimate report. Such a gap between MFN tariffs and the upper bounds allowed gives governments too much leeway in changing tariff rates with little warning or notice, bringing uncertainty for foreign traders, the National Association of Manufacturers (NAM) said in its comments (here). Nations with large tariff gaps include Indonesia, India, Thailand, Nigeria, Turkey and Kenya, NAM said.
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The American Iron and Steel Institute (AISI) called out (here) Mexico’s standard import licensing system as a source of shipment delays and complications, after the Mexican government in July 2015 added 25 tariff lines for iron and steel products to its automatic import licensing regime and 86 lines for steel goods to its list of sensitive products, requiring temporary imports of those goods to comply with additional requirements. Furthermore, Malaysia assesses non-automatic import licensing requirements on eight tariff lines for alloy steel products, and in January 2015 announced a number of measures that will discourage imports, including a ramp-up of its “Buy Malaysia” regime, AISI said.
The Pharmaceutical Research and Manufacturers of America (PhRMA) criticized (here) the inability of “too many countries” -- specifically calling out China, Russia, Brazil and India -- to seize counterfeit medicines, especially in-transit goods, goods in free trade zones and goods sold online. Those and other countries with drug production capacity have weak regulatory oversight, and often ineffective intellectual property protection and enforcement programs, PhRMA said. The group cited a World Health Organization finding that regions with weak protection and enforcement regimes see the highest incidences of counterfeit medicines. “In those countries and others, violations of limited laws on the books often are not effectively enforced or do not come with sufficient, deterrent penalties,” PhRMA said.
Other criticisms of regional and national trade policies included the National Oilseed Processors Association’s knock (here) on Argentine export taxes being lower on soybeans crushed for oil use than for uncrushed beans, a non-free market practice that hurts soybean producers in other countries, as Argentina is the largest exporter of soybean oil and meal. In a joint comment (here), the National Milk Producers Federation and the U.S. Dairy Export Council called out planned EU and Canadian geographical indications for being too generic, as well as Canadian adjustments of concessions to U.S. dairy products. Another filing from the U.S. Council for International Business pointed to a burdensome customs process in its submission (see 1610280018).