Trade Policy

With the support of the Executive Directors of The Port of Los Angeles (“Port of L.A.”) and the Port of Long Beach, and the President of the International Longshore and Warehouse Union, President Biden announced on Wednesday October 13, 2021, after week of negotiations, that the Port of L.A. has agreed to begin operating 24/7. The Port of L.A. will join the Port of Long Beach, which has been running 24/7 for the past several weeks. Together, 40% of the containers imported to the United States go through these two ports.

On Sept. 20, the U.S. Department of Commerce published a new set of anti-dumping and countervailing duty regulations governing a multitude of administrative proceedings including:

• Changes to new shipper reviews;
• Scope ruling requests;
• Anti-circumvention inquiries;
• Covered merchandise referrals from U.S. Customs and Border Protection under the Enforce and Protect Act; and …

On October 4, 2021, Ambassador Katherine Tai, the United States Trade Representative, addressed the state of U.S.- China trade relations and the upcoming plans for the Biden Administration to improve foreign trade policy. Since taking office in January, the Administration has spent time reviewing the trade policies put in place under the Trump Administration.  There has been little movement until now as to the stance the Biden Administration would take, which created uncertainty regarding U.S. trade policy with China. Speculation grew as many questioned what would happen with the tariffs imposed on Chinese imports (under Section 301), how the administration would address the shortcomings of the “Phase 1” deal, and whether the product exclusion process would be re-instated.

The United States Environmental Protection Agency (EPA) has finalized a rule intending to reduce the production and consumption of hydrofluorocarbons (HFCs) in the United States by enforcing a cap and phasedown program under the American Innovation and Manufacturing (AIM) Act.  According to the EPA, the final rule will phase down U.S. production and consumption of…

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Don’t Forget the Chassis in the Chase for the Cure.

A new level of frustration has arisen from the ocean shipper ranks during this “post-COVID” period. Shipments from Asia to the U.S. are experiencing extreme difficulties in getting their cargo delivered, mainly due to the acute shortage of chassis to effect delivery of their containers on the U.S. side. The painful example of this is the BNSF current experience with Lot W. Aside from the impact to the importer in not being able to access its cargo and experiencing serious damage to its business, it is also likely to face serious demurrage charges from the ocean carrier. This is on top of having just experienced a quadrupling (or more) of the base FAK per container rates, and the ocean carrier choices to leave agricultural commodities sitting at West Coast U.S. ports, favoring the shipment of empty containers opting to position equipment for the lucrative Asia to U.S. trade.

The United States and European Union (“EU”) announced a “cooperative framework” to address and potentially resolve their long-running dispute over large civil aircraft subsidies, also commonly known as the Boeing–Airbus or Large Civil Aircraft disputes.  Originally initiated in 2004 when the U.S. filed a case at the World Trade Organization (“WTO”)…

President Biden issued Executive Order (“EO”) 14017 titled “America’s Supply Chains” on February 24, 2021, ordering 100-day and 1-year reviews of certain critical supply chains.  On June 8, 2021, a final report was published, officially marking the end of the 100-day reviews under EO 14017.  The reviews assessed risks posed to the following critical supply…

The Department of Defense (“DoD”) requested industry comments by April 28, 2021 to assist with the DoD’s forthcoming report identifying risks and policy recommendations regarding the supply chain for strategic and critical materials.  The Apr. 13, 2021 Federal Register notice notes “the need for resilient, diverse, and secure supply chains to ensure U.S. economic prosperity…

On March 29th, the Office of the United States Trade Representative (“USTR”) announced the suspension of all U.S. engagements with Burma (Myanmar) under the 2013 Trade and Investment Framework Agreement (“TIFA”), effective immediately.  Pursuant to this announcement, the United States will be suspending all government-to-government meetings following the military coup that occurred in February and the related escalation in violence by Burma’s military against its people.