The Canadian Parliament is moving the successor to NAFTA along, so that a March ratification vote is still looking likely, news from Canada says. While the U.S.-Mexico-Canada Agreement will be reviewed by the agriculture, natural resources and industry/science/technology committees, not just the trade committee, the other committees only have until Feb. 25 for that review, a report from ipolitics said.
Exports to China
Export Compliance Daily is providing readers with some of the top stories for Feb. 10-14 in case you missed them.
The European Union is beginning an antidumping duty investigation on aluminum extrusions from China, the European Commission said in a Feb. 14 notice in the EU Official Journal. Preliminary duties on Chinese aluminum extrusions imposed in connection with this investigation could come in seven to eight months, the notice said.
China will accept exemption applications for retaliatory tariffs on nearly 700 U.S. products -- including a range of agricultural goods, metals and oils -- beginning March 2, China’s Finance Ministry said in a Feb. 17 notice, according to an unofficial translation. The 696 exempted items include beef, pork, seafood, soybeans, crude oil, certain types of alcohol and more. In their applications, Chinese importers can apply for exemptions for additional goods that are not included on the exempted list, the notice said. China said it will respond to applicants in a “timely manner.”
President Donald Trump said he does not want to make it more difficult to export U.S. goods, adding that he has “instructed” his administration to make it easier for countries to do business with the U.S. “The United States cannot, & will not, become such a difficult place to deal with in terms of foreign countries buying our product, including for the always used National Security excuse, that our companies will be forced to leave in order to remain competitive,” Trump said in a series of Feb. 18 tweets. He added that the U.S. wants to sell to “China and other countries” and “We don’t want to make it impossible to do business with us. That will only mean that orders will go to someplace else.”
Discussions within the Commerce Department to expand U.S. export control jurisdiction over foreign exports to Huawei and beyond would have a chilling effect on the U.S. semiconductor industry, said John Neuffer, president of the Semiconductor Industry Association. Neuffer said current U.S. export restrictions on Huawei are already hurting the industry’s ability to sell to China -- which represents about 35% of U.S. semiconductor sales -- and more restrictions would further alienate Chinese customers who are weary of being added to Commerce’s Entity List. “Some of them are afraid they’re next,” Neuffer said during a Feb. 18 panel hosted by the Information Technology and Innovation Foundation.
In the Feb. 13-18 editions of the Official Journal of the European Union the following trade-related notices were posted:
Half the companies surveyed by the U.S.-China Business Council say that it's too soon to tell if the tariffs in the China trade war were worth it for the gains won at the negotiating table, even as 78 percent of respondents welcome the phase one deal. Companies see the phase one deal -- which takes effect Feb. 14 -- as something that will prevent more tariff hikes. Of those who are directly affected by the commitments in phase one -- 60 percent of the companies -- the purchase promises matter most, with 30 percent saying that's the most relevant plank. Protection of intellectual property was a close second, with 27 percent of companies saying that's most important.
The Commerce Department Bureau of Industry and Security asked for an 8% boost in funding for the 2021 fiscal year to increase export control compliance and enforcement, bolster initiatives to counter China, and to better identify emerging and foundational technologies. BIS’s request for a $10 million budget increase, submitted to Congress last week, comes as the agency plans to roll out a series of export controls on sensitive technologies (see 1912160032), which will increase its involvement in the Trump administration's effort to sustain the U.S.'s technological advantage over China. BIS specifically asked for just over $1 million and five new positions to help it control emerging and foundational technologies and enforce those controls.
KPMG issued a Feb. 11 alert detailing recent announcements made by China to simplify customs and trading procedures as the country battles the coronavirus outbreak (see 2002030034). China will exempt certain import duties on ambulances and cars used for emergency purposes -- as well as medical supplies such as reagents, disinfection equipment and protective supplies -- through March 31, KPMG said. Importers are also eligible for tax refunds on qualifying supplies if they already paid duties. KPMG said to expect “more tax relief measures” if the virus continues.