Later today, President Trump will sign the house and senate approved USMCA bill. The replacement for the 25-year old trade agreement NAFTA won’t immediately take effect as Canada remains the only country that has not yet approved the USMCA (expected to do so in a few weeks). Give me a call/text if you have questions how the USMCA will impact you or your business – 832-896-6288 or send me an email at firstname.lastname@example.org, email@example.com.
As you are aware, the Senate passed the USMCA legislation last week. According to Reuters, President Trump will sign the USMCA trade agreement next Wednesday at the White House. The Reuters article cites unnamed sources regarding invitations for the upcoming ceremony.
This new US Mexico Canada Agreement (USMCA) wills replace NAFTA and still requires formal approval from Canada.
After passing through the House, the Senate just passed the USMCA trade deal by 89-10 vote. The new trade deal will now head to Trump’s desk for his signature.
Contact experienced trade attorney David Hsu if you have any questions on how the new trade deal will impact your business, phone/text 832-896-6288 or email firstname.lastname@example.org, email@example.com.
As you are aware, the U.S. House of Representatives passed an updated version of the USMCA earlier this week. The passage by the House includes revisions to an agreement initially agreed to by the US, Mexico and Canada in September 2018.
The next step for the USMCA is the Senate, where it is not expected to be put to a vote until 2020.
What are some of the changes in the USMCA versus NAFTA?
- If autos are to qualify for no tariffs, then 75% of the components must be manufactured in Canada, Mexico or the United States (currently at 62.5%).
- 30% of the work on the vehicle must be performed by individuals making $16 or more per hour, with a 40% requirement in 2023.
- The new agreement allows works in Mexico to unionize.
- The definition of steel and aluminum for Mexico in regards to the automotive rules of origin includes “melted and poured” in North America.
- USMCA will be subject to mandatory review every 6 years, if all parties agree, then there is a 16 year period for review, with subsequent reviews every 16 years.
If you have any further questions how your business may be impacted by the USMCA if and when it is passed next year, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at firstname.lastname@example.org or email@example.com.
This past Wednesday, the Trump administration warned the impeachment inquiry would likely result in no congressional action on the United States-Mexico-Canada trade deal (USMCA).
While the US Trade Representative Robert Lighthizer believed the deal would pass the House, Trump was less confident and doesn’t believe the Houston majority leader will set a vote to pass the trade agreement.
Last year, Canada, the US and Mexico reached an agreement to replace the North American Free Trade Agreement with the final step being ratification among the three members. Canada and Mexico have already urged the US to ratify the agreement sooner rather than later.
If you have any questions how the new USMCA may impact your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
The Global Affairs Canada organization includes individuals, businesses (including SMBs), industry associations, experts, consultants, academics, civil society organization, labour unions, governments, indigenous groups, students and youth and other interested Canadian stakeholders.
In late July, Global Affairs Canada started discussions whether South Korea, Taiwan, Thailand and the United Kingdom should join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).
An announcement was published in the Canada Gazette, Part 1. Global Affairs Canada has has begun soliciting comments for whether these countries (and China) should join the CPTPP. The deadline for submissions is midnight, August 25, 2019.
The announcement asks for the following information:
1. Contributor’s name and address and, if applicable, the name of the contributor’s organization, institution or business;
2. The specific issues being addressed; and
3. Where possible, precise information on the rationale for the positions taken, including any significant impact it may have on Canada’s domestic or international interests.
Additionally, they would like feedback on specific markets that Canadians and businesses would support entry to the CPTPP.
The full text of the announcement and additional topics Global Affairs Canada would like feedback on can be found here:
A group of 14 House Democrats sent a letter to House Speaker Nancy Pelosi asking her to to bring a vote by the end of the year on USMCA, the renegotiated trade with Canada and Mexico to replace NAFTA.
The letter to Speaker Pelosi reads:
“It is imperative that we reach a negotiated agreement early in the fall. Canada and Mexico are by far our most important trading partners, and we need to restore certainty in these critical relationships that support millions of American jobs.”
The 14 House Democrats:
Colin Allred (D-Texas)
Scott Peters (D-Calif.)
Kendra Horn (D-Okla.)
Haley Stevens (D-Mich.)
Anthony Brindisi (D-NY)
Joe Cunningham (D-SC)
Lizzie Fletcher (D-Texas)
Ben McAdams (D-UT)
Josh Harder (D-Calif.)
J. Luis Correa (D-Calif.)
Sharice L. Davids (D-Kansas)
TJ Cox (D-Calif.)
Susie Lee (D-Nevada)
Greg Stanton (D-Arizona)
According to the Associated Press, President Donald Trump had a rally in Wisconsin to promote his trade deal with Mexico and Canada, known as the United States-Mexico-Canada Agreement (USMCA). Trump was the first Republican to win Wisconsin since Ronald Reagan in 1984 and recent polling indicates Wisconsin is another battleground state in 2020.
Wisonsin exports $31 million worth of goods to Canada and $15.2 million worth of goods to Mexico; importing $15.5 million in goods from Canada and $9.3 million in goods from Mexico.
The USMCA will likely be ratified in Mexico and Canada, but Congress has not yet supported ratification. Democrat Congress members want strong labor and environmental protections. The AP article said a vote was likely to be held in September at the earliest.
If you have any questions how the new USMCA will impact your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
According to a news article from the vancouverisawesome.com webasite, a Vancouver-based company has cancelled shipping their sofa beds into the US due to the 1,732% antidumping duty on Chinese mattresses that are used in their sofa beds. The U.S. Department of Commerce in May dumping rates of 34% to 75% for some Chinese manufacturers with an “all others” rate of 1,732%.
The company claims their sofa beds costing $600 will cost $113,000 due to the tariffs because the sofa beds include the mattress.
Fortunately the company does not only sell beds, and can rely on their Canadian made products. In fact, being made in Canada will probably make this company more competitive than their competitors who rely on Chinese imports for other goods that are likely covered under Lists 1-3 and a potential List 4.
The Commerce Department has set October 11, 2019 as the announcement date for their final decision on antidumping duties for mattresses imported from China.
If you have questions on how this or any other antidumping duty or countervailing duty will impact you and your business, contact experienced trade attorney David Hsu at 832-896-6288 or by email at firstname.lastname@example.org, email@example.com.
According to Canada’s National Observer, Conservative Leader Andrew Scheer has urged Prime Minister Justin Trudeau to step up inspections on all products from China and to consider levying tariffs on imports on Chinese imports.
The request was sent by letter last Friday in which Scheer urged Prime Minister Trudeau to take a harder line on China’s second largest trade partner. China detained two Canadians in December just days after Canada arrested Chinese high-tech executive Meng Wanzhou in Vancouver on a U.S. extradition warrant. Additionally, China has increased inspections that have led to the suspension or obstruction of key Canadian agricultural imports, including pork and canola. Last week, China announced an additional suspension of all imports of Canadian meat products because of claimed concerns over fraudulent inspection reports.
In Scheer’s publicly released letter, he writes: “There is no other way to put this: Canada is being bullied by the Chinese government and you have done nothing to stand up for Canada in response”. Scheer asks Prime Minister Trudeau to increase Canadian inspection of all imports from China and the potential of placing tariffs on some of the $75 billion worth of goods imported from China last year.