John Porcari, a Transportation Department deputy secretary and chief operating officer during the Obama administration, has been named port envoy to the Biden administration's Supply Chain Disruptions Task Force. Porcari, who was Maryland's transportation secretary and chairman of the Maryland Port Commission before joining the federal government, has been working in the private sector in recent years, including leading the U.S. division of an Israeli company that sells artificial intelligence solutions for traffic congestion.
Sen. Chuck Grassley, R-Iowa, told reporters on a press call that his constituents are saying they're concerned there is a "lack of a trade agenda in this administration." He said that in the months since Katherine Tai was confirmed as U.S. trade representative, "I haven't seen any movement on trade agreements."
The White House announced that Vietnam has decided to either eliminate or reduce its tariffs on corn, wheat and pork. It did not specify which goods will be imported with no tariffs or how much the tariffs would be reduced. U.S. agricultural producers suffered competitively because the U.S. chose not to join the Trans-Pacific Partnership. Vietnam is a member, and lowered tariffs for other TPP members.
A proposal to use a carbon border adjustment tax as a pay-for in legislation Congress hopes to pass this fall faces many obstacles, both political and technical. Politically, it must get support from all 50 Democrats in the Senate, including Sen. Joe Manchin, whose home state of West Virginia exports about a third of its coal; in some recent years, coal was about half of all exports from the state.
After Mexico asked it for consultations (see 2108230041), arguing that the NAFTA approach to roll-up should be continued under USCMA, the Office of the U.S. Trade Representative said the request is under review. USTR spokesman Adam Hodge said that U.S. government officials "remain committed to fully implementing the USMCA, including the strong auto regional content requirements to which we all agreed.”
After the sudden death of Richard Trumka, Liz Shuler was elected president of the AFL-CIO, the federation of unions announced Aug. 20. Shuler is the first woman to lead the AFL-CIO. Shuler started as an organizer at Electrical Workers (IBEW), and worked at that union's political/legislative affairs department in Washington, D.C., before becoming secretary-treasurer of the AFL-CIO.
The Mexican government has asked the Office of the U.S. Trade Representative for formal consultations under USMCA's dispute resolution process over a disagreement on how the auto rules of origin should work. Mexico says that when it agreed to a 75% regional value content standard at the end of the phase-in period, its negotiators were assuming that once a part is considered originating, its value should count as North American as you move to assemblies, and ultimately, to the vehicle as a whole. So, Mexico says that in the text on the rules of origin, if a core part is originating, its full value is counted in a super-core part, such as an engine, and if that engine is originating, its value counts in the RVC for the vehicle as a whole.
Customs Inefficiencies, Need for Mexico-Asia Supply Chains Limit Nearshoring's Appeal, Panelists Say
Representatives from manufacturing interests operating in Mexico said the COVID-19 pandemic has presented an opportunity to argue for locating more production in North America, for both reliability and speed, but there are still obstacles to making the argument for nearshoring as an answer to vulnerable supply chains. The president of the National Council of the Maquiladora and Export Manufacturing Industry and the director of global trade compliance for Illinois-headquartered manufacturer Regal Beloit spoke at the Wilson Center's "Building a Competitive U.S.-Mexico Border" conference, which was held Aug. 10 and 11.
The International Dairy Foods Association lauded the delay in new health certificate requirements for dairy and infant formula, and said the extra months give U.S. and European officials more time to discuss how to implement the regulatory change. IDFA had said that the certificates could have disrupted supply chains for nutrition support drinks and infant formula even if European consumers were not the ultimate customers, as long as the exports went through Europe (see 2107260033).
More than a third of Republican senators are telling President Joe Biden that the European Union's plan to apply tariffs to aluminum, cement, fertilizers, iron and steel from countries that are not pricing carbon as the EU does is protectionism in disguise. They noted that U.S. steel is already more carbon efficient than the product is in the EU.