International Trade & Supply Chain

With the government shutdown entering its fourth week and with no end in sight, a number of federal agencies are feeling the pressure. The Department of Commerce and the U.S. International Trade Commission have been effectively shuttered for the past four weeks and recently the Office of the U.S. Trade Representative released a short statement indicating that they had begun furloughing nonessential personnel. A number of other agencies and departments have also had their work affected or completely suspended. Outlined below is a brief analysis the current shutdown is having on those federal agencies which are critical to imports, exports, and international trade.

Most agencies of the United States government, including the Federal Maritime Commission (”the Commission”), have been closed since December 22, 2018. Since that date shippers, ocean common carriers, and non-vessel operating common carriers in their shipper role have not had access to SERVCON, the service contract electronic filing system of the Commission. So how is it intended for these supply chain players to adhere to Commission regulations related to initial or service contracts about to be renewed, or amendments to existing service contracts during this dysfunctional period which at this point hasn’t shown even a hint of an end game? Short answer: the same as always, but without the filing obligation nor risk of sanctions (penalties). The filing requirement is temporarily lifted. Therefore, service contract activity can continue as usual without concern of penalties. There are some caveats though.

On Saturday, December 1, 2018, President Trump and Chinese President Xi Jinping met to discuss trade relations between the two countries. Following their meeting, President Trump indicated that he would postpone increasing the tariff rate to 25% on certain Chinese goods worth up to $200 billion currently covered under Section 301 List 3. This increase was originally slated for January 1, 2019 (see our previous post here).  The 10% duties on that $200 million in goods will remain in effect, however, as will the 25% tariffs on the goods worth about $50 billion, which appear on the first and second list of additional duties. According to the White House press statement, the parties agreed to “endeavor” on a 90-day period, until March 1, 2019, to discuss the restructuring of China’s trade policies and come to an agreement.

Immediately before the G-20 Summit Meeting on November 30, 2018 in Buenos Aires, President Trump, Canadian Prime Minister Trudeau, and Mexican President Nieto ceremonially signed the new United States-Mexico-Canada Agreement (USMCA). Although each leader signed the Agreement, this does not mean that it will go into effect, as the Agreement must now be approved…

Congratulations! You have developed or launched an innovative new product or service, and your business dreams are becoming a reality. It’s all very exciting.  One thing you may not have considered much, however, is whether your innovations or brand are susceptible to infringement in the international context. Will competitors try to make a knock-off product or steal your trade secrets? Are foreign companies going to ship infringing articles to the U.S. market? Protecting your intellectual property (IP) is key. Here are some fundamental suggestions to thwart such threats to your growing business.

Late on September 30, 2018, the United States and Canada reached a new trade agreement (the USMCA) that addresses many of the contentious issues that delayed Canada from rejoining the countries’ trilateral trade agreement (NAFTA).

In a joint statement, Canadian Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer said that the new agreement “will give our workers, farmers, ranchers, and business a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”

On September 27, 2018, Senators Marco Rubio (R) and Bill Nelson (D) introduced legislation that would give producers of seasonal fruits and vegetables standing to seek trade remedy relief. The proposed bill would amend the Tariff Act of 1930 to expand the criteria needed for petitioners to have standing to request the imposition of antidumping or countervailing duties.