Canada's trade minister, Mary Ng, announced that Canada will launch a USMCA dispute with the U.S. over the continued antidumping and countervailing duties on some Canadian softwood lumber exports.
In filings at the USMCA Secretariat, Mexico and Canada say the Uniform Regulations for USMCA are clear, and say that " roll-up applies to the calculation of [regional value content] RVC for a vehicle. It obliges Parties to take 'no account' of the non-originating materials contained in an originating good when that good is used in the subsequent production of another good."
Senate Finance Committee members praised the experience of Doug McKalip, the administration's nominee to be chief agricultural negotiator in the Office of the U.S. Trade Representative. McKalip, a senior adviser on international trade policy and other matters to the agriculture secretary, is a career staffer at USDA.
U.S. Trade Representative Katherine Tai asked for consultations with Mexico over a 2021 amendment to Mexico's Electric Power Industry Law that privileges the state-owned electric utility, and over 2019 and June 2022 actions that privilege PEMEX, Mexico's state-owned oil and gas company.
Ahead of a meeting of the top trade officials of Canada, Mexico and the U.S., business groups from all three countries said each country is taking "steps that have undermined or risk undermining the benefits negotiated through enactment of the USMCA." The Business Roundtable, the Business Council of Canada and the Consejo Mexicano de Negocios did not specify what actions they find troubling. They did say that governments and business interests should work together since "[b]usinesses, workers, farmers, and families are navigating many challenges and risks, including rising costs due to inflation, supply chain disruptions, and labor shortages."
Mexico announced that it will examine whether the Panasonic Automotive Systems plant in Reynosa violated the rights of its workers (see 2205180061) under the provisions of the USMCA.
Requests for action from the Office of the U.S. Trade Representative should go beyond asking USTR to go and fix a problem via the World Trade Organization, USMCA or other dispute settlement system, said Daniel Stirk, senior associate general counsel at the agency. Speaking on a panel at the Georgetown International Trade Update, Stirk said that instead, trust that the office is already aware of the issue and is taking steps to solve it, and if you still decide to approach USTR, come with thoughtful solutions.
The U.S. asked for formal dispute consultations with Canada, as it believes that the federal notice that Canada issued about changes in how it administers dairy tariff rate quotas do not comply with the dispute panel's criticisms.
A half-dozen countries that negotiated the Trans-Pacific Partnership -- including two that never ratified it -- and Korea, the Philippines, Indonesia, Thailand and India agreed to start negotiating agreements with the United States on trade, supply chains, digital standards, anti-corruption, and tax and investment from the U.S. for decarbonization and infrastructure.
Former Mexican ambassadors to the U.S. and a former U.S. ambassador to Mexico expressed anxiety that Mexico is not able to capitalize on the move to nearshore or friendshore for a variety of reasons.