Mexican Labor Reforms

On Monday, April 29 the Mexican legislature adopted a set of major labor reforms, a necessary move towards the passage of the USMCA agreement. The labor law reform now ensures that workers can freely vote for their union representation and contracts. Passage of the labor reforms is seen as an important key event as U.S. President Donald Trump seeks Democratic support of the USMCA in the U.S. Congress.

A copy of U.S. Trade Representative Robert Lighthizer’s comments on the reforms can be found here.

USMCA USITC Report

On Thursday, April 18, 2019 the U.S. International Trade Commission (USITC) released its Congressionally mandated report on the likely impact of the U.S.-Mexico-Canada Agreement (USMCA) on the U.S. economy. The report estimated that the USMCA would raise U.S. real GDP by $68.2 billion (0.35 percent) and U.S. employment by 176,000 jobs (0.12 percent) over a six year period. In addition, U.S. exports to Canada and Mexico would increase by $19.1 billion (5.9 percent) and $14.2 billion (6.7 percent), respectively. U.S. imports from Canada and Mexico would increase by $19.1 billion (4.8 percent) and $12.4 billion (3.8 percent), respectively. Overall, the agreement would likely have a positive impact on all broad industry sectors within the U.S. economy.

A copy of the report can be found here.  

IPPC ePhyto Initiative Video

The UN Food and Agriculture Organization (FAO) and the International Plant Protection Convention (IPPC) have released a video on the IPPC’s ePhyto Solution. The IPPC ePhyto Solution aims to modernize the phytosanitary certification process and hold tremendous potential for trade facilitation. This video captures in simple terms the dynamics of the system and the benefits it holds both for National Plant Protection Organizations (NPPOs) and Industry.

A link to the video can be found here.

USCG final rule on sea farer access

The U.S. Coast Guard published the Seafarers’ Access to Maritime Facilities Final Rule in the Federal Register April 1, 2019, requiring owners and operators of Maritime Transportation Security Act-regulated facilities to provide seafarers holding valid U.S. visas and other covered individuals with the ability to transit through the facility in a timely manner and at no cost to the individuals.

Under this rule, each owner or operator of a maritime facility regulated by the Coast Guard is required to implement a system providing seafarers, pilots, and representatives of seamen’s welfare and labor organizations access between vessels moored at the facility and the facility gate, in a timely manner and at no cost to the seafarer or other individuals. The final rule provides regulatory flexibility to owners and operators to determine the method of shore access that best suits the size and function of their facility. These methods may include, but are not limited to, providing regularly scheduled or on-call shuttle service, taxi service, arrangements with seafarers’ welfare organizations, or monitoring of pedestrian routes.

The access procedures must be documented in the Facility Security Plan for each facility and approved by the local Captain of the Port. Although the final rule is effective May 1, 2019, each facility owner or operator has 14 months after publication of the final rule (June 1, 2020) to implement a system. This delayed implementation allows the Captain of the Port to work with each facility in the event of deficiencies in the plan.

A copy of the final rule can be found here.

EU announces negotiating mandate for U.S. trade agreement

On Monday, April 15 the European Commission’s council (EC) approved its negotiating objectives for upcoming trade negotiations with the United States. The directive covers two potential agreements with the U.S.:

• A trade agreement strictly focused on industrial goods, excluding agricultural products;
• A second agreement, on conformity assessment to make it easier for companies to prove their products meet technical requirements on both sides of the Atlantic

The directive compels the Commission, as part of negotiation of the agreement, to further examine the potential economic, environmental and social impacts of the agreement, taking into account the commitments of the EU in international agreements, including the Paris Agreement on climate change. This assessment, as well as the negotiating process itself, will be conducted in regular dialogue with the European Parliament, Member States, civil society and all relevant stakeholders, in line with the European Commission's commitment to transparency. As part of its engagement for an inclusive trade policy, the Commission is currently running a public consultation on voluntary regulatory cooperation.