I'll take the blame for that one.

We're into vibes based trade policy - where does a product "feel" like it comes from.

Predictability definitely been jettisoned.

Agree entirely - definitely hasn't landed.

Interested in what you think the potential sustainability points are? See one angle that you could argue for shifting production based on sustainability factors as a primary reason.

Agree, not that I've seen in the US. Would be interesting to see if it becomes an issue more than circumvention through other jurisdictions like Mexico where there's been pressure to match US tariffs.

You can see where they've pulled from previous subsidies text at the WTO and FTAs. Including how they schedule non-conforming measures which is straight from services texts.

What's your take?

It makes by brain hurt? From what I can see only Iceland and Switzerland have taken SCRM commitments. Costa Rica and NZ haven't. Even then their approaches totally different. Switzerland has done an aggregated figure while Iceland disaggregates at a product level.

5/ And careful on the comms! Saying that you're relocating production because of higher tariffs could land you in trouble.

4/ Build the business case for relocation which doesn't factor into account the lower tariffs. This would need to be robust and "objective" taking into account location, fixed costs, labour, political and regulatory environment. Lots to consider when building an evidence base.

3/ Then no matter where a product is produced, it will be deemed to have "originated" for customs purposes from the original country which has had the higher tariffs imposed on it.

So what could companies do?

2/ Main point is around what justifications can businesses use if they're looking to re-locate in order to shift production to avoid higher tariffs.

EU has said that if (based on objective factors) the "primary or predominant purpose" of the relocation is to circumvent the additional duties...

So you can wear it as a hat?

Just because you can, do you ever question whether you should?

I know what you'll be getting for Christmas now @explaintrade.com...

It's a problem though - I don't think I own any plain socks.

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