Washington Trade Daily

11/06/2020

World Trade Organization General Council Chair David Walker has announced Monday's meeting to decide the next WTO Director General has been postponed, because of the new COVID-19 restrictions in Geneva and "current events" (i.e. US Presidential election).

09/15/2020

A World Trade Organization dispute panel ruled today that the United States' Section 301 tariffs on China violate WTO rules, prompting US Trade Representative Lighthizher to argue that the ruling shows the WTO is not equipped to deal with China's unfair trade practices.
His statement: “This panel report confirms what the Trump Administration has been saying for four years: The WTO is completely inadequate to stop China’s harmful technology practices,” said Ambassador Lighthizer. “Although the panel did not dispute the extensive evidence submitted by the United States of intellectual property theft by China, its decision shows that the WTO provides no remedy for such misconduct. The United States must be allowed to defend itself against unfair trade practices, and the Trump Administration will not let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers. It is important to note that this report has no effect on the historic Phase One Agreement between the United States and China, which includes new, enforceable commitments by China to prevent the theft of American technology.”

12/13/2019

After many months of on-and-off negotiations, the United States and China have reached a “phase one” trade deal, President Trump announced this morning.
The tariffs Washington was set to impose on Chinese consumer products effective December 15 will not take effect, the President tweeted. But 25 percent tariffs already in place on other Chinese products will remain in place, with 7.5 percent tariffs on much of the remaining products, according to Mr. Trump.
Negotiations on a “phase two” deal will begin immediately, Mr. Trump said.
He defended the agreement, saying that Beijing has “agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more.”
A statement from the US Trade Representative’s Office said that the agreement “requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years.”
It also includes a strong dispute resolution system, USTR said.
In exchange, the Administration “has agreed to modify its Section 301 tariff actions in a significant way.” The United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports, according to USTR.

12/10/2019

House Speaker Nancy Pelosi (D-Calif) announced this morning that House Democrats and the Administration have agreed on changes to the US-Mexico-Canada trade agreement, paving the way for a vote.
House Ways and Means Committee Chairman Richard Neal (D-Mass) called the revised USMCA a “template” for future US trade deals, noting that it has the support of organized labor.
“It’s an agreement that Democrats shaped,” he said.
The implementing legislation for the USMCA could be on the House floor as soon as next week, according to Mr. Neal.
The “fast track” Trade Promotion Authority process gives Congress a total of 90 days to consider a trade bill, but lawmakers have the ability to greatly accelerate that timeline.
Chief trade negotiators for the USMCA from all three countries will meet today at noon in Mexico to sign off on the changes, according to Mexican Undersecretary for North America Jesus Seade. US Trade Representative Robert Lighthizer, who has been working with House Democrats for months to come up with language that would gain Democratic votes, Presidential advisor and son-in-law Jared Kushner and Canadian Deputy Prime Minister Chrystia Freeland have converged in Mexico for a meeting with Mexican officials to give final approval to the changes.
Agreement came after intense negotiations over the weekend between Mr. Lighthizer, House Democratic leaders and the Canadian and Mexico negotiators. Both Mr. Lighthizer and Speaker Pelosi also were keen to have organized labor on board.
AFL-CIO President Richard Trumka announced his support this morning, saying that”make no mistake, we demanded a trade deal that benefits workers and fought every single day to negotiate that deal; and now we have secured an agreement that working people can proudly support.”

09/24/2019

Facebook followers -- We want to hear from you. What impact -- if any -- do you think impeachment proceedings against President Trump will have on prospects for a House vote on the USMCA?

07/31/2019

US-CHINA TALKS TO CONTINUE IN SEPTEMBER
There were no major breakthroughs at a short round of high-level US-China trade talks that ended today in Shanghai, but the discussions were "constructive," with the two sides agreeing to meet again in early September, according to the White House.
"We expect negotiations on an enforceable trade deal to continue," a White House statement said.
During the talks, Beijing confirmed that it will increase purchases of US agricultural products. China's failure to carry out any earlier commitment to buy more farm products has been a sore point with President Trump in recent weeks.
Among the topics discussed in Shanghai were forced technology transfer, intellectual property rights, services, non-tariff barriers and agriculture, according to the White House.

07/26/2019

House Democrats working group on USMCA releases report to Speaker Pelosi on status of negotiations with USTR Lighthizer following final meeting before August break.

WASHINGTON, DC – Today, Ways and Means Committee Chairman Richard E. Neal (D-MA) released the following statement after the House Democrats’ trade working group met with U.S. Trade Representative (USTR) Robert E. Lighthizer:

06/06/2019

President Trump explains his tariff policy (sigh):

"We've told Mexico the tariffs go on. And I mean it, too. And I'm very happy with it. And lot of people, senators included, they have no idea what they're talking about when it comes to tariffs. They have no -- absolutely no idea.

When you have the money, when you have the product, when you have the thing that everybody wants, you're in a position to do very well with tariffs, and that's where we are. We're the piggybank. The United States is the piggybank. It has all the money that others want to take from us, but they're not taking it so easy anymore. It's a lot different."

05/17/2019

Perhaps cognizant of the fact that this is not a good time to start another tariff war, President Trump this morning walked back from his oft-repeated threat to impose 25 percent tariffs on imported autos, saying that he instead has directed US Trade Representative Robert Lighthizer to negotiate agreements with Japan and the European Union that would reduce their imports
Mr. Trump is giving Japan and the EU six months to conclude deals with the United States.
The President confirmed that Commerce Secretary Wilbur Ross found that imported autos are parts are a national security threat in his Section 232 report. “The Secretary found and advised me of his opinion that automobiles and certain automobile parts are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States,” according to the Presidential proclamation.

05/14/2019

In advance of the stock market opening, President Trump is being upbeat about the possibility of a trade deal with China. Last night he suggested a deal could come in "two to three weeks" and this morning he's tweeting that there could be a deal tomorrow if China wants.

Meanwhile, the tariff war escalates.

05/09/2019

President Trump says he is "starting the paperwork" today to impose 25 percent tariffs on an additional $325 billion worth of Chinese products in addition to 25 percent tariffs on $200 billion that takes effect at midnight, but still sees possible trade deal this week.

He also insisted that the tariffs are paid by the Chinese, arguing that those who say US businesses and consumers pay are wrong.

Someone didn't take Econ 101.

04/29/2019

Never one to mince words, Senate Finance Committee Chairman Chuck Grassley has a blunt warning this morning for President Trump -- the US-Mexico-Canada trade agreement "dead" unless President Trump lifts the Section 232 tariffs on steel and aluminum from Canada and Mexico.