Courier and delivery services could greatly benefit from a modernized NAFTA, the Coalition of Services Industries said in a report released Feb. 21. The lobbying group said negotiations are in a critical stage, and if the U.S. withdraws from the agreement -- as President Donald Trump has repeatedly threatened -- services industries are among the groups that will be hurt most. The services coalition said NAFTA could change rules on cross-border trucking and Mexico's requirements to use Mexican brokers.
The Office of the U.S. Trade Representative will hold a public hearing March 8 on its “Special 301” investigation of foreign countries that deny adequate and effective protection of intellectual property rights or deny fair market access to U.S. citizens who rely on intellectual property protection, it said in a notice. The hearing had tentatively been set for Feb. 27 (see 1712260003). Post-hearing briefs are now due March 14, it said. USTR’s Special 301 report is still set for publication around April 30.
The seventh negotiating round to modernize NAFTA will be held in Mexico City Feb. 25 - March 5. One of the issues to be tackled is how much U.S. and North American content must be included in automobiles to qualify them for tariff-free status. Currently, there's a 62.5 percent North American value requirement for autos and 60 percent for components, but some electronic components are not tracked on the list. The auto industry opposes the administration's proposal to increase U.S. content to 50 percent, and North American content to 85 percent (see 1801290049). President Donald Trump continues to talk about withdrawing the U.S. from NAFTA if it is not improved to his liking, but Treasury Secretary Steve Mnuchin said during a Feb. 15 congressional budget hearing that he's cautiously optimistic the U.S. Trade Representative will be able to reach an agreement on revisions. He refused to speculate about the impact of the U.S. leaving NAFTA.
The Office of the U.S. Trade Representative is accepting requests for exemptions from recently imposed safeguard duties on solar cells and modules (see 1801230052), it said in a notice. Requests must be public and “clearly should identify the particular product in terms of the physical characteristics (e.g., dimensions, wattage, material composition, or other distinguishing characteristics) that distinguish it from products that are subject to the safeguard measures,” it said. In considering whether to create the exemption, USTR will consider the volume of U.S. consumption and production, including of substitutes, and whether the product is under development by a U.S. producer. USTR will also account for the ability of CBP to enforce the exemption and whether the exemption would benefit the long-term competitiveness of the U.S. solar manufacturing supply chain. Requests are due March 16. USTR will not “at this time” consider requests received after that date, but will “monitor developments in the U.S. market for [crystalline silicon photovoltaic] CSPV products and, if warranted, provide for additional requests for exclusion at a later date,” it said.
The Office of the U.S. Trade Representative is issuing a correction of recently announced modifications to Chapter 99 of the tariff schedule that implement safeguard duties on large residential washers and covered parts. The correction affects language related to the scope of safeguard duties on parts, as set by a Jan. 23 presidential proclamation (see 1802020012). The safeguard duties took effect Feb. 7 alongside concurrently issued safeguard measures for solar cells (see 1801240036), and are currently set to remain in effect for three years (see 1801230052).
Korean and U.S. officials discussed "market access and tariffs" during a meeting in Seoul about the U.S.-Korea Free Trade Agreement, the Office of the U.S. Trade Representative said in a news release. The U.S. "emphasized steps to rebalance the Agreement to improve the large trade deficit in industrial goods, including autos and auto parts," it said. Both sides expect to set dates for a meeting in Washington soon, the USTR said. “These negotiations are an example of the Trump Administration’s commitment to making trade deals fair and reciprocal,” U.S. Trade Representative Robert Lighthizer said. “We must build on these negotiations with substantive and expeditious progress that will benefit the American people. In every trade relationship, the United States will stand up for U.S. workers and manufacturers, especially those facing serious injury or harm by unfair trade practices.”
The U.S. and South Korea will meet Jan. 31 - Feb. 1 in Seoul to further discussions over possible changes to the U.S.-South Korea Free Trade Agreement, the Office of the U.S. Trade Representative said. The U.S. “will engage on priority areas with the goal of moving towards fair and reciprocal trade and resolving additional cross-cutting and sector-specific barriers impacting U.S. exports,” USTR said. Officials from the two countries last met formally on Jan. 5 in Washington (see 1801080027).
China continues to flout the spirit of World Trade Organization rules, casting doubt on the wisdom of allowing it to join the body in 2011 on the terms it was offered, the Office of the U.S. Trade Representative said in a report on China’s WTO compliance released Jan 19. Hopes that China would become an open market economy “were disappointed,” and China continues to deploy market-distorting policies that the WTO trade rules were not formulated to address, limiting market access for imported goods and services while providing government support to Chinese industries, USTR said. “It seems clear that the United States erred in supporting China’s entry into the WTO on terms that have proven to be ineffective in securing China’s embrace of an open, market-oriented trade regime,” it said.
The Office of the U.S. Trade Representative on Jan. 12 released the results of its Section 301 review of notorious markets, it said in a press release. The report lists “25 online markets and 18 physical markets around the world that are reported to be engaging in and facilitating substantial copyright piracy and trademark counterfeiting,” USTR said. The list “maintains its special focus on the distribution of pirated content and counterfeit goods online. This year, the report highlights illicit streaming devices as an emerging piracy model of growing concern,” it said. “The report also calls on several e-commerce platforms to improve takedown procedures, proactive measures, and cooperation with right holders -- particularly small and medium-sized businesses -- to decrease the volume and prevalence of counterfeit and pirated goods on their platforms.”
The U.S. Trade Representative recently posted its 2017 report to Congress on the operation of tariff preferences programs under the Caribbean Basin Initiative. Required every two years, the report covers the Caribbean Basin Economic Recovery Act (CBERA) and the Caribbean Basin Trade Partnership Act (CBTPA), as well as associated programs including the Haiti Hemispheric Opportunity through Partnership Encouragement (HOPE) Act. According to the report, the total value of imports from beneficiary countries in 2016 was down 24 percent from 2015 and down 58 percent from 2006. “The decline in U.S. imports from CBI beneficiaries was mostly due to lower petroleum prices and lower imports because of increased domestic U.S. petroleum production,” USTR said. “U.S. imports of textiles from CBERA countries also declined by 5 percent.”