Trade Publications
From NAFTA to USMCA: What Will Change?
Posted on February 27, 2020. Category: Trade Publications
The North American Free Trade Agreement (NAFTA) is the current free trade agreement among the United States, Canada, and Mexico, and will soon be replaced with the United States—Mexico—Canada Agreement (USMCA). NAFTA went into effect in 1994, making favorable changes to encourage trade and production in North America. Since its inception, US exports to Canada have increased by almost 300%, and exports to Mexico have increased by over 500%.Approximately one-third of United States trade is with Mexico and Canada. With such a large volume of products crossing our neighboring countries’ borders, it is important to have an...
Read MoreReverse Engineering in Supply Chain: White House Discussing Block of Increased GE Jet Engine Sales to China
Posted on February 19, 2020. Category: Logistics Publications, Trade Publications
In an ever-competitive global market, industries have looked toward any slight advantage over rival businesses. One method of bridging gaps in tech or design in your product is through a method known as reverse engineering. Merriam-Webster defines reverse engineering as, “to disassemble and examine or analyze in detail to discover the concepts involved in manufacture usually in order to produce something similar”.The Wall Street Journal and CNBC are reporting a White House discussion to potentially halt an increased number of engine deliveries into China by international business partners Safran SA and GE Aviation. As defined above, President...
Read MoreChina Asks the U.S. to be Their Valentine
Posted on February 10, 2020. Category: Logistics Publications, Trade Publications
February 14th, Valentine’s Day, is quickly approaching and there is still time to get your beloved partner the perfect Valentine’s gift. The classics – flowers, chocolates, dinner and a movie, and jewelry are all great options. However, nothing says “Be Mine?” more than tariff reductions.President Donald Trump’s plans to reduce tariffs on roughly $120 billion of Chinese imports from 15% to 7.5% will go into effect on February 14th. While they do include Valentine’s favorites such as negligees, chocolate, and wine, they also contain most apparel and footwear.In return,...
Read MoreShipping Market Takes the Hit from Coronavirus
Posted on February 07, 2020. Category: Logistics Publications, Trade Publications
The emergence of the coronavirus has shaken the supply chain industry, as retailers and shippers battle against a series of obstacles surrounding the outbreak. The coronavirus, causing pneumonia-like symptoms, is thought to have originated in the wild animal food markets of Wuhan city, one of China’s leading manufacturing centers. The Chinese government has taken efforts to minimize the spread of the deadly virus, which has already taken the lives of many and sickened thousands, by extending the Chinese New Year holiday until February 10th. This extension has already had a noticeable short-term impact on supply chains and will...
Read MoreTrump Proclaims More Tariffs on Aluminum and Steel
Posted on January 30, 2020. Category: Trade Publications
On Friday, January 24, 2020, President Trump proclaimed that beginning February 8th, additional tariffs will be added to the pre-existing Section 232 of the Trade Expansion Act of 1962. In an attempt to bolster the domestic steel production rate, the president has imposed tariffs on articles derivative of steel and aluminum (articles that contain at least two-thirds of steel or aluminum). According to the proclamation, the expanded duty rates are as follows:An additional 25 percent ad valorem tariff will be imposed on imported steel articles of foreign manufacture such as nails, tacks, staples, and bumper and body stampings.(Excludes imports manufactured in Argentina, Australia,...
Read MoreCoronavirus Extends Wuhan Production Halt
Posted on January 29, 2020. Category: Logistics Publications, Trade Publications
The city of Wuhan is one of China's manufacturing centers. The automotive and steel industries have established a huge presence in Wuhan. Many tech companies as well as pharma companies have locations in or around Wuhan, which is now recognized as the center of the Coronavirus outbreak.Currently there is no transportation allowed, either in or out of Wuhan. If you are sourcing or manufacturing items in Wuhan, your supply chain is currently at a standstill.The issues and risk aren’t limited to Wuhan based factories. However, it remains to be seen how other cities will be...
Read MoreDuty-Free as Tools of Trade
Posted on January 15, 2020. Category: Trade Publications
What do an MRI machine, a screwdriver, and a laptop have in common? A random assortment of goods for sure, but each of these products, as well as many other items, could be eligible for duty-free importation under the US Customs Provision: Tools of Trade. According to Customs and Border Protection (CBP), tools of trade are defined as instruments, equipment, or apparatus that are necessary for the exercise of a trade or profession. Now you may be wondering, what exactly constitutes a tool of trade? Is the product you are importing eligible for duty free status?In order to...
Read MoreWhat to Expect for Trade Compliance in 2020
Posted on December 17, 2019. Category: Trade Publications
The world of international trade continues to be in a state of constant change. Here are a few topics that will help shape the international trade landscape in 2020.1. Regional Comprehensive Economic Partnership: The RCEP is a trade agreement launched in 2012 in Cambodia, that involves 16 Asian countries that together make one third of the entire world’s Gross Domestic Product. However, since launched, the agreement has never been signed.All countries part of the Association of Southeast Asian Nations (ASEAN) and other major economies such as China, Japan, and South Korea commonly decide to finally commit to signing the agreement...
Read MoreWTO Approves Additional Tariffs on EU Aircraft
Posted on December 17, 2019. Category: Trade Publications
A trade battle that has spanned over a decade, the United States has been given the OK from the World Trade Organization to impose tariffs on European made aircraft. The main target is the aircraft manufacturer Airbus, the biggest competitor of the United States aircraft manufacturer Boeing. The United States has imposed a 10% rate on all aircraft imported into the United States, along with a 25% tariff on other items. The issue came from both aircraft manufactures accepting illegal subsidies worth billions of dollars. With the approval of the World Trade Organization, outside countries cannot retaliate against the US for...
Read MoreSection 301 Tariff Update
Posted on December 16, 2019. Category: Trade Publications
On December 13th President Trump reduced and suspended tariff changes that were due to take place on December 15th. The other 301 tariff lists are to remain at the current rate that they are in and will not be changed.The list 4b which includes all goods that were not on any previous 301 tariffs increase list is going to be suspended until further notice due to an agreement that the United States made with China. This agreement will also reduce the tariffs on list 4a from 15% to 7.5% the effective date of the reduction is not yet announced.In this...
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