Supply Chain

On 25 September 2024, the EU and US held an in-depth technical discussion with transatlantic social partner stakeholders under the Trade and Labour Dialogue (TALD), focused on ways to eradicate forced labour from supply chains and ensure a successful, just and inclusive green transition.

Four Commissioners from the bipartisan and bicameral Congressional-Executive Commission on China (CECC) released a letter to the trade representatives of the U.S., Canada, and Mexico, urging robust implementation of existing forced labor import prohibitions in the United States-Mexico-Canada Agreement (USMCA) and asking for greater cooperation to prevent goods denied in one country being re-exported to another within the USMCA.

On the sidelines of the 79th UN General Assembly, Secretary of State Antony Blinken hosted a Partnership for Global Infrastructure and Investment (PGII) Lobito Corridor Roundtable with key partners.  This high-level discussion advanced PGII’s flagship Lobito Corridor, aiming to develop trans-continental connectivity from the Atlantic to Indian Oceans.

The Commerce Department proposed prohibiting the sale or import of connected vehicles integrating specific pieces of hardware and software, or those components sold separately, with a sufficient nexus to the People’s Republic of China (PRC) or Russia.     Published by the Bureau of Industry and Security, the rule focuses on hardware and software integrated into the Vehicle Connectivity System (VCS) and software integrated into the Automated Driving System (ADS). These are the critical systems that, through specific hardware and software, allow for external connectivity and autonomous driving capabilities in connected vehicles.

The USTR announced enforcement action under the United States-Peru Trade Promotion Agreement (PTPA) Forest Sector Annex. USTR requested the Government of Peru to verify that five timber shipments exported to the United States from Peru complied with applicable Peruvian laws and regulations.

To strengthen cooperation between the United States and Uzbekistan on critical minerals, officials signed a Memorandum of Understanding in Tashkent. The United States and Uzbekistan are actively working to encourage private sector investment in Uzbekistan’s mining sector. The MOU further reflects both sides’ shared goal of strong environmental, labor, and governance practices in the global mining sector.

The United States and Mexico have resolved a worker rights complaint under the US-Mexico- Canada Agreement involving a Hong-Kong based maker of cast and machined component parts.

The United States has asked Mexico to review whether workers at a German-owned leatherworks supplying the automotive industry are being denied the right to freedom of association and collective bargaining.  The facility specializes in manufacturing premium leather for the automotive industry.  Gernam parent Bader GmbH & Co. KG, is a leading supplier of leather trim to all major auto manufacturers from Acura to Volvo.

The Biden-Harris Administration has announced a series of new actions aimed at addressing the growing abuse of the de minimis exemption, particularly by e-commerce platforms like Amazon, Shein and Temu. The administration’s efforts come in response to a significant rise in de minimis shipments, which have increased from 140 million annually to over one billion in the last decade, complicating efforts to regulate imports and block illegal goods.

Majority staff from the Homeland Security and Select China Committees released a report recapping their efforts to draw attention to the role of Chinese suppliers in U.S. Port Security.    China's Shanghai Zhenhua Heavy Industry Co., Ltd. (ZPMC), the world’s largest STS crane manufacturer is an entity of particular focus of the report.   Producing nearly 80% of the STS cranes used at U.S. ports ZPMC commands 70% of the global market share.  

The Commerce Department has announced a new tool for analyzing supply chain resiliance.   Introduced at the inaugural Supply Chain Summit in Washington, the SCALE tool represents an effort to build the U.S. Government’s analytical capacity to understand and address supply chain risk. Officails also used the event to announce a redoubled effort to direct federal funds to favored industries via the Chips and Science Act and the Bipartisan Infrastructure Law.

A new air cargo screening directive issued Aug. 21 by the TSA has some carriers looking for clarification from the U.S. government, and at least one carrier has issued an embargo on U.S. routes via Europe.   The emergency amendment – with restricted access –requires carriers to submit additional details of shippers and consignees to the US Customs and Border Protection agency.

Evidently the "strong concerns with Canada’s unilateral digital service tax" the USTR cited in the readout of last weeks meeting between Ambassador Katherine Tai and Minister of Export Promotion, International Trade, and Economic Development, Mary Ng. Involved a preview of a USMCA dispute settlement complaint. Friday Tai announced that the United States has requested dispute settlement consultations with Canada under the United States-Mexico-Canada Agreement (USMCA) regarding Canada’s recently enacted digital service tax (DST).

Congressional China hawks have called for U.S. Department of Defense to immediately place Contemporary Amperex Technology Limited (CATL) on the Section 1260H List, which provides transparency on Chinese military companies operating in the United States. Chairman John Moolenaar (R-MI) of the House Select Committee on the Chinese Communist Party and Sen. Marco Rubio (R-FL) sent a letter to Defense Secretary Lloyd Austin urging the move, stating "By including CATL on the Section 1260H List, the DoD would not only safeguard America’s military infrastructure from exposure to the PLA, it would also send a powerful signal to U.S. companies who are currently weighing partnerships with CATL.”

Heads of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party called on the Commerce Department to explain what steps and authorities are needed to address the "white label" resale of drones made by Chinese maker DJI by Hong Kong and Texas firms,

The Commerce Department Friday announced its list of critical sectors and key goods for potential cooperation under the IPEF Supply Chain Agreement to strengthen supply chain resiliency.  Under the IPEF Supply Chain Agreement, each Party committed to developing a list of “critical sectors” and “key goods” for cooperation under the Agreement, to be shared through the Council. These lists are intended to be iterative and change as needed over time.

Undersecretary of State for Economic Growth, Energy and the Environment Jose Fernandez is traveling to South America for official discussions on critical minerals supply chains and developments in the Americas Partnership. Mr. Fernandez is visiting Argentina, Ecuador and Peru through August 29.

House lawmakers are raising questions about US biopharmaceutical companies that are conducting clinical trials with China’s People’s Liberation Army and in the Xinjiang region where Beijing is accused of mistreating members of the Uyghur community.  Chinese biopharmaceutical companies, with their ability  to harness China’s large population of patients to conduct time- and cost-efficient clinical trials play a vital role in the global pharmaceutical industry. The lawmakers want the Food and Drug Administration to provide information about these practices.

United States Trade Representative Katherine Tai announced today that the United States has asked Mexico to review whether workers at the Pirelli Neumaticos, S.A. de C.V (Pirelli), facility in the city of Silao de la Victoria in the state of Guanajuato, Mexico, are being denied the right to freedom of association and collective bargaining. The petition alleged Pirelli is not applying the sector-wide agreement (contrato ley) covering the rubber manufacturing industry at the facility and is instead applying a singular collective bargaining agreement (CBA) with benefits inferior to those in the contrato ley.

The Department of Defense announced Monday a $20 million award via the Defense Production Act Investments (DPAI) office to Electra Battery Materials Corporation, a Canadian mining firm attempting to recommission an idled plant to process cobalt sulfate imported from the Democratic Republic of Congo. The award utilizes funds from the Ukraine Supplemental Appropriations Act of 2022 and supports the 2024 National Defense Industrial Strategy goal of expanding domestic production of critical minerals.

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