The Wall Street Journal, citing unnamed sources, said the administration could initiate another Section 301 investigation into China's practices in strategic sectors. It said the sources didn't say which sectors, but said there could also be tighter export controls, with greater cooperation with European and Asian allies on subsidies, and that the administration might increase scrutiny of U.S. companies' investments in China. The article said that a Section 301 investigation has been bandied about for months, but that it has new momentum since the talks to build on the Trump administration's phase one trade agreement have been fruitless. The Office of the U.S. Trade Representative and the White House press office didn't respond to requests for comment.
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching the title or by clicking on the hyperlinked reference number.
With new data out about exports to China, economist Chad Bown of the Peterson Institute for International Economics says that China only bought 60% of the goods it promised, and about 57% of all it promised, when services are included. In all, China said it would buy $502.4 billion from U.S. sources in 2020 and 2021.
Panelists at a Washington International Trade Association conference Feb. 2 said they're not sure when the supply chain crisis will ease, noting the U.S. brought a record number of containers into the country last year. Jonathan Gold, the National Retail Federation's vice president for supply chains, said he expects the amount to be even higher in 2022.
Retaliatory tariffs against the U.S. cost exporters more than $27 billion from mid-2018 to the end of 2019, with sales to China accounting for about 95% of the losses, USDA said in a new report this month. Although the phase one U.S.-China trade deal and China’s tariff exemption programs helped to “significantly” rebound some U.S. exports to the country, the agency said U.S. market share still remained below pre-retaliatory tariffs levels one year after the deal.
China recently extended its Section 301 retaliatory tariff exclusion period for the food additive sorbitol and certain other U.S. goods, USDA's Foreign Agricultural Service said Dec. 31. The exclusion, which was set to expire last month, was extended until June 30 and marks the third time China has extended its tariff exclusion for sorbitol. USDA said the U.S. was the largest exporter of sorbitol to China in 2020.
Export Compliance Daily is providing readers with the top 20 stories published in 2021 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference numbers.
The White House released its much anticipated proclamation amending the tariff schedule to implement the five-year update to the World Customs Organization’s Harmonized System tariff nomenclature. The widespread changes to the U.S. Harmonized Tariff Schedule will take effect 30 days after the proclamation is published in the Federal Register.
John Butler, CEO of the World Shipping Council, said ocean carriers are getting mixed messages from the White House, which is encouraging carriers and ports to rev up their leverage on buyers and freight forwarders so that they pick up their cargo promptly, and from Congress. The House of Representatives is expected to vote on an Ocean Shipping Reform Act that would give the Federal Maritime Commission more authority to punish players for unreasonable demurrage charges -- the same fees used as leverage.
Maria Pagan, the nominee to lead the U.S. mission at the World Trade Organization, told Senate Finance Committee members that reforming the appellate body is a top priority because "Appellate Body overreaching has shielded China’s non-market practices and hurt the interest of U.S. workers and businesses." She said that appellate body rulings "undermined our ability to protect U.S. workers and businesses from those non-market practices."