China is investigating complaints from U.S. exporters about Chinese customs clearances, including accusations of slower processing, increased inspections and inexplicable delays in licensing approval, China’s Vice Minister of Commerce Wang Shouwen said during a June 2 press conference. Wang said he did not know if the complaints were about “a real or specific situation,” according to an unofficial translation of his comments, but some U.S. exporters allege the moves are another step in China’s 2018 threat to take retaliatory measures against the U.S. that extend beyond tariff hikes (see 1905290041).
The Trump administration, furious that Central American migrant asylum seekers continue to stream to the U.S., says that unless Mexico can "dramatically reduce or eliminate the number of illegal aliens" coming to the U.S., it will levy tariffs on all Mexican imports, starting June 10. The tariff will begin at 5 percent, go to 10 percent on July 1, and then increase by 5 percent each month until it reaches 25 percent on Oct. 1.
The International Chamber of Commerce World Chambers Federation updated its certificate of origin guidelines, the ICC WCF said in a May 27 news release. "The latest edition of the CO Guidelines elaborates on the differences between both preferential and non-preferential certificates of origin," it said. "It focus on non-preferential rules of origin which are required for payment mechanisms, such as letters of credit for traded goods, and measures related to trade policies, like applications for Most-Favoured Nation (MFN) status. Meanwhile, preferential rules of origin determine whether goods or services are eligible for preferential treatment under Free Trade Agreements (FTA)." The group also encouraged the use of electronic certificates.
India’s Commerce Ministry is attempting to “strengthen” trade ties with Africa, according to a May 8 report by the India Brand Equity Foundation. India spoke with its embassies in 11 African countries in early May to discuss buyer-supplier “matchmaking,” Indian “trade exhibitions” in Africa and “frequent visits of policy makers, chamber of commerce and investors for familiarization with local business.” The Ministry is looking for an “effective export strategy” to “engage the Indian business community in Africa” and “instill greater confidence amongst trade partners,” the report said.
The Senate on May 8 confirmed Judith DelZoppo Pryor, Spencer Bachus and Kimberly Reed to the board of directors of the Export-Import Bank of the United States. Pryor and Bachus will serve as board members and Reed will serve as the bank’s president. Pryor and Reed serve terms through Jan. 20, 2021; Bachus' term is through Jan. 20, 2023. The confirmations gave the bank enough directors for a quorum to approve transactions of more than $10 million (see 1905070009). The U.S. Chamber of Commerce praised the confirmations in a May 8 statement: “Their confirmation restores Ex-Im to full functionality and will allow the Bank to get back to its critical mission of supporting U.S. exporters.”
Canada and Colombia were removed from the priority watch list for intellectual property violations, and Tajikistan moved off the watch list, according to the Office of the U.S. Trade Representative's annual review of countries' policies on patents, trade secrets, counterfeits and piracy. Saudi Arabia was moved up to the priority watch list because of deteriorating conditions there, including "rampant satellite and online piracy," a USTR official said April 25.
The International Trade Commission estimated that by the sixth year after the new NAFTA's ratification, the U.S. economy would have 176,000 more jobs than it would have without the new revised trade deal. That's a 0.12 percent increase compared to the status quo.
The executive director of the U.S. Chamber of Commerce's U.S.-UK Business Council, said that even a customs union would be more complicated for U.S. exporters than the status quo. Marjorie Chorlins was speaking with reporters on a conference call April 17. "The amendment proposing a customs union came very close to passing," she said, in response to a question from Export Compliance Daily. But exactly what would be included in the customs union could vary -- it does in Norway and Turkey, she said.
It is unclear how China will enforce some of the regulations introduced in its new e-commerce law, according to an April 7 report published by the American Chamber of Commerce in Shanghai, leaving some foreign companies and small businesses uncertain about selling products to China online. Some foreign department stores that previously shipped online sales directly to China have already switched to large Chinese e-commerce platforms that import through a Chinese distributor, according to the report. Others, the report said, “have pulled out of the Chinese market entirely.”
The European Union and the U.S. have not formally begun the trade talks first agreed to last July, as the 28-member bloc still does not have a mandate to negotiate. Given that, many observers are doubtful negotiations could make substantial progress this year.