The "America First Trade Policy" seeks to strengthen U.S. trade, focusing on national security, unfair practices, and modernized export controls. Here are the six key priorities and my opinion about it.
The recent memorandum outlining the "America First Trade Policy" provides a framework for revitalising U.S. trade policy under the understanding of global trade of the U.S. President Donald J Trump. As a customs professional, I approach this policy from a perspective deeply rooted in the practicalities of international trade, compliance, and economic security. In this opinion peice, I share my reflections on this new mantra in U.S. trade policy and what it could mean for global trade partners.
"America First" Trade Policy - What is it?
This new doctrine, published by Executive Order by President Trump, seeks to address trade deficits, protect national interests, and promote American industries—but it also presents significant challenges for businesses navigating an increasingly complex regulatory environment.
PRIORITY 1: National Security and Economic Stability
The memorandum’s emphasis on trade as a pillar of national security is commendable. By investigating trade deficits and reducing dependence on foreign suppliers, the administration aligns economic policy with strategic imperatives. For customs professionals, this approach highlights the need for enhanced enforcement mechanisms to secure supply chains and ensure compliance with evolving trade measures.
My thoughts: The establishment of an External Revenue Service (ERS) to collect tariffs and duties signals a paradigm shift in revenue collection. However, its successful implementation requires clarity on jurisdictional overlaps and streamlined processes to avoid disruptions in trade flows.
PRIORITY 2: Tackling Unfair Trade Practices
The directive to review unfair trade practices and apply remedies such as tariffs under existing legal frameworks reinforces the United States Trade Representative’s (USTR) proactive stance. This approach is crucial for safeguarding American industries from unfair competition.
Implications for Customs Professionals: Antidumping (AD) and countervailing duty (CVD) laws are key tools for addressing market distortions. Customs officials must be equipped with advanced analytical tools to verify compliance and detect transnational subsidies or circumvention practices. Strengthening verification procedures under section 1677m of Title 19, as proposed, is a welcome step.
Challenge: Balancing rigorous enforcement with minimal disruption to legitimate trade remains critical. Overly stringent measures may inadvertently burden compliant businesses.
PRIORITY 3: USMCA and Bilateral Agreements
The upcoming review of the United States-Mexico-Canada Agreement (USMCA) underscores the administration’s commitment to assessing trade agreements’ effectiveness.
My view: Implementing changes to trade agreements necessitates updated guidance and training for professionals handling cross-border transactions. Transparency and timely communication will be vital to mitigate compliance risks.
The Customs Watch USA - the must read weekly Updates Magazine for Customs Professionals.
Weekly Insights for Customs Experts:
The Customs Watch USA is an invaluable resource that delves into a wide array of topics pertinent to customs professionals, addressing over 20 subjects that are crucial for staying informed in an ever-evolving regulatory landscape. Among these subjects, one of the key areas of focus is the latest updates from Customs and Border Protection (CBP), which provides essential information on new policies, procedural changes, and compliance requirements that impact importers and exporters alike.
You can get your hands on a copy by eaving your e-mail address at www.customsmanager.info
In addition to CBP updates, the publication also emphasizes Tariff Focus, where it explores the complexities of tariff classifications, recent changes in tariff rates, and strategies for navigating the intricate tariff landscape. This section is particularly beneficial for customs brokers and trade compliance specialists as it equips them with the knowledge needed to optimize their clients' import and export operations while ensuring adherence to legal obligations.
Moreover, the Customs Watch USA covers Duty Relief Programs, which are vital for businesses seeking to minimize their duty liabilities. This section outlines various programs such as the Generalized System of Preferences (GSP), Duty Drawback, and others that can provide significant cost savings for eligible importers. By highlighting eligibility criteria, application processes, and practical tips for leveraging these programs, the publication serves as a comprehensive guide for customs experts looking to enhance their operational efficiency and financial performance.
Additionally, the insights provided in the Customs Watch USA not only inform customs professionals of current trends and developments but also offer in-depth analyses that can aid in strategic decision-making. With an emphasis on real-world implications and case studies, the publication ensures that customs experts are well-equipped to navigate challenges and capitalize on opportunities within the global trade environment. Each weekly edition is meticulously curated to foster a deeper understanding of customs regulations and practices, making it an essential tool for professionals dedicated to excelling in their field.
You can get your hands on a copy by eaving your e-mail address at www.customsmanager.info