Ten trade groups, all typically Republican allies, sent a letter to the White House and U.S. Trade Representative Robert Lighthizer asking that America submit a proposal for reforming the World Trade Organization's Appellate Body, with the offer that if it were adopted, the U.S. would stop blocking appointments to that body. While the administration has been clear about its concerns on how the appeals process is conducted, it has not offered a specific solution. The Oct. 23 letter also defended the dispute settlement system at the WTO, saying, "Since the United States is the world’s largest trading nation and the second-largest exporter, it has been one of the major beneficiaries of the WTO process."
The U.S. and China appear poised to reach some sort of "mini-deal" before the end of the year, said Bank of America global economists Ethan Harris and Aditya Bhave in an Oct. 18 report. "In our view, both sides see the other as being in a weakened negotiating position," the analysts said. "The US can point to the bigger economic slowdown in China than in the US. China can point to President [Donald] Trump’s impeachment investigation and his desire to maintain a healthy economy going into the election. This argues for a relatively balanced 'win-win' deal."
A new report on the economic impact of the tariff reductions on 1,655 products covered by the Miscellaneous Tariff Bill finds a tiny effect on GDP from the $179 million in duties saved over seven months.
Although the International Chamber of Commerce’s 2020 incoterms did not make the significant revisions that industries expected, it did introduce several changes that may require updated contacts between importers and exporters.
Fitbit will shift production to "outside China," starting in January, for “effectively all of its trackers and smartwatches” to escape exposure to the tariffs on Chinese goods, the company said Oct. 9. "[T]hose products will no longer be of Chinese origin and therefore not subject to Section 301 tariffs.” Smartwatches and fitness trackers, comprising the entire product line, were hit with 15 percent List 4A tariffs Sept. 1 as part of the broad category of 8517.62.00.90 goods that also includes smart speakers and Bluetooth headphones (see 1908140031). The company began exploring potential alternatives to China last year, Chief Financial Officer Ron Kisling said. It altered its supply chain and manufacturing operations with “additional changes underway,” the company said. Fitbit will give additional details on its Q3 call within the month.
August TV unit imports from China increased 22.3 percent sequentially from July, and 37.5 percent year over year, according to newly published Census Bureau statistics accessed Sunday through the International Trade Commission’s DataWeb tool. Observers will debate whether the August spikes were evidence of importers speeding product through U.S. ports to beat the 15 percent Section 301 tariffs on finished TV sets from China that took effect Sept. 1.
The U.S. Chamber of Commerce, the Information Technology Industry Council and 25 other trade groups, including groups from Africa, Asia, South America and Europe, have issued a position paper on what they'd like to see in the plurilateral E-Commerce Agreement at the World Trade Organization. The U.S. and China are both in these talks, and some are concerned that China will oppose what business groups describe as high-standard planks, such as prohibiting data localization and no restrictions on cross-border data flows.
Many things about the U.S.-China trade war have not turned out as experts expected, panelists said at the Washington International Trade Association Oct. 2. Chad Bown, a trade economist at the Peterson Institute for International Economics and former White House economist, said that 18 months ago, people would have not expected there to be 15 percent to 30 percent tariffs on more than half of Chinese imports, with nearly all the rest slated for tariffs by December, and yet, the economy is doing OK. "Markets haven't panicked," he said. But Bown said he's not that surprised that the country hasn't seen a massive effect from the trade war, since the tariffs in place the longest were on inputs, and because, compared to the size of the entire economy, "we don't actually trade all that much."
Football fans will “need to be aware” this fall that Section 301 tariffs ranging from 15 percent to 30 percent on Chinese goods “will drive up the price of everything from footballs and TVs to portable grills and fanwear,” the National Retail Federation blogged on Sept. 30. “Fans who prefer to watch the game from the comfort of their couch won’t be spared,” NRF said. Overall, “Americans would pay $711 million more than they otherwise would for ... [televisions] hit with 25 percent tariffs,” it said, citing a Trade Partnership report it commissioned in June. Tariffs of 15 percent took effect Sept. 1 on finished TVs from China, among other goods on List 4A. “Think of these tariffs as 15- to 30-yard penalties between you and the goal of a fun weekend afternoon with your favorite team,” NRF said. “As you take a break during halftime, take a moment to tell Congress to end the trade war and remove all tariffs.”
Amazon recently purchased INLT, a startup company that makes customs brokerage software, according to a notice on the INLT website. "We have been acquired by Amazon and look forward to working with them to develop the next generation of solutions for our current customers and Amazon Selling Partners," INLT said. Terms of the deal, which was first reported by Reuters, weren't released. INLT was co-founded by Chris Reynolds, who also runs customs consultancy Cardinal Trade Associates and was at OHL before that (see 1511040009).