In a recent Law360 article, Thompson Coburn partner Robert Shapiro commented on the delay of higher tariff rates, which has prompted lawyers to closely examine the technical details of the latest trade agreements, particularly the definition of transshipped goods.
Robert said the agreements as a whole raise a number of practical and legal questions.
“Since the agreements aren’t published, you can’t really say what they mean, but I’m not sure what they mean,” he said. “I’m not sure what they mean in a legal sense either. I don’t know how binding they are.”
Robert said the trade agreements with countries geographically near China could be important for the U.S. to build trade influence in the region through bilateral arrangements, as opposed to a multilateral deal such as the Trans-Pacific Partnership, a proposed trade deal with many of the same countries Trump is striking deals with now that would have reduced trade dependence on China. Trump withdrew from TPP during his first term.
“In some ways, this is TPP by another mechanism, or a harsher mechanism,” Robert said. “We’re using tariff force, if you will, to try to get the rest of the world to help us, or to play the same game in some ways with China.”
The 40% tariff rate announced in the Vietnam deal for transshipped goods could be an integral component to further deter Chinese trade influence, he said.
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