Heavy truck parts destined for a U.S. assembly plant cannot qualify for USMCA benefits under tariff shift rules, CBP told Mitsubishi Electric's Automotive division. Under USMCA, the original equipment starter must have 60% North American content under a net cost method, or 70% under a transaction value method; that percentage will go up in July 2024 to 64% or 74%, respectively, and 70% or 80% in 2027.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
Tariff rate quotas of 30% imposed in 2018 under a global safeguard tariff against solar cells and solar panels were legal under international trade law, a panel at the World Trade Organization announced. The Section 201 tariffs fell to 25%, then 20%, and were supposed to fall to 15% in 2021, but are at 18% instead (see 1711010040 and 2010130028).
In an unusual move, China has been granted its request for a compliance panel at the World Trade Organization for the dispute between it and the U.S. over how China administers its wheat, rice and corn tariff rate quotas (see 2107160054 and 1904180020).
World Trade Organization Director-General Ngozi Okonjo-Iweala said there is now political support to move forward on an agreement to curb subsidies that lead to overfishing. The draft text has been blessed by all the heads of delegations in Geneva, she said in a news conference July 15.
Top trade officials from Europe, Japan and North America emphasized problematic economic behavior in China, without mentioning the world's second-largest economy by name, at the end of the G-7 meeting of trade ministers.
U.S. Trade Representative Katherine Tai said the U.S. and Canada could not reach an agreement on the administration of Canada's dairy tariff rate quotas, so the dispute will be decided by a panel. At issue is the fact that Canada has reserved the large majority of TRQs for Canadian processors, which means that consumer goods produced in the U.S. like ice cream, cheese or yogurt face higher tariffs in Canada because very little of the TRQ is available to Canadian retailers. Even when it's not restricted to processors, the TRQs are reserved for distributors, which means American producers cannot pitch their goods at lower prices directly to retail chains.
Angela Ellard, chief Republican trade counsel on the House Ways and Means Committee, will be one of the four deputy directors-general at the World Trade Organization, Director-General Ngozi Okonjo-Iweala announced May 4. Ellard has served on the committee staff since 1995.