CBP Launches the United States-Mexico-Canada Center to Coordinate Implementation of USMCA

Originally posted on the CBP website.

WASHINGTON— To help coordinate implementation of the United States-Mexico-Canada Agreement, which enters into force on July 1, U.S. Customs and Border Protection recently opened the USMCA Center.

Staffed with CBP experts from operational, legal, and audit disciplines, as well as in collaboration with Canadian and Mexican customs authorities, the USMCA Center is a cornerstone of CBP’s USMCA implementation plan and will serve as a central communication hub for CBP and the private sector community, including traders, brokers, freight forwarders and producers, ensuring a smooth and efficient transition from the North American Free Trade Agreement to USMCA.

“The Center is integral to successful implementation of USMCA, as it will focus on outreach, training, and developing new regulations and procedures, while providing consistency and transparency to the trade community,” said Brenda Smith, Executive Assistant Commissioner of CBP’s Office of Trade. “This all comes down to making sure that American consumers get their goods safely, securely and predictably, while protecting the economic security of the United States.”

USMCA is a new trade agreement that modernizes certain NAFTA provisions, reflecting developments in technology and 21st Century supply chains.  USMCA calls for new approaches to rules of origin, agricultural market access, digital trade, and financial services while protecting the labor rights of workers in key industries, and strengthening the protection of intellectual property rights.

The USMCA Center staff will be CBP’s experts on the trade provisions of USMCA, providing guidance to private and public sector stakeholders. Center staff will facilitate a smooth transition from NAFTA by coordinating and scheduling outreach events, responding to training requests, developing and distributing information resources, and updating CBP regulations on pending USMCA topics/issues, while also providing clear and transparent technical guidance on USMCA’s new compliance obligations. Center staff will work closely with Centers of Excellence and Expertise and the ports to ensure CBP’s implementation is uniform and supports U.S. economic security.

Please note: NAFTA rules will continue to apply until July 1 when USMCA enters into force.

Additional information about the agreement, compliance guidance, and implementation efforts may be found on the agency's USMCA webpage. Inquiries for the USMCA Center can be directed to USMCA@cbp.dhs.gov.

Read original article here.

Port Laredo once again the nation’s No. 1 gateway for international trade

Port Laredo

Originally Published in FreightWaves

Port Laredo has regained the No. 1 spot among the nation’s 450 international gateways for trade, topping the Port of Los Angeles for the second time in a year.

During February, Port Laredo recorded $18.6 billion in two-way trade, while the Port of Los Angeles had $17.2 billion, according to the latest U.S. Census Bureau data analyzed by WorldCity.

Port Laredo’s new ranking is tied to the ongoing U.S.-China trade war and the coronavirus pandemic that has hurt the Port of Los Angeles, said Ken Roberts, an economist at WorldCity.

“A stunning development the first time, the result of the impact of the U.S.-China trade war on the [Port of Los Angeles], this time it’s the one-two punch of the ongoing trade war and the coronavirus pandemic that has sent it, the U.S. economy and the global economy, reeling,” Roberts said in Forbes.

The Port of Los Angeles fell to second, largely because of its dependence on Chinese imports, Roberts said. The ports trade with the world declined 15.2% in February, according to WorldCity.

Port Laredo, located in South Texas along the U.S.-Mexico border, is made up of four international vehicle bridges, one international rail bridge and an international airport.

Around 16,000 trucks cross the port’s bridges daily, totaling $231.58 billion in imports and exports in 2019.

Port Laredo previously surpassed the Port of Los Angeles in March 2019 as the nation’s number one trade hub. It was the first time in the port’s 168-year history that it ranked first. The Port of Los Angeles regained the top spot a month later in April 2019.

Roberts predicted that Port Laredo will be the leading trade port for the foreseeable future due to its proximity to Mexico, the U.S.-China trade war and the lasting effects of the coronavirus.

Mexico finished 2019 as the leading U.S. trading partner for the first time in history and continues to be the nation’s top trading partner for the first two months of 2020.

“This time, unlike last time, it is not likely to be a one-month aberration,” Roberts said. “Port Laredo passed the Port of Los Angeles before the full brunt of the impact of coronavirus would have even hit the Los Angeles seaport.”

Ventus Global Logistics is open for business and ready to provide your business with all of its customs and logistic needs. Ventus Global Logistics is headquartered in Laredo, TX with offices in Nuevo Laredo and Monterrey, Mexico. Contact us for a free consultation.

What Does the New USMCA Look Like for Mexico?

USMCA

August 2017, trade negotiators from the United States, Mexico and Canada met for the first time in Mexico City to begin hashing out a new North American Free Trade Agreement.

Two and a half years and many negotiations later, the U.S.-Mexico-Canada Agreement (USMCA) has finally passed both chambers of the United States' Congress. The agreement — which overhauls North America's trade relations — is now poised to become U.S. law and the region's governing economic framework, as Mexico's Congress has already passed the deal and Canada's Parliament is expected to follow suit in late January.

While the political negotiations are wrapping up, the next and final step will be the agreement's implementation across North America.

In the coming months and years, these new rules will shape the region's trade realities. Some rules may unleash investment, trade and better labor conditions, but they likely won't be without additional hurdles. In Mexico, the agreement will touch most parts of the country's $1.15 trillion economy, but it will be felt most immediately and strongly in the overall investment climate, the automotive manufacturing sector and in labor conditions.

USMCA Provides Predictability

While less tangible, the agreement's biggest shift will take place at the macroeconomic level, as the USMCA solidifies trade rules and provides greater certainty for North American businesses operating across the continent. Ever since the USMCA's negotiations began, the economic climate has been wracked by uncertainty, especially when specific issues threatened to derail the agreement or every time that the U.S. administration threatened to pull out of NAFTA without any viable alternative.

With the USMCA in place, Mexico has a stronger investment framework and more transparency, clarity and protections for businesses operating in the country.

Read the entire article here.

Get comprehensive data on your material inventory whenever you need it. Our system lets you view entry number, merchandise PO number, weight, inspection status, numbers of pieces/pallets/cartons, merchandise descriptions, receipt dates, tracking numbers, number of days in the warehouse and more. Contact us today for a FREE quote!

Trump signs revised trade deal with Mexico, Canada but shuts Democrats out of celebration

USMCA signing

WASHINGTON – Still facing a divisive impeachment trial in the Senate, President Donald Trump celebrated a rare bipartisan achievement Wednesday when he signed into law a revamped trade deal with Mexico and Canada.

Surrounded by business leaders wearing hard hats, Trump portrayed the new U.S.-Mexico-Canada Agreement, or USMCA, as "a colossal victory" for American farmers, manufacturers and other workers.

"For the first time in American history, we have replaced a disastrous trade deal that rewarded outsourcing with a truly fair and reciprocal trade deal that will keep jobs, wealth and growth right here in America," Trump said during a signing ceremony on the White House South Lawn.

Trump gave a shout-out to more than two dozen Republican lawmakers whom he credited with helping push the deal through Congress.

Left off of his list of plaudits and missing from the celebration: Congressional Democrats, who put their own stamp on the agreement and whose support was pivotal to helping it secure congressional approval. House Speaker Nancy Pelosi's office said no Democrats were invited to the ceremony.

The revised trade deal, one of Trump's top legislative priorities, is the product of months of negotiations and replaces the North American Free Trade Agreement, or NAFTA, which essentially eliminated tariffs on most goods traded among the three countries.

The agreement guarantees U.S. farmers greater access to Canada's agriculture market and puts new e-commerce rules in place. It also dictates that a higher percentage of autos be made from parts manufactured in North America and requires that at least 40% of vehicle production be done by workers earning at least $16 per hour.

In addition, the pact, which is supported by labor unions and business groups, includes stronger provisions on labor, enforcement and pharmaceuticals that Democrats had sought as a condition for their approval of the agreement.

Read entire article here.

Get comprehensive data on your material inventory whenever you need it. Our system lets you view entry number, merchandise PO number, weight, inspection status, numbers of pieces/pallets/cartons, merchandise descriptions, receipt dates, tracking numbers, number of days in the warehouse and more. Contact us today for a FREE quote

Texas No. 1 in foreign trade during third quarter

foreign trade

Texas continues to be a leader in international trade, ranking No. 1 in exports of manufactured and non-manufactured commodities for the third quarter, according to the U.S. Census Bureau.

Year-to-date, Texas has exported an estimated $155.8 billion in manufactured goods and $68.7 billion in non-manufactured commodities, ranking it No. 1 in both categories among U.S. states.

The four top states for exports of manufactured goods year-to-date after Texas are California at an estimated $93.7 billion; Michigan, $39 billion; Illinois, $38.8 billion; and Ohio, $35.5 billion, according to the U.S. Census Bureau's Exports by Metropolitan Area Report released on Dec. 19.

Mexico was the top destination for exports from Texas at $109.7 billion in 2018, representing 35% of the state's total goods exported, according to the census bureau report as well as data from the Office of the U.S. Trade Representative. Canada was second at $27.5 billion.

Texas has accounted for 16.5% of U.S. exports of manufactured and 34.9% of non-manufactured goods so far this year, according to the bureau's report.

The top manufactured commodities exported by Texas include crude oil and petroleum, propane, liquified natural gas and parts/accessories for automatic data processing machines. The top non-manufactured goods produced in Texas include cattle (beef), cotton, chickens, greenhouse and nursery products and dairy products.

The top imports for Texas during the third quarter were crude oil, computers, car engines, cars and car parts and cell phones.

Houston was the top U.S. metro area in terms of exports in the third quarter at $31.3 billion, according to the study. Houston's economy is closely tied to the energy industry, particularly oil and liquefied natural gas.

Read the entire article here.

Ventus Global Logistics is strategically located in Laredo, Texas and specializes in land, air, and ocean freight. Ventus Global Logistics maintains a brokerage presence in all of Mexico's main customs offices. Get comprehensive data on your material inventory whenever you need it thanks to our web portal. Contact us today for a free consultation.

What US companies should know about expanding manufacturing to Mexico

manufacturing in Mexico

As of 2019, Mexico is the largest goods trading partner with the U.S. with over $600 billion in imported and exported goods. This relationship has created 1.2 million jobs as of 2015, according to the latest data available from the U.S. Department of Commerce. It's also been reported, as of February 2019, that U.S. trade with Mexico increased 3.36%, while trade with Canada decreased by 4.12% and with China by 13.52%. This illustrates the direct impact of the current administration's trade war with China in particular, which ultimately has had negative repercussions for the U.S.

Generally speaking, products manufactured in Mexico are high-mix, low-volume, such as automotive and aerospace parts. This level of product is more expensive to move from China to North America when compared to shipping from Mexico. They also require more engineering skills than many products manufactured in China, which trend toward low-mix, high-volume, such as sunglasses or clothing.

As a result of Mexico's cost-effectiveness, global companies with a stake in the North American market, including Nestle and the BMW Group, have increased investments in their Mexican factories in recent months. In 2014, Nestle planned a $1 billion investment over five years to build and expand three of its factories in Mexico. And earlier this year, the BMW Group announced its new automotive plant in San Luis Potosi, Mexico as a boost to their "regional production flexibility in the Americas."

Read entire article here.

Ventus Global Logistics is headquartered in Laredo, TX and we have support offices in every major port in Mexico. No matter where your manufacturing operations are located in Mexico Ventus Global Logistics can meet your distribution and logistical needs. We offer ocean, land, and air freight shipping services and our distribution center is located at our headquarters in Laredo, TX. Contact us for a FREE quote.

Borderlands: CBP opens new fastlane at Laredo’s World Trade Bridge

World Trade Bridge

On August 5, U.S. Customs and Border Protection (CBP) held a ribbon-cutting ceremony for the completion of the World Trade Bridge's new Free and Secure Trade (FAST) Lane.

The new $10 million paved lane is for northbound FAST empty tractor-trailers to run directly from the bridge, and will decrease wait times at cargo facilities. The FAST program allows expedited processing of trucks owned by commercial carriers that have completed background checks and fulfill certain eligibility requirements.

"The World Trade Bridge processes on average 16,000 trucks daily, carrying goods valued at more than $300 billion annually," said U.S. Rep. Henry Cuellar (D-Laredo). "The creation of this FAST Lane will streamline trade and promote economic growth in the region."

Around 500 empty trailers will be processed daily and the hours of operation for FAST Lane will be Monday through Friday, 8:00 a.m. to 4:00 p.m.

"These improvements serve as vital assets to not only Laredo, but the entire United States economy," said Laredo Mayor Pete Saenz.
CBP officials estimate they process around 8,000 northbound truckloads daily at the World Trade Bridge facility.

"The ever-growing traffic volumes have far exceeded the limits of the present facilities and we will work hand in glove with our stakeholders at the federal, state and local levels to assist with improvements that will facilitate traffic at the busiest cargo facility in the southwest border," said David P. Higgerson, director of field operations at the CBP Laredo Field Office.

There were 195,918 commercial vehicle crossings at the World Trade Bridge in June, representing a 0.7 percent increase from the same time last year, according to the latest data from the city of Laredo.

Read More Here

Long wait times at the border giving you the blues? Feeling squeezed by the tight bottlenecks at the bridge? Relax, you have options. We operate out of every port in Mexico and we can reroute your goods through other ports even with a border slowdown or shutdown. In addition to land freight, our air and ocean freight services cover both consolidated shipments (LCL) and containers (FCL). Call us today for a FREE quote or fill out our online form.

Regional Development Key to a Strong North American Trade Bloc

North American Trade Bloc

For many years now, a concern of mine has been that the purpose of free trade and the agreements that envelop trade between regions has not been properly explained or promoted to communities, especially at the grass roots level.

Recently, Guillermo Malpica, trade commissioner of Mexico and executive director at the American Chamber of Commerce in Monterrey, Mexico, paid San Antonio a visit for a series of roundtables and presentations on the United States-Mexico-Canada Agreement(USMCA). At an energy sector meeting with Malpica, San Antonio energy industry leaders investing in Mexico were expecting to get a sense of direction and clarity regarding Mexico's energy policies.

One roundtable participant asked "what industries are the winners and the losers" in the USMCA. When you ask questions like these, you are basically taking apart a macroeconomic tool and looking at the individual parts. Separate parts don't work unless they are put together like a precision clock.

These types of agreements are not meant to be dissected. Not unlike the cute little frog you dissected in school, the innards don't look pretty. Trade agreements are macroeconomic tools that are designed to benefit economies. Yes, there were industries that were hit very hard once NAFTA came into play, but those industries were not ready.

The signals were clear when Mexico agreed to enter the General Agreement for Trade and Tariffs GATT in 1978 (today the World Trade Organization). My father, the Deputy Director General for the Foreign Trade Institute of Mexico during the 1970s, would have conferences and meetings with Mexican manufacturers, warning them to be ready to compete, up their quality, and export.

Read More Here

Are the delays at the border causing disruptions in your supply chain? Ventus Global Logistics has solutions to help. We specialize in land freight, ocean freight, and air freight. Contact us for a FREE quote.

Mexico first to ratify USMCA trade deal, Trump presses U.S. Congress to do same

USMCA Trade Deal

MEXICO CITY (Reuters) - Mexico on Wednesday became the first country to ratify the United States-Mexico-Canada Agreement (USMCA) agreed late last year to replace the North American Free Trade Agreement (NAFTA) at the behest of U.S. President Donald Trump.

By a vote of 114 in favor to 4 against, Mexico's Senate backed the deal tortuously negotiated between 2017 and 2018 after Trump repeatedly threatened to withdraw from NAFTA if he could not get a better trade agreement for the United States.

Mexican President Andres Manuel Lopez Obrador had already anticipated ratification this week in the Senate, where his leftist National Regeneration Movement (MORENA) and its allies have a comfortable majority in the 128-member chamber.

There has been little parliamentary opposition in Mexico to trying to safeguard market access to United States, by far Mexico's top export destination, and the trade deal was approved with overwhelming cross-party support in the Senate.

Mexico sends around 80% of its exports to the United States, and Trump last month vowed to impose tariffs on all Mexican goods if Lopez Obrador does not reduce the flow of U.S.-bound illegal immigration from Central America.

Lopez Obrador says he wants to avoid conflict with Trump, but noted at the weekend that the tariff dispute showed Mexico needed to become more economically self-sufficient.

Trump congratulated Lopez Obrador on Twitter for Mexico's approval. "Time for Congress to do the same here!" he wrote.

Lopez Obrador, meanwhile, posted a video on Twitter in which he called the Senate's approval "very good news" and said it augured well for Mexico's relations with the United States.

Canada, which has also fought with Trump over trade, is pressing ahead to ratify the deal. The main question mark hanging over its ratification is in the United States, where Democratic lawmakers have threatened to block the process.

Read Entire Article

Are the delays at the border causing disruptions in your supply chain? Ventus Global Logistics has solutions to help. We specialize in land freight, ocean freight, and air freight. Contact us for a FREE quote.

Mexico says it is close to U.S. metals tariff deal, waiting for Canada

Mexico Tariffs

WASHINGTON (Reuters) - Mexico is close to resolving its dispute with the United States over steel and aluminum tariffs without quotas but hopes Canada can reach a similar agreement before completing it, a senior Mexican official said on Wednesday.

Jesus Seade, Mexican deputy foreign minister for North America, told Reuters by telephone that a deal to remove the so-called Section 232 tariffs was "very close" but he wanted Canada to be in the same position in its negotiations with Washington.

"What we've been talking about for a week," he said, "is eliminating the 232 without any quotas," noting that it was "very possible" Canada could sign up to a "similar" deal.

Sudden movements in future trade could be handled via a "consultation and monitoring system," he added, noting Mexico still had the option of sealing a deal without Canada.

U.S. Treasury Secretary Steven Mnuchin also expressed optimism about a resolution to the steel dispute, but a top Canadian official avoided direct comment on that possibility.

"I think we are close to an understanding with Mexico and Canada," on resolving the tariffs, Mnuchin said at a U.S. Senate Appropriations subcommittee hearing. He did not provide any details about the potential agreement.

Canadian Foreign Minister Chrystia Freeland said she discussed the tariffs on Canadian metals with U.S. Trade Representative Robert Lighthizer on Wednesday, but declined to say whether the two countries were close to a deal.

"We made the case as we have been doing for some time that the best outcome for both Canadians and Americans would be to lift those tariffs and to have free trade between our two countries who have this fantastic trading relationship in place," she told reporters after the meeting in Washington.

A USTR spokeswoman declined comment on the meeting.

Asked about prospects for a deal, Freeland said she would not discuss Canada's negotiating strategy. She added that if Washington kept the tariffs in place, it would be "very, very problematic" for Canadian ratification of the new U.S.-Mexico-Canada Agreement trade deal (USMCA).

Read More