As global economic and geopolitical environments enter a new era, companies need to continuously develop and adjust their coherent global business strategies to secure and further expand business opportunities in all markets while minimizing political and legal risks by ensuring compliance. To assist you with that task, Mayer Brown’s US-China Trade Monthly provides news and insights related to the latest US developments impacting the US-China bilateral trade relationship. In the current issue, we will discuss: (1) the public comments on the Uyghur Forced Labor Prevention Act, which provides for a presumption that likely will significantly impede imports from China when it comes into effect in June this year; (2) Ambassador Tai’s congressional testimony regarding US-China trade, stressing the need for new tools to “vigorously defend[] [US] values and economic interests from the negative impacts” of Chinese policies, (3) the Court of International Trade’s first major decision in the high-profile Section 301 litigation, and (4) the United States reinstating 352 product exclusions from Section 301 duties on imports from China. 

Public Comments on the Uyghur Forced Labor Prevention Act

In March and April, the public had the opportunity to comment on the Uyghur Forced Labor Prevention Act (“UFLPA” or the “Act”) through written comments and a public hearing. These events were the public’s major opportunities to provide input to the Forced Labor Enforcement Task Force (“FLETF”) on the implementation of the UFPLA. Now, the FLETF will review the comments and use them to inform final implementation of the Act. The UFPLA will fully enter into force on June 21, 2022.

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USTR Tai Previews Biden Administration Trade Policy in Congressional Hearings

On March 30 and 31, US Trade Representative (“USTR”) Katherine Tai appeared before the House Ways and Means Committee and the Senate Finance Committee, respectively, to present the Biden administration’s trade policy agenda for the coming year.* Substantively, the hearings were quite similar, and the administration’s vision for the Asia-Pacific region, particularly China, featured prominently in both hearings.

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* Biden Administration’s 2022 Trade Policy Agenda, WAYS & MEANS CMTE. (March 30, 2022); The President’s 2022 Trade Policy Agenda, U.S. SENATE CMTE. ON FINANCE (March 31, 2022).

Court of International Trade Issues Its Decision in Section 301 (China) Litigation

On April 1, 2022, the United States Court of International Trade (“CIT” or the “Court”) issued a decision in the Section 301 (China) tariff litigation case. The Court determined that the Office of the United States Trade Representative (“USTR”) had legal authority to issue List 3 and List 4A of the Section 301 China tariffs. However, it found that the USTR had failed to comply with the Administrative Procedures Act’s (“APA”) procedural requirements because it did not adequately respond to significant issues raised in public comments. The Court remanded the case back to USTR for “further explanation regarding the USTR’s rationale for imposing the tariffs and, as necessary, the USTR’s reasons for placing products on the list or removing products therefrom.” 

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Office of the U.S. Trade Representative Reinstates 352 Section 301 Exclusions

On March 28, 2022, the Office of the U.S. Trade Representative (“USTR”) announced the reinstatement of Section 301 exclusions for certain products. 

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