Beth C. Ring, Senior Member, Sandler, Travis & Rosenberg

https://www.strtrade.com
Author picture

Beth C. Ring

At the end of 2016, all we knew about the Trump administration’s trade policy was that “unpredictability” would be guiding policy. Some of the threatened trade actions, e.g., imposing prohibitive tariffs on Chinese imports, have not materialized (yet). Given the president’s need for China’s cooperation on North Korea’s nuclear threat, they are unlikely to happen in the foreseeable future.

However, after three rounds of negotiations on modifying the North American Free Trade Agreement, it is clear that the US is taking very strict positions in terms of mandatory US content rules that both Canada and Mexico are strongly resisting. Thus, in keeping with the administration’s policy of rejecting multilateral trade agreements, the fate of NAFTA remains very much in the balance, notwithstanding NAFTA’s integral role in the economies of all three country members. Only increased industry pressure on administration negotiators can counter this policy.

Having pulled the US out of the Trans Pacific Partnership (TPP) and ceding leadership in Asia Pacific trade to China, the remaining members of the TPP are busy concluding the agreement, with an open invitation to the US to join at any time. Whether other free trade agreements, e.g., US-Korea are under threat as well, remains to be seen. Again, stakeholders need to speak out.

Meanwhile, US Customs and Border Protection is forging ahead with its enforcement agenda, including its attempt to implement sanctions on North Korea by forcing importers to monitor their supply chains to ensure no North Korean workers are being employed in any Chinese factories that may, directly or indirectly, have any role in the manufacture of their goods. CBP’s latest iteration of its attempt at reorganization in the form of its “Centers of Expertise and Excellence,” was rolled out in its entirety this year. The ensuing internal confusion in the operational changes at the agency are playing out as importers attempt to navigate their entries through officials new to their roles and industry unfamiliarity in many cases.