Dear Members and Friends:
For those fathers out there, hope you had a great day yesterday.
A number of documents became available last week. Last Tuesday, CBP released an update to their “Interim Implementing Instructions.” It would be important to review these as the USMCA takes effect on July 1.
For those of you serving the auto industry, eight weeks ago the USTR issued a notice indicating that a North American producer of passenger vehicles and light trucks (vehicle producer) may request an alternative to the standard staging regime for the rules of origin under USMCA. Importantly, to be assured of consideration, a vehicle producer must submit a petition with a draft alternative staging plan no later than July 1, 2020. A vehicle producer must submit a petition with its final alternative staging plan no later than August 31, 2020. As July 1 is right around the corner, please ensure that your plans are ready to be submitted.
It is no surprise that COVID-19 is affecting decisions on investment. The firm of Anderssen Gauguin recently produced an analysis of the potential economic impacts of COVID-19 with a specific view on Mexico. The study was provided to us by NASCO. In the short term, bank consensus is that the GDP for 2020 in Mexico could drop from (6.4%) to (9.0%). Overall conclusions are that “Due diligence will require new skills to understand the short- and long-term impacts to industries and companies, as well as how firms can add value and mitigate risk, in order to take advantage of investment opportunities.”
The Albright Stonebridge Group also has produced an update of the progression and response of regions to COVID-19 with a large impact to Latin America, especially Mexico, Brazil, Peru and Chile.
Our friend and prolific writer Colin Robertson has just released his latest study, “What to Do About China: A Menu of Options.” He indicates that “We need to consider a menu of options for eventual reengagement with China: on sovereignty and security, on diplomacy, on trade, on human rights, on Hong Kong, on Taiwan. We need to be conscious that developing and implementing a China policy will be challenging. Effectiveness requires popular support and cross-party consent. It will need to adapt to external events. Most of all, it will require a China willing to deal with us, not as an American vassal-state, but as a middle power, G-7 member, and G-20 partner.” Very important reading on a very important issue.
Getting back to Mexico, the Mexican Ministry of Economy with the support of our Consulate General of Mexico in Chicago is organizing a webinar to discuss USMCA and the new opportunities it will bring to the region, with a particular focus on the Greater Chicago Area. The event is on Tuesday, June 30, at 10:00 am Central. The honored speaker will be with Undersecretary for Foreign Trade Luz María de la Mora. You can register here.
Thanks for your support and stay safe.