Anti-Bridge Group Issues Fake Eviction Notices

(WDIV Detroit)

Detroit Neighborhood Gets Phony Eviction Papers

A group against a proposed second bridge between Detroit and Canada recently issued fraudulent eviction notices to Detroit residents.

The group, Americans for Prosperity, supports Ambassador Bridge owner Matty Moroun's battle against Gov. Rick Snyder's proposal to construct a second bridge to Canada.

The fake eviction papers were posted on the front doors of homes in the area — the Delray neighborhood of Detroit — where the proposed second bridge could be built.

Maria Baltierrez, who lives in Delray, said she received one of the phony papers and was not sure if it was real until she looked at it closely. Read more here.

Cargill CEO: Move Forward on Free Trade

(Greg Page — Star Tribune)

Growing up in the late 1960s and 1970s in North Dakota, I came to appreciate the need for markets far away from my hometown in order for the local farmers to make a go of it — whether those markets were in Bismarck or Bogota.

The simple fact is that our local farm economies wouldn't survive without access to other markets.

Unfortunately, free trade agreements with South Korea, Panama and Colombia have been sitting idle as politicians sort out the political calculus and possible impact of these three agreements on 2012 reelection chances.

In my mind, elections should be the product of decisionmaking, not its purpose — especially when the future of local farmers and the nation's economy are at stake.

As the United States and global economies struggle to recover from the 2008 financial collapse, and as too many people across the globe remain jobless and hungry, it is irresponsible to accept the status quo on trade. Read more here.

China Terminates Wind Power Equipment Subsidies After U.S. WTO Challenge

(World Trade Interactive)

The Office of the U.S. Trade Representative announced June 7 that China has ended certain wind power equipment subsidies that the U.S. had challenged at the World Trade Organization. USTR notes that this is the third successful WTO challenge the U.S. has brought against Chinese government subsidies and that in each case China agreed to eliminate the subsidies following formal consultations.

China’s Special Fund for Wind Power Equipment Manufacturing subsidies took the form of grants to Chinese wind turbine manufacturers that agreed to use key parts and components made in China rather than purchasing imports. The U.S. estimated that the grants provided to Chinese companies since 2008 could have totaled several hundred million dollars. USTR states that China never notified the WTO of these subsidies (or those involved in the two prior cases) despite an obligation to do so under WTO rules and that China has in fact submitted only one subsidies notification since becoming a WTO member in December 2001. Read more here.

Perimeter Negotiations on a Short Fuse

(Eric Morse — Ottawa Citizen) The prime minister and the president of the United States took time out from the recent G-8 meetings in France to discuss perimeter security. The Deauville talks between Barack Obama and Stephen Harper are the first time the issue has come onto the radar since early February when the two launched a commission to look into the issue -hardly surprising given assorted political distractions like wars and elections. But the government's throne speech Friday places the issue back on top of the agenda. The topic is vast, complex, and carries massive baggage. How (for instance) are Canada's immigration interests to be squared with the Americans' when our domestic workforce is shrinking and theirs isn't? How does that affect efforts to rationalize approaches to refugee and visa policy? Read more here.

Legislative Update: FTAs Hit Snag on TAA, Trade Remedy Bills Introduced

(World Trade Interactive)
 
Progress toward advancing free trade agreements with Korea, Colombia and Panama has slowed due to a dispute over the extension of the Trade Adjustment Assistance program. In the meantime, two bills aimed at tightening enforcement of U.S. trade remedy laws, which some observers say could pass to “offset” the FTAs, have been introduced in the Senate.

FTAs
Congressional consideration of the FTAs has been delayed with the emergence of a dispute between Republicans and Democrats about the extension of TAA. Democrats want a restoration of the expanded TAA authorized in 2009, while Republicans bent on cutting the federal budget deficit argue that the added expense of that program is unjustified. Obama administration officials said last month that none of the FTA implementing bills will be submitted to Congress until an agreement on TAA has been reached. Republicans have since responded that they will block Senate approval of President Obama’s nominees for trade-related positions such as commerce secretary and deputy commerce secretary until the FTAs are sent to Capitol Hill.

Trade Remedy Enforcement
Sen. Ron Wyden, D-Ore., introduced May 26 legislation (S. 1133) to improve the tools available to federal agencies to prevent the evasion of antidumping and countervailing duty orders. Wyden said the Enforcing Orders and Reducing Circumvention and Evasion (ENFORCE) Act is directed at “foreign suppliers and dishonest importers who evade and flout the antidumping and countervailing duties that protect American business and workers from grievous economic harm.” He added that the bill would also address “lollygagging” by U.S. Customs and Border Protection and U.S. Immigration and Customs Enforcement by establishing strict timelines for them to investigate and act on allegations of AD/CV duty order evasion.

A separate trade enforcement bill (S. 1130) was introduced the same day by Sen. John D. Rockefeller IV, D-W.V. Rockefeller said the Strengthening America's Trade Laws Act “should be viewed as a placeholder for a more comprehensive updated bill that I plan on introducing after the [Memorial Day] recess.” He indicated that this measure will strengthen CV duty laws, including by allowing currency manipulation to be treated as an unfair subsidy that can be met with CV duties, and require Congress to approve any regulatory change meant to conform with an adverse World Trade Organization decision.

Customs Reauthorization
The Senate and the House of Representatives are continuing to draft an updated customs reauthorization bill, which is expected to be taken up by lawmakers later this year. Businesses, organizations and individuals with an interest in resolving problematic customs issues should take this opportunity to make sure those issues are part of the forthcoming legislation.

Product Safety
The House Energy and Commerce Committee has yet to take up a bill amended and approved by the Subcommittee on Commerce, Manufacturing and Trade May 12 that would revise the Consumer Product Safety Improvement Act of 2008 to reduce some of the regulatory burdens created by that law. A committee memo describing the current version of this bill (H.R. 1939, the Enhancing CPSC Authority and Discretion Act of 2011) can be found at the link below.

Burma Sanctions
On May 26 joint resolutions to extend economic sanctions against Burma for another year were introduced in both the House and Senate. These sanctions include a ban on all products of Burma that are imported directly or indirectly into the U.S., which applies to merchandise intended for commercial and personal use, including gifts or informational materials; merchandise landed, but not entered for consumption, in the U.S. (e.g., goods placed in a foreign-trade zone or bonded warehouse); and imports for transshipment or in-transit movements of products of Burma intended or destined for a third country. The ban does not apply to merchandise for which the Office of Foreign Assets Control has issued an import license, which may be entered for consumption or in-transit movement through the U.S., or importations for U.S. or foreign diplomatic and consular officials.

Other
Other trade-related bills that have been introduced recently include the following. The texts of these bills are or will be shortly available on the Library of Congress’ Web site.

• H.R. 2073 – to require the Secretary of Energy to implement country-of-origin disclosure requirements with respect to motor vehicle fuels
• S. 1092 – to address aviation security in the United States by bolstering passenger and air cargo screening procedures
• H.R. 2039 – to suspend temporarily the duty on nightlights of plastic
• S. 1069 – to suspend temporarily the duty on certain footwear
• H.R. 1939 – to provide the CPSC with greater authority and discretion in enforcing the consumer product safety laws

Go here here for more information and links to source documents.

News from TAHOCO: Weekly Updates

An updated list of recently published US government memorandums, notices, regulations and decisions for the week ending June 3, 2011 is now available on our website here.

ACTA Is Finalised and Ready for Signing, Says Japan

(Out-Law.com)

An international trade agreement that targets intellectual property (IP) rights infringers has been finalised, the Japanese Ministry of Foreign Affairs has said.

The Anti-Counterfeiting Trade Agreement (ACTA) is a voluntary international treaty that seeks to provide standardised international enforcement of IP rights. ACTA was negotiated in secret by the Governments of a collection of countries over the past three years.

The treaty has been controversial because of secrecy surrounding its negotiation; because it operates outside of existing trade bodies the World Trade Organisation (WTO) and World Intellectual Property Organisation (WIPO); and because earlier drafts reportedly sought to impose measures which could interfere with individuals’ rights.

ACTA has been finalised since April and has been open to countries to adopt into since the start of May, the Japanese Ministry of Foreign Affairs said.

“The Anti-Counterfeiting Trade Agreement (ACTA) was opened for signature on May 1, following its adoption by participants in its negotiations on April 15. The Government of Japan will receive signatures as the Depositary of this Agreement,” the Japanese Ministry of Foreign Affairs has said in a statement. “The Government of Japan looks to continue efforts with the other concerned countries with a view to bringing the ACTA into effect as soon as possible,” the Japanese Ministry said. Read more here.

“Doha Light” Takes Shape as WTO Members Lower Ambitions

(Bridges Weekly)

After weeks of consultations following an impasse in the long-running Doha Round negotiations, WTO members say they are now ready to pursue clinching an “early harvest” package focused on least-developed countries (LDCs) by the end of the year.

Following high-level meetings among political leaders in the context of an Asia-Pacific Economic Cooperation (APEC) conference and an Organisation of Economic Co-operation and Development (OECD) Ministerial, WTO members convened on 31 May in an informal Trade Negotiations Committee (TNC) meeting in Geneva. At the TNC, WTO Director-General Pascal Lamy outlined a “three lane” approach to eventually resolving the Doha Round. His proposal would put LDC-specific subjects on a “fast lane” and set up an LDC-plus “middle lane,” which would include additional issues that are near maturity and maintain a development focus. Outstanding issues such as agriculture, services, and non-agricultural market access (NAMA) would be left on a “slow lane” for resolution after the much-anticipated December Ministerial Conference in Geneva.

While many members expressed disappointment at the current state of the negotiations, they all recognised that agreement on a full Doha package by year’s end was unlikely. Therefore, an abridged version for December represented the next best alternative. Even so, the inability of members to reach the original Doha “Plan A” left some disappointed. Read more here.

So Near and Yet So Far

(DC Velocity – James A. Cooke)

Companies that engage in “near shoring” – manufacturing in countries that are close to target markets – may think they have it made. After all, they’ve cut transit times, reduced transportation costs, and improved their products’ speed to market. But those that shift production from Asia to Latin America will find there’s more to the story. While the distances may be less daunting, they’re likely to confront a whole new set of transportation challenges.

For starters, there’s infrastructure. Few Central and South American countries boast the kind of transportation infrastructure found in the United States. That means that with some exceptions (like Mexico or Colombia, where manufacturing sometimes takes place in the country’s interior), a company looking to locate a plant in Latin America will likely find its options limited to sites near an airport or seaport.

Another potential complication is access to suppliers. While companies that offshore operations to China have little difficulty finding domestic sources of parts and materials, that’s not the case in most of Latin America. In order to run an assembly operation in that part of the world, a company will most likely have to bring in parts and components via ocean.

Despite these obstacles, Latin American countries continue to generate interest from companies interested in pursuing the near-shoring option. Four nations in particular are drawing attention these days: Mexico, Costa Rica, Honduras, and Brazil. What follows is a capsule look at the transportation climate in each of these countries. Read more here.

New ITAR Exemption for Dual and Third Country National Employees at Non-U.S. Companies also Creates Extraordinary New Compliance Requirements

(Edward L. Rubinoff et al., Akin Gump Strauss Hauer & Feld LLP)

On May 16, 2011, the U.S. Department of State issued a final rule (available here) that dramatically changes the compliance landscape for companies involved in defense trade with respect to the use of dual and third-country nationals (DTCN) by non-U.S. business partners, including suppliers and customers. Citing the large administrative burden and conflict with “foreign human rights laws,” including non-U.S. data privacy and labor laws, State’s new rule is intended to eliminate prior requirements that effectively compelled the gathering and managing of information about the nationalities and countries of birth of the employees of non-U.S. business partners in order to ensure compliance under the International Traffic in Arms Regulations (ITAR).

However, the new rule also creates certain conditions (and ambiguities) with respect to screening and technology security/clearance plan (TSCP) requirements and imposes corresponding risks and burdens on both the U.S. exporter and non-U.S. licensee. Consequently, companies that export or receive defense articles (including technical data) under the ITAR must now re-examine and restructure their compliance programs to incorporate this new rule, which will be effective on August 15, 2011. Read more here.

Michigan Governor Pushes New Detroit-Windsor Bridge

(Journal of Commerce Online – John D.Boyd)

Snyder says bridge would boost trade flow in corridor

Michigan Gov. Rick Snyder called on his state’s legislature to approve plans to build a new toll bridge connecting Detroit and Windsor, Ont., a structure he said could boost an already robust flow of trade in that corridor.

“Let’s get this done now,” Snyder said from the Grand Hotel on Mackinac Island, pointing to the nearby Mackinac Bridge as an example of what can be achieved. “Now it’s time to build a new bridge to Canada that will provide efficient and reliable infrastructure to the largest trading partner of Michigan and America.” Read more here.

Bill to Build New Detroit River Bridge Introduced in State Senate

(Bill Shea — Crain’s Detroit Business) 

Legislation that would green-light Michigan’s participation in a project to build a second Detroit River bridge was introduced into the state Senate today.

Majority Leader Randy Richardville, R-Monroe, is sponsoring two bills — SBs 410-411 — that would establish the regulatory infrastructure needed to oversee, build and operate the New International Trade Crossing.

No timetable has been set for debate of the bill. Most key state elected leaders are at the Mackinac Policy Conference this week, where the bridge is a key discussion point.

The legislation, circulated this spring in draft form, sets up a state bridge authority to oversee Michigan’s portion of the project. It’s written to prevent the state from taking on any debt related to the project.

Because the state cannot afford to pay its share of the $2.1 billion project, Canada has offered to pay Michigan’s share, and the private sector would finance construction of the span itself. Tolls would repay Canada and the private-sector concessionaire. Read more here.

Nations Urged to Avoid Trade Protectionism

(Journal of Commerce Online – Joseph Bonney)

Call follows report of growing trade protectionism since October

The International Chamber of Commerce is urging G20 leaders to push for conclusion of the Doha Round of trade talks and says a new report shows major nations are violating pledges to restrict protectionism.

A report last week by the World Trade Organization, Organization on Economic Co-operation and Development and the United Nations Committee on Trade and Development listed 30 new export restrictions by G20 members between October and April. The total was a record for any previously reported six-month period.

The export restrictions came despite the G20 leaders’ reaffirmation at their 2010 Seoul summit of a pledge to resist protectionism until the end of 2013. Read more here.

Surface Trade Between the U.S. and Its NAFTA Partners Canada and Mexico Reaches Record High

(Transport Intelligence)

Trade using surface transportation between the U.S. and its North American Free Trade Agreement (NAFTA) partners Canada and Mexico was 15.6% higher in March 2011 than in March 2010, reaching $80.8bn, according to the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation. March 2011 set the record for surface trade between the U.S. and its NAFTA partners, beating the previous record set in April 2008, by 8.8%.

BTS reported that the value of U.S. surface transportation trade with Canada and Mexico in March 2011 rose 58.3% in two years from March 2009. Trade value in March 2011 was up 14.2% from the early recession level of March 2008. Read more here (subscription required).

APHIS Lists of Foreign Regions Affected by Animal Diseases and Pests Could Move to Web

(World Trade Interactive)

The Department of Agriculture’s Animal and Plant Health Inspection Service is proposing to remove the lists of regions classified with respect to certain animal diseases and pests from its animal and animal product import regulations and instead post them to its Web site.

APHIS is proposing a similar move for its lists of states approved to receive horses imported from foreign regions where APHIS considers contagious equine metritis to exist. Neither the criteria for evaluating whether a foreign region should be added to or removed from a list, nor the criteria for approving a state to import horses, would be changed. APHIS is proposing these modifications so that it can respond more quickly to changes in the disease status of regions. Comments on this proposed rule are due no later than July 5, 2011.

Just Build It: The Business Case for a New Bridge

(Stephen Henderson — Detroit Free Press)

Lance Dixon’s worst nightmare looks like this:

Truck traffic is forced to a halt on the Ambassador Bridge because of a natural disaster, a terrorist attack or a maintenance emergency. The span stretches empty high above the Detroit River. Big rigs stand idle on both sides – and Dixon sees piles of money evaporating.

“Even if it were for a week or so, you’re talking about something that could cost us and our customers millions of dollars,” said Dixon, vice president of the Canada and Mexico divisions of Omaha-based Werner Enterprises, one of the five largest trucking companies in the U.S.

Werner sends about 13,000 loads back and forth across the Ambassador each year. His business needs an international crossing at Detroit that is, he said, viable, open – and operated more competitively than the bridge is now. Read more here.

CBP Guidelines Seek to Clarify Use of CF 28 and 29 for Initiation of Investigations

(World Trade Interactive)

U.S. Customs and Border Protection sent to its field offices May 24 guidance on the proper use of CBP Form 28, Request for Information, and CBP Form 29, Notice of Action. This guidance is CBP’s latest effort to address trade community concerns that the use of these two forms to initiate (or appear to initiate) formal investigations is effectively prohibiting or discouraging the filing of prior disclosures, which limit importers’ exposure to penalties.

CBP states that Form 28 is used when there is insufficient information in the entry summary package to determine the admissibility, appraised value or classification of imported merchandise. CBP has advised that the use of Form 28 should be limited to these purposes and not be used as notification that a formal investigation has commenced as a matter of enforcement policy, not a matter of law. Instead, the preferred mechanism to inform an importer of the commencement of an investigation is by correspondence on CBP letterhead or Form 29. CBP has also advised that Form 28 shall not be used to request proof of a properly executed valid power of attorney, which will be done during a broker compliance visit or via an individually drafted letter.

CBP has also advised the field concerning the use of Form 29. Generally, when an entry is entered at a rate or value of merchandise that is too low, or the import quantity exceeds that of the entered quantity, and the estimated aggregate increase in duties exceeds $15, CBP will notify the importer of the specific nature of the difference. If the rate advance is a proposed action, the importer is afforded 20 days from the date CBP mails the Form 29 to furnish CBP with specific reasons why the rate advance should not be issued.

The guidance concludes that it is CBP’s goal to act uniformly in providing legal notification to the appropriate party when proposing or taking certain actions. CBP’s field offices have therefore been advised to avoid using language on these forms such as “failure to provide information could lead to penalties under 19 USC 1592…” or “this office is investigating the classification of…” if in fact an investigation is not already in process. Such language defeats the goal of informed compliance, CBP states, and may dissuade importers from filing valid prior disclosures.

Transfer Pricing Watch

(PricewaterhouseCoopers LLP)

In a recent ruling, US Customs and Border Protection (CBP) once again addressed key details of the acceptability and documentation requirements of transfer pricing between related parties, the significance of Advanced Pricing Agreements (APAs) in determining customs value, and the treatment of downward price adjustments made after importation (HQ H022287 dated December 10, 2010). 

Consistent with prior positions, CBP reaffirmed that the burden lies with the importer to establish that an APA methodology is an appropriate basis for customs value, as does the responsibility to provide sufficient documentary evidence of compliance. Read more here.

More Court Proceedings Ordered on Classification of Multi-Function Monitors

(World Trade Interactive)

In the test case BenQ America Corporation v. U.S., the Court of Appeals for the Federal Circuit vacated May 27 a Court of International Trade decision that flat-panel LCD color monitors that can be used with both computers and other video devices are classified as video monitors under HTSUS 8528.21.70 (5% duty). The importer argues that the monitors are classifiable as other computer display units under HTSUS 8471.60.45 (duty-free). The CAFC has remanded the case to the CIT for further proceedings. Read more here.

Dispute Threatens Key U.S. Deals on Trade

(Wall Street Journal – Elizabeth Williamson)

The centerpiece of the American trade agenda – a trio of international trade pacts worth $13 billion in new U.S. exports – is in peril as Democrats and Republicans battle over a program that provides aid to U.S. workers.

The dispute over the future of the 50-year-old Trade Adjustment Assistance program, which provides benefits to American workers displaced by foreign competition, is putting pending free-trade pacts with South Korea, Colombia and Panama in jeopardy by pulling them into the contentious debate over federal spending.

The Obama administration and Democrats in Congress want the TAA program renewed. Some Republicans question its value and say it should be scaled back to narrow the deficit.

The delay caused by the congressional sparring means it is now virtually impossible to pass the South Korea agreement before a trade pact between Korea and the European Union takes effect July 1. That will put a wide range of U.S. industries at a competitive disadvantage. Read more here.