Brazil added 397 items to its list of foreign capital goods and information technology and telecommunications goods subject to duty-free treatment under its Ex-Tarifario regime, the Hong Kong Trade Development Council reported May 28. The 327 added capital goods are classified in Harmonized System chapters 84, 85, 86, 87 and 90, while the 70 added IT and telecom goods are classified in chapters 84, 85 and 90. Duty-free treatment lasts through Dec. 31, 2021. Brazil also removed 24 items from the list, HKTDC said.
Canada criticized what it said is the U.S. intention to “significantly” raise duties on Canadian softwood lumber this year (see 2105180020), calling the move “entirely unjustified.” The measure would hurt consumers, companies and workers in the U.S. and Canada, said Mary Ng, Canada’s international trade minister, adding that the country plans to fight back against the duties on Canadian exporters. “We will keep challenging these unwarranted and damaging duties through all available avenues,” she said May 21. “We remain confident that a negotiated solution to this longstanding trade issue is not only possible, but in the best interest of both our countries.”
In a joint statement, Canada's trade minister, Mexico's economy minister and U.S. Trade Representative Katherine Tai said they reviewed USMCA committee work, noting progress and offering “recommendations for future work to maintain progress.”
Ahead of the first Environmental Committee meeting under USMCA, the Office of the U.S. Trade Representative is seeking comments on topics that should be discussed, and advance questions for the public session of that meeting. The committee meeting will be June 17, 3 p.m. to 5 p.m. EDT.
The Mexican ambassador to the U.S. publicized a letter he sent to Labor Secretary Marty Walsh asking for consultations under the Labor Chapter of USMCA over the treatment of agricultural and meatpacking workers. "Although at the federal level labor rights in the United States protect all workers, regardless of their immigration status, in practice, factors such as ignorance, fear and abuse by some employers prevent migrant workers from exercising fully their labor rights in some industries and states," Esteban Moctezuma wrote May 12. He complained that there is no federal regulation for heat stress, and that employers do not comply with rest and bathroom protocols for agriculture workers. He said that agriculture workers are excluded from general wage and hour laws that provide for overtime pay and the right to organize and bargain collectively. Specifically, he said, undocumented workers don't have access to ask for reinstatement to jobs or payment of lost wages under the U.S. labor laws. And he said that officials overlook sexual harassment and violence in both sectors. "For the aforementioned reasons, the Government of Mexico considered it necessary to point out the importance of adequately enforcing its federal regulations to guarantee the labor rights of workers in the agricultural and meat processing and packaging industries in the United States," he wrote.
Canada last week updated its model Foreign Investment Promotion and Protection Agreement, which will serve as the basis for future investment negotiations and modernize the country’s rules-based environment for foreign direct investment. The model includes “additional transparency provisions” among the new requirements and standards.
Mexico is considering postponing the deadline for a measure that will require most organic raw imports and bulk goods to be certified under the country’s organic law (LPO) standards, the U.S. Department of AgricultureForeign Agricultural Service reported May 11. The measure was scheduled to take effect June 26 (see 2105040049), but after receiving postponement requests, Mexico is accepting comments on a proposal to push the deadline to Jan. 1, 2022. The country said it hopes the postponement will help “avoid trade disruptions in exports of organic products from other countries to Mexico,” which will require proof of LPO certification at the border, USDA said. The agency said the proposal’s comment period will be open for an “undetermined period” before Mexico decides whether to make it official. USDA also said organic exporters to Mexico should become certified under Mexico’s LPO standards “well in advance” of the January deadline.
Bolivia, Colombia, Ecuador and Peru recently extended measures to promote and facilitate trade in cosmetics, cleaning products and certain hygiene products, the Hong Kong Trade Development Council reported May 10. Through Dec. 31, the Andean Community countries may accept a “commitment letter in lieu of a certificate of free sale or a similar authorisation” of the country of origin when traders are looking to renew sanitary certifications, HKTDC said. In the letter, the trading party must “commit” to provide the certificate within six months after the sanitary notification is issued, renewed or modified. The countries may also extend a deadline by up to 12 months that will allow importers to “exhaust existing stocks” of their cosmetics, cleaning and hygiene products when their sanitary certificate has expired.
The U.S. Department of Agriculture Foreign Agricultural Service has noticed higher security on a range of items traded between the U.S. and Panama, USDA reported May 7. The agency said traders should be aware of “increased rules of origin scrutiny” on coffee products, certain rice products, milk, butter, cheese, eggs, beef, pork, potatoes and other food products. USDA warned U.S. exporters to comply with Panamanian customs authorities, which enforce the rules of origin requirements in the U.S.-Panama Trade Promotion Agreement and issue fines and back duty assessments for noncompliance.
Peru recently revised its labeling requirements for certain manufactured imports to include the country of origin, the Hong Kong Trade Development Council said May 6. The country previously required only the “country of manufacture” and certain other information, but traders now must disclose the country of origin for any “packaged or primary processed agricultural food product,” HKTDC said. The country of origin information must be in Spanish, HKTDC said, and the country of manufacture and, for perishable products, expiration date, must be “indelibly marked” on the product or packaging.