A number of trade-related matters have come up since our last update.
USMCA
We mentioned previously that agencies of all three countries would be announcing implementing instructions for USMCA as we approach July 1. We posted one from CBP recently. Several were announced this past Wednesday by the three governments. The release by the Mexican Government is available in two documents:
USTR also released the same documents on the same day.
One area of importance to those trading between the two countries and desiring duty-free treatment of goods is the requirement for “Certificates of Origin” – although these will be different from those required during NAFTA. In fact, existing NAFTA Certificates will not be accepted once USMCA goes into effect on July 1. The new required certification data elements will need to be displayed on a spreadsheet similar to that attached here, which was provided by International Tariff Management, a customs regulation firm in Waterbury, CT. For more information, please contact your customhouse broker or customs legal counsel. Time is short – so don’t delay!
China
While a number of issues regarding trade, COVID-19, and Hong Kong have been in the headlines regarding our relationship with China, the White House released a paper on May 20 entitled “United States Strategic Approach to The People’s Republic of China.” While a lengthy report, it details the Administration’s adoption of a “competitive approach to the PRC, based on a clear-eyed assessment of the CCP’s intentions and actions, a reappraisal of the United States’ many strategic advantages and shortfalls, and a tolerance of greater bilateral friction.”
Brexit
Although Brexit has not been in the headlines due to the COVID-19 pandemic, negotiations between the UK and the EU have been held in a virtual atmosphere. Four rounds have been held thus far but, up to now, little major progress has been made with both sides blaming the other. It is felt that “face-to-face” sessions must take place before any substance is achieved. It may be October before a draft is realized – and that is getting close to the December 31 deadline. In the meantime, Mexico and the EU have “upgraded” their agreement and are moving ahead, as are the US and Canada, in negotiating agreements with the UK – all needing to be done by the end of this year.
Brazil
The Department of Commerce released the results of the 18th Plenary of the US-Brazil Commercial Dialogue held May 14 – a continuation of the effort to work cooperatively to improve the commercial relationship between the two countries by preventing, reducing, and removing obstacles to growing bilateral trade and investment.
We are developing a series of webinars focused on topics of historical interest to you. We will have a list shortly and will keep you informed. The series will include an ongoing “Happy Hour” where anyone who would like to contribute their concerns and experiences can participate.