Trump Officials Probing Produce Imports, Risking More Tariffs

Wednesday, September 2, 2020

On September 1, the Workplace of the US Commerce Consultant, working with the Departments of Commerce (DOC) and of Agriculture (USDA), introduced plenty of actions aimed toward supporting home producers of seasonal/perishable produce. Their plans – which embrace new commerce actions focusing on sure fruit and vegetable imports – might have widespread impacts on produce costs and in how the US authorities responds to allegations of unfair subsidies supporting foreign-grown vegetables and fruit.

As a part of the report, USTR introduced:

Plans to launch a Part 201 international safeguards investigation into imports of blueberries.

Continued bilateral negotiations with Mexico over the subsequent 90 days to handle considerations concerning US imports of Mexican strawberries, bell peppers, and different seasonal/perishable merchandise.

USTR’s plans to work with home producers to launch an investigation by the US Worldwide Commerce Fee (ITC) into strawberry and bell pepper imports, which might result in “expedited” Part 201 investigations on these imports later this yr.

DOC and USDA every additionally pledged to take actions aimed toward supporting home producers of seasonal/perishable merchandise, together with efforts to advertise home growers and to teach growers on unfair overseas subsidies.

Part 201 investigations are performed by the ITC, which examines whether or not home industries have been critically injured or threatened with severe harm because of elevated imports. Notably, these actions don’t require home events to allege any unfair actions by the overseas producer (corresponding to “dumping,” or promoting merchandise for lower than honest worth, or benefiting from unfair overseas authorities subsidies). If the ITC finds within the affirmative, the President himself will resolve what reduction, if any, ought to be imposed. This reduction might take the type of tariffs or quotas focusing on overseas imports, both of that are virtually sure to extend costs of the affected items.

The joint company actions comes after years of considerations voiced by home trade and congressional stakeholders that current commerce actions don’t adequately tackle considerations with unfair imports of those items, together with as a part of negotiations to modernize the North American Free Commerce Settlement below its successor deal, the US-Mexico-Canada Settlement now in power.

For sovereign governments and companies which will have questions associated to Part 201 investigations and US commerce enforcement proceedings, our crew can assist draft and submit feedback in the course of the investigation, work to safe congressional help for our arguments and counsel on the political dynamics underpinning any presidential motion focusing on overseas imports.