Trade Policy

Today, the U.S. Department of Homeland Security (“DHS”) issued a request for comments to assist the Forced Labor Enforcement Task Force (“FLETF”) with implementation of the Uyghur Forced Labor Prevention Act (“UFLPA”).  The UFLPA, signed by President Biden on December 23, 2021, creates a rebuttable presumption that goods manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region (“Xinjiang”) or produced by an entity on a number of lists to be produced, will be denied entry into the U.S. under section 307 of the Tariff Act of 1930 (19 U.S.C. 1307).  The UFLPA was passed in response to the alleged use of forced labor of Uyghurs, Kazakhs, Kyrgyz, Tibetans, and other persecuted groups in China.  Readers can learn more about the UFLPA and the rebuttable presumption, which goes into effect on June 21, 2022, in our previous post following the UFLPA’s enactment.

Last week a decision was released in a dispute between the US and Canada related to Canada’s dairy tariff-rate quotas (TRQ) under the United States-Mexico-Canada Agreement (USMCA). The dispute settlement panel found that certain Canadian restrictions on use of the TRQs are in violations of its obligations under the free trade agreement. Specifically, the Panel found that Canada has breached its USMCA Article 3.A.2.11(b) commitments by “reserving TRQ pools exclusively for the use of processors.”

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Husch Blackwell’s third-annual international trade law year-in-review report provides a detailed look at how 2021 played out and takes a peek at how 2022 might develop. As companies begin to strategize on what a second year of the Biden administration will bring, we hope the framework presented in our report will help your business maximize potential cost savings and minimize potential risks as enforcement activity continues to rise and supply chains remain under pressure well into the coming year.

On December 23, 2021 President Biden signed H.R. 6256, wide-reaching legislation aimed at preventing the importation of goods “mined, produced or manufactured wholly or in part with forced labor” from China, in particular the Xinjiang Uyghur Autonomous Region (the “XUAR”).  See Text – H.R.6256 – 117th Congress (2021-2022): To ensure that goods made with forced labor in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China do not enter the United States market, and for other purposes. | Congress.gov | Library of Congress.  The bill specifically references cotton, tomatoes and polysilicon, but in fact covers all types of products as well as manufacturers and even companies involved in the recruitment and transport of workers.

In Husch Blackwell’s November 2021 Trade Law Newsletter, you’ll learn about the following updates in international trade and supply chain law:

  • The U.S. set to rollback existing Section 232 steel and aluminum tariffs
  • The Office of the U.S. Trade Representative extending exclusions for COVID related products
  • An update on U.S. Department of Commerce decisions

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On October 31, 2021, the Secretary of Commerce and United States Trade Representative released a statement confirming that the United States and the European Union (EU) have come to an agreement (Agreement) that will modify the current section 232 tariffs on steel and aluminum imports.

On Saturday, the United States and the European Union reached an agreement on section 232 duties being imposed because of global steel and aluminum excess capacity concerns.  The trading partners have agreed that the U.S. will adjust tariffs on steel and aluminum to allow elimination of certain U.S. section 232 duties, and the EU will suspend its retaliatory tariffs.

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.