Trade and Manufacturing Monitor

News and Insight from our International Trade Practice Group

On October 15, 2018, chief Mexican trade negotiator Jesus Seade indicated that the United States is seeking to replace Section 232 tariffs on Mexican steel with an export quota program.  Seade stated that a deal regarding any potential export quotas on Mexican steel must be reached in the coming weeks, prior to the December, 1, 2018 inauguration of new Mexican President Andres Manuel Lopez Obrador. This announcement was issued just days after the trilateral trade…
One of the potential consequences of the U.S.-China trade dispute is that more companies may consider supply chain sourcing from third countries such as Mexico.   This may include direct sourcing in the third country or the processing of Chinese components into finished products in third countries prior to entry into the United States.  There are a number of issues to consider where the processing of Chinese products subject to section 301 duties occurs in third…
This week the Government of Canada announced its intent to impose restrictions on imports of seven classes of steel products to mitigate harm caused by “the diversion of foreign steel products into Canada.”  See the News Release dated Oct. 11, 2018,  and Notice of Commencement of Safeguard Inquiry. The seven classes include wire rod; stainless steel wire; hot-rolled sheet; heavy plate; energy tubular; pre-painted steel; and concrete reinforcing bar. These “safeguard measures” were…
Last Friday, the U.S. International Trade Commission (“ITC”) formally launched an investigation into the economic benefits of the new U.S.-Mexico-Canada Agreement (“USMCA”) that is to replace NAFTA. Under the Trade Promotion Authority (“TPA”) law, known as the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, the ITC must prepare a report that assesses the likely impact of the Agreement on the U.S. economy as a whole and on specific industry sectors, as well as…
Yesterday, the Office of the U.S. Trade Representative (“USTR”) officially notified Congress that it would be launching separate trade discussions with the European Union, Japan, and the United Kingdom.  The letters sent to Congress provide notice of the Administration’s intent to negotiate trade agreements with each partner as required by the Bipartisan Congressional Trade Priorities and Accountability Act of 2015, often referred to as Trade Promotion Authority (“TPA”).  USTR must wait at least 90 calendar…
As we previously reported, the United States, Canada, and Mexico have reached agreement on the United States-Mexico-Canada Agreement (“USMCA”) to replace the North American Free Trade Agreement (“NAFTA”), which has governed trade between the three countries since 1994.  Article 32.10 of the agreement requires each country to notify the others of any intention to negotiate a free trade agreement with a “non-market country.”  The provision defines a “non-market country,” as any country that:…
On Sunday, the heads of state of Canada and the United States agreed on terms for a new trilateral deal with Mexico.  The agreement, now known as the United States-Mexico-Canada Agreement “USMCA,” provides several new updates to its NAFTA predecessor.  The deal’s terms, including those established in August in an agreement between the U.S. and Mexico, are contained in 34 chapters of various topics from Agriculture to Macroeconomic Policies and Exchange Rate Matters.   In addition,…
Brexiteers claim that leaving the EU single market and customs union creates a golden opportunity for the UK to regain power over its international trade.  The potential future post-Brexit free-trade agreement that has received the most attention is that between the U.S. and the UK.  A U.S.-UK Trade and Investment Working Group was set up in July 2017 to lay the groundwork for a potential future U.S.-UK free-trade agreement after Brexit.  Political interest on both sides of the…
In a joint statement issued yesterday, the United States and Japan announced that the two countries will begin discussions to enter into a bilateral trade deal.  The announcement comes after President Trump and Prime Minister Shinzo Abe attended a Summit Meeting in New York to discuss a host of issues, including trade.  The joint statement highlighted that the two countries will enter into negotiations for a trade agreement that will cover goods and services, as…
On Monday, President Trump and President Moon Jae-in of South Korea signed a revised U.S.-Korea (known as “KORUS”) free trade agreement on the sidelines of the United National General Assembly meeting this week in New York.  In April 2017, President Trump indicated that he wanted to either renegotiate or terminate the then-five year old agreement.  Since then, the parties have engaged in trade talks, under the auspices of the existing KORUS review procedures and otherwise,…