News operations in Europe reported that the EU began the process on March 4 of ending most favored nation tariffs on Russian goods. A European Commission spokesperson confirmed the reports to Export Compliance Daily on March 7. "There was broad support within the Trade Policy Committee regarding actions taken by Russia that would justify the non-application of MFN vis-à-vis Russia," the spokesperson said. "There was strong support to work with likeminded countries on a joint statement and a willingness to take appropriate trade measures as an action. This is now work in progress. From the EU perspective, such measures would be adopted on the same procedures as those that were used to adopt the previous rounds of sanctions."
Democrats who lead the House Select Subcommittee on the Coronavirus Crisis are asking major carriers for extensive documents and proprietary information, saying they have the authority to investigate price gouging and profiteering connected to the pandemic.
A new Canadian approach to dairy tariff rate quotas, which still sharply limits the retail sale of imports, drew fire from three U.S. dairy trade groups.
The Federal Maritime Commission is planning to issue an advance notice of proposed rulemaking on container return and "earliest return date" practices by carriers, Commissioner Rebecca Dye told the Senate Commerce Committee. She also said there will be an advance notice of proposed rulemaking on detention and demurrage billing practices.
China's lack of worker rights, weak environmental standards "and anticompetitive subsidies are the hallmarks of China’s artificial comparative advantage. It is an advantage that puts others out of business and violates any notion of fair competition," the annual trade policy agenda from the Office of the U.S. Trade Representative said, and the administration is looking to advance fair competition "through all available avenues," including coordinating with other countries, using existing trade agreements, or new tools, it said.
House Republicans on the Ways and Means Committee told U.S. Trade Representative Katherine Tai that she needs to provide "a detailed analysis" of how China did or did not live up to the phase one trade deal. "We have great confidence in your abilities to address the many challenges China presents to the United States and other market economies, and we hope you will expand detailed communication on these matters so that Congress and the Administration can be partners in developing effective U.S. responses," they wrote Feb. 24.
The European Commission published a 69-page directive that is meant to be the foundation for European Union legislation requiring that large companies implement due diligence on environmental and social costs in their supply chains. The European Parliament and European Council will vote on the proposal, and if it is adopted, EU countries will have two years to write national laws to implement it.
Sanctions, rather than additional tariffs, are the most likely result of political pressure to not look soft on China, Bank of America analysts Ethan Harris and Aditya Bhave predicted. The two wrote in a Feb. 18 note that it's not surprising that China did not purchase the volume of U.S. exports it promised, but "what's unusual is the lack of follow-through from either side so far, other than empty rhetoric."
Sen. Todd Young, R-Ind., co-sponsor of the Endless Frontiers Act that was rolled up into a larger China competition package, said during a Bipartisan Policy Center program broadcast Feb. 18, "I think we’re poised to … have a genuine sit-down conference." There has been talk in the Capitol that there would be a negotiating process led by the leaders of the Republican and Democratic caucuses in the House and Senate, and that while committee chairs would have a say on the sections of the bills under their jurisdiction, there would not be a formal conference committee, whose discussions would be open to the public (see 2202020055). "That is the most methodical, I think, responsible process, and collaborative process," he added.
Federal Maritime Commissioner Carl Bentzel says that audits have already led to investigations at the FMC, but that the agency is underpowered, with about 115 employees and just six investigators. He said there have been billions of dollars worth of detention and demurrage charges, and that the FMC will be issuing a notice of proposed rulemaking to create further guidance about proper detention and demurrage charges.