Tariffs. Customs. Trade Remedies

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Mexico

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On 25 October 2018, New Zealand formally ratified the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) bringing the number of ratifications to four. Canada cleared its last legislative hurdle when the Senate approved it on October 25 and Royal Assent was given the same day. Canada became the fifth to ratify when it notified New Zealand of its ratification on October 29, 2018. The Australian House and Senate also approved it and sent it to the Governor General who has given Royal Assent.

The Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) is moving forward and has gained momentum recently as Japan, Singapore and Mexico have ratified the 11-party agreement and Australia’s ratification is imminent because the deal recently passed both Houses of Parliament.  Canada is closing in on ratification as well.

On October 11, 2018, Global Affairs Canada published Notice to Importers: Item 82 – Steel Goods (Serial No. 911) which informs importers of the procedures governing the administration of provisional safeguards, in the form of tariff rate quotas (TRQ), for certain steel goods that are listed in item 82 on the Import Control List (ICL). These goods were added to the ICL to implement the Order Imposing a Surtax on the Importation of Certain Steel Goods (Surtax Order). The Surtax Order establishes provisional safeguards in the form of TRQs for steel goods matching the product descriptions specified in the column 2 of the Schedule to the Surtax Order, above which a twenty-five percent surtax will apply.

On October 12, 2018, the US International Trade Commission (ITC) announced that it has instituted an investigation to assess the likely impact of a trade agreement that the President has announced he intends to enter into with Mexico and Canada.

The investigation, United States-Mexico-Canada Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors, was requested by the U.S. Trade Representative in a letter received on August 31, 2018.

US Customs and Border Protection (CBP) recently published a ruling that every company considering shifting production from China to Mexico (or Canada) as part of a strategy to mitigate the impact of the Section 301 duties should be aware of.  In Headquarters Ruling H300226 (September 13, 2018), CBP concluded that, while the NAFTA Marking Rules (19 C.F.R. Part 102) are used to determine the country of origin of articles imported into the United States from Mexico for marking purposes, the traditional substantial transformation test is used to determine the country of origin of articles for Section 301 duty purposes.

On September 30, 2018, USTR posted the following Joint Statement from United States Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland: “Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA). USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region.  It will strengthen…

With the ratification of the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (CPTPP) by Mexico, Japan and Singapore, and the expectation that other parties will follow, we anticipate the agreement will enter into force by early next year. Although the CPTPP differs from the Trans-Pacific Partnership (TPP) due to the suspension of 22 provisions, most chapters of the new agreement remain untouched.  One of those is Chapter 3: Rules of Origin and Origin Procedures. Certificate of Origin, CPTPP, verification, ASEAN, ATIGA, Form D, self-certification, trade, customs, prepare, free trade agreement

On August 31, 2018, USTR issued the following statement:

Today the President notified the Congress of his intent to sign a trade agreement with Mexico – and Canada, if it is willing – 90 days from now.  The agreement is the most advanced and high-standard trade agreement in the world.  Over the next few weeks, Congress and cleared advisors from civil society and the private sector will be able to examine the agreement.  They will find it has huge benefits for our workers, farmers, ranchers, and businesses.

On August 28, 2018, the National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce published in the Federal Register a notification advising that the Secretary of Commerce, in cooperation with the Secretaries of Treasury and Homeland Security, is, under the authority of the Marine Mammal Protection Act (MMPA), giving notice of import restrictions on fish and fish products from Mexico caught with gillnets deployed in the range of the vaquita, an endangered porpoise.