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Issue 1 2020 - FBJNA From the Editor


CONTACTS 2019 SALES


MATT WEIDNER Tel: + 1 610 486 6525 matt.weidner@fj-online.com


JOHN SAUNDERS - PUBLISHER Tel: +44 (0)151 427 6800 Mobile: +44 (0)7932 102026 john.saunders@fj-online.com


EDITORIAL


KAREN THUERMER -EDITOR karen.thuermer@fbj-online.com CONTRIBUTING EDITORS: PETER BUXBAUM MARK CALDWELL HANK DONNELLY JOHN JETER AMANDA LOUDIN


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LORRAINE CHRISTIAN Tel: +44 (0)151 427 6800 lorraine.christian@fj-online.com


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New Year, New Decade, Same Ole, Same Ole


By Karen E. Thuermer


Hello FBJNA readers! And Happy New Year! We hope this new year – and new “roaring 20s” decade -- brings you prosperity and many opportunities! In this issue, we celebrate in a special supplement the 75th anniversary of the Georgia Port Authority and wish them much success in coming years! GPA already started the new year with news that the Port of Savannah


moved 4.6 million TEUS in Calendar Year 2019, an increase of nearly 250,000 TEUs (5.6%) compared to the previous year, As we enter the new year, we face big news. First, let’s congratulate our elected government officials for finally passing the new United States-Mexico-Canada Agreement (USMCA), which is deemed a mutually beneficial win for North American workers, farmers, ranchers, and businesses. Referred to by some as “NAFTA 2.0,” the agreement updates the North


American Free Trade Agreement, the 1994 pact that governs more than $1.2 trillion worth of trade among the three nations. There are a lot more rules in the USMCA on intellectual property and data, as well as labor and environmental protections. One goal of the new deal is to have more cars and truck parts made in


North America. To qualify for zero tariffs, a car or truck must have 75% of its components manufactured in Canada, Mexico or the United States, a substantial boost from the current 62.5% requirement. There’s also a new rule that states that a significant percentage of the work


done on the car must be completed by workers earning at least $16 an hour -- about three times what the typical Mexican autoworker makes. Starting soon, cars and trucks must have at least 30% of the work on the vehicle done by workers earning $16 an hour. That gradually moves up to 40% for cars by 2023.


In mid-January, President Trump and Vice Premier Liu He of China met


in Washington to sign “Phase 1” of the US-China a” trade deal that includes some tariff relief, increased agricultural purchases and structural change to intellectual property and technology issues. What does this mean? Most tariffs remain in place after January 15. American businesses and consumers will continue to pay 25% tariffs on


some $250 billion worth of Chinese exports (USTR Lists 1, 2, 3), which include many intermediate inputs and capital equipment, such as chemicals and machinery. The 15% tariffs on $120 billion in Chinese products (USTR List 4), which includes consumer products like clothing and textiles) will be cut in half. Some pundits suggest the “transformative” phase-one deal is more of an


“uneasy cease-fire” than an end to trade tensions. Rufus Yerxa, President of the National Foreign Trade Council, stated: “We


are glad to see progress towards a resolution of the U.S.-China trade war, but it is important to remember that there is a lot more work to do. As with any trade agreement, the devil is in the details, and many of details of this deal are not clear yet.” NFTC stresses that in the coming days and weeks the importance of


the US and China providing more clarity on the removal or reduction of tariffs on each other’s products and on Chinese purchase commitments. This is necessary, he says, so U.S. exporters can better assess new business opportunities, and to release details alluded to in the agreement, including on China’s Action Plan to strengthen intellectual property protection.


“Enforcement will be key to the success of this deal,” added Yerxa. The NFTC believes that tariffs should not be the first resort in disputes


with China or with our other trading partners. Going forward, China and the United States must work through the newly-created bilateral dispute resolution mechanism to assess compliance with the agreement and to resolve tensions as they arise in order to prevent future cycles of new tariffs, which would create permanent uncertainty for businesses. Meanwhile, as of this writing, all eyes are on Donald Trump as he arrives


in Davos, Switzerland for the World Economic Forum. He will, in his fashion, be quick to tout trade victories given USMCA and the US-China Phase 1 deal. But he will also most likely set the scene for what could be a big trade fight with the European Union this year. While, so far, he has struck a cautiously optimistic tone on trade talks


with Europe, Trump has kept the threat of new car tariffs firmly on the table. Trump has long accused the EU of gaining an unfair trade advantage,


and, consequently, threatened to slap new tariffs on European cars and car parts, a vital export product, particularly for Germany, the euro zone’s biggest economy. In his keynote speech, Trump also talked up the prospect of a


“tremendous” trade deal with the United Kingdom, hailing “wonderful” Prime Minister Boris Johnson. He hailed a new era of trade deals that emphasize “reciprocity” — fairness for both parties. Johnson’s signing – or making progress on such a trade deal could prove


to be a crucial part of Britain’s leaving the European Union in 2020. Not only would such a deal enhance economic activity between the UK and the US -- the world’s largest economy. It would offer crucial leverage to UK negotiators in Brussels. Enter the decade of the Roaring 20s. It’s politics as usual.


///NEWS


Freight Business Journal North America - FBJNA reaches out to the decision makers and influencers involved in international freight transport and logistics. FBJNA boasts the most informative and authoritative source of information with unrivalled in depth knowledge of the rapidly changing freight business environment. Our complimentary website www.fbjna. com provides the most up to date news and analysis from within the international shipping industry.


If you have any stories or letters which should be of interest or any feedback on FBJNA, please contact our editor Karen Thuermer - karen.thuermer@fbj-online.com


next issue >>


Our next issue will include features on: Breakbulk, West Coast Ports, Asian Trade and Trends in Digitalization.


For further details contact: Matt Weidner - T: + 1 610 486 6525 E: matt.weidner@fbj-online.com


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