Weekly Trade Briefing: April 19-23, 2021

Trade Update • APRIL 24, 2021

Aweekly roundup of news reports, government announcements, and other information about current and emerging developments in international trade and customs compliance.

CITT Starts Investigation of Small Power Transformers From Three Countries

Following the launch of a dumping investigation by the CBSA earlier this month, the Canadian International Trade Tribunal has initiated a preliminary injury inquiry into a complaint filed by four Canadian manufacturers alleging they have suffered injury as a result of the dumping of certain small power transformers, originating in or exported from Austria, Taiwan, and South Korea. A determination by the CITT of material injury is expected by June 14. If affirmative, the CBSA will continue its investigation and issue a preliminary determination the following month.

Strategic Competition Bill Gets U.S. Senate Hearing

Legislation proposed earlier this month was the subject of a meeting this week by the Senate Foreign Relations Committee. The Strategic Competition Act of 2021 directs the U.S. government to help companies to move supply chains outside of China and identify alternative markets. Additionally, the bill would require government agencies to gather information and monitor Chinese anti-competitive practices and violations of U.S. law such as intellectual property rights violations, illegal subsidies, circumvention of export controls, human rights abuses, etc.

OFAC Sanctions Key Timber and Pearl Enterprises in Burma

The U.S. imposed sanctions on two state-owned enterprises in the timber and pearl industries in Myanmar on Wednesday, as the U.S. increases pressure on the military regime in the country in response to the February coup. The Treasury Department’s Office of Foreign Assets Control, which implements and enforces U.S. economic and trade sanctions, blacklisted Myanma Timber Enterprise and Myanmar Pearl Enterprise, alleging the two provide key sources of revenue for the country’s military.

U.S. Industry Being Harmed by Dumped Mattress Imports, USITC Determines

The United States International Trade Commission on Wednesday determined that the U.S. mattress industry is being materially injured by imports of mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam. Commerce has already determined the subject goods are being sold in the U.S. at less than fair value and subsidized by the government of China. As a result of the Commission’s affirmative determinations, Commerce will issue AD orders on mattress imports from the countries involved, in addition to a CV order on imports of this product from China.

House Republicans Urge Tai to Relaunch Environmental Goods Agreement Talks

House Ways & Means Republicans on Thursday urged USTR Katherine Tai to relaunch Environmental Goods Agreement negotiations at the World Trade Organization. The EGA would eliminate tariffs on environmental products like wind turbines and solar water heaters, among others. EGA negotiations at the WTO began in 2014 and stalled in December 2016. The Trump administration declined to pursue them. Completing “an ambitious” EGA would remove tariffs on U.S. clean energy exports, create jobs and reduce global emissions, the lawmakers wrote, adding that “although the negotiations were not completed, significant progress was made.”

USTR Issues Technical Correction to Allow Sec. 301 Refunds for Goods In Transit May-June 2019

On Friday, the USTR announced a technical correction that allows refunds for products exported after the Section 301 tariffs were increased from 10% to 25% but were still in transit at the time the increase was announced. The amendment covers goods exported from China before May 10, 2019, that entered the U.S. after May 10, 2019, and before June 15, 2019. Like all exclusions under this Section 301 investigation, this technical correction applies to entries of goods that are not liquidated or to entries that are liquidated but not final.