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.
About 350 companies, trade associations and local manufacturing groups and chambers of commerce are urging Congress to ratify the United States-Mexico-Canada Agreement "as soon as possible this autumn." The letter, led by the National Association of Manufacturers and signed by giants like Ford, GM, Fiat Chrysler, Caterpillar, IBM, GE, Honeywell, Bayer and Bristol-Myers Squibb, was sent Oct. 15. It said that ratification "is essential to promoting certainty and growth for manufacturing businesses." Volvo North America and Mahindra Automotive America signed the letter, but BMW and Mercedes -- whose supply chains would likely have to change to meet stricter rules of origin -- did not. The letter referred to trade facilitation -- though not explicitly higher de minimis levels in Canada and Mexico, in saying that the USMCA will eliminate red tape at the border, and make "it easier for small and medium-sized businesses to sell into these critical markets."
Business and labor leaders and government insider panelists agreed that the U.S.-China trade war will be difficult to unravel, but disagreed on how quickly Democrats could -- or should -- resolve outstanding issues on the NAFTA rewrite. The trade panel Oct. 10, hosted by Fiscal Note, included Clete Willems, former White House deputy assistant to the president for international economics, who said that although it pained him to say it, "The political conditions in both countries are just not conducive to the big deal."
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.
Even as the U.S. Chamber of Commerce gives a nudge to House members by advertising for the U.S.-Mexico-Canada Agreement in 12 districts, a top official is expressing confidence that the negotiations are on track. Neil Bradley, the chief policy officer, told reporters Oct. 1, "Our conversations with Democrats and Republicans lead us to believe we are close." He added, "We’ve kind of set a deadline we believe that USMCA should be passed before Thanksgiving. We picked that based off where we thought the progress was in the negotiations."
The Japan-South Korea dispute is unlikely to be resolved soon, and some blame should be placed on the U.S., trade experts said during a Center for Strategic and International Studies event on Sept. 30. While former U.S. ambassador to South Korea Kathleen Stephens said the Trump administration's use of export controls to address trade issues might have encouraged Japan and South Korea to take similar steps, former National Security Council staff member Michael Green said U.S. inaction is partly responsible for the escalating tensions.
U.S. exporters say they are increasingly losing market share in China to European and Japanese companies as the trade war drags on, panelists said during a discussion at a Center for Strategic and International Studies event on Sept. 25. Some U.S. companies are also losing out on Chinese license approvals as foreign competitors get to skip the line, one trade lawyer said.
While U.S. authorities have not released any details on U.S. tariff reductions for Japanese imports, even to stakeholders, a press release from Japan's Economy, Ministry and Industry describes the reductions, which will add up to tens of millions of dollars annually.
The U.S. and Japan signed a deal to open Japanese market access to more than $7 billion worth of U.S. agricultural exports, the White House said Sept. 25. The deal -- announced after President Donald Trump and Japan's Prime Minister Shinzo Abe met at the United Nations General Assembly in New York -- is an initial agreement as the two sides continue negotiating a comprehensive trade deal “in the months ahead,” the White House said.
The recently released 2020 incoterms rules (see 1909100056) are easier to use and understand compared to previous versions, one of several significant changes to the International Chamber of Commerce’s latest revisions, said Frank Reynolds, the U.S. delegate for the ICC’s 2020 drafting group. The ICC said the new incoterms edition is “more accessible” and includes “more detailed explanatory notes with enhanced graphics” to clarify the responsibilities of exporters and importers. It also includes an “extensive introduction … that anybody can understand,” Reynolds said in an interview.