Canadians Alarmed by Tariff Talk

A new report from the Canadian Chamber of Commerce’s Business Data Lab (BDL) highlights just how mutually beneficial the Canada-U.S. trade relationship is and offers a stark warning about the serious economic consequences of enacting protectionist policies. “There’s an opportunity to learn from long-forgotten history, here," the authors write. "It turns out that the 10% tariff recently proposed by Trump has some echoes of a tariff that was enacted by President Nixon back in 1971. That policy—which was much narrower than Trump’s recent proposal—was a disaster and was quickly reversed.”

Sanctions Guidance Updated by G7

The G7 published joint guidance for industry on preventing evasion of the export controls and sanctions imposed on Russia. The guidance document contains items which pose a heightened risk of being diverted to Russia, updated red flag indicators of potential export control and/or sanctions evasion, Best practices for industry to address these red flags, and screening tools and resources to assist with due diligence.

Connected Vehicle Rule Published

The Commerce Department proposed prohibiting the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to the People’s Republic of China (PRC) or Russia. Published by the Bureau of Industry and Security, the rule focuses on hardware and software integrated into the Vehicle Connectivity System (VCS) and software integrated into the Automated Driving System (ADS). These are the critical systems that, through specific hardware and software, allow for external connectivity and autonomous driving capabilities in connected vehicles.

USTR Finalizes China Tariff Hikes

The Office of the United States Trade Representative (USTR) announced final modifications concerning the statutory review of the tariff actions in the Section 301 investigation China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The tariff increases announced in May 2024 were largely adopted, with several updates to strengthen the actions to protect American businesses and workers from China’s unfair trade practices following the review of more than 1,100 comments from the public.

Welcome to Your WTTL

The Washington Tariff and Trade Letter introduces a web-based format for easier review, research and sharing. Clicking on a story in the newsletter will now bring you to the full text on our new web site. A .pdf version of the newsletter is available below. For any questions about website access and your subscription, please contact us at Info@TradeRegs.com – Or call the Editor, Frank Ruffing, at +1.703.283.5220

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Vol 44 No. 42 October14, 2024

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The latest news

USTR Opens 301 Tariff Exclusion Process

The Office of the United States Trade Representative announced Tuesday that it is opening a process for interested persons to request that certain machinery be temporarily excluded from Section 301 …

Mexico Seeks to Dampen China Import Explosion

Mexico wants to reduce its dependence on imports from China and is asking some of the world’s biggest manufacturers and tech firms operating in the country to identify Chinese products and parts that could be made locally. The country’s deputy trade minister, Luis Rosendo Gutiérrez, told the Wall Street Journal that Mexico wants U.S. carmakers and semiconductor manufacturers as well as global giants in the aerospace and electronics sectors to substitute some goods and components manufactured in China, Malaysia, Vietnam and Taiwan.

More trade & tariff news

AUSTR Demirjian at Global Forum on Steel Excess Capacity

Assistant U.S. Trade Representative for Small Business, Market Access, and Industrial Competitiveness Sushan Demirjian today delivered the following remarks to members of the Global Forum on Steel Excess Capacity (GFSEC).

China Goes After Turkiye on Autos

China invoked dispute settlement proceedings against Türkiye at the World Trade Organization over Ankara’s decision to impose additional tariffs on imports of vehicles and certain other passenger vehicles originating from China. Beijing lodged an Article 4 complaint under the WTO’s dispute settlement understanding with Türkiye challenging the “additional tariffs of 40% on imports of electric vehicles and certain other passenger vehicles originating in China, and set import permit restrictions.”

On the calendar

America’s Protectionist Policies Are Backfiring

Though intended to pressure perceived adversaries like China, unilateral US tariffs and economic sanctions have only raised prices for American consumers without achieving broader strategic goals. The US and its allies would be wise to abandon unilateralism and pursue coordinated multilateral measures, Former World Bank chief economist and former first deputy managing director of the International Monetary Fund Anne Krueger of Johns Hopkins discusses the ineffectiveness of tariffs and sanctions in projecting national strategy.

EU adopts first ever Mutual Recognition Agreement for professional qualifications

The EU and Canada adopted this week a Mutual Recognition Agreement (MRA) on the professional qualifications for architects, marking the EU's first such bilateral agreement. "This MRA will streamline the recognition process, making it easier for architects to work across both jurisdictions, allowing them to explore new business opportunities and export their world-class skills," the Commission stated in the announcement.

$25 Million for Specialty Crops Promotion

U.S. Department of Agriculture Under Secretary for Trade and Foreign Agricultural Affairs Alexis M. Taylor announced that USDA has awarded more than $25 million to support eight projects under the new Assisting Specialty Crop Exports (ASCE) initiative. “Specialty crop exporters face myriad import requirements in every foreign market they enter, yet they often don’t have the economies of scale to develop the required certifications or negotiate favorable terms. ASCE will help smaller exporters by directly addressing barriers and supporting industry’s efforts to obtain needed certifications,” Taylor said.

Review: End-Use Certificate (DLA Form 1822)

The End-Use Certificate (DLA Form 1822) is submitted by individuals prior to releasing export-controlled personal property out of DoD control. Export-controlled personal property are items listed on the United States Munitions Lists or Commerce Control List, and includes articles, items, technical data, technology, or software. Transfers of export- controlled personal property out of DoD control may be in tangible and intangible forms.

Emerging Tech Oct 21 & Sensors Advisory Committees Oct 29

The Emerging Technology Technical Advisory Committee (ETTAC) will meet on October 21, 2024, and The Sensors and Instrumentation Technical Advisory Committee (Committee) will meet on Tuesday, October 29, 2024

Bribes were paid to provide actuators to Hindustan Aeronautics Ltd, builder of the LCA Tejas fighter aircraft, as well as to rail operators.

Moog fined $1.68 million for Indian bribes

The Securities and Exchange Commission announced that Moog Inc., a New York-based global manufacturer of motion controls systems for aerospace, defense, industrial and medical markets, agreed to pay a civil penalty of $1.1 million to resolve the SEC’s charges that it violated the Foreign Corrupt Practices Act (FCPA) arising out of bribes paid by its wholly owned Indian subsidiary, Moog Motion Controls Private Limited .

USTR Eyes Steel Overcapacity at G20 Forum

The Administration plans to release new policy ideas on how to respond to non-market economy policies and practices, Assistant US Trade Representative Sushan Demirjian told members of the Global Forum on Steel Excess Capacity yesterday. “USTR is considering how non-market policies and practices, including non-market excess capacity, threaten the integrity of our supply chains,” she told the gathering.