CBFANC Legislative Committee Update

Sandra Alvarez, Flexport LLC, CBFANC Legislative Committee

Myanmar/Burma: Violence has continued since the military took over the government and USTR has terminated its engagement with Myanmar.  The most important Trade element is the potential for the country to lose its GSP preference.  Meanwhile, Democrats in Congress want to modify GSP to show more enhancement towards the environment and labor.  More to come on this very fluid issue.
 
Digital Services Tax - Potential for new and additional tariffs from the EU.  The Trump administration had always viewed this as a discriminatory tax and the Biden administration pretty much agrees.  Some of the countries in play are the UK, Austria, Spain, Italy, and Turkey.  If any of them decide to move forward with this then the US will likely counter and impose a compensatory tax.   USTR will hold hearings starting May 4th.  This clearly presents a thorn in the EU/US Trade relationship.  More to follow on this topic.
 
China - China is in full mode of testing Biden. The boycott of Western retailers in China is worsening as Beijing cracks down on criticism of its human-rights record in Xinjiang, a top cotton producer for the apparel industry.  China has imposed sanctions on US government officials as well. In some parts of China, H&M stores were shut down by landlords as the company faces growing backlash in the country for expressing concerns about forced labor in Xinjiang.  Hugo Boss also under fire with Chinese celebrities halting work with the firm.  Nike and Uniqlo as well.  China is essentially challenging everyone and is saying to stay out of our business with regard to labor.  A whole new realm!  Something to pay close attention to.