The International Trade Commission has launched an investigation into the effects of foreign-trade zone policies and practices on U.S. firms operating in FTZs and similar zones in Canada and Mexico. In requesting this investigation U.S. Trade Representative Katherine Tai said she wants to better understand the operation of these zones and whether and how related policies and practices impact employment and the competitiveness of goods produced in FTZs in the U.S. She indicated that this information will aid USTR as it pursues “a trade policy that invests in American workers, supports domestic manufacturing, and strengthens U.S. supply chain resilience.”

The ITC will provide an overview of economic activity in FTZs operating in the U.S., Canada, and Mexico since 2016, including the number of firms operating in, leading sectors and industries participating in, shipments into and exports from, and foreign direct investment in these zones. The commission will also provide an overview of current FTZ policies and practices in the U.S., Canada, and Mexico and an analysis of their effects on the cost competitiveness of products of firms operating in these FTZs.

As part of the ITC’s investigation a hearing will be held May 17, pre-hearing briefs are due by May 5, post-hearing briefs are due by May 24, and all other written comments are due by Nov. 30. A final report is due to USTR by April 14, 2023.

For more information on how FTZs can benefit your business, please contact attorney Lenny Feldman at (305) 894-1011 or via email.

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