After getting public pressure from House Democrats on labor practices at Manufacturas VU, a Michigan-headquartered supplier of interior automotive trims, the Office of the U.S. Trade Representative has opened a second rapid response request with Mexico about what's happening at the plant in Piedras Negras.
USMCA
The U.S.-Mexico-Canada agreement is a free trade agreement between the three countries, also known as CUSMA in Canada and T-MEC in Mexico. Replacing the North American Free Trade Agreement (NAFTA) in 2020, the agreement contains a unique sunset provision where, after six years (in 2026), any of the three parties may decide not to continue the agreement in its current form and begin a period of up to 10 years where USMCA provisions may be renegotiated.
In a joint statement after the second annual deputies' meeting for the NAFTA successor, U.S., Mexican and Canadian officials said they talked about the concrete steps needed to ensure that goods made with forced labor cannot be imported into Mexico, Canada or the U.S.
CBP issued the following releases on commercial trade and related matters:
Two U.S. readouts of the meetings between deputies from the three USMCA countries focused on a multitude of irritants and concerns the U.S. has with Canada and Mexico but didn't mention talks on how to resolve the U.S. violation of USMCA in its interpretation of the auto rules of origin (see 2301110058). Mexico and Canada did not issue their own readouts.
Senate Finance Committee Chairman Ron Wyden, D-Ore., and ranking member Sen. Mike Crapo, R-Idaho, told U.S. Trade Representative Katherine Tai that USMCA's full potential has not been realized, and that USTR must pursue "robust enforcement."
CBP issued the following releases on commercial trade and related matters:
T-connector and tail light converter kits with some Chinese parts don't qualify for preferential tariff treatment under the USMCA, according to a recently released CBP ruling, dated Nov. 15, 2022.
Current and former government officials from the U.S., Mexico and Canada agreed that the recent Three Amigos summit was successful, but that implementing the ambition of relocating a semiconductor supply chain to North America will need dedicated attention. The officials spoke on a webinar hosted by the Council of the Americas and Wilson Center on Jan. 20.
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Senate Finance Committee member Bill Cassidy, R-La., wants the government to greatly expand its tariff liberalization, to cover many South American and Central American countries and to cover goods made in factories that moved from China to the Western Hemisphere.