As the Trump administration comes into its third month, we have clues, but must speculate on how that administration will modify Iran sanctions, NAFTA, foreign investment, and tariffs on China. In contrast, recently issued executive orders shed clear light on the Trump administration’s approach to antidumping and countervailing duties (AD/CVD). (See our August 2016 blog for a general background on AD/CVD.)
For the first time since the era of pagers, dial-up, and Y2K hysteria, U.S. trade remedy cases are experiencing a resurgence. Under U.S. law, U.S. producers of goods may petition the U.S. government to impose extra tariffs on the import of competing goods deemed to be traded unfairly.
Is your company in a high-risk zone? Does it have the following risk characteristics?
✓ Your company imports more than $10 million of goods.
✓ You are mid-market: between $50 million and $2 billion in annual turnover.
✓ Your company has experienced higher than average growth in revenues, personnel, or imports over the past 2 – 10 years.
If your company fits this profile, you may be at an elevated risk of customs violations. Many companies in this high-risk zone have outgrown their customs compliance function. Without knowing it, they may be creating violations and, since the statute of limitations is five years, they may not know about the violations until the government comes knocking on their door years after the fact. Continue Reading Sick without Symptoms: How Multi-Million Dollar Customs Issues are Ailing U.S. Companies Without Warning
*This is an updated version of the February 21st blog post.
Many U.S. companies continue to struggle under the burden of President Trump’s tariffs on imports from China. The President has postponed a scheduled March 2, 2019 deadline to increase the tariff rate on many Chinese products from 10 to 25 percent.
When we went to press with the first version of this article (February 21, 2019), negotiations between the United States and China had failed to reach an agreement that would prevent the tariff increase.
Now the President has decided that progress in those negotiations has been “substantial.” On that basis, he directed U.S. Trade Representative Robert Lighthizer to postpone the March 2 tariff increase until further notice. Continue Reading Update from the Trump Trade War Front: Tariffs Will Not Increase March 2*
A tripartite agreement to save the North American Free Trade Agreement (NAFTA) has just been reached. Since June 2017, the United States, Canada, and Mexico have been renegotiating NAFTA. After over a year of negotiations, late on Sunday night, September 30, 2018, Canada agreed to sign the revised agreement. That agreement is called the United States-Mexico-Canada Agreement, or USMCA. Continue Reading The New NAFTA: the United States-Mexico-Canada Agreement (USMCA)
This article suggests steps you should take to survive the current trade war. We are now in a trade war regardless of the fact that Treasury Secretary Steven Mnuchin would rather we call it “a situation of trade disputes.” Trade disputes are what we had from approximately 1945 to 2017: a relatively stable world trading order in which differences over unfair trade practices were mostly worked out under existing remedies, such as the antidumping and countervailing duties regimes. What we have now is a period of escalating tit-for-tat tariff increases in which the old trading norms are being increasingly rejected, exempted, and undermined. And it is those very norms that kept us out of trade wars for the last 70 years. Continue Reading Of Course You Know, This Means War: A Strategic Update on the Trump Trade War
If your company is a U.S. consumer of imported steel or aluminum, the new tariffs announced by President Trump on March 8, 2018 are bad news. The good news is that you can petition the government for exclusions of certain products. Formal procedures for such petitions won’t be published until March 19. But there are steps you can take now to prepare. Continue Reading 5 Steps to Obtaining an Exemption under President Trump’s Steel and Aluminum Tariffs
U.S. importers are seeing an increase in enforcement activity by U.S. Customs and Border Protection. Here are the ten things you must know about this trend. Continue Reading Importers Beware: 10 Things You Must Know About the Emergence of High-Stakes Customs Audits
Our “trends for 2018” are only a selection of interesting developments to watch for in 2018.
Within the political and legislative cycle of the European Union, 2018 promises to be an eventful year, given that it is the last full year before the 2019 EU elections when a new European Commission will be appointed and the European Parliament will hold new elections. This means, in practice, that there will be pressure in 2018 on the current European Commission and European Parliament to act on all their initiatives and to complete their legislative agenda.
Our team of EU lawyers will continue to report on noteworthy developments including for instance, Brexit and its implications for competition and regulatory policies, the surge in foreign direct investment controls, the opening of new competition enforcement fronts, the practical implementation of the EU damages directive, as well as the development of alternative means of resolution in competition investigations and their impact on rights of defence.
We invite you to contact us directly should you have an interest in discussing any topic further or in obtaining additional information. We hope you will enjoy the read! Continue Reading 2018 EU Trade, Regulatory and Competition Trends
The Effects of Increased Tariffs
In the 18th Century, tariffs were considered a method of generating revenue and protecting domestic industry. The first U.S. customs duties were imposed in 1789, and were considered vital to the economic survival of the young nation. That mercantilist approach has since been overwhelmingly rejected by mainstream economists. Even by the time of the American Revolution, specialization and comparative advantage were being touted (including by Adam Smith, whose Wealth of Nations was published in 1776) as the true route to national prosperity.