The first signs came via Donald Trump’s twitter account on the evening of March 30, 2017: “…we can no longer have massive trade deficits and job losses. American companies must be prepared to look at other alternatives.”
The Trump Administration issued two Executive Orders on March 31, 2017 relating to trade. In short, the Executive Orders commenced a 90 day review by the US Department of Commerce to identify the underlying causes of trade deficits in the US by examining various countries’ trade practices. Canada is on the “list” of targeted countries, which also includes China and Mexico. The Trump Administration is attempting to quantify exactly how much of the US global trade deficit is due to supposedly unfair practices, and seek remedies to rectify the imbalance.
The US will also examine anti-dumping and countervailing (AD/CVD) collection procedures to ensure that all monies that are due and owing to the US are collected. Strengthening AD/CVD enforcement has been a key theme of the Trump Administration.
Early Signs of Targeted Industries
The review will consider matters such as non-tariff barriers, legal enforcement of trade practices, currency manipulation and other means that restrict the movement of American goods. Recent US reports on trade barriers have highlighted certain industries and issues that may be impacted such as Canadian dairy and poultry controls; aerospace support; telecommunications; duty-free limits on goods purchased online; softwood lumber; and limits on American companies’ ability to supply services to some Crown corporations, such as Hydro-Quebec.
More Changes Are Coming
The Trump Administration’s actions are consistent with its stated trade policies in the lead up to the upcoming US-China meetings, and NAFTA negotiations later this year. Notably, the Trump Administration has draft Executive Orders calling for similar 90 or 180 day reviews of immigration programs and trade financing, amongst other topics.
Early signs indicate that the US government is gathering data to support its likely re-energized trade enforcement plans, including the return of US Section 301 proceedings. Section 301 allows the Office of the US Trade Representative to unilaterally impose duties to correct trade imbalances.
Protect Your Interests
Dickinson Wright expects that the US government’s 90 day review of its trade deficits, coupled with the stakeholder consultations that will accompany the NAFTA renegotiation, provide additional avenues to highlight cross-border issues affecting Canadian and American companies. These processes provide vehicles to bring your issues to the forefront and obtain the desired attention. Companies should being taking steps to protect their interests throughout the coming months as US officials undertake their review of Canada-US trade practices.
This client alert is published by Dickinson Wright PLLC/Dickinson Wright LLP to inform our clients and friends of important developments in the field of international trade law. The content is informational only and does not constitute legal or professional advice. We encourage you to consult a Dickinson Wright attorney if you have specific questions or concerns relating to any of the topics covered in here.
FOR MORE INFORMATION CONTACT:
Brenda C. Swick is a Member in Dickinson Wright’s Toronto office. She can be reached at 416.594.4052 or email@example.com.
Daniel D. Ujczo is Of Counsel in Dickinson Wright’s Columbus office. He can be reached at 614.744.2579 or firstname.lastname@example.org.
Bruce C. Thelen is a Member in Dickinson Wright’s Detroit office. He can be reached at 313.223.3624 or email@example.com.
Dylan E. Augruso is a Student-At-Law in Dickinson Wright’s Toronto office. He can be reached at 416.777.2406 or firstname.lastname@example.org.
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- April 4, 2018 Media Mentions Lawyer Dan Ujczo Quoted in the Bloomberg Politics Article, “Looming Deadlines Explain Why Trump Is Hurrying for a Nafta Deal”
- April 4, 2018 Media Mentions Lawyer Dan Ujczo Quoted in the CTV News Article, “Symbolic NAFTA Win Possible, but Hard Work Nowhere Near Done: Trade Insiders”
- March 23, 2018 Seminars ACG NY and Toronto Joint Event on March 23, 2018
- March 22 2018 Media Mentions Lawyer Dan Ujczo Interviewed in the Ohio's Country Journal and Ohio Ag Net Article “A NAFTA agreement could open doors around the world for U.S. agriculture”
- March 2018 Industry Alerts Section 232 Steel and Aluminum Tariffs – Commerce Issues Requirements for Exclusion Requests
- March 20, 2018 Media Mentions Lawyer Brenda Swick Authored The Lawyer’s Daily article “B.C. Log Export Restrictions The Big Change In Softwood Lumber Dispute"
- February 28, 2018 Industry Alerts Softwood Lumber Update: WTO Affirms US Methodology in Determining the Benefit Attributable to Log Export Restrictions in Indonesia Paper as a Countervailable Subsidy
- February 21, 2018 In the News Lawyer Brenda Swick Appointed to the NAFTA Chapter 19 (Trade Remedies) Roster for Canada
- January 29, 2018 Speaking Engagements Panel Discussion on the Future of NAFTA on Monday, January 29, 2018